Lender Guide. Florida Housing Finance Corporation (FHFC) 2013 PROGRAM. Published Revised Revisions on Page 3

Transcription

1 Lender Guide Florida Housing Finance Corporation (FHFC) 2013 PROGRAM Published Revised Revisions on Page 3

2 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 ACQUISITION (PURCHASE PRICE) LIMITS FOR ONE TO FOUR UNITS 11 FINANCING FACTS 12 MILITARY HEROES - FIRST MORTGAGE 14 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 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 RATE LOCKS, DEADLINES - TIMING IS EVERYTHING 26 LOAN PROCESSING, DELIVERY & PURCHASE TIMETABLE: 26 UNDERWRITER S PROGRAM INCOME CALCULATION GUIDELINES 27 PROGRAM FORMS 31

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 3

4 Page 4 REVISION TABLE Date Page and Topic Pages 27, 34, 37 Removed verbiage regarding wires and/or added language regarding USB 002 as per US Bank Bulletin DPA Funding dated (Ref ) Page 6, up to 1.00% 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, All others have effective date of August 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 Pages 6 and 26, Amended how 1.00% fee may be charged Page 22, Revised Florida Assist Income Limits effective Page 22, Revised Florida Assist Income Limits for Alachua and Gilchrist for 6-8 person households effective 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 Throughout deleted references to HAMI and references to special income limits for Florida Assist. For loans reserved prior to 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 Page 22, Revised language regarding transaction fees Table of contents and revisions pages updated. Page 20, Added income limit verbiage for Florida Assist Compliance files and fees sent directly to ehousingplus. Revised checklist and guidelines are available online. 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, Page 33, added Document Detailing Lender Fees.

5 THE FLORIDA HOUSING PARTNERSHIP TEAM Puts All The Pieces Together To Create Affordable Home Ownership for Floridians! Page 5 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. 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. 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. 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 (i.e. first-time homebuyer, income, sales price, occupancy) should be directed to ehousingplus.

6 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 Please check the system for current interest rates. 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. 5.If 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. If you use U.S. 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 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 1.00% that may be charged as Origination Fee OR Discount Fee OR a combination of both but in total cannot exceed 1.00%. 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.25% Adverse Market Fee. All other Conventional loans require a Loan Level Price Adjustment and a.25% Adverse Market Fee. No additional origination fees, points or transaction fees are permitted. Florida First Mortgage detailed information appears highlighted in yellow beginning on page 8. Rev for loans that have not closed and new reservations MILITARY HEROES Be a veteran, defined as a member of the Florida National Guard or U. S. service personnel; or currently on active duty or honorably discharged from the military (Army, Navy, Air Force, Marine Corps, Coast Guard, the Reserves) Verification may include discharge papers for non-active duty personnel and current military photo ID for active duty personnel. This is a 30 year, fixed rate loan. Lenders may charge and retain up to 1.00% that may be charged as Origination Fee OR Discount Fee OR a combination of both but in total cannot exceed 1.00%. 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.25% Adverse Market Fee. All other Conventional loans require a Loan Level Price Adjustment and a.25% Adverse Market Fee. No additional origination fees, points or transaction fees are permitted. Military Heroes detailed information appears highlighted in green beginning on page 14. (Authorized by Florida Housing) Rev

7 Page 7 FLORIDA HOUSING EIN Veterans Exception (Authorized by Congress) Veterans need not be first-time homebuyers. For the Veterans Exception, veteran is defined as "a person who served in the active military, naval, or air service, and who was discharged or released therefrom under conditions other than dishonorable." The Mortgagor Affidavit has a checkbox that states: Mortgagor(Co-mortgagor) meets the requirements to qualify as a veteran as defined in 38 U.S.C. Section 101 and has not previously obtained a loan financed by single family mortgage revenue utilizing the exception to the first-time homebuyer requirement for Residences to Veterans under Section 143(d)(2)(D). Attached hereto are true and correct copies of my discharge or release papers, which demonstrate that such discharge or release was other than dishonorable. A person qualifying for the Veteran s Exception will qualify for the Military Heroes first mortgage. But not all those qualifying for Military Heroes qualify for Veteran s exception (exception for Vets only) THE SECOND MORTGAGE OPTION (Rev for all loans in pipeline and new reservations) Lenders advance funds for Florida Assist Second Mortgages and are reimbursed by the Servicer at loan purchase. FLORIDA ASSIST Rev and effective for loans that have not closed and new reservations available to all buyers who qualify for the first mortgage. It offers up to $10,000. It is a 30 year, deferred, 0.00% second mortgage loan. It is NOT forgiven. Amount should be determined by need. Lenders may charge and retain up to 1.00% that may be charged as Origination Fee OR Discount Fee OR a combination of both but in total cannot exceed 1.00%. Florida Assist detailed information appears highlighted in bluegreen beginning on page 20.

