PROGRAM GUIDE. Florida Housing Finance Corporation s. HFA Preferred and HFA Preferred 3% PLUS Grant

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1 PROGRAM GUIDE Florida Housing Finance Corporation s HFA Preferred and HFA Preferred 3% PLUS Grant Conventional FIRST MORTGAGE Loan Program & The Florida Assist SECOND MORTGAGE Loan Program IMPORTANT PROGRAM UPDATES ON PAGE 3 Revised 08/16/18

2 Florida Housing Finance Corporation Page 2 TABLE OF CONTENTS Important Updates 3 Introduction to the Florida Housing Finance Corporation, ehousingplus 4 and U.S. Bank Home Mortgage Partnership Understanding the Process 9 Definitions 11 Florida Assist Second Mortgage 13 First Mortgage Program 14 First Mortgage Program Requirements 14 Federally Designated Targeted Areas 15 HFA Preferred w/ Florida Assist Second Mortgage Income & Purchase 17 Price Limits HFA Preferred Term Sheet 19 HFA Preferred Plus Grant Income & Purchase Price Limits 25 HFA Preferred Plus Term Sheet 33 Reserving 1 st and 2 nd Mortgages Online 37 Closing, Shipping, Clearing Loans for Purchase 37

3 Florida Housing Finance Corporation Page 3 IMPORTANT PROGRAM UPDATES Effective Date 7/23/15 Updates Page# Updated contact directory 4-6 9/3/15 Revised homebuyer education providers 18 9/28/15 Revised name of ehp fee 20 9/28/15 Added GFE & HUD /29/15 Revised SHIPPING to include closing disclosure 25 9/30/15 Revised US Bank Funding Fee 20 9/30/15 Added link to US Bank lender training 4 10/03/15 Clarified which federal disclosures are required 19 & 22 10/14/15 Revised HFA Preferred Conventional Guide for FL Assist counties 12/01/15 Added flood coverage language 18 12/01/15 Added Who Must Attend to homebuyer education 20 12/01/15 Added Special Instructions to Title Companies 27 01/11/16 Added HFA Preferred Plus Term Sheet 24 01/11/16 Added Allowable Borrower Costs Covered with the FL Assist Second 30 Mortgage 03/14/16 Revised definition for First-Time buyer removing reference to spouse 11 03/14/16 Revised language regarding second mortgage settlement charges 33 06/09/16 Revised income and purchase price limits. Effective with 1003 loan applications dated 06/13/16 and after. 08/22/16 Removed Fannie Mae requirement requiring ownership of other property (effective 7/26/16) Revised minimum FICO to 640 (effective 7/20/16) Removed US Bank overlay specific to 97% LTVs requiring US Bank s approval to underwrite (effective 8/19/16) 17, 18, 25,26 19 & & &28 9/1/16 Updated guide to reflect additional 6 HHF counties - Clay, Osceola, 32 Pasco, 9/13/16 Pinellas, Removed Polk dates & St. at income Lucie and purchase price charts 17, 24 01/23/17 Revised POA language 36 02/07/17 Added Manual Underwriting 17, 21, 29

4 Florida Housing Finance Corporation Page 4 03/22/17 Revised DTI requirement information (US Bank conventional AUS approval policy change) Added US Bank condominium guideline expansion language Revised US Bank Tax Service Fee effective 04/17/17 24, 32 25, 33 21, 30 04/10/17 Revised purchase price limits 18, 19 06/01/17 Revised Income Limits Revised Cash Back to Borrower Added Non-Purchasing Spouse information Removed reference to LPA in DTI Ratios and increased DTI to 50% Removed Freddie Mac reference from Property Type Added second mortgage maximum settlement fee Added important information regarding ehp Wire payments Revised US Bank web site link throughout guide 06/21/17 Added Program Participation Restriction Added Realtor Commission and Realtor Transaction Fees 17,18,25, & & & , 29, & 33 09/15/17 Added Cash Back policy language 20 & 29 12/05/17 Added 11 Counties (formerly HHF) income & purchase price limits 17, 18, 26, 27 12/11/17 Updated FHFC Logo Added 10 Counties (Formerly HHF) Targeted Census Tracts Removed all references to HHF Added LE & CD as allowable federal disclosure documents for Florida Assist second mortgage Cover 15 & 16 Multiple pages 36 01/04/18 Removed exception for 10 formerly HHF counties 13 03/14/18 Revised Federal Disclosures for the second Mortgage Revised Recording & Settlement Charges /13/18 Revised US Bank Tax Service Fee effective 04/30/18 24 & 33 06/04/18 Revised who signs program documents to clarify a non-purchasing spouse 40 06/15/18 06/20/18 Revised HFA Preferred w/florida Assist program income and sales price limits, effective May 10, 2018 Revised HFA Preferred 3% PLUS Grant program income and sales price limits, effective May 10, 2018 Posted income & sales price limits prior to May 10, 2018 on pages Revised Madison and Manatee counties purchase price limits for the HFA Preferred 3% Plus GRANT 17 & &

5 Florida Housing Finance Corporation Page Revised Purchase Price limits for Baker, Clay, Martin, Monroe, Nassau, Okaloosa, St. Johns, Sarasota and Walton 18 & & Revised HUD education provider link 22, 31, Added ehp Digital Docs Corrected Purchase Price limits on Page 19 for St. Johns, St. Lucie, Walton and Washington counties 19

