Lender Guide - EhousingPlus

1 Lender Guide Florida Housing Finance Corporation (FHFC) 2013 PROGRAM. Published 7-1-13. Revised 11-1-13. Revisions on Page 3. Page 2. TABLE OF CONTENTS! ! ! ! ! ! ! ! PAGE NUMBER. REVISION TABLE 4. THE FLORIDA HOUSING PARTNERSHIP TEAM 5. THE PRODUCTS, RATES, CREDIT SCORES 6. MINIMUM CREDIT SCORE 6. MAXIMUM DEBT TO INCOME (DTI) RATIO 6. THE FIRST MORTGAGE OPTIONS 6. FLORIDA FIRST 6. MILITARY HEROES 6. FLORIDA HOUSING EIN 7. Veterans Exception (Authorized by Congress)! 7. THE SECOND MORTGAGE OPTION 7. FLORIDA ASSIST 7. FLORIDA FIRST - FIRST MORTGAGE 8. Qualify as First Time Homebuyer 8. Non-Citizen Applicants 8. Homebuyer Education 8. Targeted Area Census Tract Link and List 9. Florida First Household Income Limits 10. Qualifying Properties 11. 2013 ACQUISITION (PURCHASE PRICE) LIMITS FOR ONE TO FOUR UNITS 11. FINANCING FACTS 12. MILITARY HEROES - FIRST MORTGAGE 14.

2 Qualify as First Time Homebuyer 14. Non-Citizen Applicants 14. Homebuyer Education 14. Targeted Area Census Tract Link and List 15. Military Heroes Household Income Limits 16. 2013 ACQUISITION (PURCHASE PRICE) LIMITS FOR ONE TO FOUR UNITS 17. FINANCING FACTS 18. FLORIDA ASSIST - SECOND MORTGAGE 20. PROGRAM FEES 22. THE PROCESS 24. DPA FUNDS AT CLOSING Rev 7-1-13 24. RATE LOCKS, DEADLINES - TIMING IS EVERYTHING 26. LOAN PROCESSING, DELIVERY & PURCHASE TIMETABLE: 26. UNDERWRITER'S PROGRAM INCOME CALCULATION GUIDELINES 27. PROGRAM FORMS 31. Page 3. OTHER DOCUMENTS REQUIRED FOR COMPLIANCE FILE 32. Other Documents Required For Compliance File - continued 33. NEW DOCUMENT REQUIRED FOR US BANK FILE 34. Page 4. REVISION TABLE. Date Page and Topic 7-1-13 Pages 27, 34, 37 Removed verbiage regarding wires and/or added language regarding USB 002 as per US Bank Bulletin DPA Funding dated 6-28-13 (Ref 2013-14).

3 8-7-13 Page 6, up to Origination to be retained by Lender ; Page 7, FL Assist amount increased; Pages 10 and 16, 2013 income and purchase price limits; Pages 11 and 17, 2013 purchase price limits Page 20, Amount of FL Assist DPA increased; Page 26, Lender Compensation increased. ALL APPLY AS. OF NEW LOANS RESERVED. Income and Sales Price limits apply August12, 2013. All others have effective date of August 5. 8-12-13 Page 6, Locate program product rates in the system; Pages 6 and 7, defined where detailed information begins for each of the program products; Pages 12 and 18, updated origination fee; Page 26, SRP updated and added Lender Compensation Summary. 8-22-13 Pages 6 and 26, Amended how fee may be charged. 8-29-13 Page 22, Revised Florida Assist Income Limits effective 8-29-13. 9-5-13 Page 22, Revised Florida Assist Income Limits for Alachua and Gilchrist for 6-8 person households effective 8-29-13.

4 9-13-13 Page 6, Military Heroes, rev language regarding Origination/Discount Fees; Pages 10,16 added asterisk to Marion County; Pages 11, 17 Clay rev to non-targeted, Duval added as targeted 10-11-13 Throughout deleted references to HAMI and references to special income limits for Florida Assist. For loans reserved prior to 10-11-13 and choosing to continue with a HAMI loan, HAMI second mtg docs will continue to be available online. Per page 20, Florida Assist Income limits are now the first mortgage limits. See pages 10 or 16 for first mortgage income limits. 10-15-13 Page 22, Revised language regarding transaction fees. 10-24-13 Table of contents and revisions pages updated. Page 20, Added income limit verbiage for Florida Assist. 11-1-13 Compliance files and fees sent directly to EhousingPlus . Revised checklist and guidelines are available online.

