Essex Mortgage Brings CALHFA PRODUCTS to you! - PowerPoint Presentation

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Essex Mortgage Brings CALHFA PRODUCTS to you!

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How do you know

what program you want?

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Do you want to work with an FHA or Conventional loan? Do you want a 1st, 2nd, and 3rd or just a 1st

and 2

nd

?

Is your borrower a FTHB

; they must be! (Exception – has not had an ownership interest in any principal residence during the previous 3 years).

You have several product options, but they all surround these basic descriptions!

CalHFA 1

st

–

only allows a 2

nd

(

Conventional or FHA

) can be combined with:

My Home Assistance 2

nd;

or

School Program 2nd.

Cal “Plus” 1

st

-

allows for a 2

nd

and 3

rd

(Conventional or FHA) can be combined with:

My Home Assistant 2

nd

School Program 2

nd

My Home Assistant 2nd and a ZIP 3

rd

School Program 2

nd

and a ZIP 3

rd

(

One borrower must be affiliated with a K-12 school, including public charter schools, school district offices and county/continuation schools

.

NOTE:

My Home and School Program can only be used for down payment and/or closing cost assistance. This is not to be used to pay the difference in sales price and appraised value if the sale price is higher. It also can not be used for paying off borrower debt.

ZIP can only be used to pay for closing costs and/or prepaid items only.

Compare: My Home Assistance – ZIP – SCHOOL FHA or Conventional)

MY

HOME ASSISTANCE – 2nd only

ZIP – Can

be a 2

nd

or a 3rd

School Program – can only be a

2

nd Can only be used as a 2nd with a CalHFA 1st or CalPlus 1st – Can be used as 2nd or 3rd with a CalPLUS 1st only. (Must be in third position if used with My Home AssistanceCan be used with a CalHFA as 2nd (not with My Home), or Cal Plus as 2nd and add a ZIP 3RD3.25% Simple Interest Rate compounded annually; deferred payments. Due when 1st is paid in full, refinanced, or assumed. No forgiveness of debt. 0% Interest Rate/payments Due when property is transferred or 1st loan is refinanced, or paid in full. No forgiveness of debt.3.25%– simple interest deferred paymentDue when property is transferred or 1st loan is refinanced, or paid in full. No forgiveness of debt.Loan amount: 3 1/2 % of Sales Price or appraised value, whichever is lessLoan amount can be 2% or 3% of 1st loan amount (including MIP)Loan amount not to exceed 4% of lesser of s/p or a/v/

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CalHFA Made Easy

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Comparing Programs (cont.)

CalHFA

Con 1st

CalHFA FHA 1st

Cal Plus

Con 1st

Cal Plus FHA 1st

MHA

2

ND only

ZIP 2

nd or 3rd2nd only :School Program640 Minimum FICONo manual underwriteCan not use a ZIP640 Minimum FICO660 FICO if manual underwriteCan not use a ZIP640 Minimum FICONo manual underwrite640 Minimum FICO660 FICO if manual underwriteDepending on 1st TDDepending on 1st TDDepending on 1st TDSFR, Condos and PUD’sSameSameSame SameSameSameN/O co-signors/borrower are not allowedSameSameSame SameSameSameConforming or High Balance limits – check Add on fee for HB loans see page 8 of rate sheetSameSame3 12 20195

Comparing Programs cont.

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CalHFA

Con

CalHFA FHA

CalPlus Con

CalPlus FHA

MHA 2

nd

only

ZIP (2nd or 3rd)SCHOOL PROGRAM (2nd only)Home Education required for 1 occupantSameSameSameSameSamesameNot subject to recapture taxNot subject to recapture taxNot subject to recapture taxNot subject to recapture taxNot subject to recapture taxNot subject to recapture taxNot subject to recapture tax3 Years Tax ReturnProof of no homeowner-ship in last 3 Years: Tax Returns or 4506 optionSameSameSame SameSameRATIOS:45% Max DTI 43% if Manual underwrite45% Max DTI45% Max DTI 43% if Manual underwrite

Same as 1st TD

Same as 1

st

TD

Same as 1

st

TD

Comparing Programs (

cont)

CalHFA

Con

CalHFA FHA

Cal

Plus

Con

Cal Plus FHA

MHA

2

NDZIP (2nd or 3nd)School ProgramMI – Genworth18% on 97% LTV16% on 95% FHA MIPMI 18% on 97% LTV16% on 95% LTV GenworthFHA MIPn/an/an/aOne Year Home Warranty must include water heater(s), air conditioning and heating; oven/stove/rangePaid receipt required at time of funding to show this was purchasedSameSameSamen/an/an/a3 12 20197

New CHANGE for 2019

CalHFA Income Calculations

Calhfa no longer has a different version of how to calculate income.