8 FLORIDA FIRST - FIRST MORTGAGE Page 8 Qualify as First Time Homebuyer A First-Time Homebuyer is someone who has not had an ownership interest in their primary residence in the past three years, unless buying in a Targeted Area or qualifying under the Veteran's Exception. Borrower and spouse must provide three years complete tax returns (unless buying in a Targeted Area or qualifying under the Veteran's Exception) and meet the Florida Housing First-Time Homebuyer program guidelines regardless of whether or not a party to the transaction or residing in the property being purchased. However, the spouse of a qualified Veteran need not be a first-time buyer. Non-Citizen Applicants All loans follow Agency (FHA, VA, Fannie, etc) guidelines. Homebuyer Education All borrowers and anyone listed on the Deed must take a face to face homebuyer education class from an approved agency in the State of Florida. It is preferable that the education class be taken prior to execution of a contract to maximize the benefit to the borrowers. However, at this time, preclosing homebuyer education certificates are acceptable. Borrowers who have been homeowners in the last three years are exempt. Borrowers who have not been homeowners in the last three years are not exempt (even if purchasing in targeted areas or are veterans who meet the requirements of the Veterans Exception).Links to the list of approved homebuyer counseling agencies are on the website. Please contact us if your borrower wants to attend a class offered by a SHIP or FHA approved homebuyer counseling agency in the State of Florida and they are not on the list. Homebuyer Education Certificates are acceptable for a period of one year.

9 Florida First - First Mortgage - continued Page 9 Targeted Area Census Tract Link and List Finding a Census Tract Number for a Property Address The following is a link to the Geocode site and is used to determine the census tract of a property address: Then to determine the census tract property address, enter information in the screen and submit. The system automatically defaults to the most current year. Counties with Targeted Area Census Tract Numbers - Alachua 0002, 0006, , , , Bay 0018 Brevard 0607, 0626 Broward , , 0414, 0415, 0416, 0417, , 0805, 1005 Collier , Duval 0004, 0010, 0013, 0015, 0016, 0017, 0018, 0026, , 0115 Escambia 0004, 0015, 0017, 0018, 0020 Hillsborough 0007, 0018, 0030, 0032, 0034, 0036, 0039, 0040, 0043, , , 0129 Lee , , 0006 Leon 0005, 0006, , , 0012, 0014, , Marion 0017, 0018 Miami-Dade , , , , , , , , , , , , , , , , , , , , , 0025, 0026, 0028, , , , 0031, 0034, , , , , , , , , , , , , , , , , , 0108, 0109, , 0113 Orange 0104, 0105, 0106, 0114, , , Palm Beach , , , , , , , , Pinellas 0205, 0207, 0209, 0210, 0212, 0213, 0216 Polk 0101, 0102, 0110, , , 0133, St. Lucie 0001, 0002, 0003 Seminole 0205 Volusia 0815, 0819, 0820, 0821

10 Page 10 Florida First Household Income Limits NT = Non-Targeted (counties appear in Italics below) T = Targeted (counties appear Bolded with an Asterisk {*} below and Targeted census tracts are listed on pages 9 and 15) Effective with reservations August 12, 2013 Rev Added asterick to Marion County County(ies) NT 1-2 person HH NT 3+ person HH T 1-2 person HH T 3+ person HH Alachua*, Gilchrist 67,769 77,934 69,960 81,620 Baker 70,920 82, Bay* 69,360 80,920 69,360 80,920 Bradford 60,720 70, Brevard* 73,048 84,005 73,800 86,100 Broward* 81,720 95,340 81,720 95,340 Clay, Duval*, Nassau, St. Johns 76,800 89,600 76,800 89,600 Charlotte 63,720 74, Collier* 83,040 96,880 83,040 96,880 Escambia*, Santa Rosa 67,889 78,072 69,240 80,780 Flagler 72,189 83, Franklin 58,800 68, Gadsden, Jefferson, Leon* 67,209 77,290 73,320 85,540 Gulf 59,880 69, Hamilton 57,720 67, Hernando,Hillsborough*,Pasco,Pinellas* 68,160 79,520 68,160 79,520 Indian River 67,800 79, Jackson 61,800 72, Lafayette 65,280 76, Lake,Orange*,Osceola,Seminole* 70,200 81,900 70,200 81,900 Lee* 67,560 78,820 67,680 78,960 Liberty 62,160 72, Madison 57,720 67, Martin, St. Lucie* 65,760 76,720 67,680 78,960 Manatee, Sarasota 71,880 83, Miami-Dade* 78,480 91,560 78,480 91,560 Monroe 104, , Okaloosa 78,000 90, Okeechobee 59,760 69, Palm Beach* 82,440 96,180 82,440 96,180 Polk* 62,160 72,520 67,680 78,960 Sumter 63,600 74, Taylor 58,680 68, Union 67,680 78, Volusia* 67,800 79,100 67,800 79,100 Wakulla 66,269 76, Walton 70,680 82, Washington 59,640 69, All Other counties ** 57,600 67,200 67,680 78,960 * * All Other Counties for Income: Calhoun, Citrus, Columbia, DeSoto, Dixie, Glades, Hardee, Hendry, Highlands, Holmes, Levy, Marion*, Putnam, Suwannee