6 Florida Housing Finance Corporation Page 6 INTRODUCTION TO THE FLORIDA HOUSING FINANCE CORPORATION, ehousingplus AND US BANK HOME MORTGAGE PARTNERSHIP Question Direct Questions Contact Information to: How to become an approved Lender FL Housing Charles.White@floridahousing.org Sandy.Smith@floridahousing.org How individual staff members of an approved Participating Lender can sign up to participate in the First Time Homebuyer Program ehousingplus Click on this link to attend Program Training Or contact: Jennifer Jennifer@ehousing.cc Vicki Vicki@ehousing.cc Joe joe@ehousing.cc Where to attend US Bank training for Closers and Shippers US Bank Call US Bank HFA Division Where to attend training for FL Housing s First Time Homebuyer Program Where to attend training for the online reservation system Where to check Program rates ehousingplus ehousingplus ehousingplus Click on this link to attend Program Training Or contact: Jennifer Jennifer@ehousing.cc Vicki Vicki@ehousing.cc Joe joe@ehousing.cc Click on this link to register for the once weekly webinar: Or contact: Jennifer Jennifer@ehousing.cc Vicki Vicki@ehousing.cc Joe joe@ehousing.cc Click on this link to view the current rate: -programs/florida/florida-housingfinance-government/ Then click on the RATES tab.

7 Florida Housing Finance Corporation Page 7 How to reserve a loan ehousingplus View the System Training Video Library n.aspx?page=/default.aspx Or contact: Jennifer Jennifer@ehousing.cc Vicki Vicki@ehousing.cc Joe joe@ehousing.cc Where to reserve a loan ehousingplus View the System Training Video Library n.aspx?page=/default.aspx Or contact: Jennifer Jennifer@ehousing.cc Vicki Vicki@ehousing.cc Joe joe@ehousing.cc How to modify a loan ehousingplus View the System Training Video Library n.aspx?page=/default.aspx Or contact: Jennifer Jennifer@ehousing.cc Vicki Vicki@ehousing.cc Joe joe@ehousing.cc How to pull Program documents from the online reservation system ehousingplus View the System Training Video Library n.aspx?page=/default.aspx Or contact: Jennifer Jennifer@ehousing.cc Vicki Vicki@ehousing.cc Joe joe@ehousing.cc

8 Florida Housing Finance Corporation Page 8 Questions regarding income for the First Time Homebuyer Program Credit underwriting questions Questions regarding the shipping of closed loan files Questions regarding exceptions ehousingplus Participating Lenders should refer to their internal Underwriting Department/Mana ger or US Bank ehousingplus (for questions regarding Program compliance files) US Bank (for questions regarding the first and second mortgage closed loan files) ehousingplus (for questions regarding exceptions on Program compliance files) US Bank (for questions regarding exceptions on the first and second mortgage closed loan files) Please contact: sue@ehousing.cc Jennifer@ehousing.cc joe@ehousing.cc US Bank does not re-underwrite loans. For general questions, contact US Bank at hfa.programs@usbank.com or Option 2 (for general questions) services@ehousingplus.com hfa.programs@usbank.com Option 1 (for questions regarding exceptions) services@ehousingplus.com hfaeastcommunications@usbank.com Option 1

9 Florida Housing Finance Corporation Page 9 Florida Housing Finance Corporation (FL Housing) (EIN ) offers first mortgage products and a down payment and closing cost assistance second mortgage programs to eligible First Time Homebuyers through a network of approved Participating Lenders. Participating Lenders originate, underwrite, close and fund in their loan origination systems, and deliver all closed Program loans to US Bank Home Mortgage for purchase. In addition, Program loans (both first mortgage and the Florida Assist second mortgage) are reserved/locked, underwriter certified and final Program closing documents pulled from the ehousingplus online reservation system. Upon loan closing, compliance files are delivered to ehousing by Participating Lenders for review and confirmation that loan satisfies all Program requirements reflected in this Program Guide. ehousingplus (ehousing) Provides the online reservation system utilized by Participating Lenders in Florida Housing s Homebuyer Programs. Offers reservation system training for all Participating Lenders, assistance with the reservation system and assists Participating Lenders with Program questions and requirements. Reviews all Program loan files for compliance with eligibility requirements as set forth in this Program Guide. Notifies Participating Lenders of any compliance file exceptions on delivered loans. US Bank Home Mortgage (US Bank) Serves as master servicer of all first and second mortgage loans originated in Florida Housing s Homebuyer Program. Provides training to Participating Lenders regarding the delivery and purchase requirements of all first and second mortgage loans. Offers assistance with loan delivery requirements to Participating Lenders. Notifies Participating Lenders of any collateral file exceptions on delivered loans.

10 Florida Housing Finance Corporation Page 10 UNDERSTANDING THE PROCESS All conventional first mortgages and second mortgage loans must adhere to a 60-day delivery timeline. Loans purchased after the maximum delivery date will be charged 37.5 bps extension fee and this fee will be deducted from the Participating Lender s SRP or billed to lender if loan is not purchased. The extension fee of 37.5 bps will extend reservation an additional 30 days (for a total of 90 days from reservation) without cancellation. After 90 days, loans are subject to automatic cancellation or repricing at the discretion of Florida Housing. Loans that are not delivered or purchased by the maximum delivery date are subject to cancellation. Reservation to Underwriter Certification = 20 days Reservation to Purchase = 60 days The Program timeline is determined by date loan is reserved in the ehousing reservation system, NOT by date loan is locked in a Lender s origination system. If a loan is cancelled then reinstated, it will be reinstated at the highest rate available since the initial or original loan reservation. The timeline of 60 days from Reservation to Purchase will be determined by the initial or original loan reservation date of the reinstated loan. The clock does not restart upon loan reinstatement. Step 1 Step 2 Step 3 Once Lenders have attended training online and have been given system access, Lenders can then qualify borrowers for the first and second mortgage based on all applicable GSE, US Bank and FL Housing Program requirements. Lenders should confirm borrower(s) have attended and completed an approved homebuyer education course. Lenders collect all necessary documentation from borrower(s) for confirmation of eligibility to participate in the First Time Homebuyer Program. Once a fully executed sales contract is obtained and Lender has taken loan application in their origination system, provide Program disclosures to borrower(s). In order to meet loan delivery/purchase timelines it is recommended that lenders do not lock the first and second mortgages in the online reservation system until their underwriter is ready to certify the loan.