CalHFA will underwrite to industry standards for FHA, Conventional and VA.REMINDER:MAX RATIO 45% (43% for manual)

FICO 640 3 12 20198

Fees and Lock Periods

FEES FOR THE PROGRAM

BORROWER PAID ONLY

Broker

Compensation 2.375% or $3000 whichever is more (must pass 3% points and fees test)

1

st

TD:

$1350 Essex Admin Fee

2

nd

TD: If using My Home Assistance or Extra Credit Teacher : $250 Essex Processing Fee (you can’t use together)2nd TD: If using ZIP for a 2nd or 3rd: $11.95 MERS FeeHome Warranty fee Third Party Contractors allowed if within the 3% points and fees test. LLOCK WHEN APPROVED AND APPRAISAL SIGNED OFFLock Period is for 30 daysLOANS MUST BE LOCKED BY 1:00 – MANUAL LOCK – LOCKS@ESSEXMORTGAGE.COMCALHFA turn times found at CalHFA.govHow much of your production with Essex can be CalHFA products? 50%Option for unlimited CalHFA’s: 1.75 +.50 origination fee + $1350 + $250 Ask your AE how this can be done.3 12 20199

Income Limits - regardless of household size

(effective 1 16 18) & Sales Price Limits

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SALES PRICE LIMITS:

$765,000 Statewide

Refer to CalHFA Loan limitations for FHA and Conventional

Sample Loan Scenario

http://www.calhfa.ca.gov/calc/scenario.html

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Can CalHFA liens be subordinated?

Effective 7/1/2019 CalHFA will not allow for subordination.

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FOR MORE INFORMATION ON REFINANCING AND SUBORDINATION: https://www.calhfa.ca.gov/homeownership/forms/application-resubordination.pdf

Property

1 unit only – no units – SFR, condo or PUD’s

Guest Houses (granny units) are eligible; zoned for SFR/must meet city/county zoning Cannot be zoned for 2-4No income producing; personal use only

No Manufactured housing (Essex requirement)No LeaseholdNon permitted additions/alterations per FNMA or FHA guidelines

Lot size – max 5 acres3 12 201913

SAMPLE

PRICING (subject to change)Rates found on page 8 of rate sheet

Manual Lock – locks @essexmortgage.com; Loan must be approved and appraisal signed off.

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1

ST Time Homebuyer – Homebuyer Education &

First Time Homebuyer (FTHB)

For CalHFA purposes, a FTHB is defined as a borrower who has not had any ownership interest in any

principal residence during the previous 3 years.If currently owns a non owner residence, 3 years of cancelled checks would have to be provided to show paying rent elsewhere; living with parents would not suffice. This would only be require if DU calls for a VOR. If no VOR is called for, then no cancelled checks would be required.

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How to Submit

1

st

TD

2nd TD

3

rd

TD (if there is a 3

rd

)

Broker to

use additional Addendum Submission Sheet for CalHFA in addition to regular Submission Sheet. Choose the Option Plan.Broker to register and create a loan number for each loan submittedBroker to register and create a loan numberBroker to register and create a loan numberEssex will discloseEssex will discloseEssex will discloseSubmit submission sheet & addendum, fees worksheet, wet signed 4506T, and complete credit package1003 for the 2nd (3.2)1003 for the 3rd (3.2)Additional Forms for the program: CALHFA Borrower Affidavit and Tax Affidavit if applicable (forms on Essex website) N/AN/A3 years 1040’s or 4506 for each year. – Attach top portion of the 1040’s for accurateness when we submit the 4506.N/AN/A3 12 201916

CALHFA Addendum Submission Sheet

http://www.essexwholesale.com/products/produc/calhfa/

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How to run DU Conventional

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How to run DU FHA

Note: The rates and % of loan has changed from this SAMPLE See daily rate sheet for most current rates – below are sample rates and %’s ONLY. Call your AE if you have any questions.

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Additional required CALHFA Forms at time of submission:

Forms found at:

http://www.essexwholesale.com/products/produc/calhfa/

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time HB)

CALHFA Borrower Affidavit dated Tax Return Affidavit (only required if borrower not required to file 1040’s) (7/10/2013)

These forms can be found at

www.essexwholesale.com

, click on Products - CalHFA

Home Buyer Education: (required for one occupying 1

st time buyer – not required for non-1st time homebuyers if using ZIP only – it is required for all My Home Assistance products) On line: https://calhfa.ehomeamerica.org/sponsor_user/sponsor_main

Conventional Mortgage Insurance

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