1. See page 1 of rate sheet for grant$ and % INCOME LIMITS ARE HIGHER ON
Essex Grant Products Presenting Sapphire & HELP Sapphire CA only – HELP CA and Nevada
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

2. IMPORTANT TO READ (definition of DPA products: HELP, SAPPHIRE, & CALHFA
Essex is happy to be able to offer you Down Payment Assistant (DPA) Products for your borrowers. Required of BROKER: No more than 50% of your overall production with Essex (which includes HELP, Sapphire and CalHFA products) can be a DPA product. Essex will review monthly. If the ratio is exceeded, further DPA submissions will be suspended until your company is back in line with the ratio of 1 for 1.

3. GRANT Product Features
640 – 679 FICO requires max DTI of 50% and DU approval
680+ DU approval required (usually maxes out at 46.99/56.99)
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 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 1st time homebuyer and 3 year’s tax returns would be required.

4. GRANT Product Features cont.
The Grant is forgiven; no repayment required
Grant can be used for down payment, and closing costs.
Owner Occupied: SFR, FHA approved condo, PUD, 2 units (if using income from 2nd unit, you need to include the income in income limits)
Maximum Loan: $424,100 Plus MIP (both for 1 unit and 2 units)
Non occupant co-signors allowed (co signors income not considered in limitations
Non occupant co borrowers not allowed.
Income calculated per HUD guidelines
Income limits per County not by family size
Customary and reasonable closing cost fees allowed
Manual lock at (must be in Ready for Docs Status)
30305NHF (Sapphire- CA only) – FHA 30yr fixed
3030 HELP (CA and Nevada)– FHA 30yr fixed

5. Summary of fees REQUIRED FEES FOR THE PROGRAM.
COMPENSATION IS DETERMINED BY FICO
BROKER: ESSEX:
680+FICO: 1.50% & $ $1495 Admin Fee
FICO* : % & $ $1495 Admin Fee & .50%
* max DTI 50%
$750 for CALHFA 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 3rd party processing fee will NOT be paid. Must be paid thru broker compensation only.

6. 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

7. Income Limits – HELP IS HIGHER!
SAPPHIRE INCOME LIMITS:
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: NHF – FHA 30yr fixed
Sapphire – CA only
HELP INCOME LIMITS:
140% of Medium Income Limits
HELP – CA and Nevada
Program code: 3030HELP-FHA 30yr fixed

8. CA only – Sapphire Income Limits (updated 4/12/16)

9. CA - HELP GRANT INCOME LIMITS Use 140% column below (revised 9 2016)

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

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

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

13. 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.
If using MCC, one (1) UNIT ONLY!!
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. 1 UNIT ONLY!!