CalHFA Standard Conventional - eprmg.net

1 CalHFA Conventional Product Profile 1 of 36 10/25/2018 Guidelines Subject to Change Tip: To find specific information for a product, Press Ctrl+F (or use Find from the Edit Menu) and then search for the information or topic you are looking for. If you don t find the topic the first time, try variations, different terms or fewer words. CalHFA Standard Conventional Standard AND HIGH BALANCE DPA OPTIONS SUBJECT TO CHANGE BASED ON MARKET CONDITIONS MUST CONFIRM AVAILABILITY WITH HOUSING AUTHORITY. 30 Year Fixed LTV CLTV Purpose Units Occupancy Credit Score DTI Ratio 971 105 Purchase 1 O/O 640 45 1.

2 For high balance loan amounts, max LTV 95% PRODUCT NAMES CalHFA 30 Year Conventional Fixed CalHFA 30 Year High Balance Conventional Fixed ALLOWABLE ORIGINATION CHANNELS Wholesale Retail May be originated through Standard retail origination process SERVICER LakeView Servicing = Master Servicer AGENCY LINKS For additional reference, CalHFA Conventional Loan Programs guidelines posted at CalHFA s website: All PRMG staff can access all end Agency guidelines though AllRegs Online at Instructions on how PRMG staff can access the AllRegs service is available in the Resource Center.

3 The following link provides access to the Fannie Mae Seller Guide through AllRegs: CalHFA Conventional PROGRAM OVERVIEW The CalHFA Conventional program is a Fannie Mae HFA Preferred fully-amortized 30-year fixed rate first mortgage. It can be combined with either the MyHome Assistance Program (MyHome) or the Extra Credit Teacher Purchase Program (ECTP) PRODUCT REQUIREMENT Housing Authority approval required. Loan must be submitted to the agency and approved by them in the required timeframe as outlined in the product profile and on their website. Loan may not proceed to docs or funding without agency approval.

4 DOWN PAYMENT ASSISTANCE Borrowers qualifying under this program must utilize one of the down payment assistance options from CalHFA . The first trust deed is not allowed to be used without using one of their DPAs. This program may be layered with the following down payment and/or closing cost assistance options for first-time homebuyers only: MyHome Assistance Program CalHFA Conventional Product Profile 2 of 36 10/25/2018 Guidelines Subject to Change May be used for closing cost and/or down payment assistance In the case of conflicting guidelines, the lender must follow the more restrictive Must be recorded in the Second Lien position For full MyHome underwriting guidelines and details, refer to the MyHome Product Profile, located on the Resource Center Extra Credit Teacher Program (ECTP)

5 May be used for down payment assistance and/or closing cost In the case of conflicting guidelines, the lender must follow the more restrictive Must be recorded in the Second Lien Position For full ECTP underwriting guidelines and details, refer to the ECTP Product Profile, located on the Resource Center Note: MyHome and ECTP cannot be combined For retail only, this program may be layered with CalHFA Mortgage Credit Certificate Tax Credit Program (MCC Tax Credit Program) or other Mortgage Credit Certificate (MCC) programs for first-time homebuyers only MCC credit may be used for credit-qualifying purposes, per investor guidelines In the case of conflicting guidelines, the lender must follow the more restrictive For full CalHFA MCC Tax Credit Program underwriting guidelines and details, refer to the MCC Tax Credit Program Handbook or log onto the MCC Administrator s website at For full guidelines on the MyHome Assistance Program or the ECTP Program, please refer to the product profiles, located on the Resource Center.

6 DOWN PAYMENT ASSISTANCE ON CLOSING DISCLOSURE All down payment assistance proceeds must be disclosed on the Closing Disclosure, Section L -Paid Already by or on Behalf of the Borrower at Closing. The down payment assistance proceeds must be labeled accurately. For example: "Second loan" is not appropriate if the assistance is a grant or gift. Multi-purpose labels such as Second/Grant/Gift will not be accepted, it must be specific to the transaction. If the borrower is receiving down payment assistance from multiple sources, all assistance sources must be itemized on the Closing Disclosure. Unless the CFPB comes out with guidance restricting it, it is acceptable to place assistance proceeds as "Other Credits" if necessary due to space limitations.

7 AUS DATA ENTRY REQUIREMENTS OF DPA LOAN See Housing Authority Products with DPA Liens in FT360 in the Resource Center, which can be located at the following link: In MORNETPlus Community Lending Section of the Streamlined 1003: Mark the Checkbox which corresponds with the Community Lending Program the Conventional 1st lien is being paired with Enter the County Select the desired Fannie Mae Community Lending Product Select the desired Community Seconds Repayment Structure If the DPA Is a second mortgage, both the community lending and community seconds boxes must be checked. If the DPA is a grant, then only the community lending box must be checked MINIMUM LOAN AMOUNT CalHFA s maximum mortgage worksheet can be found at the following link: Standard Balance No Minimum Loan Amount High Balance: 1 Unit $453,101 CalHFA Conventional Product Profile 3 of 36 10/25/2018 Guidelines Subject to Change MAXIMUM LOAN AMOUNT Standard Balance: 1 Unit $453,100 High Balance: Max Fannie/Freddie Limits for all counties can be found here: Select Fannie/Freddie for Limit Type option: CalHFA s maximum mortgage worksheet can be found at the following link.

8 GEOGRAPHIC RESTRICTIONS California only Please refer to PRMG s Eligible States list, which can be found at this link: MORTGAGE TYPES Conventional MAXIMUM SALES PRICE $705,000 for all counties in California FEES Retail: 1st First Mortgage: Origination Fee must be charged. Total customary lender origination fees not to exceed the greater of 3% of the loan amount or $3,000 No other PRMG fee (Processing, Underwriting, etc.) to be charged CalHFA Fees: None In addition to the above fees, other customary third-party fees such as credit report fee, appraisal fee, insurance fee or similar settlement or financing costs may be charged.

9 In all cases the lender must meet federal and California lending laws regarding fees and charges. 2nd Second Mortgage: No DPA 2nd on the Standard Conventional Option Wholesale PRMG must disclose file for broker: Must be a Borrower Paid transaction 1st First Mortgage: Max Origination Fee may be charged. Total customary lender/broker origination fees not to exceed the greater of 3% of the loan amount or $3,000. $990 PRMG Underwriting Fee to be charged No other non-third party fees, (including non-third-party-Processing Fees) to be charged CalHFA Fees: None In addition to the above fees, other customary third-party fees such as credit report fee, appraisal fee, insurance fee or similar settlement or financing costs may be charged.

10 In all cases the lender must meet federal and California lending laws regarding fees and charges. Third-party Processing fees are allowed, but that fee is included in the 3%/$3,000 lender/originator cap. If this cap is exceeded, the broker fee will be reduced to meet the 3%/$3,000 cap. 2nd Second Mortgage: No DPA 2nd on Standard Conventional Option INCOME LIMITS The income of borrowers may not exceed CalHFA published income limits: CalHFA LOAN SCENARIO CALCULATOR Use the Loan Scenario calculator to compare CalHFA loans, and determine loan amounts for ECTP and MyHome Assistance CalHFA Conventional Product Profile 4 of 36 10/25/2018 Guidelines Subject to Change Print out of Loan Scenario calculator must be included in file submission FT360 SETUP/LOAN SUBMISSION/LOAN DISCLOSURES/LOAN DOCUMENTS Special process applies for loan setup process and disclosures For retail transactions.