11 Florida Housing Finance Corporation Page 11 Step 4 Loans are certified by the Lender s underwriter for compliance with all Program requirements and data consistency. Underwriter Certification should be completed no later than 20 days from reservation. Step 5 Program closing documents and the Florida Assist Second Mortgage and Note are pulled from the online reservation system for forwarding to the closing company along with all lender generated first mortgage loan documents. Step 6 Step 7 Step 8 Loan closes and lenders submit a Program compliance file to ehousing for review/approval and a closed first and second mortgage loan file to US Bank for purchase review and approval. ehousing issues exceptions (if any) to Lenders for loan files that are non-compliant with Program requirements. US Bank issues exceptions (if any) to Lenders for loan files that are deficient in loan documentation and/or do not satisfy GSE or US Bank requirements. Lenders submit necessary documentation or "cures" to clear loan for purchase to ehousing and/or US Bank. Eligible loans are then purchased by US Bank and Lenders are paid a SRP. Lock to Purchase = 60 days. Step 9 Lenders submit any final trailing documentation to US Bank.

12 Florida Housing Finance Corporation Page 12 DEFINITIONS Agency means FHA (Federal Housing Administration of the United States Department of Housing and Urban Development), VA (Veteran s Affairs) or USDA/RD (Rural Development Service of the United States Department of Agriculture). Conventional Loan Program means any approved loan satisfying the requirements of Fannie Mae originated in Florida Housing s Homebuyer Program. Documentary Stamp Tax and Intangible Tax Exemption means 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 Florida Housing s Homebuyer Programs are exempt from documentary stamp tax and intangible tax. Deeds are not exempt. Fannie Mae means the Federal National Mortgage Association, a corporation organized and existing under the Federal National Mortgage Association Charter Act, 12 U.S.C et seq., or any successor thereto. Federally Designated Targeted Area means those areas within the State identified as Qualified Census Tracts and Areas of Chronic Economic Distress (if any) which are set forth in this HHF DPA Program Guide. First Time Homebuyer means, except for borrowers purchasing in Federally Designated Targeted Areas and for certain Veterans eligible for the Veteran's Exception, the borrower must have had no Ownership Interest in a principal residence at any time during the threeyear period prior to the date on which the Mortgage Loan is executed. (Rev. 3/14/16) Freddie Mac means the Federal Home Loan Mortgage Corporation, and its successors and assigns. Government Loan Program means any FHA, VA or USDA-RD Mortgage Loans originated in Florida Housing s Homebuyer Program. GSE means the Government Sponsored Enterprises which includes Fannie Mae and Freddie Mac. Homebuyer Programs or Program means Florida Housing s homeownership assistance programs, the requirements of which are set forth in this HFA Preferred / Florida Assist Program Guide. Income Limit means the federally adjusted income limits for a household, adjusted for household size and county, which are set forth in this HFA Preferred / Florida Assist Program Guide. Lender or Participating Lender means a home mortgage lending institution approved by Florida Housing for the Program.

13 Florida Housing Finance Corporation Page 13 Mortgage means the written instrument creating a lien on real property to provide security for the payment of a Mortgage Loan. Mortgage Loan means a qualified loan originated by a Lender under the Program with respect to real property, which is evidenced by a Mortgage Note and secured by a Mortgage that creates a first or second lien. Mortgage Note means the promissory note evidencing the obligation to repay a Mortgage Loan. Ownership Interest means a person(s) owns or has owned a residential property and appears/appeared on the deed to such property. Private Mortgage Insurance (PMI) means primary mortgage insurance coverage that borrowers must obtain through a private mortgage insurance provider that reduces the risk for lenders and investors on conventional loans that have loan-to-value balances exceeding 80% at loan origination. Program Qualifying Income means a borrower(s) income as reflected on the Uniform Residential Loan Application (URLA) or Fannie Mae Form 1003 (1003) which is considered in credit underwriting. Purchase Price Limit or Acquisition Limit means the Homeownership Program limits on the maximum purchase price of a home, by county, which are set forth in this HHF DPA Program Guide. Reasonable and Customary Closing Costs means reasonable and customary fees determined to satisfy all GSE guidelines such that those fees will not impact the insurability or the guarantee of mortgage loans by the GSE s. State means the State of Florida. Veterans Exception refers to the Congressional Act that permanently exempts qualified veterans from the Internal Revenue Code 143 requirement of being a First Time Homebuyer when utilizing loan programs that rely on mortgage revenue bond financing as its funding source.

14 Florida Housing Finance Corporation Page 14 THE FLORIDA ASSIST SECOND MORTGAGE PROGRAM Florida Housing offers a second mortgage program that provides eligible borrower(s) with funds that can be used for down payment, closing costs and prepaids, mortgage insurance premiums, or as a principal reduction to the first mortgage. This second mortgage program offers the following benefits to qualified borrower(s): Borrower(s) qualifying for the FL HFA Preferred (HFA Preferred) Conventional Loan Program in all counties automatically qualify. This is not a stand-alone second mortgage program. Up to $7,500. 0%, non-amortizing, deferred second mortgage. The FL Assist is not forgivable. Repayment is deferred, except in the event of the sale, transfer, satisfaction of the first mortgage, refinancing of the property or until such a time the mortgagor ceases to occupy the property at which time, the Florida Assist will become payable in full.