11 Page 11 Florida First - First Mortgage - continued Qualifying Properties Properties may be new or existing homes and may be 1-4 units under the following conditions: Multi-unit properties (2-4 living units:) Borrowers must live in one of the units as their permanent, primary residence and the property must be at least five years old. Properties may be attached or detached dwellings, condos, townhomes, doublewide manufactured housing (FHA only) but not recreational, seasonal or other types of vacation or non-permanent homes. The amount paid by the buyer or on behalf of the buyer for the property cannot be greater than the Acquisition (Purchase Price) Limits for the applicable County ACQUISITION (PURCHASE PRICE) LIMITS FOR ONE TO FOUR UNITS Effective Date: June 13, 2013 (loans reserved on or after) Non-Targeted (counties appear in Italics below) Targeted (counties appear Bolded with an Asterisk(*) below and Targeted census tracts are listed on pages 9 and 15)( Clay no targeted areas, added Duval with targeted areas) COUNTY NON-TARGET TARGET Baker, Clay, Duval*, Nassau, St. Johns 357, ,179 Bay* 365, ,051 Brevard* 268, ,589 Broward*, Miami-Dade*, Palm Beach* 391, ,076 Charlotte 273, Collier* 490, ,359 Flagler 265, Franklin 281, Hernando, Hillsborough*, Pasco, Pinellas*270, ,000 Indian River 261, Lake, Orange*, Osceola, Seminole* 326, ,103 Lee* 328, ,923 Manatee, Sarasota 408, Martin, St. Lucie* 346, ,076 Monroe 673, Okaloosa 288, Sumter 257, Volusia* 280, ,691 Walton 334, ALL OTHERS 250, ,800 All Others for Acquisition Limits includes Alachua*, Bradford, Calhoun, Citrus, Columbia, DeSoto, Dixie, Escambia*, Gadsden, Gilchrist, Glades, Gulf, Hamilton, Hardee, Hendry, Highlands, Holmes, Jackson, Jefferson, Lafayette, Leon*, Levy, Liberty, Madison, Marion*, Okeechobee, Polk*, Putnam, Santa Rosa, Suwannee, Taylor, Union, Wakulla, Washington

12 Florida First - First Mortgage - continued Page 12 FINANCING FACTS It s expected that lenders have reviewed some preliminary documentation and believe that applicants will also qualify for credit. Excessive cancellations will be reviewed to assure that allocation is not being utilized inappropriately. There is up to 1.00% Origination and Zero Discount on this product. (Rev ) Applicants - All applicants must be considered irrespective of age, race, color, religion, national origin, sex, marital status, military status or physical handicap. Appraisal must indicate that the home has at least a 30 year remaining useful life. Assets - Borrowers are not required to use all available assets. Assumptions - First mortgage government loans may be assumed by a qualified borrower meeting first-time homebuyer requirements, income and acquisition price restrictions in place at the time of the assumption. Such loans must continue to fully comply and be insured or guaranteed by the insurer/ guarantor. Second mortgages are not assumable. Rev Compliance/Household Income - Program income is not averaged. It is annualized. That s different from income used for credit underwriting. More detailed guidelines for calculating program income are in the Underwriter s Program Income Calculation Guidelines included in this Guide. Borrower Contribution Rev As of May 1, 2012, borrower will need to have a minimum of $1,000 to contribute to the transaction. In order to be counted towards the borrower s contribution, any fee paid using borrower funds needs to be reflected on the HUD-1*. The lender is responsible for determining that the funds are the borrower s own funds or gift funds using normal secondary market standards. The $1,000 borrower contribution can come from the borrower s own savings, cash flow, tax refunds, or any source that you can verify is coming from the borrower. The $1000 borrower contribution may also be provided by gift funds and documented per Agency guidelines when required. Any indication that the money on deposit is the result of the funds coming from a cash advance on a credit card or any type of loan would make the funds ineligible to be used as the borrower s own funds. Any verified funds paid by the borrower that exceed the $1,000 minimum requirement are still reimbursable, subject to Agency and lender guidelines. *Failure to document fees on HUD-1 may keep your loan from being purchased in a timely manner. Cash Back to the borrower is not permitted from the program funds but any verified funds paid by the borrower that exceed the $1,000 minimum contribution requirement is still reimbursable subject to Agency and lender guidelines.

