1. Introducing our Essex Advantage 100% fha DPA PRODUCT 0% DOWN PAYMENT IN HOUSE APPROVAL!!!
Welcome to our Essex Advantage program - FHA 100% Down Payment Assistant Program. We are very happy that we can offer this to your and your clients. This is a great way for a borrower, who is shy of having money for their down payment, but still wish to buy a home.

2. 100% DOWN PAYMENT ASSISTANT PROGRAM
Essex Advantage
Product Notes
Loan Amount: 1st:
96.5% FHA Conforming Loan Limits
Loan Amount 2nd:
3.5% - Note rate is 8% amortized for 10 years. A payment is due and payable monthly.
Compensation for Broker:
Borrower paid or Lender paid
Max compensation is 2%
(Example: If you comp plan is over 2%, you are required to go borrower paid. If you your comp plan is 2% or less, you can go lender paid if you pass the 3% points and fees test. Rebate pricing can not go to pay the borrower paid compensation. It can be paid by the borrower, seller, or realtor. On FHA loans you can have up to 6% seller contributions.
Third Party Contractor Fee
Allow up to $1125 – not counted in the points and fees test
Essex Fees
$1350 on the 1st
$250 on the 2nd
The Advantage FHA loan offers an FHA 1st – conforming loan limits. The 2nd is 3.5%. The Note rate is 8% with an amortized term of 10 years. There is a payment and it must be counted in the ratios.
Your broker comp is limited to 2%. If you have a comp plan of 2% or less, you can choose to do lender paid or borrower paid as long as it all meets the 3% points and fee test. If your comp plan is over 2% you will be asked to go borrower paid. Remember that rebate pricing can not go to pay the borrower compensation due to the broker. The borrower paid comp can be paid by the borrower, seller, or realtor. And also on FHA loans, you can have up to 6% seller contributions. You are allowed to charge a 3rd party contractor fee up to $1000 – this is not counted toward points and fees.

3. DPA PROGRAM CONTINUED….
Essex Advantage
Product Notes
1st Time Homebuyer
NOT Required
FICO
640
DU Approval (2nd payment must be included)
MAX DTI RATIOS BY FICO SCORE
FICOS = Max DTI 50%
FICO 680+ = 55% Max DTI%
Income
No restrictions
Non Occupant Co Borrower
Allowed: Only on 1 units
W2 Program
Allowed
MCC’s
Allowed if available – call your AE
Property
1-2 units – SFR, Condo & PUD
(75% income can be used on the 2nd unit)
We require a 640+ FICO SCORE. Our DTI ratios are driven by the FICO Score We do not have any income restrictions on this program. You are allowed to use a Non occupant co borrower if you are doing 1 unit only. You can also incorporate the W2 program and or MCC’s if the money is available for your county. Check with your AE.
The property requirements are 1-2 units. If doing units, you can count up to 75% income on the 2nd unit.

4. Dpa Program continued Essex Advantage Product Facts Lending States
All states approved by Essex (see our web site under FAQ’s to see current lending states) Exception: This product can not be done in New York
Limit of loans
No Limit
Home Ownership Education
At least one borrower one must do one of the following:
complete the Framework homeownership education course ($75 fee paid by the borrower to Framework) prior to closing; or
receive housing counseling from a HUD-approved nonprofit housing counseling agency (as evidenced by a signed Certificate of Completion of Housing Counseling (Form 1017)
How to Submit your loan
Two loans need to be created.
We require the complete package on the 1st.
On the 2nd we will only need the submission sheet
Product Codes:
1st: 3030CHF 2nd 4030CHF
Essex is approved in 35+ states, and growing. We lend in all our states approved with the exception of NEW YORK. At the moment, the product is not approved in NY. To see what states we lend in, you can go to our web site and look under FAQ’s. Look up lending states. You will see a map of the states we are approved.
We do not limit you on the amount of these loans that you can submit. There is Homeownership counseling for this product.
When submitting your loans, you will be submitting 2 loans (two loan numbers) – 1 for the 1st and one for the 2nd. The 1st requires a complete package. The 2nd just needs a submission sheet.

5. How to lock your loan This is a MANUAL LOCK
We only offer only 15 day locks to give you the best price
Make sure you are ready to fund in 15 days from when you lock
BEFORE YOU CAN LOCK:
Loan must be approved
Appraisal signed off by Underwriter
Review pricing on page 1 of rate sheet
Loans must be locked 1:00 PST
your lock to:
How do you lock this loan? You can not price this in the Broker Connect. It is a manual lock. You can find the pricing on page 1 of the rate sheet. When you are ready to lock – meaning you have an approval and the appraisal has been reviewed by the underwriter – there is nothing to hold up this loan. This is a 15 day lock so make sure you can fund this in the 15 day period.
Once you have gone thru those steps – you can your lock to All locks on this product have to be received by 1:00 PST

6. “SAMPLE” RATE SHEET Essex Advantage 100% FHA DPA Product
Here is an example of a rate sheet. Be sure you ready to have a 15 day lock. There are no 30 day locks.
Our fees are $1350 for the 1st and $250 for the 2nd.
Our rates are very competitive!

7. Secondary Financing on 1003
These two screen shots help you when completing your 1003 – this is how you disclose the 2nd.

8. Secondary Financing –DO/DU
Page 2-Types, Terms, & Property
Page 7-Transaction Details
This screen is to help you when running your DU on how to disclose the 2nd.

9. How to RUN AUS - DU

10. On the 92900-LT (fha transmittal summary

11. Thank you for choosing ESSEX FOR YOUR DPA NEEDS
Thank you for choosing Essex for your mortgage needs. We are here to help.
Our Account Executives are always available for you.
And we have a very informative web site you can use –
Thank for choosing Essex.