2. We offer to chenoa products
Feature
Chenoa Advantage
Chenoa Edge
1st:
FHA Conforming (call for pricing on High Balance)
FHA Conforming only
2nd:
8% rate 10 year fully amortized
0% rate 10 years amortized
Compensation
Borrower or Lender Paid – not to exceed 3% in point and fees – must include Essex 1095
Borrower Paid only – Broker can charge 2.25%
Essex Fee - $1095
1st Time Homebuyer
Not required
Not Required
DTI
50% (can not use an MCC)
DU approval (Can not use an MCC)
FICO SCORE
640
620
Max Income
115% of AMI – check with AE to help you calculate per Chenoa
No Income Restrictions
Property
1 unit, SFR, Condo, PUD
1-2 units, SFR, Condo PUD (income can be used on 2nd unit at 75%)
Sales Price Restrictions
None
Co borrower or Cosigner
Not allowed
Allowed
W2 program
Allowable if salaried and 1 unit
Allowable if salaried and 1 unit
Limit of how many loans can be submitted to Essex Mortgage
No limit

3. PROGRAM LOCKING & Program fees
PROGRAM LOCKING & Program fees any fee below affects the 3% point and fees test.
Loan must be locked by 1:00 PM, PST
All PTD’s must be cleared before locking.
$1095 to Essex
Advantage: Borrower paid - Up to 2.25% Broker fee - (unless loan does not meet 3% points and fees test)
Edge – Lender paid if meets 3% points and fees
Program hits, i.e. FICO score and loan amount hits also go toward points and fees.
Can have a Contract Processing Fee max $1125 if it passes 3% test.
Programs Codes:
Advantage: 1st: FHA CHRA
2ND: CHRA
Edge: 1st FHA 3030CH
2ND: 4030CHDPA

4. Secondary Financing on 1003

5. Declarations page of 1003

6. Secondary Financing –DO/DU
Page 2-Types, Terms, & Property
Page 7-Transaction Details

7. Secondary Financing LP

8. Calculating Area Median Income
Go to the HUD Area Median Income Site. This can be found online at:

9. Select the state, select the county, click the button “View County Calculations”

10. Always begin at 1-4 people living in the house,  2 people always use 4, 3 people always use 4.. you get the idea, that’s why 4 is in bold as you begin there J
LOS ANGELES COUNTY here are sample income limits, LA County at min the income limit is 111,435 for 1 to 4 people in household
The 1-4 person household very low income is $48,450 x 2= $96,900 and if you multiply that number by 115% the result is $111,435 for a household of 1-4 persons.
The 6 person household very low income is $56,200 x 2 = $112,400 and if you multiply that number by 115% the result is $129,260 for a household of 6 persons.
The 8 person household very low income is $64,000 x 2 = $128,000 and if you multiply that number by 115% the result is $147,200for a household of 8 persons

11. Next Steps…
Process your loan file as usual (upload 1st& 2nd – 2 loan numbers)
1st: FHA guidelines (okay to use FHA submission sheet); submit complete file.
2nd : Submit 1003 with loan amount of 2nd – and submission sheet (nothing else)
Advise of both loan numbers when uploaded.
We approve – We fund!