ESSEX PRESENTS 100 FINANCING FOR FHA CONVENTIONAL CONVENTIONAL

ESSEX PRESENTS 100% FINANCING FOR FHA, CONVENTIONAL & CONVENTIONAL HOME READY PRODUCTS 0% DOWN PAYMENT IN HOUSE APPROVAL!!! 9 8 20 20 1

100% DOWN PAYMENT ASSISTANT PROGRAM Program Facts and Requiremen ts 9 FHA 96. 5% 1 st 3. 5% 2 nd = 100% CLTV CONVENTIONAL 95% 1 st HOME READY 5% 2 nd = 0 Tuesday, 97% 1 st June 23, 202000 3% 2 nd = 100% CLTV Loan Amount: 1 st: 96. 5% FHA Conforming & HIGH BALANCE Loan Limits 95% Conventional Conforming Loan Limits 97% Conventional Home Ready 2 nd TD: % of loan amount and rate on 2 nd. 5% Note rate is 2% above what the 1 st TD Rate turns out to be. See rate sheet for 1 st TD rate options. Payment due monthly; 10 year term. . AZ state; minimum 2 nd can not be less than $5000 3% Note rate is 2% above what the 1 st TD Rate turns out to be. See rate sheet for 1 st TD rate options. Payment due monthly; 10 year term. . AZ state; minimum 2 nd can not be less than $5000 8 20 20 3. 5% Note rate is 6% amortized for 10 years. A payment is due and payable monthly. For AZ state only: The minimum 2 nd can not be less than $5000. 2

9 8 Facts & Guidelines FHA CONVENTIONAL HOMER EADYY Compensation for Broker: Borrower paid or Lender paid Max compensation is 2. 25% (Example: If you comp plan is over 2%, you are required to go borrower paid. If your comp plan is 2. 25% 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. Same EXCEPT – Seller contributions max out at 3% Same as Conventional 20 20 3

Facts and Requirements FHA CONVENTIONAL HOME READY Third Party Contractor Fee Allow up to $1125 – not counted in the points and fees test Same Essex Fees $1350 on the 1 st; no fee on the 2 nd No separate title policy on 2 nd necessary. . Same State of ARIZONA For AZ only: the $1350 must be built in the pricing. Same Minimum 2 nd $5, 000 Property Type 9 8 20 20 OWNER OCCUPIED SFR, CONDO, PUD NO MANUFACTURED 4

100% DPA’S FHA CONVENTIONAL 1 st Time Homebuyer Not Required At least 1 borrower Not required must be a FTHB MINIMUM FICO 660 DU Approval (2 nd Same payment must be included) MAX DTI RATIOS 660 -679 – 50% DTI Max 680+FICO: 55% DTI MAX 9 8 20 20 CONVENTIONAL HOME READY 660 Same DU APPROVAL Same as (usually maxes out conventional at 45%) 5

9 8 20 20 100% DPA’S FHA Income Contact your AE 80% of AMI or none if in low income census tracts https: //ami -lookuptool. fanniemae. c om/amilookupto ol Non Occupant & Co signer Allowed W 2 Program for Allowed salaried or hourly CONVENTIION AL CONVENTIONA L HOME READY Permitted to 95% LTV with max 43% DTI for occupying borrower (no income limits) Same as Conventional but income for N/O/O will be considered in income limits Same 6

DPA PROGRAM CONTINUED 9 8 Facts and FHA Requirements CONVENTIONA L L HOME READY 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 or WA. Same Housing History 1003 must contain a “present” housing payment. If the borrower is not currently making a housing payment, $0 must be shown on the application and the file must contain a letter of explanation to address why they do not have a housing payment and explain their current housing arrangement. Same Ownership of other properties Per FHA Guidelines Both occupant and N/o/o MAY NOT have ownership in other property Both occupant and N/O/O MAY have ownership in other property MIP/Mortgage Insurance Per FHA 30% MI Coverage reduced from 35% if you were doing 97%) 25% Coverage (LTV’s 90. 01% to 97. 00% 20 20 7

