SINGLE FAMILY PROGRAM

Transcription

1 HFA OF TABLE MANATEE OF CONTENTS COUNTY SINGLE FAMILY PROGRAM TABLE OF CONTENTS 2 REVISION TABLE 3 THE PRODUCT 4 THE REQUIREMENTS 7 THE PROCESS 8 ADMINISTRATOR S GUIDELINES Published 03/11/13 Revised 05/17/18 Updates on Page 3

2 HFA of Manatee County Single Family Program Page!2 TABLE OF CONTENTS UPDATES 3 THE HFA OF MANATEE COUNTY TEAM 5 WHO TO CONTACT 6 THE PRODUCTS 7 FIRST MORTGAGE PROGRAM REQUIREMENTS 8 ELIGIBLE BORROWER 8 MINIMUM CREDIT SCORE 8 DTI REQUIREMENT 8 HOMEBUYER EDUCATION 8 HOUSEHOLD INCOME CALCULATION 8 HOUSEHOLD INCOME LIMITS 8 KEY TO HOMEOWNERSHIP PROGRAM 8 FHA, VA, RD and FREDDIE MAC HFA ADVANTAGE LOANS 8 HOUSEHOLD INCOME LIMITS 9 AFFORDABLE INCOME SUBSIDY GRANT 9 PROPERTY REQUIREMENTS 9 ACQUISITION LIMITS (SALES PRICE LIMITS) 9 ELIGIBLE AREA 9 SECOND MORTGAGE PROGRAM REQUIREMENTS 10 SECOND MORTGAGE DISCLOSURE REQUIREMENTS 10 SECOND MORTGAGE PROCESS 10 FINANCING FACTS 13 LENDER TRAINING REQUIREMENTS 14 SUMMARY OF 15 THE COMPLIANCE ORIGINATION PROCESS 15 REQUEST DOWN PAYMENT ASSISTANCE FUNDS 17 PROGRAM TIMELINE 19 PROGRAM FEES 20 FIRST MORTGAGE FEES 20 LENDER FEES 21 COMPLIANCE INCOME CALCULATION 22 PROGRAM FORMS 26 DOCUMENTS REQUIRED FOR THE COMPLIANCE FILE 26 US BANK WEB SITE INFORMATION 27

3 HFA of Manatee County Single Family Program Page!3 UPDATES Date Topic (effetivve immediately unless otherwise noted) Page 4/11/13 DPA revised to $7, /1/13 Clarified tax transcripts language 28 7/1/13 ADDED INFORMATION REGARDING DPA AWARD LETTER RE: , /2/13 CLARIFIED INFORMATION REGARDING DPA AWARD LETTER RE: ,18 8/5/13 DPA INCREASED 5 9/1/13 US Bank Revised Transfer Fee 22 2/3/14 DPA Wire request now is sent to Angela Abbott 17, 18 4/16/14 ehousingplus fees adjusted Loans in pipeline or submitted to HFA on May 23 but not yet reserved closing by July 7, receive $10,000. All others receive $7, U.S. Bank Funding Fee increased New Income and Purchase Price Limits Added Initial 1003 to forms in compliance file First mtg, no first time buyer requirement, no tax transcripts for first mortgage program borrowers; MCC applicants = different rules DPA increased to $10,000 Mortgages and notes: No longer exempt from Doc Stamp and Intangible Taxes Added Contact Directory Reformatted Financing Facts Reformatted Origination Process Reformatted the ehp and US Bank Fees Reformatted Documents Required for the Compliance File , Revised second mortgage disclosure language 8, Removed 2nd mortgage fee & increased 1st mortgage fee for ehp. Added ehp fee information & revised US Bank fees Effective with New Reservations December 1, 2015 Minimum Credit Scores Manufacured Housing Manual Underwriting Credit Documentation Revised Minimum Credit Score reverts back to 640 Term of MCC Program Updated HFA of Manatee County Logo Cover Revised Doc Stamp and Intangible Tax language 8 & Clarified ehousingplus Fees 21

