Nevada Home is Possible FHA - eprmg.net

1 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 less words. Nevada home is Possible FHA. with Down Payment Assistance FOR CASES ASSIGNED ON OR AFTER 9/14/15. Must be referred to AFS for Origination (loan cannot be originated by branch). DPA options subject to change based on market conditions Must confirm availability with Housing Authority. 30 Year Fixed LTV CLTV Purpose Unit Occupancy Credit Score 1. 105 Purchase 1-4 O/O 640. 1. On purchases, the CLTV is further limited to 100% (of the adjusted value) or the standard FHA LTV limit ( ). (depending on the type of financing) if the subordinate lien is NOT from an instrumentality of government or government agency that is providing down payment and/or closing cost assistance in the form of secondary financing.

2 PRODUCT NAMES Nevada home is Possible FHA 30 Year FHA Fixed Nevada home is Possible 2nd DPA. ALLOWABLE Retail ORIGINATION CHANNELS Loans must be referred to the AFS department for origination SERVICER Bank=Master Servicer eHousingPlus = Program Administrator/Compliance 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. home IS Possible GUIDELINES SUBJECT TO CHANGE. DOWN PAYMENT The home is Possible Down Payment Assistance Program is only available only with SECOND LIEN PROGRAM the Nevada home is Possible first lien. Borrowers qualifying under this program must utilize the down payment assistance associated with this program. The first trust deed is not allowed to be used without using the DPA. In conjunction with first, Borrowers will receive a forgivable second mortgage of 2%.

3 Or 3% of the total first mortgage loan amount. Credit scores 640-659: 2% second mortgage Nevada home is Possible FHA Product Profile 1 of 34 01/30/2019. Cases Assigned On or After 9/14/15 Guidelines Subject to Change Credit scores 660+: 2% or 3% second mortgage The funds may be used to fund up to 100% of the Borrower's cash requirement to close, including the down payment, closing costs, pre paid items and other related Mortgage Loan fees and expenses. No portion of the funds can be paid to the Borrower unless the Borrower is being reimbursed for an overage of his/her earnest money deposit to the extent the minimum Borrower contribution has been satisfied. Underwriter Certification requirement: WITHIN 20 DAYS OF LOAN RESERVATION, Underwriter completes the online Underwriter Certification within the eHousingPlus Lender Portal. Nevada Housing Division EIN is 52-2038434. Lenders are required to Nevada Housing Division EIN on HUD's FHA Loan Underwriting and Transmittal Summary in conjunction with secondary financing assistance to the borrower when the borrower is receiving an FHA First Mortgage.

4 Lenders upfront the DPA at closing to be reimbursed by the Bank upon purchase of the Nevada home is Possible First Mortgage. Additional loan must be created in FT360 to accommodate second and should be created at the same time the 1st lien is created for disclosure, document and funding purposes. The compliance file will be delivered to eHousingPlus and the mortgage file including the credit package will be delivered to Bank. This is a second lien that will subordinate to the FHA first mortgage and must be considered secured borrowed funds . On the loan application, Question H Is any part of the down payment borrowed . should show as Yes DOWN PAYMENT All down payment assistance proceeds must be disclosed on the Closing Disclosure, ASSISTANCE ON CLOSING Section L -Paid Already by or on Behalf of the Borrower at Closing. The down DISCLOSURE payment assistance proceeds must be labeled accurately. For example: "Second loan" is not appropriate if the assistance is a grant or gift.

5 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. DOWN PAYMENT Disclosures must be generated from FT360. ASSISTANCE SECOND Closer to pull final docs from eHousing website to insure final input is complete and LIEN DISCLOSURES/ all information is completed. DOCUMENTS Since no fees are charged on DPA, the second lien is exempt from TRID. All the needed forms/docs must be generated from the eHousing website for closing. Required docs/forms from eHousing: Partial Exemption Form to be provided to the borrower at the time of the reservation Gift Letter Obligation Letter Dodd Frank Letter Note and Deed of Trust on 2nd TRAINING For program and system training eHousingPlus offers training: For the eHousingPlus training, enter Paramount Residential Mortgage Group, Inc.

6 For the coupon code Anyone who will reserve funds, complete an underwriter certification, print forms or Nevada home is Possible FHA Product Profile 2 of 34 01/30/2019. Cases Assigned On or After 9/14/15 Guidelines Subject to Change clear exceptions is highly encouraged to attend a 30-minute training. Register to attend: For underwriting, delivery and funding information see Bank website AGENCY LINKS For additional reference, Nevada home is Possible FHA Loan Programs guidelines posted on eHousingPlus website: In addition to any Product Profile requirements, you must always meet the published HUD guidelines and master servicer, Bank, lending criteria. If published HUD. guidelines or Bank are more restrictive then what is allowed in the Product Profile, you must always defer to HUD Guidelines. For underwriting, delivery and funding information see Bank website then click on Bank Lending Manuals 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.