13 Florida First - First Mortgage - continued Page 13 Construction to perm is not permitted. Cosigners are not allowed with this program effective with registrations dated May 1, 2012 and after. All Borrowers included in the income and credit qualification for the loan must occupy the property as their primary residence. Doc Stamp and Intangible Tax - Under SECTION (1), FLORIDA STATUTES, first and second mortgages and notes given to secure the repayment of a loan issued in connection with the financing of housing under a Florida Housing MRB program are exempt from documentary stamp tax and intangible. Deeds are not exempt. Borrowers may not pay this charge with the exception of Agency or Bank REO s. Foreclosures/REO s - Seller Affidavit not required for properties sold by Fannie, Freddie, HUD, bank Manufactured Housing - Follow US Bank requirements including a maximum LTV of 90%. See the US Bank website and related Bulletins. (Rev effective for loans reserved on or after October 1, 2012) Minimum Loan Amount - There is no minimum loan amount required in the program. Occupancy - Buyers must occupy the property purchased within 60 days of closing. ehousingplus Compliance with questions regarding eligibility. Contact Prepayments - The first and second mortgages may be prepaid at any time without penalty. Property usage - No more than 15% of the space of the home may be used in a trade or business (including child care). Recapture Tax - The conditions of repayment of the federal subsidy are explained in a separate brochure provided on the Website. Starting with the 2007 Series 1 program, Florida Housing will reimburse any borrower that must pay the recapture tax. The guidelines for reimbursement will be posted on the Florida Housing website Refinances not permitted. Tax Returns - For program qualification purposes, borrower and spouse's federal income tax returns for the past three years are required (but not for Targeted Area borrowers or Veterans using the Veteran's Exception). This requirement exists regardless of whether or not they are obligated on the loan or will occupy the property. Must be complete returns including schedules. See "Other Documents Required for Compliance File" in this Guide on page 34. Temporary 2/1 buydowns of FHA loans are permitted but buydown cannot be paid by borrower or borrower s assistance. Underwriting is done by lenders. Please check with your company s underwriter for more information.

14 MILITARY HEROES - FIRST MORTGAGE Page 14 Qualify as First Time Homebuyer A First-Time Homebuyer is someone who has not had an ownership interest in their primary residence in the past three years, unless buying in a Targeted Area or qualifying under the Veteran's Exception. Borrower and spouse must provide three years complete tax returns (unless buying in a Targeted Area or qualifying under the Veteran's Exception) and meet the Florida Housing First-Time Homebuyer program guidelines regardless of whether or not a party to the transaction or residing in the property being purchased. However, the spouse of a qualified Veteran need not be a first-time buyer. Non-Citizen Applicants All loans follow Agency (FHA, VA, Fannie, etc) guidelines. Homebuyer Education All borrowers and anyone listed on the Deed must take a face to face homebuyer education class from an approved agency in the State of Florida. It is preferable that the education class be taken prior to execution of a contract to maximize the benefit to the borrowers. However, at this time, preclosing homebuyer education certificates are acceptable. Borrowers who have been homeowners in the last three years are exempt. Borrowers who have not been homeowners in the last three years are not exempt (even if purchasing in targeted areas or are veterans who meet the requirements of the Veterans Exception).Links to the list of approved homebuyer counseling agencies are on the website. Please contact us if your borrower wants to attend a class offered by a SHIP or FHA approved homebuyer counseling agency in the State of Florida and they are not on the list. Homebuyer Education Certificates are acceptable for a period of one year.

15 Military Heroes - First Mortgage - continued Page 15 Targeted Area Census Tract Link and List Finding a Census Tract Number for a Property Address The following is a link to the Geocode site and is used to determine the census tract of a property address: Then to determine the census tract property address, enter information in the screen and submit. The system automatically defaults to the most current year. Counties with Targeted Area Census Tract Numbers Alachua 0002, 0006, , , , Bay 0018 Brevard 0607 and 0626 Broward , , 0414, 0415, 0416, 0417, , 0805, 1005 Collier , Duval 0004, 0010, 0013, 0015, 0016, 0017, 0018, 0026, , 0115 Escambia 0004, 0015, 0017, 0018, 0020 Hillsborough 0007, 0018, 0030, 0032, 0034, 0036, 0039, 0040, 0043, , , 0129 Lee , , 0006 Leon 0005, 0006, , , 0012, 0014, , Marion 0017, 0018 Miami-Dade , , , , , , , , , , , , , , , , , , , , , 0025, 0026, 0028, , , , 0031, 0034, , , , , , , , , , , , , , , , , , 0108, 0109, , 0113 Orange 0104, 0105, 0106, 0114, , , Palm Beach , , , , , , , , Pinellas 205, 0207, 0209, 0210, 0212, 0213, 0216 Polk 0101, 0102, 0110, , , 0133, St. Lucie 0001, 0002, 0003 Seminole 0205 Volusia 0815, 0819, 0820, 0821