4 HFA of Manatee County Single Family Program Page!4 Date Topic (effetivve immediately unless otherwise noted) Page 05/15/17 Revised Who To Contact Directory Added Freddie Mac to Loan Products Updated MCC Program Information Revised requirements for non-citizens Added Freddie Mac to Minimum Credit Score Added Freddie Mac to DTI Requirement Added What is a Targeted Area? Added Freddie Mac to Property Requirements Added US Bank Condominium Expansion language Added Freddie Mac property ownership overlay Revised Second Mortgage Disclosure Requirements Added new DPA Loan Disclosure Form requirement Changed Second Mortgage process by adding the DPA Loan Disclosure Added Freddie Mac Fact Sheet web page link Added new DPA Loan Disclosure Revised US Bank Tax Service Fee effective 04/17/17 Revised US Bank Web Site address 06/30/17 Revised Income Limits Revised Purchase Price Limits 04/17/18 Revised Conventional Loan DTI Revised US Bank Tax Service Fee effective 04/30/18 05/03/18 Revised Income Limits Effective05/04/18 Revised Purchase Price Limits Effective 05/04/ & /17/18 Added Affordable Income Subsidy (AIS) Grant to guidelines 7, 9, 15, 16, 18, 20

5 ! HFA of Manatee County Single Family Program Page!5 THE HFA OF MANATEE COUNTY TEAM Manatee County HFA Creates the first mortgage program, the down payment assistance second mortgage program and the Mortgage Credit Certificate (MCC) program. Sets the rate, term and points, markets the program. Participating Lenders Take applications, reserve in their own systems, process, underwrite, approve, fund, close and sell qualified loans to the program. Check with your company on how to reserve a bond loan rate in your own system so that you have funds available for closing. U S Bank Master Servicer Provides information on acceptable loan products and delivery and funding, receives all mortgage files, reviews mortgage files, notifies lenders of mortgage file exceptions, approves mortgage files, purchases first and second mortgage loans. US Bank, National Association Trustee This is a different US Bank division that is providing the service of wiring DPA funds for down payment/closing cost assistance to each closing. Please do not contact US Bank in Ohio regarding the wiring of these funds. Follow instructions In these Guidelines found as the second and third pages of Summary of the Compliance Origination Process. The request for wire transfer of funds is found on the ehousingplus webpage for the program. ehousingplus, Program Administration Maintains the program reservation system, websites, and posts guides, forms, training materials, provides training on compliance issues and system, answers bond compliance questions, receives compliance files, reviews, posts and notifies of exceptions and approves compliance file.

6 HFA of Manatee County Single Family Program Page!6 WHO TO CONTACT (Rev 05/15/17) Question General Program Compliance Questions Assistance with ehp Lender Portal Assistance with User Credentials for ehp Lender Portal Update an Underwriter Certified Loan Program Training Program Training Issues System Software Training for ehp Lender Portal System Software Issues Program Rates Credit Underwriting questions Questions regarding the shipping of closing loan files Questions regarding exceptions Direct Questions to: ehousingplus (ehp) ehousingplus (ehp) ehousingplus (ehp) ehousingplus (ehp) ehousingplus (ehp) ehousingplus (ehp) ehousingplus (ehp) ehousingplus (ehp) Participating Lenders need to refer to internal Underwriting Department or Manager ehousingplus (ehp) for questions regarding the program compliance file US Bank for questions regarding the first mortgage closed loan file ehousingplus (ehp) for questions regarding exceptions on the program compliance file US Bank for questions regarding exceptions on the first mortgage closed loan file Contact Information (954) Ashlynn Mosher (954) ext 261 Anyone at ehp Compliance Office Click on this link to attend Program training Click on this link for the once weekly Live Webinar: Click on this link: to view the HFA of Manatee County Program rates. Then click on the RATES tab. US Bank does not re-underwriter loans. For general questions, contact US Bank at or Option 2 (for general questions) Please note: US Bank answers underwriting questions from the underwriter of a lender for whom US Bank provides underwriting services ONLY. services@ehousingplus.com hfa.programs@usbank.com hfa.exceptions@usbank.com Debbie Kerr ehp.exceptions@ehousingplus.com X216 hfa.communications@usbank.com hfa.exceptions@usbank.com

