Essex 5% Grant Products Presenting Sapphire & HELP CA & Nevada Funds Forgiven No recapture No Repayment All product features & RATES ARE the same EXCEPT… INCOME LIMITS ARE HIGHER ON THE HELP GRANT 02082016

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, 1st trust deed; use ordinary FHA submission checklist when submitting file. NOTE: Approval in house – no slow down on your in-house approval. The 5% Grant is based on the total loan amount, including MIP, not on sales price or appraised value. Rate posted on page 1 of rate sheet. Combine with a CalHFA MCC to reduce ratios. (CA only) $500 fee (Box B of LE). If using MCC , borrower must be a 1st time homebuyer and 3 year’s tax returns would be required. 02082016

GRANT Product Features cont. 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 locks@essexmortgage.com (must be in Ready for Docs Status) 30305NHF (Sapphire) – FHA 30yr fixed 5% 3030 HELP – FHA 30yr fixed 5% 02082016

Summary of fees 1.50% Borrower Paid Only & $995.00 processing fee (all loans must meet MAVENT fees test) $995 Essex Admin Fee (Box A of LE) $500 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 Any 3rd party processing would have to be paid thru broker compensation. 02082016

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 02082016

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 5% HELP INCOME LIMITS: 140% of Medium Income Limits Program code: 3030HELP-FHA 30yr fixed 5% 02082016

CA - Sapphire 2015 Income Limits County Program Income Limits Alameda $106,835 Alpine $109,135 Amador $80,155 Butte Calaveras $80,730 Colusa Contra Costa Del Norte El Dorado $82,225 Fresno Glenn Humboldt Imperial Inyo Kern Kings Lake Lassen Los Angeles Madera Marin $117,185 Mariposa Mendocino Merced Modoc Mono $88,550 02082016

CA Sapphire 2015 Income Limits Monterey $80,155 Napa $96,830 Nevada Orange $98,785 Placer $82,225 Plumas Riverside Sacramento San Benito $83,720 San Bernardino San Diego $83,950 San Francisco $117,185 San Joaquin San Luis Obispo $88,665 San Mateo Santa Barbara $86,710 Santa Clara $122,245 Santa Cruz $100,050 Shasta Sierra Siskiyou Solano $85,675 Solano (City of Vacaville) $98,526 Sonoma $84,640 Stanislaus Sutter 02082016

CA - Sapphire 2015 Income Limits Tehama $80,155 Trinity Tulare Tuolumne Ventura $98,095 Yolo $83,030 Yuba 02082016

Sapphire Nevada Income Limits 2015 County Program Income Limits Carson City $79,005 Churchill $76,590 Clark $68,885 Douglas $84,870 Elko $91,195 Esmeralda Eureka $80,615 Humboldt $86,940 Lander $84,295 Lincoln Lyon Mineral $70,840 Nye Pershing $69,805 Storey $73,025 Washoe White Pine $69,230 Updated 03/11/2015 02082016

CA - HELP GRANT INCOME LIMITS Use 140% column below 02082016

CA - HELP GRANT INCOME LIMITS cont. Use 140% column below 02082016

NEVADA - HELP GRANT INCOME LIMITS cont. Use 140% column below 02082016

Can I have an MCC Tax Credit with the Sapphire Product? Yes! CA only. 02082016

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. Combine your Sapphire with an MCC Credit – however remember MCC requires you to be a 1st time h/b, Sapphire does not. Three years tax returns will be required. 02082016