What What What What ““““CHF ACCESSCHF ACCESSCHF ACCESSCHF ACCESS”””” offersoffersoffersoffers

� 15-Year Fully

Amortized 2nd

� Up to 3% of

Sales Price

� CLTV up to

99.50%

� LITTLE TO

NO MONEY

OUT OF

POCKET

1st Loan 2nd Loan Home

Ownership

� FHA up to

96.50% LTV

CHF ACCESS PROGRAMS

� Eligible 1st Mortgage Program

� Down Payment & Closing Cost Assistance

� Sample Calculations

� Income Limit Calculation

CHF Access 1st & 2nd

CHF ACCESS Program

Available throughout the WHOLE STATE OF CALIFORNIA ONLY!State Restriction

Topic Program Description

Program Types FHA 30 Year Fixed

Max LTV 96.50%

Max CLTV 99.50% – Follow FHA guidelines

Maximum Loan Amount

Conforming: Up to $417,000Jumbo: > $417,000 to $729,750 based on county where property is locatedFHA Loan Limits

Loan Purpose Purchase

Occupancy Owner Occupied

Down Payment Assistance

CHF ACCESS 2nd: • CAN be used to fulfill the borrower’s equity contribution required on FHA 1st

Mortgage

CHF ACCESS 2nd Program

99.50% or higher – Follow FHA guidelinesMax CLTV

� Proceeds may be used for:� DOWN PAYMENT� CLOSING COSTS� Price Adjustments� Up Front or Single Premium MI

� No cash back to the borrower from the 2nd loan proceeds• Any overage over POCs must be used to reduce principal balance• Any overage over $500 results in redraw of loan documents

Use of Funds

15-yrs Fixed-Rate Fully AmortizingTerm

Topic Program Description

Program Types CHF ACCESS 2nd Fixed

Maximum Loan Amount Sized up to 3% of the Sales Price

Interest Rate 8.25%

Sample Scenario: (Purchase Price: $325,000)

Borrower Contribution: .50% ($1,625) for DP (Seller pay for Closing Costs)

$1,625.00($325,000 x .5%).5%Borrower Required Down Payment:

=$323,375.0099.5% of Sales PriceTotal Financing 1st & 2nd:

+$9,750.00($325,000 x 3%)3%CHF ACCESS 2nd (Down Payment):

+$313,625.00($325,000 x 96.50%)96.50%CHF ACCESS 1st:

Sample 1: Borrower has little or NO money Down - Seller contributing for costs…

Borrower Contribution: 3.5% ($11,375) for DP

=$325,000.0099.50% of Sales PriceTotal Financing 1st & 2nd:

$9,750.00($325,000 x 3%)3%CHF ACCESS 2nd (Closing Costs):

+$11,375.00($325,000 x 3.5%)3.5%Borrower Funds (Down Payment):

+$313,625.00($325,000 x 96.50%)96.50%CHF ACCESS 1st:

Sample 2: Borrower HAS Down Payment but NO money for Closing Costs...

Sample Scenario: (Purchase Price: $325,000)

Borrower Contribution: ZERO ($0)

$14,625.00($325,000 x 4.5%)4.5%4.5% towards CC

$1,625.00($325,000 x .5%)0.5%.5% given for DP

$16,250.00($325,000 x 5%)5%Gift Funds Received

=$323,375.0099.50% of Sales PriceTotal Financing 1st & 2nd:

$9,750.00($325,000 x 3%)3%CHF ACCESS 2nd (Down Payment):

+$313,625.00($325,000 x 96.50%)96.50%CHF ACCESS 1st:

Sample 3: Borrower has NO money for D/P OR C/C - Receiving Gift Funds of 5%...

Program Income Limits

Topic Guidelines

Income LimitCalculation

Based on Qualifying Income Only (not Household Income)

� Only the income used for Qualifying is considered in order to meet the Program Income Limits

� Income Limit = 120% of HUD AMI

Income Limits To calculate the Program Income Limit by County, refer to:

http://www.huduser.org/datasets/il.html

Tip : Use the Income Limit spreadsheetCHF ACCESS Income Limit

ADDITIONAL GUIDELINES

Eligibility Guidelines

General Underwriting Guidelines

Pricing, Costs and Fees

Eligibility Guidelines

Not RequiredFirst Time Homebuyer

Not ApplicableSales Price Limits

120% of HUD Area Median Income (AMI)Income Limits

� Single Family Residences� PUD’s� FHA Approved Condos� Manufactured Homes – Must meet FHA requirements

Property Eligibility

Topic Guidelines

Borrower Eligibility � Purchase of Owner-Occupied Primary Residences Only� NO 1st Time Homebuyer Requirement� MAY OWN OTHER PROPERTIES – must meet FHA requirements

Non Occupying Co-Borrowers/Co-Signers

NOT ALLOWED

Homebuyer Education Required

Minimum Homebuyer Contribution

NONE required

Underwriting Guidelines

� NONE requiredReserves

� 43% - Ficos < 620� 45% - Ficos 620- 659� 47% - Ficos 660+� Minimum of two(2) strong compensating factors required from HUD 4155

Max Debt Ratio

� NOT ALLOWEDBuy-Downs

� Follow standard FHA MIPMortgage Insurance

� NO MINIMUM FICO SCORES required � Follow 4155 guidelines PLUS FMC overlays� Price Adjustments apply – See First Mortgage rate sheet

Minimum Credit Scores

UW Method:� DU / LP allowed – Must be risk scored by FHA Scorecard� Approve/Eligible, Accept or Accept Plus recommendations� Manual UW allowed

**Unless specifically specified, Follow Standard FHA guidelines PLUS First Mortgage FHA overlays**

Underwriting

Topic Guidelines

UW Guidelines cont’d…

No Prepayment PenaltyPrepayment Penalty

� Gift Funds

� 401k loans

� Grants

Other Sources of Assistance

Allowed per FHA guidelinesAssumability

Allowed from family membersGift Funds

Allowed up to 6%Seller Contributions

Topic Guidelines

ACCESS Fees & Charges

Topic Guidelines

Interest Rates � Interest Rates available on the FMC Rate Sheet on your AE’s website, OR� Contact your FMC Account Executive

Origination Fees Up to 1.00% on 1st Mortgage only (BROKER RETAINED)

Discount Fees Buyer or Seller Discounts allowed subject to consumer laws • Discount Points allowed only for loan level price adjustments. Cannot be used

for additional compensation.

Rebate/Discount Pricing

See FMC rate sheet

FMC Fees See doc order form or contact your Branch Manager for lender fees

Allowable Fees � Must be reasonable and customary and fully disclosed to the borrower in accordance with all agencies, federal, state and local laws

� Follow FMC rules on limitation of fees for FHA loans