7 HFA of Manatee County Single Family Program Page!7 THE PRODUCTS FIRST MORTGAGE LOAN Rates are subject to change, for current rate please visit ehousingplus.com Revolving first mortgage funds (first-come, first-served pool to be replenished as loans are pooled and delivered). The borrower receives a 30-year, fixed rate, fully amortizing first mortgage loan with 360 level monthly payments. The following mortgage products are offered in this program: FHA, VA, USDA: RD and Freddie Mac HFA Advantage conventional loan. US Bank provides product descriptions for the available loan products on their web site: The HFA of Manatee County has requirements that are reviewed for compliance. It s the responsibility of lenders to review program documents and to originate loans that meet the requirements. The Master Servicer is not obligated to purchase loans that do not comply with program terms. SECOND MORTGAGE LOAN Down Payment and Closing Cost Assistance Down payment assistance is available only when the HFA of Manatee County first mortgage is used. The second mortgage loan is a 30 year deferred, 0% fixed-rate product of up to $10,000. The loan is due upon sale, refinance, prepayment of the first mortgage loan or when the property ceases to be the principal residence of the mortgagor. The second mortgage loan is serviced by the HFA. (Rev. 04/20/15) MORTGAGE CREDIT CERTIFICATE PROGRAM The HFA of Manatee County first mortgage and second mortgage may be combined with the HFA of Manatee County Mortgage Credit Certificate Program. Follow the program requirements and rules that are most restrictive. Reference the HFA of Manatee County Mortgage Credit Certificate Guidelines (separate from this guideline). Affordable Income Subsidy (AIS) Grant - Freddie Mac HFA Advantage Loan ONLY Borrowers using the Freddie Mac HFA Advantage Loan that meet specific income limits may be eligible for additional funds to help with down payment and closing costs. Effective with new loan reservations 05/29/18 and after, borrowers at or below 80% of the Area Median Income Limits as published by Freddie Mac are eligible for an additional grant in the amount of $1,500 and borrowers at or below 50% AMI will receive an additional grant of $2,500. The AIS Grant is reserved in the ehousingplus Lender Portal using the ADDITIONAL LOAN tab after the first mortgage AND Second Mortgage are reserved. The AIS will be provided at closing by the Lender. The AIS funds must be used for down payment and closing cost assistance only. There is no repayment of the AIS Grant. Upon purchase of the loan, US Bank will reimburse the Lender for all qualified subsidies. The AIS must be reflected on Page 3, Section L of the CD as Affordable Income Subsidy. This AIS Grant must be reflected in DU or LP findings, along with the Second Mortgage provided by the Program. Any questions about the preparation of the CD should be directed to US Bank HFA Division. (Added 05/17/18)

8 HFA of Manatee County Single Family Program Page!8 FIRST MORTGAGE PROGRAM REQUIREMENTS ELIGIBLE BORROWER (Rev 05/15/17) There is no first-time homebuyer requirement in this program. Follow Agency (FHA, VA, USDA-RD, Freddie Mac) and U.S. Bank guidelines for noncitizens. U.S. Bank guidelines are located in their Lending Manual at HFA_Division.html Buyers must occupy the property within 60 days of closing. Applicants must be considered irrespective of sex, age, race, color, religion or national origin. Tax returns/transcripts are not required for program purposes. MINIMUM CREDIT SCORE The Program requires a minimum FICO credit score of 640 or higher for FHA, RD, VA and Freddie Mac HFA Advantage loans, the mid score must be the minimum or above. If an Agency (FHA, etc) has a higher minimum, follow Agency guidelines. If a participating lender has a higher minimum for other loans and wishes to require a higher minimum for loans, then lenders must use the higher minimum. (Rev 05/15/17) DTI REQUIREMENT For Government loans (FHA, VA, RD) the maximum DTI ratio is 45%. For Freddie Mac HFA Advantage conventional loan, the maximum DTI ratio is 50%. Reference US Bank Bulletin for additional information. (Rev 04/17/18) HOMEBUYER EDUCATION Homebuyer Education is encouraged but not required. HOUSEHOLD INCOME CALCULATION Include income of borrower(s) and spouse (occupants and non- occupants) and any person who will live in the household who is 18 years of age or older. 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 Guide included in this Guide. HOUSEHOLD INCOME LIMITS KEY TO HOMEOWNERSHIP PROGRAM FHA, VA, RD and FREDDIE MAC HFA ADVANTAGE LOANS Effective with new loan reservations 05/04/18 Non-Target Area Effective with loan reservations PRIOR to 05/04/18 Targeted Area 1-2 Person Household $70,300 $84,360 3 or more Person Household $80,845 $98,420 Non-Target Area Targeted Area 1-2 Person Household $65,500 $78,600 3 or more Person Household $75,325 $91,700

