2. We offer to 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
Max Income
115% of AMI – check with AE to help you calculate per Chenoa
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%)
(same as Advantage)
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
Limit of how many loans can be submitted to Essex Mortgage
No limit
MCC’S (CA only)
Allowed – Add to Income – extra $750 charge on your disclosures
Allowed – Add to income – extra $750 charge on your disclosures

3. 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.
Can have a Contract Processing Fee max $1125 if it passes 3% test.
Programs Codes:
Advantage: 1st: FHA CHRA
2ND: CHRA
Edge: 1st FHA 3030CH
2ND: 4030CHDPA

4. Secondary Financing on 1003

5. Declarations page of 1003

6. Secondary Financing –DO/DU
Page 2-Types, Terms, & Property
Page 7-Transaction Details

7. Secondary Financing LP

8. Calculating Area Median Income
Go to the HUD Area Median Income Site. This can be found online at:

9. Select the state, select the county, click the button “View County Calculations”

10. 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

11. 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)
Advise of both loan numbers when uploaded.
We approve – We fund!