15 Florida Housing Finance Corporation Page 15 THE FIRST MORTGAGE PROGRAMS Florida Housing offers two first mortgage conventional loan programs to eligible First Time Homebuyers. Borrower(s) are required to qualify as a First Time Homebuyer as defined below and satisfy the following requirements to be eligible to participate in a first mortgage program that offers down payment assistance. The FL HFA Preferred (HFA Preferred) Conventional Loan Program offers eligible borrowers a 30-year, fixed-rate mortgage. This first mortgage also offers borrowers a reduced Private Mortgage Insurance (PMI) premium. Borrowers who qualify for this mortgage program will automatically qualify for down payment assistance through the HHF DPA Program. The FL HFA Preferred PLUS (HFA Preferred PLUS) Conventional Loan Program offers eligible borrowers a 30-year, fixed-rate mortgage. This first mortgage also offers borrowers a reduced Private Mortgage Insurance (PMI) premium. Borrowers who qualify for this mortgage program will automatically qualify for a 3% non-repayable grant that can be used towards down payment and closing costs. The PLUS is NOT available with the FL Assist. Program Requirements 1) First Time Homebuyer Requirement - unless meeting one of the exceptions below, the borrower(s) must not have had an Ownership Interest in a principal residence at any time during the three-year period prior to the date on which the Mortgage Loan is executed. Veterans Exception Veterans need not be First Time Homebuyers if he or she served in the active military, naval, or air service, and who was discharged or released therefrom under conditions other than dishonorable. Borrower(s) qualifying under the Veterans Exception must certify that they meet the requirements on the Mortgagor Affidavit.

16 Florida Housing Finance Corporation Page 16 Federally Designated Targeted Area Exception Borrower(s) purchasing in a Federally Designated Targeted Area are exempt from the First Time Homebuyer Requirement. See the eligible Census Tracts below Federally Designated Targeted Areas (Borrowers Purchasing in Federally Designated Targeted Areas are Exempt from the First Time Homebuyer requirement.) (Added 10 former HHF counties on 12/11/17) Alachua , , , , , , , , , Bay Brevard , , , Broward , , , , , , , , , , , , , , , , , , Citrus , Collier , , , DeSoto Duval , , , , , , , , , , , , , , Escambia , , , , , , , Highlands , Hillsborough , , , , , , , , , , , , , , , , , , , , , , , , , , Indian River Lake Lee , , , , , , Leon , , , , , , , , , , Manatee , , , , , , , Marion , Miami-Dade , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 0034,00, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Orange , , , , , , , , , , , , Osceola , , Okeechobee Pasco , , , , , , , , ,

17 Florida Housing Finance Corporation Page Palm Beach , , , , , , , , , , , , , , , Pinellas , , , , , , , , Polk , , , , , , , , , , , , , , Putnam Seminole , , St. Lucie , , , Sumter Suwannee Volusia , , , , , , ) Income Limit requirements - Borrower(s) must not exceed the maximum Income Limit requirements for the county in which the property is being purchased. 3) Purchase Price Limits - requires that the contracted purchase price does not exceed the Purchase Price Limits in the county in which the property is being purchased. (Purchase Price limits effective with new reservations dated 04/17/17 and after). 4) Other Requirements Borrower(s) must have a minimum FICO score of 640. Manual Underwriting Permitted but more restrictive overlays may exist. Please check GSE, US Bank or MI company guidelines.

18 Florida Housing Finance Corporation Page 18 New Loan Reservations May 10, 2018 and after Income & Purchase Price Limits HFA Preferred Conventional Loan with Florida Assist Second Mortgage County 1-2 Person 3+ Persons Acquisition/Purchase Price Limit Alachua $81,995 $85,560 $331,423 Baker $71,875 $75,000 $386,941 Bay $72,680 $75,840 $331,423 Bradford $71,875 $75,000 $331,423 Brevard $74,520 $77,760 $331,423 Broward $92,920 $96,960 $388,235 Calhoun $71,875 $75,000 $331,423 Charlotte $71,875 $75,000 $331,423 Citrus $71,875 $75,000 $331,423 Clay $80,385 $83,880 $386,941 Collier $86,250 $90,000 $507,293 Columbia $71,875 $75,000 $331,423 De Soto $71,875 $75,000 $331,423 Dixie $71,875 $75,000 $331,423 Duval $80,385 $83,880 $386,941 Escambia $74,980 $78,240 $331,423 Flagler $71,875 $75,000 $331,423 Franklin $71,875 $75,000 $331,423 Gadsden $77,510 $80,880 $331,423 Gilchrist $81,995 $85,560 $331,423 Glades $71,875 $75,000 $331,423 Gulf $71,875 $75,000 $331,423 Hamilton $71,875 $75,000 $331,423 Hardee $71,875 $75,000 $331,423 Hendry $71,875 $75,000 $331,423 Hernando $73,485 $76,680 $331,423 Highlands $71,875 $75,000 $331,423 Hillsborough $73,485 $76,680 $331,423 Holmes $71,875 $75,000 $331,423 Indian River $74,290 $77,520 $331,423 Jackson $71,875 $75,000 $331,423 Jefferson $77,510 $80,880 $331,423 Lafayette $71,875 $75,000 $331,423 Lake $73,485 $76,680 $331,423

