01 28 2019

We offer TWO chenoa products Feature Chenoa Advantage Chenoa Edge 1st: FHA Conforming only FHA Conforming only 2nd: 8% rate 10 year fully amortized Compensation Borrower or Lender Paid – not to exceed 3% in point and fees –include Essex 1095 Borrower or Lender Paid – not to exceed 3% in point and fees – include Essex $1095 1st Time Homebuyer Not required (but may not own any other property when our loan closes) Not Required (may own other property at closing) DTI 50% DU approval (56.99%) FICO SCORE 640+ 620-639 Max Income 115% of AMI – check with AE to help you calculate the income. No Income Restrictions Property & Lending States 1 unit, SFR, Condo, PUD (All states where Essex is approved) States not approved IL, MS, NY, SD, WY) 1-2 units, SFR, Condo PUD (income can be used on 2nd unit at 75%) (All states where Essex is approved)States not approved IL, MS, NY, SD, WY) Sales Price Restrictions None Non Occupant Co borrower or Cosigner Not allowed Allowed W2 program Allowable if salaried and 1 unit Allowable if salaried and 1 unit only Limit of how many loans can be submitted to Essex Mortgage No limit MCC’S (CA, TX, NV only)Friday, September 07, 2018MCC Allowed – Add to Income – There is an additional fee that requires to be disclosed, depending on which state - contact your AE. Allowed – Add to income – There is an additional fee that requires to be disclosed depending on which state – contact your AE 01 28 2019

Pre-purchase counseling for borrowers with “DECISION” credit scores 620-639 Pre-purchase counseling must be completed prior to close by borrowers that have a FICO SCORE 620-639. Anyone above 639 is not required to take the class. The loan must be locked at Essex before a borrower can register. A loan can be locked once you have approval and the appraisal has been reviewed by underwriter. Borrowers can then sign up for the training at (link: https://www.borrowersuccess.org/prepurchase  Borrower may also choose to call and schedule pre-purchase counseling via telephone using the following toll free call number: 866-237-9001.  Borrowers should be instructed schedule their pre-purchase counseling within 14 to 21 days prior to closing to allow sufficient time for scheduling the appointment and completing the counseling session prior to closing. 01 28 2019

PROGRAM LOCKING & Program fees PROGRAM LOCKING & Program fees any fee below affects the 3% point and fees test. Loan must be locked by 1:00 PM, PST All PTD’s must be cleared before locking. $1095 to Essex Advantage: Lender paid if meets 3% points and fees –It may be best to disclose your Lender comp in case you have to switch to Borrower paid. Edge – Lender paid if it meets 3% points and fees –It may be best to disclose your Lender comp in case you have to switch to Borrower paid. Program hits, i.e. FICO score and loan amount hits also go toward points and fees. You may charge a third party Contract Processing Fee max $1000 if it passes 3% test. Programs Codes: Advantage: 1st: FHA 3030CHRA 2ND: 4030CHRA Edge: 1st FHA 3030CH 2ND: 4030CHDPA . 01 28 2019

SAMPLE RATE SHEET FOR CHENOA ADVANTAGE 01 28 2019

Sample rate sheet for chenoa edge 01 28 2019

Secondary Financing on 1003 01 28 2019

Declarations page of 1003 01 28 2019

Secondary Financing –DO/DU Page 2-Types, Terms, & Property Page 7-Transaction Details 01 28 2019

Calculating Area Median Income Go to the HUD Area Median Income Site. This can be found online at: https://www.huduser.gov/portal/datasets/il.html 01 28 2019

Select the state, select the county, click the button “View County Calculations” 01 28 2019

Always begin at 1-4 people living in the house,  2 people always use 4, 3 people always use 4.. you get the idea, that’s why 4 is in bold as you begin there J   LOS ANGELES COUNTY here are sample income limits, LA County at min the income limit is 111,435 for 1 to 4 people in household The 1-4 person household very low income is $48,450 x 2= $96,900 and if you multiply that number by 115% the result is $111,435 for a household of 1-4 persons. The 6 person household very low income is $56,200 x 2 = $112,400 and if you multiply that number by 115% the result is $129,260 for a household of 6 persons. The 8 person household very low income is $64,000 x 2 = $128,000 and if you multiply that number by 115% the result is $147,200for a household of 8 persons 01 28 2019

Next Steps… Process your loan file as usual (upload 1st& 2nd – 2 loan numbers) 1st: FHA guidelines (okay to use FHA submission sheet); submit complete file. 2nd : Submit 1003 with loan amount of 2nd – and submission sheet (nothing else) Programs Codes: Advantage: 1st: FHA 3030CHRA 2ND: 4030CHRA Edge: 1st FHA 3030CH 2ND: 4030CHDPA Advise submission@essexmortgage.com of both loan numbers when uploaded. We approve – We fund! 01 28 2019