SEE PAGE 1 OF RATE SHEET FOR GRANT$ AND % FUNDS FORGIVEN NO RECAPTURE NO REPAYMENT ALL PRODUCT FEATURES & RATES ARE THE SAME EXCEPT… INCOME LIMITS ARE HIGHER ON THE HELP GRANT Essex Grant Products Presenting Sapphire & HELP Sapphire CA only – HELP CA and Nevada

GRANT Product Features 650 – 679 FICO requires max DTI of 50% and DU approval 680+ no max DTI & DU approval (usually maxes out at 56.99) Do NOT need to be a first time homebuyer (unless you are combining with an MCC – CA only) – No counseling classes needed. The grant is used in conjunction with an FHA, 1 st trust deed; use ordinary FHA submission checklist when submitting file. NOTE: Approval in house – no slow down on your in-house approval. The Grant is based on the total loan amount, including MIP, not on sales price or appraised value. Rate & of Grant posted on page 1 of rate sheet. Combine with a CalHFA MCC to reduce ratios. (CA only) $750 fee (Box B of LE). If using MCC, borrower must be a 1 st time homebuyer and 3 year’s tax returns would be required

The Grant is forgiven; no repayment required Grant can be used for down payment, and closing costs. Owner Occupied; 1-2 units; FHA approved condo; PUD Maximum Loan: $417,000 & MIP Non occupant co-signors allowed (co signors income not considered in limitations Non occupant co borrowers not allowed. Income calculated per HUD guidelines- not by family size Customary and reasonable closing cost fees allowed Manual lock at (must be in Ready for Docs 30305NHF (Sapphire- CA only) – FHA 30yr fixed 3030 HELP (CA and Nevada)– FHA 30yr fixed GRANT Product Features cont.

Summary of fees 1.50% Borrower Paid Only & $ processing fee (all loans must meet MAVENT fees test) $995 Essex Admin Fee (Box A of LE) $750 if used with an MCC (CA only) Box B of LE Home Warranty Required – Box C of LE Home Inspection Required – Box C of LE A 3 rd party processing fee will NOT be paid. Must be paid thru broker compensation only

IMPORTANT! – How to enter on the 1003 Our Grant programs are NOT a lender credit nor an “other asset”. There are 2 places on the 1003 which the grant funds need to be entered correctly in order for the DU to run properly. The below are screen prints of how to enter in DO/DU. We want your approval to be accurate. AVOID incorrect approvals – due to incorrect input. These are screen prints from POINT. Important factors : Borrowers with good credit and low ratios have better chance of approval. How to enter on Page 1 of the 1003 under source of down payment:  List as FHA Gift Source Nonprofit/Religious/Community-Non-Seller Funder How to enter on Page 2 of the 1003 under the asset screen:  Gift

Income Limits – HELP IS HIGHER! SAPPHIRE INCOME LIMITS: 115% of Medium Income Limitations; You ask…which product do I submit under. If your loan meets SAPPHIRE income limits, submit under Sapphire. If you need higher income limits, submit under the HELP grant program Program Code: 30305NHF – FHA 30yr fixed Sapphire – CA only HELP INCOME LIMITS: 140% of Medium Income Limits HELP – CA and Nevada Program code: 3030HELP-FHA 30yr fixed

CA only – Sapphire Income Limits (updated 4/12)

CA - HELP GRANT INCOME LIMITS Use 140% column below (revised )

CA - HELP GRANT INCOME LIMITS cont. Use right column below (revised )

NEVADA - HELP GRANT INCOME LIMITS cont. Use 140% column below (revised )

Can I have an MCC Tax Credit with the Sapphire Product? Yes! CA only

Combine your Sapphire with an MCC Credit – however remember MCC requires you to be a 1 st time h/b, Sapphire does not. Three years tax returns will be required. An MCC Credit can help you reduce your ratios. (CA only) When using a MCC Credit, use the CalHFA income/sales limits, whichever is lower