9 8 20 20 Facts and Requirements FHA Conventional Home Ready Home Ownership Education At least one borrower one must do one of the following: complete the Framework homeownership education course 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) https: //homeready. framewo rkhomeownership. org/ Framework no longer charges a fee. Not Required REQUIRED – SAME AS FHA How to Submit your loan Two loans need to be created. We require the complete package on the 1 st. On the 2 nd we will only need the submission sheet Product Codes: 1 st: 3030 NHF 2 nd 4030 NHF 1 st: 1030 NHF 2 ND: 4030 CHC 1 ST: 1030 NHFHR 2 ND 4030 NHF 8

CONVENTIONAL HOME READY “PRICING BENEFITS” • Agency fee hits for CONDOS and FICO HITS are limited based on FICO – 680% CAPPED AT 0% FOR Agency Hits EXAMPLE: If you have a 682 FICO and the property is a condo: The normal pricing hits would be 1. 00% for 682 FICO. 750% for Condo If using Home Ready, these fee hits would be waived and your max fee hits would be capped at 0%; a savings of 1. 75% 9 8 20 20 9

HOW TO SUBMIT YOUR LOAN Upload 2 loans – 2 loan numbers – 1 st and 2 nd 1 st loan: Upload a Complete Submission form and credit package 2 nd loan: Upload a Submission form with loan amount of 2 nd. Fees: 1 st TD $1350 2 nd TD – no fee; no additional title insurance required for the 2 nd either. Contract Processor: $1125 max fee allowed – indicate on submission form and attached billing (not counted on the 3% max points and fees) PRODUCT CODES: See rate sheet (currently on page 4) ARIZONA LOAN RESTRICTIONS: $5, 000 MINIMUM 2 ND ; Admin for 1 st will be added in the pricing when locking loan. 9 8 20 20 10

HOW TO LOCK YOUR LOAN • This is a MANUAL LOCK; you will not be able to check the pricing in the Broker Connect Pricing Engine. • • • 2% Maximum compensation – broker or lender paid. PRICING IS LOCATED ON PAGE 4 OF RATE SHEET. We offer 45 DAY LOCKS. Loans must be locked 1: 00 PST Email your lock to: locks@essexmortgage. com LOAN MUST BE APPROVED BEFORE YOU CAN LOCK THIS LOAN QUESTIONS: Call your Account Executive Thank you for choosing Essex Mortgage www. essexwholesale. com 9 8 20 20 11

SAMPLE OF THE “FHA” PRICING –SEE RATE SHEET FOR CURRENT PRICING 9 8 20 20 12

SAMPLE OF CONVENTIONAL PRICING – SEE RATE SHEET FOR MOST CURRENT PRICING 9 8 20 20 13

SAMPLE OF HOME READY PRICING – SEE RATE SHEET FOR CURRENT PRICING 9 8 20 20 14

TIPS ON HOW TO RUN DU There a few areas to indicate the down payment is being borrowed. First on page 1 for the source of funds pull down menu, select SECURED BORROWED FUNDS. Next in the Declarations section of the 1003 (Section 8 “h” ) select YES for indicating the down payment is borrowed. Lastly, in the Housing Expense section you need to make sure to input the 2 nd information and terms so that it reflects a payment as this needs to be included in the Debt to Income ratio. See sample slide shots on following screens 9 8 20 20 15

SECONDARY FINANCING ON 1003 9 8 20 20 16

SECONDARY FINANCING –DO/DU Page 2 -Types, Terms, & Property Page 7 -Transaction Details 9 8 20 20 17

HOW TO RUN AUS - DU 9 8 20 20 18

MORTGAGE INSURANCE CHART FOR CONVENTIONAL LOANS AND HOME READY 9 8 20 20 19

G S N I ED S O NE O H C PAM R D O O C. R F U LE U YO S A O Y R OLE K O WH N F X A X E TH SE. E S S ES W W W 9 8 20 20 20