30 Year Fixed 40 Year Fixed. Option First Loan Type & Term First Loan Rate Downpayment & Closing Costs Assistance 8A 6.40% Non-Repayable Grant:

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1 Eligible Jurisdictions 30 Year Fixed CALIFORNIA PROPERTIES ONLY! 1 See list by County on Income & Sales Price Limit documents Refer to Option First Loan Type & Term First Loan Rate Downpayment & Closing Costs Assistance 8 30-Year Fixed Fully Amortizing FNMA/FHLMC 8A 6.40% 8.0% Second Loan Interest Rate 8B 6.80% 8C 6.80% When used in conjunction with the Grant, combined First & Second may not 103% CLTV 9 40-Year Fixed Fully Amortizing FNMA Only 9A 6.45% 8.0% Second Loan Interest Rate 9B 6.85% 1

2 30 Year Fixed Option First Loan Type & Term First Loan Rate Downpayment & Closing Costs Assistance 9 cont d 9C 6.85% When in used conjunction with the Grant, combined First and Second Loan may not exceed 103% CLTV Year with 10-Year Interest Only 10-Year I/O period; remaining 30 years fully amortizing 10A 6.65% 8.0% Second Loan interest rate FNMA Only Minimum 620 FICO Score 10B 7.05% 10C 7.05% When used in conjunction with the Grant, combined First and Second Loan may not exceed 103% CLTV 10D 6.65% 10-Year Second Loan: 10-Year fixed rate fully amortizing May not exceed 7% of the sales price 5.0% Second Loan interest rate 2

3 Down Payment & Closing Cost Assistance 30 Year Fixed No downpayment required up to 100% LTV Grant & Second can be used for closing costs and Single Premium MI Borrower Purchase Owner Occupied Primary Residence only First Time Homebuyer Requirement applies 2 Property First Time Homebuyer Requirement is waived in Targeted Areas Single Family Residence, Condo, Half-plex or Duplexes (restrictions apply) Manufactured Homes are NOT permitted Homebuyer Education Loan Limits Income & Sales Price Limits Interested Party Contribution Community Subordinate Financing Federal Recapture Required when purchasing a 2-Unit property The Lesser of: FNMA/FHLMC First Loan Limits OR 100% of the NHF Eligible Sales Price Limit Listed by Targeted/Non-Targeted Areas Up to 120% of AMI Income & Sales Price Limits are listed by County Refer to Income for all adults residing in subject property must be included in income limit requirements <=3% Allowable seller contributions may be applied to closing costs only City, State or National Community subordinate financing may be used in 3 rd Lien position or as a substitute to the NHF 2 nd The most restrictive guides of the 1 st, 2 nd or 3 rd apply. Recapture is ONLY applicable when ALL of the following occur: 1. Property is sold within the first 9 years; 2. There is a capital gain upon sale; AND 3. Homebuyer s income exceeds the allowable income limit in the year in which the property is sold Mortgage Insurance Borrower paid Monthly and Single Premium MI ONLY Delegated allowed Refer to MI provider rate sheets for coverage requirements MI rate sheets are available in the Branch Forms link on the SPM/FNLS website or at Temporary Buydowns Permitted per FNMA & FHLMC guidelines NOT allowed for Interest-Only option 3

4 Automated Recommendation Manual 30 Year Fixed Must receive FNMA DU Approve/Eligible, EA-1 Eligible Or FHLMC LP Accept FNMA DU EA-II and FHLMC A-, Caution Recommendations are not eligible NOT ALLOWED Must Receive FNMA DU Approve/Eligible or EA-1 Eligible FNMA DU EA-II and FHLMC LP Recommendations are not eligible Minimum Credit Score Subject to MI provider s minimum credit score requirements Minimum 620 FICO Score Additional investor requirements may apply Footnotes 1. The FirstHouse Affordable Housing Program is available for properties in the State of California ONLY. 2. No present ownership interest in a principal residence is allowed at any time during the three-year period prior to the date the new First Mortgage is closed. Ownership interest in real property identified as a rental may be required to provide rental agreements to establish eligibility as a first-time homebuyer. 3. Maximum financing is NO LONGER permitted in market areas experiencing declining values. Effective immediately, LTV s and CLTV s must be reduced by 5%, regardless of AUS findings, if the property is in located in one of the following California Counties: County: MSA: Contra Costa Oakland-Freemont-Hayward, CA El Dorado Sacramento--Arden-Arcade--Roseville, CA Fresno Fresno, CA Humboldt Eureka-Arcata-Fortuna, CA Imperial El Centro, CA Kern Bakersfield, CA Kings Hanford-Corcoran, CA Merced Merced, CA Monterey Salinas, CA Placer Sacramento--Arden-Arcade--Roseville, CA Sacramento Sacramento Arden-Arcade Roseville, CA San Diego San Diego-Carlsbad-San Marcos, CA San Joaquin Stockton, CA San Luis Obispo San Luis Obispo-Paso Robles, CA Santa Barbara Santa Barbara-Santa Maria, CA Solano Vallejo-Fairfield, CA Sonoma Santa Rosa-Petaluma, CA Stanislaus Modesto, CA Tulare Visalia-Porterville, CA Ventura Oxnard-Thousand Oaks-Ventura, CA Yolo Sacramento Arden-Arcade Roseville, CA 4

5 Guidelines/Procedures 1. The Broker must fax a completed NHF Registration form to SPM/FNLS to reserve funds for the 1 st and 2 nd mortgages. A copy of the NHF Registration form is posted in Branch Forms on the SPM/FNLS website 2. SPM/FNLS will register both the First and Second mortgages via the NHF website 3. The NHF Registration confirmation must be faxed to Secondary Marketing 4. NHF Second Mortgage closing documents will be prepared by SPM/FNLS via the NHF website 5. SPM/FNLS will notify NHF when Grant Funds are being utilized. NHF will prepare the appropriate Grant Letter and fax to SPM/FNLS for the Borrower s signature prior to funding. 6. All funds for the 1 st, 2 nd and Grant, if applicable, will be disbursed to escrow by SPM/FNLS 7. The Borrower must provide the most recent 3 years signed Federal Tax Returns for homeownership verification. 8. Hazard Insurance policy requires Full Replacement Value Coverage 9. A $300 cancellation fee will be imposed for each loan reservation that is cancelled. 10. Substitution of a registration for another Borrower is not allowed 11. Broker fees must be reasonable and customary for the industry and consistent with FNMA/FHLMC requirements. a. Maximum Origination Fees: 1.5% - 1 st loans; 1.25% - 2 nd loans. b. NO discount points may be charged. c. The following investor fees must be collected from the Borrower or Seller: $300 Program Admin Fee, $200 Loan Review Fee, $89 Tax Service Fee, and $10 Life of Loan Flood Cert Fee. d. Please contact your Account Executive for applicable SPM/FNLS fees. 5