5 Page 23, Revised shipping information; Page 25. revised shipping information; Page 32, Tax transcripts/returns (any combo of either) must be included in compliance file for compliance approval for files delivered to US Bank for purchase beginning Nov. 4, 2013. Page 33, added Document Detailing Lender Fees. Page 5. THE FLORIDA HOUSING PARTNERSHIP TEAM. Puts All The Pieces Together To Create Affordable Home Ownership for Floridians! The Florida Housing Finance Corporation (Florida Housing) provides a first mortgage program. If a person uses a Florida Housing first mortgage, they may also qualify for down payment and closing cost assistance. The program does not provide stand alone down payment and closing cost assistance with lenders' first mortgage products . Florida Housing may offer one or more first mortgage options in their program.

6 There's something for every qualified buyer in all Florida counties. Florida Housing also sets the rate, term and points of its mortgages. Florida Housing trains real estate professionals, provides an informational website for the public and markets their program. Participating Lenders: Provide usernames/passwords to their trained personnel. Take applications, reserve in their own systems to provide funds for closing, process, underwrite, approve, fund first and second mortgages, close and sell qualified loans to the program. It's the responsibility of lenders to review program documents and to originate loans that meet the requirements. Check with your company on how to reserve a program loan in your own system. Your company may have their own codes. Direct borrowers to attend homebuyer ed. Give proper closing instructions. Lenders are responsible for servicing all program loans in accordance with Fannie Mae, Freddie Mac and Ginnie Mae requirements until they're purchased by the Master Servicer.

7 U S BANK, Master Servicer: Provides training concerning general underwriting information, acceptable loan products and the delivery and funding of program loans. Receives all mortgage files, reviews mortgage files, posts and notifies lenders of mortgage file exceptions, approves mortgage files, purchases first and second mortgage loans and wires funds to lenders; services all program loans. Servicer is not obligated to purchase loans that don't comply. Questions regarding the mortgage loan itself, first mortgage file, credit underwriting, FHA, VA, USDA:RD, Fannie Mae or Freddie Mac loan types, first and second mortgage, first and second note, hazard, flood insurance, sinkhole coverage, credit, appraisals, short sales, flips, delivery, funding, or exceptions related to these topics should be directed to U S Bank's Help Desk. The Help Desk does not receive paperwork related to clearing exceptions.

8 EhousingPlus , Program Administration/Compliance: Serves as Program Administrator and maintains the program reservation system and website; posts Lender Guides, program forms, and training materials; provides training on compliance issues and system; answers compliance questions, reviews program compliance file, posts and notifies lenders of exceptions, compliance approval, issues final recapture notice via mail to borrowers. Questions regarding program Compliance ( first-time homebuyer, income, sales price, occupancy) should be directed to EhousingPlus . Page 6. THE PRODUCTS, RATES, CREDIT SCORES. There are first mortgages and a down payment and closing cost assistance second mortgage. A brief description follows but each product is detailed in this color-coded Guide . Rev 8-12-13 Please check the system for current interest rates.

9 PLEASE NOTE THAT RATES MAY. CHANGE at any time. MINIMUM CREDIT SCORE. All loans (Conventional, FHA, VA and RD), must have FICO scores greater than or equal to 640 for all borrowers on the application. This includes: AUS decision loans, either LP Accept or DU. Approve Eligible. Please pay extra attention to the following: If minimum credit score required by an Agency (FHA, VA, USDA-RD, Fannie Mae or Freddie Mac) is higher than above, then you must follow Agency guidelines. 2. If as a Participating Lender your internal requirements dictate a higher minimum credit score, you must adhere to your lending guidelines. 3. If a tri-merged credit report is used, the middle score must be 640 or higher. 4. If a merged credit report only returns two scores, the lower of the two scores must be 640 or higher. a borrower(s) has NO credit score(s), you may manually underwrite the loan using alternative credit, as per the product guidelines (FHA,VA,USDA- RD, and Fannie Mae) 6.

10 If you use Bank for underwriting and those requirements dictate a higher minimum credit score, you must adhere to those lending guidelines. MAXIMUM DEBT TO INCOME (DTI) RATIO. Loans have a maximum DTI (debt to income) of 45% Added 9-18-12 Effective October 1, 2012. THE FIRST MORTGAGE OPTIONS. FLORIDA FIRST. All borrowers who qualify for the program's first mortgage loan qualify for this product which may be used with the Florida Assist second mortgage that provides down payment and closing cost assistance. This is a 30 year, fixed rate loan. Lenders may charge and retain up to that may be charged as Origination Fee OR Discount Fee OR a combination of both but in total cannot exceed Loans may be government or conventional loans. The rate for conventional loans may be slightly higher. Conventional loans originated under the HFA Preferred program do not require a Loan Level Price Adjustment but do require a.