19 Florida Housing Finance Corporation Page 19 County 1-2 Person 3+ Persons Acquisition/Purchase Price Limit Lee $73,255 $76,440 $331,423 Leon $78,660 $82,080 $331,423 Levy $71,875 $75,000 $331,423 Liberty $71,875 $75,000 $331,423 Madison $71,875 $75,000 $331,423 Manatee $80,845 $84,360 $336,470 Marion $71,875 $75,000 $331,423 Martin $71,875 $75,000 $355,881 Miami-Dade $90,505 $94,440 $388,235 Monroe $101,430 $105,840 $595,293 Nassau $80,385 $83,880 $386,941 Okaloosa $75,555 $78,840 $399,881 Okeechobee $71,875 $75,000 $331,423 Orange $73,485 $76,680 $331,423 Osceola $73,485 $76,680 $331,423 Palm Beach $88,435 $92,280 $388,235 Pasco $73,485 $76,680 $331,423 Pinellas $73,485 $76,680 $331,423 Polk $71,875 $75,000 $331,423 Putnam $71,875 $75,000 $331,423 Santa Rosa $74,980 $78,240 $331,423 Sarasota $80,845 $84,360 $336,470 Seminole $73,485 $76,680 $331,423 St. Johns $80,385 $83,880 $386,941 St. Lucie $71,875 $75,000 $355,881 Sumter $76,820 $80,160 $331,423 Suwanee $71,875 $75,000 $331,423 Taylor $71,875 $75,000 $331,423 Union $71,875 $75,000 $331,423 Volusia $71,875 $75,000 $331,423 Wakulla $71,875 $75,000 $331,423 Walton $71,875 $75,000 $399,881 Washington $71,875 $75,000 $331,423

20 Florida Housing Finance Corporation Page 20 Florida Housing s Tax Identification Number FL HFA Preferred Conventional First Mortgage Loan Program TERM SHEET Features Borrowers eligible for this first mortgage product are eligible to receive down payment and closing cost assistance through Florida Housing s second mortgage program, the Florida Assist. Eligible borrowers also benefit from reduced mortgage insurance costs. Florida Housing s Mortgage Credit Certificate (MCC) Program can be combined with the FL HFA Preferred Conventional First Mortgage Loan Program and the FL Assist. Loan Delivery Purchase Timeline 60 DAY PURCHASE TIMELINE Reservation (rate lock) to Underwriter Certification = 20 days. Reservation to Purchase = 60 days. Extension fee of 37.5 bps will be assessed for any loan not eligible for purchase within 60 days. An extension of up to 30 days will be granted. Please refer to ehousing s website for more information. Pricing and Rate Daily pricing program. Rates will be posted by 10 AM in the ehousing reservation system. The system will be locked at 8 PM nightly. LLPA & Adverse No LLPA. Market Delivery Fee No Adverse Market Fee applies. First Time Homebuyer (FTHB) Requirement Borrower(s) must not have had an Ownership Interest in their primary residence within the past 3 years unless purchasing in a Federally Designated Targeted Area or if they qualify under the Veteran s Exemption. FTHB eligibility is determined for the borrower(s) as certified to on the Ownership Interest For the FL, Ownership Interest is defined as a borrower who appears or has appeared on deed to a residential property.

21 Florida Housing Finance Corporation Page 21 Exemptions to First Time Homebuyer (FTHB) Requirement Veterans or borrowers purchasing in a Federally Designated Targeted Area are exempt from the FTHB Requirement. For FL HFA Preferred Conventional Loan Program, a 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." Program Participation Restriction (Added 06/21/17) Documentation Required to Verify FTHB Requirement Minimum Borrower Contribution Cash Back to Borrower (Rev 09/15/17) Please note that veterans are not exempt from FNMA s prohibition of having an ownership interest in any other residential property at time of closing. All borrowers are restricted to a one-time participation in Florida Housing s Homebuyer Program. This includes all first and second mortgage programs. Borrower(s) final URLA or Required only if GSE or mortgage insurance provider require. Any potential cash back to borrower should be applied as a principal reduction to the first mortgage unless the cash back is from gift funds. GIFT FUNDS may be used for down payment, closing costs, debt payment, to establish reserves for the borrower(s), or any other Agency allowed purpose. Since this is not the borrower(s) own funds, a refund of any excess gift funds is not considered cash back for Program purposes and therefore, is permitted. When refunding gift funds, include a copy of the Agency required Gift Letter in the compliance file. Adhere to GSE guidelines when applying a principal reduction for cash back other than those received from gift funds. Borrowers are not permitted to receive a refund of their EMD even if the EMD was provided through gift funds. Assets Borrowers are not required to utilize assets for participation. Adhere to GSE guidelines. FICO Score Requirements Minimum 640. Minimum FICO requirement may apply per mortgage insurance provider. Ratios Maximum debt-to-income ratio cannot exceed 50% or ratio deemed acceptable by US Bank. Reference US Bank Bulletin for additional information. Manual Underwriting More restrictive guidelines may apply. Please check GSE, US Bank or MI company guidelines.

22 Florida Housing Finance Corporation Page 22 Co-signers Not permitted. Citizenship All loans must adhere to GSE (FNMA) guidelines. Requirements Private Mortgage Insurance (PMI) Homeowner s Insurance Deductible Charter level (reduced) PMI coverage which results in lower rates and lower monthly and/or upfront MI costs. Contact your preferred MI company account representative for more information on HFA Preferred and MI overlays. As required by GSE. No additional US Bank overlays apply. Flood Coverage (if applicable) Homebuyer Education (HBE) (Rev 07/31/18) Refer to US Bank s guidelines specific to flood insurance at US Bank s policy regarding flood coverage may vary from standard flood requirements in the State of Florida or a Lender s own requirements & loans submitted for purchase without sufficient coverage may be at risk of nonpurchase. First-Time Homebuyers, unless qualifying under a Veteran's Exception or those who are exempt by purchasing a home in a Federally Designated Targeted Area as specified in this Program Guide, must complete a Program-approved pre-purchase homebuyer education course. We will accept face-to-face homebuyer education if provided by a HUD approved counseling agency, a unit of local government that provides pre-purchase homebuyer education in FL, or a counseling agency designated by a unit of local government to provide homebuyer education on their behalf. Click on this link to view the HUD list of approved education providers in the state of Florida. Online HBE is permitted if provided by a HUD approved agency, a unit of local government that provides prepurchase homebuyer education in FL, a mortgage insurance provider, or an Agency or GSE sponsored course. Certificates of Completion are acceptable for 2 years from date of completion. Who Must Attend HBE All borrowers/parties appearing on the loan application (parties appearing on the note) are required to attend HBE regardless of who appears on the deed.