16 Page 16 Military Heroes Household Income Limits NT = Non-Targeted (counties appear in Italics below) T = Targeted (counties appear Bolded with an Asterisk {*} below and Targeted census tracts are listed on pages 9 and 15) Effective with reservations August 12, 2013 Rev Added asterick to Marion County County(ies) NT 1-2 person HH NT 3+ person HH T 1-2 person HH T 3+ person HH Alachua*, Gilchrist 67,769 77,934 69,960 81,620 Baker 70,920 82, Bay* 69,360 80,920 69,360 80,920 Bradford 60,720 70, Brevard* 73,048 84,005 73,800 86,100 Broward* 81,720 95,340 81,720 95,340 Clay, Duval*, Nassau, St. Johns 76,800 89,600 76,800 89,600 Charlotte 63,720 74, Collier* 83,040 96,880 83,040 96,880 Escambia*, Santa Rosa 67,889 78,072 69,240 80,780 Flagler 72,189 83, Franklin 58,800 68, Gadsden, Jefferson, Leon* 67,209 77,290 73,320 85,540 Gulf 59,880 69, Hamilton 57,720 67, Hernando,Hillsborough*,Pasco,Pinellas* 68,160 79,520 68,160 79,520 Indian River 67,800 79, Jackson 61,800 72, Lafayette 65,280 76, Lake,Orange*,Osceola,Seminole* 70,200 81,900 70,200 81,900 Lee* 67,560 78,820 67,680 78,960 Liberty 62,160 72, Madison 57,720 67, Martin, St. Lucie* 65,760 76,720 67,680 78,960 Manatee, Sarasota 71,880 83, Miami-Dade* 78,480 91,560 78,480 91,560 Monroe 104, , Okaloosa 78,000 90, Okeechobee 59,760 69, Palm Beach* 82,440 96,180 82,440 96,180 Polk* 62,160 72,520 67,680 78,960 Sumter 63,600 74, Taylor 58,680 68, Union 67,680 78, Volusia* 67,800 79,100 67,800 79,100 Wakulla 66,269 76, Walton 70,680 82, Washington 59,640 69, All Other counties ** 57,600 67,200 67,680 78,960 * * All Other Counties for Income: Calhoun, Citrus, Columbia, DeSoto, Dixie, Glades, Hardee, Hendry, Highlands, Holmes, Levy, Marion*, Putnam, Suwannee

17 Page 17 * Military Heroes - First Mortgage - continued Qualifying Properties Properties may be new or existing homes and may be 1-4 units under the following conditions: Multi-unit properties (2-4 living units:) Borrowers must live in one of the units as their permanent, primary residence and the property must be at least five years old. Properties may be attached or detached dwellings, condos, townhomes, doublewide manufactured housing (FHA only) but not recreational, seasonal or other types of vacation or non-permanent homes. The amount paid by the buyer or on behalf of the buyer for the property cannot be greater than the Acquisition (Purchase Price) Limits for the applicable County ACQUISITION (PURCHASE PRICE) LIMITS FOR ONE TO FOUR UNITS Effective Date: June 13, 2013 (loans reserved on or after) Non-Targeted (counties appear in Italics below) Targeted (counties appear Bolded with an Asterisk(*) below and Targeted census tracts are listed on pages 9 and 15) ( Clay no targeted areas, added Duval with targeted areas) COUNTY NON-TARGET TARGET Baker, Clay, Duval*, Nassau, St. Johns 357, ,179 Bay* 365, ,051 Brevard* 268, ,589 Broward*, Miami-Dade*, Palm Beach* 391, ,076 Charlotte 273, Collier* 490, ,359 Flagler 265, Franklin 281, Hernando, Hillsborough*, Pasco, Pinellas*270, ,000 Indian River 261, Lake, Orange*, Osceola, Seminole* 326, ,103 Lee* 328, ,923 Manatee, Sarasota 408, Martin, St. Lucie* 346, ,076 Monroe 673, Okaloosa 288, Sumter 257, Volusia* 280, ,691 Walton 334, ALL OTHERS 250, ,800 All Others for Acquisition Limits includes Alachua*, Bradford, Calhoun, Citrus, Columbia, DeSoto, Dixie, Escambia*, Gadsden, Gilchrist, Glades, Gulf, Hamilton, Hardee, Hendry, Highlands, Holmes, Jackson, Jefferson, Lafayette, Leon*, Levy, Liberty, Madison, Marion*, Okeechobee, Polk*, Putnam, Santa Rosa, Suwannee, Taylor, Union, Wakulla, Washington

