1. Homeownership with the HEART Loan Program Brought to you by The HEART of San Mateo County Meriwest Mortgage

2. Today’s Agenda HEART – Housing Endowment and Regional Trust of San Mateo County –Paula Stinson The Financing Process –John Souza – Meriwest Mortgage The HEART Down payment Assistance –John Souza – Meriwest Mortgage

3. Fannie Mae Underwriting Guidelines DEBT TO INCOME RATIO –What is a debt to income ratio? –What ratio is acceptable under Fannie guidelines? CREDIT SCORE –What is a credit score? –What scores do you need to get approved for a loan ? –How does your credit score affect the cost of your loan? LOAN TO VALUE –What does loan to value mean? –How does down payment affect loan to value? –How much down payment is required to get a loan? RESERVES –What is reserves? PITI = principle, interest, tax and insurance –How much reserves do you need to qualify?

4. Carlos, Denise, and John Loan Preparation Preparing to purchase a home – Importance of a pre-approval letter 4 key parts of the Equation –Income from all sources (W2s, tax returns if self-employed) –Debt:  Credit cards, student loans, car payments, etc. Anything that comes from your credit report plus legal obligations  Not all debt is treated the same way –Assets: Bank Accounts, CDs, Retirement Accounts, 401Ks, Cash, Stocks, Investments Anything of Value –Credit History: Derived from your Credit Report

5. Key Mortgage Terms Points (Origination versus Discount) Pre-payment Penalty PMI (Private Mortgage Insurance) Underwriting ARM (Adjustable Rate Mortgage) Loan Approval

6. Meriwest vs. Competition Direct Lender – NO Broker Fees Less Expensive Fees Competitive Rates Fast and Efficient Processing Loan Servicing No Pre-payment Penalties Wide Variety of Mortgage Products Relationship Advantage Rebates Fast Pre-approval

7. Underwriting Criteria & Guidelines: –Residence Status: US Citizen Permanent Resident Aliens: Provides evidence of Green Card. Non-Permanent Resident Aliens: Provides acceptable evidence of legal residency issued by the INS with legal permit to work in the U.S. –Minimum down payment 5% required by Borrower. –Property Type: Single Family Residential Detached and attached PUDS –HEART 2 nd Lien interest rate will be based on Meriwest Mortgage Company, LLC 30-year conforming fixed rate plus 150Bps.

8. Underwriting Criteria & Guidelines: (continued) –Maximum purchase price: $781,000 (10% down payment required for loan amounts from $417,001 to $625,500. –Maximum purchase price: $521,250 (5% down payment required for loan amounts from $50,000 to $417,000) –Maximum debt to income percentage of 45%. –HEART 2 nd Lien will have a 15-year term with a balloon payment and amortized over 30-years.

9. –Impounds will be required for all transactions. –Subordinate Financing is allowed but must be subordinate of 2 nd lien. –Underwriting guidelines will be based on Meriwest Mortgage Company, LLC guidelines. Underwriting Criteria & Guidelines: (continued)

10. –Income limits of $150,000. –Minimum FICO score of 680. –Maximum CLTV of 95%. Underwriting Criteria & Guidelines: (continued)

11. How do you apply? Please go to the HEART of San Mateo County Website: WWW.HeartofSMC.OrgWWW.HeartofSMC.Org Click on “Homebuyer Loans” Link Choose the “Click Here to Apply” Link –That link will take you to a HEART and Meriwest Mortgage co-hosted site for your application

12. Meriwest Mortgage John Souza jsouza@meriwest.comjsouza@meriwest.com (408) 849-7115 HEART of San Mateo County Paula Stinson pstinson@heartofsmc.orgpstinson@heartofsmc.org 650-872-4444 ext #4 For more info, please contact