23 Florida Housing Finance Corporation Page 23 Loan Type Fannie Mae ONLY. Select the HFA Preferred when running AUS/DU. Loan Purpose Purchase only. Refinances are not eligible. Construction to permanent loans are not permitted. Term 30-year fixed. LTV/CLTV Maximum 97% / 105%. Assumptions Not permitted. Prepayments Permitted at any time without penalty. Minimum Loan Amount Requirement Origination / Discount Points Federal Disclosure Requirements for HFA Preferred First Mortgage N/A. Follow GSE requirements and lender s guidelines specific to minimum loan amounts. Lenders may impose a minimum loan amount. 1% Origination permitted and payable to Participating Lender. No discount points permitted. Lenders are required to adhere to all federal disclosure requirements. Failure to comply will deem loan ineligible for purchase by US Bank. Please refer to US Bank s website at for more specific information regarding TRID. Please Note: All FL Housing second mortgages require separate disclosure. Please refer to term sheet for second mortgage in this Program Guide. Tax Exempt Rider N/A. Please Note: The Tax Exempt Rider is required for loans originated in the Government Loan Program only. It is not required for the FL HFA Preferred Conventional Loan Program. Occupancy Owner occupied only with borrower s intent to occupy property as their primary residence within 60 days of closing. Non-Purchasing Spouse (NPS) A NPS MAY be on the deed without consideration of his/her income or first time buyer status. Please note, any party appearing on the Note must be a first time buyer and his/her income must be considered toward Program Qualifying Income (for a conventional loan this would be all income used on the 1003).

24 Florida Housing Finance Corporation Page 24 Property Type ATTACHED / DETACHED 1-UNIT DWELLINGS (includes townhomes). 2-4 UNIT PROPERTIES LTV cannot exceed 95%. Requires 3% minimum borrower contribution. CONDOS US Bank must approve all condo projects if lender is not approved by US Bank to approve projects. Condos with LTVs from 95.01% to 97% are allowable provided the project is approved by US Bank. Please reference US Bank bulletin Condominium Guideline Expansion for complete details. Please refer to US Bank website at for specific guidance or call or projectapprovaldept@usbank.com. Manufactured housing is not permitted. Income Limits Program limits determined by household size and county and change annually. Documentation Required to Verify Income Eligibility Final URLA or Please Note: Income eligibility is determined by the income used in credit underwriting. Income reflected on the loan application is considered only. Purchase Price Limits Program limits determined by county and change annually. Documentation Closing Disclosure (CD). Required to Verify Purchase Price Eligibility Final URLA or 1003.

25 Florida Housing Finance Corporation Page 25 Doc Stamp Tax & Intangible Tax Exemption First mortgage and note AND FL Housing second notes and mortgages are exempt. Please note that all first and second mortgages and notes must reflect the following verbiage: Notes: This note and the mortgage securing this note arise out of or are given to secure the repayment of a loan issued in connection with the financing of housing and are exempt from documentary stamp tax and intangible tax pursuant to section (1), F.S. Mortgages: This mortgage and the note secured by this mortgage arise out of or are given to secure the repayment of a loan issued in connection with the financing of housing and are exempt from documentary stamp tax and intangible tax pursuant to section (1), F.S. Recapture Tax N/A. Recapture Tax does not apply to the FL HFA Preferred Conventional Loan Program. Tax Service Fee (Rev 04/13/18) Recapture Tax is currently applicable to the Government Loan Program and MCC Program only. FL HFA Preferred Program Fees For Loan Reservations made on April 30, 2018, and later - $80 will be deducted from wire by US Bank at time of loan purchase. For Loan Reservations made prior to April 30, $58 will be deducted from wire by US Bank at time of loan purchase. Compliance/Admin Fee $250 Compliance/Admin Fee payable to ehousing. Funding Fee $400 Funding Fee payable to US Bank and deducted from wire by US Bank at time of loan purchase. Lender Fees 1% Origination payable to Participating Lender. Usual and customary origination fees are permitted.

26 Florida Housing Finance Corporation Page 26 Realtor Commission and Realtor Transaction Fee (Added 06/21/17) Realtor Commission is not permitted to be paid with the Florida Housing s down payment assistance funds. The buyer may pay using their own funds. Florida Housing funds are restricted to down payment and STANDARD closing costs. Realtor commission is not a standard buyer cost in the State of Florida. Realtor Transaction Fee may be paid by the borrower but the fee cannot exceed $400. Program Documents Available through Reservation System FL HFA Preferred Program Documents US Bank Privacy Form.