9 HFA of Manatee County Single Family Program Page!9 HOUSEHOLD INCOME LIMITS AFFORDABLE INCOME SUBSIDY GRANT FREDDIE MAC LOANS ONLY (Added 05/17/18) 80% AMI 50% AMI $52,400 $32,750 PROPERTY REQUIREMENTS Single family, 1-4 unit, owner-occupied, principal residences that are detached structures, or condominiums, town homes/puds or duplexes subject to the applicable FHA, VA, RD, Freddie Mac guidelines. Land may not exceed the size required to maintain basic livability. Condos with LTVs from 95.01% to 97% are allowable provided the project is approved by USBHM, in addition to meeting Fannie Mae or Freddie Mac guidelines, as applicable. Review US Bank bulletin Condominium Guideline Expansion for complete details. (Added 05/1517) Homes are considered new if never previously occupied. Manufactured Homes - As of December 1, 2015, U. S. Bank will not purchase loans for manufactured housing. U.S. Bank considers manufactured housing: A manufactured home is a mobile home built entirely offsite on a permanent chassis that is pulled on the highway to a permanent location. (Rev 12/01/15) No more than 15% of the square footage of the home being purchased may be used in connection with a trade or business including Child Care services (other than incidental rental from eligible multi-unit structures). With a Freddie Mac HFA Advantage Conventional Loan, a borrower CANNOT own other property at the time of closing. (Added 05/15/17) ACQUISITION LIMITS (SALES PRICE LIMITS) The sales price must include everything paid by the buyer or on the buyer s behalf. (Rev 05/03/18) Effective with new loan reservations 05/04/18. Non-Target Area Effective with loan reservations PRIOR to 05/04/18. Non-Target Area Targeted Area $275,293 $336,470 Targeted Area $264,706 $323,529 Please note that existing 2-4 unit dwellings must be at least 5 years old. The mortgagor must reside in one unit of the property. ELIGIBLE AREA Eligible Area Includes all of Manatee County

10 HFA of Manatee County Single Family Program Page!10 SECOND MORTGAGE PROGRAM REQUIREMENTS SECOND MORTGAGE DISCLOSURE REQUIREMENTS The determination has been made that the HFA of Manatee County Second Mortgage, as nonamortizing 0%, 30-year deferred subordinate loans, IS NOT SUBJECT TO TILA or RESPA and lenders may NOT use the new TRID forms (Loan Estimate and Closing Disclosure) for these loans. LOAN CLOSINGS MAY 22, 2017 AND AFTER - The use of a separate HUD-1 Disclosure for the second mortgage will no longer be required. Instead, lenders are required to use a DPA Loan Disclosure Form created to further clarify the terms of the Second Mortgage for the borrower. The disclosure is generated from the ehousingplus Lender portal and is signed at closing by the borrower. SECOND MORTGAGE PROCESS The Lender shall: 1) Qualify the Buyer for the first mortgage loan (to be sold to and serviced by US Bank). 2) Reserve both the first mortgage loan and the second mortgage loan in the ehousingplus reservation system. 3) Process normally. DPA funds may not be requested for loan closings until the First Mortgage Loan has received Underwriter Certification. 4) At least 3 days prior to Closing, the Lender or closing agent will request funds for the Second Mortgage from ehousingplus by completing the wire request form. 5) In addition to the first mortgage loan forms, complete the following forms found behind security on the website. Some information will auto-fill. Those blanks that do not autofill are interactive so that lenders can complete the blanks online and print the completed form. a. The Second Mortgage; b. Promissory Note; c. DPA Certificate; d. DPA Loan Disclosure (effective with loan closings May 22, 2017 and after) 6) At closing, the Buyer must execute the Second Mortgage, Promissory Note, DPA Certificate, DPA Loan Disclosure* (*effective 05/22/17 and after) and pay a second mortgage processing fee of $ Checks should be made payable to the Housing Finance Authority (HFA) of Manatee County. The Second Mortgage HUD-1 or Second Mortgage DPA Loan Disclosure* (effective 05/22/17 and after) should indicate that the fee was paid to the HFA. 7) The Lender or closing agent shall record the second mortgage loan along with the first mortgage loan, with directions that the Clerk shall return the original recorded second mortgage to Angela A. Abbott, P.A. at the address below.