18 Page 18 Military Heroes - First Mortgage - continued FINANCING FACTS It s expected that lenders have reviewed some preliminary documentation and believe that applicants will also qualify for credit. Excessive cancellations will be reviewed to assure that allocation is not being utilized inappropriately. There is up to 1.00% Origination and Zero Discount on this product. (Rev ) Applicants - All applicants must be considered irrespective of age, race, color, religion, national origin, sex, marital status, military status or physical handicap. Appraisal must indicate that the home has at least a 30 year remaining useful life. Assets - Borrowers are not required to use all available assets. Assumptions - First mortgage government loans may be assumed by a qualified borrower meeting first-time homebuyer requirements, income and acquisition price restrictions in place at the time of the assumption. Such loans must continue to fully comply and be insured or guaranteed by the insurer/ guarantor. Second mortgages are not assumable. Rev Compliance/Household Income - Program income is not averaged. It is annualized. That s different from income used for credit underwriting. More detailed guidelines for calculating program income are in the Underwriter s Program Income Calculation Guidelines included in this Guide. Borrower Contribution Revised As of May 1, 2012, borrower will need to have a minimum of $1,000 to contribute to the transaction. In order to be counted towards the borrower s contribution, any fee paid using borrower funds needs to be reflected on the HUD-1*. The lender is responsible for determining that the funds are the borrower s own funds or gift funds using normal secondary market standards. The $1,000 borrower contribution can come from the borrower s own savings, cash flow, tax refunds, or any source that you can verify is coming from the borrower. The $1000 borrower contribution may also be provided by gift funds and documented per Agency guidelines when required. Any indication that the money on deposit is the result of the funds coming from a cash advance on a credit card or any type of loan would make the funds ineligible to be used as the borrower s own funds. Any verified funds paid by the borrower that exceed the $1,000 minimum requirement are still reimbursable, subject to Agency and lender guidelines. *Failure to document fees on HUD-1 may keep your loan from being purchased in a timely manner. Cash Back to the borrower is not permitted from the program funds but any verified funds paid by the borrower that exceed the $1,000 minimum contribution requirement is still reimbursable subject to Agency and lender guidelines. Military Heroes - First Mortgage - continued

19 Page 19 Construction to perm is not permitted. Cosigners are not allowed with this issue effective with registrations dated May 1, 2012 and after. All Borrowers included in the income and credit qualification for the loan must occupy the property as their primary residence. Doc Stamp and Intangible Tax - Under SECTION (1), FLORIDA STATUTES, first and second mortgages and notes given to secure the repayment of a loan issued in connection with the financing of housing under a Florida Housing MRB program are exempt from documentary stamp tax and intangible. Deeds are not exempt. Borrowers may not pay this charge with the exception of homes purchased from HUD or REO s. Foreclosures/REO s - Seller Affidavit not required for properties sold by Fannie, Freddie, HUD, bank Manufactured Housing - Follow US Bank requirements including a maximum LTV of 90%. See the US Bank website and related Bulletins. (Rev effective October 1, 2012) Minimum Loan Amount - There is no minimum loan amount required in the program. Occupancy - Buyers must occupy the property purchased within 60 days of closing. ehousingplus Compliance with questions regarding eligibility. Contact Prepayments - The first and second mortgages may be prepaid at any time without penalty. Property usage - No more than 15% of the space of the home may be used in a trade or business (including child care). Recapture Tax - The conditions of repayment of the federal subsidy are explained in a separate brochure provided on the Website. Starting with the 2007 Series 1 program, Florida Housing will reimburse any borrower that must pay the recapture tax. The guidelines for reimbursement are posted on the Florida Housing website Refinances not permitted. Tax Returns - For program qualification purposes, borrower and spouse's federal income tax returns for the past three years are required (but not for Targeted Area borrowers or Veterans using the Veteran's Exception). This requirement exists regardless of whether or not they are obligated on the loan or will occupy the property. Must be complete returns including schedules. See "Other Documents Required for Compliance File" in this Guide on page 34. Temporary 2/1 buydowns of FHA loans are permitted but buydown cannot be paid by borrower or borrower s assistance. Underwriting is done by lenders. Please check with your company s underwriter for more information.

20 FLORIDA ASSIST - SECOND MORTGAGE (DPA/closing cost assistance second mortgage for income-qualified buyers ( Income limits for Florida Assist are the same as the first mortgage limits. See pages 10 and 16) Use of Second Mortgage Loan Proceeds Funds may be used for down payment, closing costs and prepaids. There is no cash-back to the borrower. To the extent the funds advanced by the borrower plus the first and second mortgage amounts exceed amounts required at closing, the Mortgage Lender may do a principal reduction. Rev Follow Agency (FHA, etc) Guidelines. (Rev ) Owner Occupancy Requirement The borrower receiving the Down Payment Assistance Loan must occupy the residence for the term of the loan or until the loan is satisfied. Loan Term 30 year deferred loan but accelerated if any of the following occur sale, transfer, other disposition of the property (including any involuntary transfer by or as a result of foreclosure or judicial sale or operation of law), refinance or satisfaction of the first mortgage loan. This loan is repayable and is never forgiven. Interest Rate 0.00%. Loan Amount Loan will be in an amount up to $10, (Rev ) Page 20 Income Limits The income limits for Florida Assist are the same as the income limits for the first mortgage. See pages 10 or 16 for first mortgage income limits (Rev ). Disclosure Requirements The second mortgage must meet Federal Disclosure requirements and any other applicable state and federal lending regulations. Allowable Fees Charged to Borrower and those retained by the Mortgage Lender are detailed on the Program Fees page in these Guidelines. Insurance Requirements The hazard insurance policy, when issued, must name the Florida Housing Finance Corporation as an insured second mortgagee. The mortgage title insurance policy, when issued, must include the second mortgage as a valid lien against the property subordinate only to the first mortgage. Recordation Requirements The first and second mortgages must be recorded in the following order: First Mortgage, Assignment of First Mortgage; Second Mortgage (Marital Status must be noted for all borrowers) Funding of Second Mortgage Loan The assistance is funded by lenders at closing and reimbursed by US Bank at loan purchase. See pages 27 and 28 DPA funds at close and Close and Submit.

