1. 1 29 2015 1 The Sapphire Grant Product

2. Sapphire Product Do not need to be a first time homebuyer Can be used with an FHA, VA, or USDA 1 st trust deed Can be combined with a CalHFA MCC to reduce ratios. The rate is different depending on the amount of the grant chosen. NOTE: The grant of 3% or 5%, whichever you choose, is based on the total loan amount, including MIP, not on sales price or appraised value. You can not charge a processing fee up to $1000, paid for by grant. (include in Box 1 of GFE) 1 29 2015 2

3. Sapphire Grant Product 3% or 5% can be used for down payment, closing costs, processing fee, origination fee The Grant is forgiven; no repayment required ½% down can be gift (5% all grant) Borrower Paid Origination Only Max broker comp: 1 ½% & up to $1000 for processing fee, (can be paid by buyer, seller, 3 rd party, or with grant funds). Be sure processing fee if charged, is included in box 1 of GFE. SFR’s, PUD’s, or FHA approved condos; FLIPS YES; No to 203k ‘s Minimum Fico: 620 Maximum Loan: $417,000 including UFMIP or VA funding fee Ratios: Must receive a DU Accept. Owner Occupied Non occupant co-signors allowed (co signors income not considered in limitations Non occupant co borrowers not allowed. 115% of Medium Income Limitations; http://www.nhfloan.org/Programs/NHF_Sa pp_Income_Limits.aspx Income calculated per HUD or VA 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)locks@essexmortgage.com 3030NHF – FHA 30yr fixed 3% 30305NHF – FHA 30yr fixed 5% 3030VNHF – VA 30yr fixed 3% 30305VNHF – VA 30yr fixed 5% 1 29 2015 3

4. IMPORTANT! – How to enter on the 1003 The Sapphire Grant is 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 1 29 2015 4

5. Sapphire Income Limits 2014 1 29 2015 5

6. Sapphine 2014 Income Limits 1 29 2015 6

7. Can I have an MCC Tax Credit with the Sapphire Product? Yes! 1 29 2015 7

8. Combine your Sapphire with an MCC Credit – however remember MCC requires you to be a 1 st time h/b, Sapphire does not. An MCC Credit can help you reduce your ratios. When using a MCC Credit, use the CalHFA income/sales limits, whichever is lower. 1 29 2015 8