11 HFA of Manatee County Single Family Program Page!11 8) Within 2 business days of closing, the Lender or closing agent shall deliver by overnight mail, the following documents to the Program Administrator, Angela A. Abbott (at the address below): a. The original Promissory Note for the second mortgage loan; b. The original DPA Certificate; c. A copy of the Closing Disclosure for the First Mortgage Loan; d. A copy of the Second Mortgage HUD-1 Settlement Statement (loan closings prior to 05/22/17) OR Copy of the Second Mortgage DPA Loan Disclosure (loan closings 05/22/17 or after); e. A certified copy of the Second Mortgage; and f. The processing fee of $ payable to the Housing Finance Authority of Manatee County, Florida. 9) All documents and correspondence in connection with the Second Mortgage should be sent to: Angela A. Abbott, P.A S. Washington Avenue Titusville, FL (321) angelaabbott@cfl.rr.com DO NOT DIRECT ANY FORMS OR QUESTIONS RELATING TO THE SECOND MORTGAGE LOAN PROGRAM TO US BANK. Assumption The second mortgage loan is not assumable. Documentary Stamps First and second mortgages and notes are NO LONGER exempt from doc stamp applications dated prior to may take the exemption. Also, deeds continue to not be exempt. Sellers must pay the fee on the deed. Only in cases of an REO of FHA, VA, USDA, Freddie, Fannie or bank, may the buyer pay the fee on the deed. Funding of Second Mortgage Loans Manatee HFA advances the funds. Hazard and Title Insurance Requirements The hazard insurance policy, when issued, must name the Housing Finance Authority of Manatee County 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. Intangible Tax The first mortgage and note and the second note are NOT exempt from Intangible tax. HOWEVER the second mortgage pursuant to Section , Florida Statutes, IS EXEMPT from intangible tax. This language appears on the second mortgage. Effective for all loan closings April 16, 2016 and after. (Added ) Loan Repayment This second mortgage loan must be repaid in full on the earlier of 30 years (final repayment date of the first mortgage loan) or upon sale, transfer, rental, 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 must be repaid. It is never forgiven.

12 HFA of Manatee County Single Family Program Page!12 Maximum income and purchase price limits mortgage loans. Limits are the same as for the HFA first Mortgagee The Mortgagee is the Housing Finance Authority of Manatee County as preprinted on the Second Note and Second Mortgage and, therefore, an Assignment is not required. Owner Occupancy Requirement The borrower receiving the second mortgage loan must occupy the residence for the term of the loan or until the loan is satisfied. Prepayment The second mortgage loan may be prepaid at any time without penalty. Recapture The second mortgage loan is not subject to Recapture Tax. Recordation Requirements The second mortgage must be recorded with the first mortgage. Refinance of First Mortgage Loan: The second mortgage loan must be repaid. It can never be subordinated. Use of Second Mortgage Loan Proceeds Second mortgage loans are available ONLY with an HFA first mortgage loan. Proceeds may be used for down payment, closing costs, and reimbursement of prepaids and earnest money deposit to the extent any minimum contribution has been satisfied and that the reimbursement is permitted by Agency (FHA, VA, etc) guidelines. There is no cash-back to the borrower. To the extent the funds advanced by the borrower, plus the first and second mortgage amounts, are less than required at closing, the Mortgage Lender will reduce the second mortgage amount.