21 Page 21 Florida Assist - Second Mortgage - continued Assumption The second mortgage loan is not assumable. Prepayment The second mortgage loan may be prepaid at any time without penalty. Recapture Tax There is no Recapture Tax on the second mortgage Mortgagee The Mortgagee is the Florida Housing Finance Corporation as preprinted in the Note and Mortgage and, therefore, an Assignment is not required. Cash Back Cash Back to the borrower is not permitted from the program funds but any verified funds paid by the borrower that exceed the $1,000 minimum contribution requirement is still reimbursable subject to Agency and lender guidelines.

22 PROGRAM FEES Page 22 FOR FIRST MORTGAGE LOANS (Rev For loans reserved or after) Lenders may charge and retain up to 1.00% as Origination Fee OR Discount FEE or combination of both on the first mortgage products in this program. However, in total no more than 1.00% may be charged under any circumstances. There is a Tax Service Fee of $85 and a Funding Fee of $200 netted at loan purchase by US Bank that should be disclosed as being paid to US Bank. (Rev effective with loans reserved ) There is also a Program Application Fee of $225 paid at closing by the buyer or seller and remitted as a corporate check or cashier s check to ehousingplus with the Compliance File that is shipped directly to ehousingplus. This fee should be disclosed on the HUD-1 as being paid to ehousingplus. FOR SECOND MORTGAGE LOANS The assistance is funded by the Lender at closing.. No origination or discount on FLORIDA ASSIST loans. On Florida Assist loans Lenders collect and retain $75 Second Mortgage Loan Application Fee and a Down Payment Assistance Funding Fee (DPA Funding Fee) of $250. The DPA Funding Fee must be disclosed on the 2 nd mortgage initial and final GFE s as well as the second mortgage HUD-1. THE PROGRAM FEES LISTED ABOVE ARE NOT INCLUDED IN THE LENDER FEE CAP. FIRST AND SECOND MORTGAGE LOANS (Rev to clarify) Realtors may charge the buyer normal, customary, and reasonable fees (i.e. transaction/broker fees) as long as the fee is disclosed in the Real Estate Sales Contract, a Buyer's disclosure, or other acceptable form of disclosure prior to closing. If the fee is not included in the Sales Contract, please submit supporting documentation in your Compliance File. LENDER FEES should not exceed $750. Lender fees are defined as fees paid to the lender for the origination of the loan. These fees include, but are not limited to, Processing Fees, Underwriting Fees, Administrative or Administration Fees, and Doc Prep Fees. If a lender chooses a third party to underwrite loan, the Underwriting Fee must be included in the maximum $750 Lender Fee. Lender fee cap DOES NOT INCLUDE THE PROGRAM FEES THAT ARE LISTED ABOVE IN THIS SECTION. Third Party Negotiator Fees, regardless of who pays them, are prohibited. Other third party fees such as fees collected for credit reports, appraisals, title commitments, surveys, notary fees, recording fees, prepaid escrow deposits, insurance, and courier fees are allowable as permitted by insurer/guarantor. Excessive fees (or junk fees) are strictly prohibited. Any Lender Fees collected in excess of $750 must be reimbursed to the appropriate party by the Lender prior to loan purchase.

23 Page 23 LENDER COMPENSATION SUMMARY - Rev Rev HAMI % Origination Fee OR Discount Fee OR combination but no more than 1.00% in total. Rev % SRP from US Bank at loan purchase (US Bank nets any fees owed them) $75 on HAMI loans as Second Mortgage Loan ApplicatIon Fee for loans reserved prior to $75 on FL ASSIST loans as Second Mortgage Loan ApplicatIon Fee $250 ON FL ASSIST loans as DPA Funding Fee $750 lender fees The above fees (other than SRP) may be paid by borrower or seller. Remember, borrower s must contribute $1,000 to the transaction. Assistance may be used to pay balance of borrower s points and fees.