27 Florida Housing Finance Corporation Page 27 New Loan Reservations May 10, 2018 and after Income & Purchase Price Limits HFA Preferred 3% Plus GRANT Conventional Loan County All Household Sizes Acquisition/ Purchase Price Limit Alachua $99,820 $386,941 Baker $87,500 $331,423 Bay $88,480 $331,423 Bradford $87,500 $331,423 Brevard $90,720 $331,423 Broward $113,120 $388,235 Calhoun $87,500 $331,423 Charlotte $87,500 $331,423 Citrus $87,500 $331,423 Clay $97,860 $386,941 Collier $105,000 $507,293 Columbia $87,500 $331,423 De Soto $87,500 $331,423 Dixie $87,500 $331,423 Duval $97,860 $386,941 Escambia $91,280 $331,423 Flagler $87,500 $331,423 Franklin $87,500 $331,423 Gadsden $94,360 $331,423 Gilchrist $99,820 $331,423 Glades $87,500 $331,423 Gulf $87,500 $331,423 Hamilton $87,500 $331,423 Hardee $87,500 $331,423 Hendry $87,500 $331,423 Hernando $89,460 $331,423 Highlands $87,500 $331,423 Hillsborough $89,460 $331,423 Holmes $87,500 $331,423 Indian River $90,440 $331,423 Jackson $87,500 $331,423 Jefferson $94,360 $331,423 Lafayette $87,500 $331,423 Lake $89,460 $331,423

28 Florida Housing Finance Corporation Page 28 County All Household Sizes Acquisition/ Purchase Price Limit Lee $89,180 $331,423 Leon $94,360 $331,423 Levy $87,500 $331,423 Liberty $87,500 $331,423 Madison $87,500 $336,470 Manatee $98,420 $331,423 Marion $87,500 $331,423 Martin $87,500 $355,881 Miami-Dade $110,180 $388,235 Monroe $123,480 $595,293 Nassau $97,860 $386,941 Okaloosa $91,980 $399,881 Okeechobee $87,500 $331,423 Orange $89,460 $331,423 Osceola $89,460 $331,423 Palm Beach $107,660 $388,235 Pasco $89,460 $331,423 Pinellas $89,460 $331,423 Polk $87,500 $331,423 Putnam $87,500 $331,423 Santa Rosa $91,280 $331,423 Sarasota $98,420 $336,470 Seminole $89,460 $331,423 St. Johns $97,860 $386,941 St. Lucie $87,500 $355,881 Sumter $93,520 $331,423 Suwanee $87,500 $331,423 Taylor $87,500 $331,423 Union $87,500 $331,423 Volusia $87,500 $331,423 Wakulla $87,500 $331,423 Walton $87,500 $399,881 Washington $87,500 $331,423

29 Florida Housing Finance Corporation Page 29 Florida Housing s Tax Identification Number FL HFA Preferred PLUS Conventional First Mortgage Loan Program TERM SHEET Features Borrowers eligible for this first mortgage product receive 3% in down payment assistance in the form of a nonrepayable grant. Eligible borrowers also benefit from reduced mortgage insurance costs. The 3% grant is based upon the sales price or the appraised value, whichever is less. The 3% grant cannot be used to pay the difference between contract sales price and an appraised value that is less than the contract sales price. Please Note: The 3% grant cannot be used with any of Florida Housing s other down payment programs like the FL Assist. Florida Housing s Mortgage Credit Certificate (MCC) Program can be combined with the FL HFA Preferred PLUS Conventional First Mortgage Loan Program. Loan Delivery Purchase Timeline 60 DAY PURCHASE TIMELINE Reservation (rate lock) to Underwriter Certification = 20 days. Reservation to Purchase = 60 days. Extension fee of 37.5 bps will be assessed for any loan not eligible for purchase within 60 days. An extension of up to 30 days will be granted. Please refer to ehousing s website for more information. Pricing and Rate Daily pricing program. Rates will be posted by 10 AM in the ehousing reservation system. The system will be locked at 8 PM nightly. LLPA & Adverse Market Delivery Fee First Time Homebuyer (FTHB) Requirement No LLPA. No Adverse Market Fee applies. Borrower(s) must not have had an Ownership Interest in their primary residence within the past 3 years unless purchasing in a Federally Designated Targeted Area or if they qualify under the Veteran s Exemption. FTHB eligibility is determined for the borrower(s) as certified to on the 1003.

30 Florida Housing Finance Corporation Page 30 Ownership Interest For the FL HFA Preferred PLUS Conventional Loan Program, Ownership Interest is defined as a borrower who appears or has appeared on deed to a residential property. Exemptions to First Time Homebuyer (FTHB) Requirement Program Participation Restriction (Added 06/21/17) Documentation Required to Verify FTHB Requirement Minimum Borrower Contribution Cash Back to Borrower (Rev 09/15/17) Veterans or borrowers purchasing in a Federally Designated Targeted Area are exempt from the FTHB Requirement. For FL HFA Preferred PLUS Conventional Loan Program, a 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." Please Note: Veterans are not exempt from FNMA s prohibition of having an ownership interest in any other residential property at time of closing. All borrowers are restricted to a one-time participation in Florida Housing s Homebuyer Program. This includes all first and second mortgage programs. Borrower(s) final URLA or Required only if GSE or mortgage insurance provider require. Any potential cash back to borrower should be applied as a principal reduction to the first mortgage unless the cash back is from gift funds. GIFT FUNDS may be used for down payment, closing costs, debt payment, to establish reserves for the borrower(s), or any other Agency allowed purpose. Since this is not the borrower(s) own funds, a refund of any excess gift funds is not considered cash back for Program purposes and therefore, is permitted. When refunding gift funds, include a copy of the Agency required Gift Letter in the compliance file. Adhere to GSE guidelines when applying a principal reduction for cash back other than those received from gift funds. Borrowers are not permitted to receive a refund of their EMD even if the EMD was provided through gift funds. Assets Borrowers are not required to utilize assets for participation. Adhere to GSE guidelines. FICO Score Requirements Minimum 640. Minimum FICO requirement may apply per mortgage insurance provider.