7 Use the following link to access the HUD Housing Handbooks site, and from there, obtain access to the Handbook: s/handbooks/hsgh Access the All Regs version of the Handbook at: MINIMUM LOAN No Minimum Loan Amount AMOUNT. MAX. LOAN AMOUNT The lesser of $400,000 or the particular county's maximum HUD loan limit. HUD. Loan Limits can be found here: GEOGRAPHIC State of Nevada only RESTRICTIONS Please refer to PRMG's Eligible States list, which can be found at this link: PURCHASE PRICE LIMITS $400,000. MORTGAGE TYPES 203(b) home Mortgage Insurance 234(c) Mortgage Insurance for Condominiums FEES 1st First Mortgage .50% Origination Fee charged. Standard PRMG Underwriting and Processing Fee to be charged Nevada Fees: Compliance/Admin fee $275 payable by buyer or seller at closing, may not be financed. Funding Fee of $400 for Master Servicer paid by buyer or seller (fee collected by PRMG to be remitted to Master Servicer). When using the Nevada Housing Division's MCC, MCC Application Fee for PRMG of $300 applies When using Nevada Housing Division's MCC, MCC Program Participation Fee for Nevada Housing Division of $395 applies The compliance/admin fee must be referred to as such in the closing document or HUD-1 and must ONLY be for the amount stated in the program administrator's guidelines.

8 Failure to list the fee correctly will result in a deficiency on the loan file. In addition to the fees above, other customary third-party fees such as credit report fee, appraisal fee, insurance fee, or similar settlement or financing costs may be charged In all cases the lender must meet federal and Nevada lending laws regarding fees and charges. 2nd Nevada home is Possible FHA Product Profile 3 of 34 01/30/2019. Cases Assigned On or After 9/14/15 Guidelines Subject to Change No additional fees are allowed for the Assistance. FIRST LOAN INTEREST eHousingPlus posts the First Mortgage interest rates daily on their website RATES All loans must be delivered and purchased by Bank within 70 days of rate lock. On all extension requests, AFS will extend the loan on eHousingPlus Lender Portal and will notify Secondary with the updated lock confirmation indicating the lock has been extended. One-time extension cost, which is available from 7-30 days and must be submitted before the 70th day.

9 This information is posted on the daily rate sheet. Rates can be subject to intra day pricing changes. Any loan not purchased within 70 days is ineligible for purchase unless the lender chooses a one-time only 30-day extension. The cost of the extension is $375. The $375 extension fee is due whether or not loans are ultimately delivered and/or purchased. The Interest Rate Extension form can be found on eHousingPlus website: This form must be completed and submitted before the purchase day of 70 days. DOCUMENTATION Full/Alt Doc Regardless of DU findings, all loans must have evidence that the most current year's 1040 tax returns have been validated for all borrowers with any type of qualifying income. If the results cannot be obtained due to an extension, a No Record Found . message is acceptable, and a validated 4506-T on the previous year is required. If tax returns/transcripts are included in the file, for any reason (including to qualify for use of an MCC, rental income, proof of first time homebuyer, etc.)

10 , and the returns/transcripts reflect unreimbursed employee business expenses (2106. expenses), those expenses must be considered in income calculations. Full 1040 tax transcripts are required to support income used to qualify. When transcripts indicate Due to limitations, the IRS is unable to process this request" one of the following must be documented in the file: 1. For salaried borrowers, when available, utilize The Work Number's Instant Access Database. This will show employment and income records provided by the employer's payroll system, OR, Lender may order W-2 or 1099 transcripts when the only income used to qualify is salaried/W-2 or 1099 reported income. 2. Request the most recent 1040s from the borrower(s), and proof of filing (cancelled check for tax payment, or bank statement showing deposit of refund). 3. Request that the borrower obtain the transcripts from the IRS. Tax transcripts must be provided for the number of years of income documentation required to be in the loan file, in accordance with the AUS findings and/or Agency requirements Tax transcripts must come to lender directly from the IRS or through a third party vendor ordered/obtained by lender When business tax returns are required by AUS, business income is used to qualify or business income is used to offset a loss on personal tax returns or is included in the loan file, a separate IRS Form 4506-T must be executed (but not processed and must allow enough time to be executed post-closing after delivery to investor) for each business for the required number of years of income documented, for each self- employed borrower on the loan transaction.