24 Page 24 THE PROCESS ATTEND TRAINING Lender training provided by the Administrator and Servicer 24/7 via online training. Click on this link, then click on the TRAINING tab to attend. SYSTEM ACCESS CONTROLLED BY LENDERS Lender s Security Administrator will assign usernames and passwords. QUALIFY Lenders qualify applicants for the program. Lenders may pre-qualify and complete application process in their own internal systems using their internal codes. For the program buyers must present a fully-executed sales agreement before being entered into the program reservation system. RESERVE Lenders reserve program funds using the online reservation system. system itself. Online help available in the DISCLOSE Lenders have borrowers sign the Notices to Buyers. To buyer s copy attach a Recapture Brochure. That s it for the extra paperwork upfront. Must be signed upfront because it contains all the program disclosures. All forms available online as self-populating forms and are behind security. JUSTIFY Lenders process the loan normally and consider requirements (1) Notices to Buyers has been signed (2) secure past three years federal income tax returns (complete with schedules) for borrowers and spouses unless buying in Targeted Area or qualifying under the Veteran s Exception Remember 45 day lock extended only with Underwriter s Certification or cancels automatically. UNDERWRITE AND CERTIFY Lenders underwrite and are responsible for credit decisions of the loans in the program. Servicer does not re-underwrite loans. Following credit approval, Underwriter completes the online Underwriter Certification form. DPA FUNDS AT CLOSING Rev EFFECTIVE JULY 1, 2013 (For all loans CLOSING on or after July 1, 2013) The assistance is funded by LENDERS at closing and reimbursed by US Bank on behalf of Florida Housing at loan purchase. IT S IMPORTANT that lenders (1) have the borrower(s) sign the letter that meets requirements of (appears in the auto-fill Forms available for closing labeled as ) and retain original with copies to borrower, US Bank and a copy in the FHA Case Binder and (2) provide the Legally Enforceable Obligation Letter to Lenders.

25 Page 25 CLOSE AND VERIFY It s important to provide accurate closing instructions to closing agents. All program docs must be returned to you. At closing have (1) Borrower and Seller execute (and have notarized) the Affidavits Certification form, (2) borrower execute the Tax Exempt Rider, (3) if using Florida Housing second, have borrowers execute the correct second Mortgage and Note AND (4) any paperwork (see DPA Funds At Closing) that fulfills the requirements of SHIP (Rev. effective for loans reserved and after) Lenders use the Compliance Checklist for the compliance file and correct Mortgage file Checklist for the mortgage file. Ship the Compliance File to ehousingplus and the Mortgage File to US Bank MRBP Division. Recorded documents should be submitted to US Bank using the Final Document Submission Checklist. Exceptions posted online as well as sent to lenders. Please clear timely. Lenders service loans until purchased by US Bank.

26 Page 26 RATE LOCKS, DEADLINES - TIMING IS EVERYTHING First Mortgage Loan Reservation New construction and shorts sales must be reserved no sooner than 45 days before closing. Buyers MUST HAVE A FULLY- EXECUTED SALES CONTRACT FOR A SPECIFIC PROPERTY in order to have funds reserved. The contract may be dated prior to the date of the loan application. (Buyers may be pre-qualified. However, if the buyer does not have a contract on a property, Program Funds MAY NOT BE HELD for the buyer until such time as the buyer presents a valid contract.) Encourage buyers to complete their Homebuyer Education immediately following application. If you don t know of approved courses just click here FHFC_ECM/AppPage_HomePage.aspx. Then click on the First Time Homebuyer Program Icon. Scroll down to Homebuyer Education and Counseling.. You aren t limited to agencies on the list. Read the guidelines in their entirety and review all Homebuyer Education requirements. Education must be taken in the State of Florida. All loans must be registered through the ehousingplus Website. Complete the reservation form online and submit it via the Internet. Reservations submitted correctly receive a confirmation that the loan has been accepted and a loan number. If submitted incorrectly, there is instant online feedback identifying non-compliance and/or missing information issues. Lenders may choose to print confirmation from Loan Detail screen. Program funds are locked for a buyer when a reservation is submitted on and accepted by the system and a loan number is obtained. Don t promise a borrower a particular product until you ve locked it in the program system. Then meet deadlines to assure the lock. Second Mortgage Loan Reservation If borrowers choose to utilize a second mortgage loan, following submission of first mortgage loan, reserve second mortgage loan by choosing Additional Mortgage. Complete information. Again, system provides instant online feedback identifying non-compliance and/or missing information issues. Lenders may choose to print confirmation from Loan Detail screen. Lock-In Loan In Lender s Internal System Lenders must follow standard internal lock-in procedures so you have funds to close the loan. Lock in. LOAN PROCESSING, DELIVERY & PURCHASE TIMETABLE: Reservation to Underwriter Certification = 45 days Reservation to Exceptions Cleared, Loans Purchased = 115 days Loans that can be delivered will have a 25 bps late fee imposed on day 115 if the loan has not been cleared of all exceptions and purchased by US Bank. The lender will be given 30 additional calendar days to get the loan purchased OR the loan is going to be cancelled without further notice and the file returned to the lender.,,,,,no EXCEPTIONS. CONTINUOUS FUNDING: Because Florida Housing has made a commitment to continuous funding, when funds are fully utilized, an interim waiting list may be provided or may provide its own funds for the time between series/programs. In such instances, the program may be referred to as a Bridge Program.