31 Florida Housing Finance Corporation Page 31 Ratios Maximum debt-to-income ratio cannot exceed 50% or ratio deemed acceptable by US Bank. Reference US Bank Bulletin for additional information. Manual Underwriting More restrictive guidelines may apply. Please check GSE, US Bank or MI company guidelines. Co-signers Not permitted. Citizenship Requirements All loans must adhere to GSE (FNMA) guidelines. Private Mortgage Insurance (PMI) Homeowner s Insurance Deductible Flood Coverage (if applicable) Homebuyer Education (HBE) (Rev 07/31/18) Charter level (reduced) PMI coverage which results in lower rates and lower monthly and/or upfront MI costs. Contact your preferred MI company account representative for more information on HFA Preferred and MI overlays. As required by GSE. No additional US Bank overlays apply. Refer to US Bank s guidelines specific to flood insurance at US Bank s policy regarding flood coverage may vary from standard flood requirements in the State of Florida or a Lender s own requirements & loans submitted for purchase without sufficient coverage maybe at risk of nonpurchase. First-Time Homebuyers, unless qualifying under a Veteran's Exception or those who are exempt by purchasing a home in a Federally Designated Targeted Area as specified in this Program Guide, must complete a Program-approved pre-purchase homebuyer education course. We will accept face-to-face homebuyer education if provided by a HUD approved counseling agency, a unit of local government that provides pre-purchase homebuyer education in FL, or a counseling agency designated by a unit of local government to provide homebuyer education on their behalf. Click on this link to view the HUD list of approved education providers in the state of Florida. Online HBE is permitted if provided by a HUD approved agency, a unit of local government that provides prepurchase homebuyer education in FL, a mortgage insurance provider, or an Agency or GSE sponsored course. Certificates of Completion are acceptable for 2 years from date of completion. Who Must Attend HBE All borrowers/parties appearing on the loan application (parties appearing on the note) are required to attend HBE regardless of who appears on the deed.

32 Florida Housing Finance Corporation Page 32 Loan Type Fannie Mae ONLY. Select the HFA Preferred when running AUS/DU. Loan Purpose Purchase only. Refinances are not eligible. Construction to permanent loans are not permitted. Term 30-year fixed. LTV/CLTV Maximum 97% / 105%. Assumptions Not Permitted. Prepayments Permitted at any time without penalty. Minimum Loan Amount Requirement Origination / Discount Points Federal Disclosure Requirements for HFA Preferred First Mortgage N/A. Follow GSE requirements and lender s guidelines specific to minimum loan amounts. Lenders may impose a minimum loan amount. 1% Origination permitted and payable to Participating Lender. Lenders are required to adhere to all federal disclosure requirements. Failure to comply will deem loan ineligible for purchase by US Bank. Please refer to US Bank s website at for more specific information regarding TRID. Please Note: The 3% grant does not require disclosure because the 3% grant is not a second mortgage/subordinate lien. Tax Exempt Rider N/A. Please Note: The Tax Exempt Rider is required for loans originated in the Government Loan Program only. It is not required for the FL HFA Preferred PLUS Conventional Loan Program. Occupancy Owner occupied only with borrower s intent to occupy property as their primary residence within 60 days of closing. Non-Purchasing Spouse (NPS) A NPS MAY be on the deed without consideration of his/her income or first time buyer status. Please note, any party appearing on the Note must be a first time buyer and his/her income must be considered toward Program Qualifying Income (for a conventional loan this would be all income used on the 1003).

33 Florida Housing Finance Corporation Page 33 Property Type ATTACHED / DETACHED 1-UNIT DWELLINGS (includes townhomes). 2-4 UNIT PROPERTIES LTV cannot exceed 95%. Requires 3% minimum borrower contribution. CONDOS US Bank must approve all condo projects if lender is not approved by US Bank to approve projects. Condos with LTVs from 95.01% to 97% are allowable provided the project is approved by US Bank. Please reference US Bank bulletin Condominium Guideline Expansion for complete details. Please refer to US Bank website at for specific guidance or call or projectapprovaldept@usbank.com. Manufactured housing is not permitted. Income Limits Program limits determined by household size and county and change annually. Documentation Required to Verify Income Eligibility Final URLA or Please Note: Income eligibility is determined by the income used in credit underwriting. Income reflected on the loan application is considered only. Purchase Price Limits Program limits determined by county and change annually. Documentation Closing Disclosure (CD). Required to Verify Purchase Price Eligibility Final URLA or 1003.

34 Florida Housing Finance Corporation Page 34 Doc Stamp Tax & Intangible Tax Exemption First AND FL Housing second notes and mortgages are exempt. Please note that all first and second mortgages and notes must reflect the following verbiage: Notes: This note and the mortgage securing this note arise out of or are given to secure the repayment of a loan issued in connection with the financing of housing and are exempt from documentary stamp tax and intangible tax pursuant to section (1), F.S. Mortgages: This mortgage and the note secured by this mortgage arise out of or are given to secure the repayment of a loan issued in connection with the financing of housing and are exempt from documentary stamp tax and intangible tax pursuant to section (1), F.S. Recapture Tax N/A. Recapture Tax does not apply to the FL HFA Preferred PLUS Conventional Loan Program. Tax Service Fee (Rev 04/13/18) Recapture Tax is currently applicable to the Government Loan Program and MCC Program only. FL HFA Preferred PLUS Program Fees For Loan Reservations made on April 30, 2018, and later - $80 will be deducted from wire by US Bank at time of loan purchase. For Loan Reservations made prior to April 30, $58 will be deducted from wire by US Bank at time of loan purchase. Compliance/Admin Fee $250 Compliance/Admin Fee payable to ehousing. Funding Fee $400 Funding Fee (payable to US Bank and deducted from wire by US Bank at time of loan purchase Lender Fees 1% Origination payable to Participating Lender. Usual and customary origination fees are permitted.