13 HFA of Manatee County Single Family Program Page!13 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 program funds are not being utilized inappropriately. Check with your underwriter for updates to information for Freddie Mac HFA Advantage. Such information is provided by third parties (i.e.freddie Mac, U.S. Bank, etc) who do not provide updated information to ehousingplus. Freddie Mac HFA Advantage Fact Sheet: hfa_factsheet.pdf Appraisal The appraisal must indicate that the home has at least a 30 year remaining useful life. Assumptions First mortgage loans may be assumed by a qualified borrower meeting qualifying 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 or the mortgage insurer. The second mortgage loan may NOT be assumed. Buydowns Limited to 1 or 2 years with a maximum change of 1.00% per year. borrower or any of their assistance. Cannot be paid by Cash Back Cash Back to the borrower is not permitted. However, borrowers are permitted a reimbursement of prepaids and reimbursement of overage of earnest money deposit to the extent any minimum contribution has been satisfied and permitted by Agency guidelines. Construction to perm Construction to perm loan type is not permitted. Cosigners Cosigners are permitted for FHA loans under very specific conditions. Follow FHA guidelines for credit purposes only. Treat cosigner credit/income as directed by FHA. Cosigners are allowable in an FHA transaction when meeting the following conditions (1) a cosigner cannot have any ownership interest in the property (they cannot be on the Mortgage/Deed) and (2) the cosigner cannot reside in the property being purchased. A cosigner s income is not considered for bond program purposes, tax returns are not required and cosigners do not sign any bond documents. Final Typed Loan Application (1003) The typed application signed and dated by all parties is required. Loan interviewer must complete and sign page 3 of 4 of the If this is not possible, then an Officer must sign in place of the interviewer. All persons taking title to the property must execute all program documents. The income disclosed on the Affidavit must be the same or more than that shown on the The purchase price, loan amount, and other financial details must be the same as shown on all other documents.

14 HFA of Manatee County Single Family Program Page!14 FHA Manual Underwriting - See U.S. Bank bulletin but with new reservations as of December 1, 2015, no FHA loans may be manually underwritten. Rev 12/01/15 Minimum Loan Amount There is no minimum loan amount in this program. Prepayments The first and second mortgage may be prepaid at any time without penalty. Real Estate Purchase Contract The full address of the property, full names of all sellers and buyers, total purchase price of the property must be included. If there is not an address for new construction, a lot number and subdivision name are required. All named persons must sign. Include the name and title whenever a representative is signing for a corporation. Recapture Tax There is no Recapture Tax in this program. Refinances This program is for new mortgage loans only. Refinances are not permitted. However, temporary, construction or bridge financing with a term of 2 years or less may be taken out with a bond program loan. Remaining reserves are not established by the Program. If any, these are determined by the type of financing used (i.e. FHA, VA.). Targeted areas are determined by HUD specifically for this program by census tract number. Typically a targeted area has low loan origination or is considered economically distressed. In order to increase loan origination in a targeted area, the income and purchase price limits are higher. The following are the Targeted Area Census Tracts in Manatee County: , , , , , , , (Rev 05/15/17) Tax Returns or Tax Transcripts - Not required for program purposes. However, US Bank will require the IRS Tax Transcripts for all borrowers (as of last filing year). (Rev 08/18/14) LENDER TRAINING REQUIREMENTS MANDATORY PROGRAM TRAINING FOR LENDERS Lender training is mandatory for anyone working with this program. ehousingplus provides program training online 24/7. To attend, click here. ehousingplus LENDER PORTAL SYSTEM TRAINING Conducted once a week via live WebEx with the ehousingplus Compliance Office. Anyone who will need access to the ehousingplus Lender Portal for the MCC program will need to attend. Training lasts 45 to 60 minutes. Click here to register to attend. LENDER PORTAL USER CREDENTIALS After completing Program training an attendee will receive a follow-up with instructions to apply for user credentials. If you need assistance please contact trainer@ehousing.cc

15 HFA of Manatee County Single Family Program Page!15 SUMMARY OF THE COMPLIANCE ORIGINATION PROCESS (Rev 05/17/18) QUALIFY Lenders use program requirements to qualify applicants for the program. Buyers must present an executed sales agreement before being entered into the program reservation system. PROCESS Lenders process the loan as they would normally keeping in mind the program timelines. The Borrower signs the Notices to Buyers and must receive the Recapture Tax Brochure as close to loan application as possible. RESERVE FIRST MORTGAGE FUNDS To reserve funds in program s online system click on this link. Log in and reserve the first mortgage. To reserve funds in the program the borrower is required to have a signed real estate purchase contract for a specific address. You will need a 1003 and the Real Estate Purchase contract in order to make a reservation. If the reservation is successful, you will receive a loan number and a message that you ve completed the reservation successfully. RESERVE SECOND MORTGAGE ASSISTANCE Immediately following reservation of the HFA of Manatee County first mortgage click on the Add Additional button found on the main menu to reserve the second mortgage funds. All fields will populate except for the second mortgage loan amount. Enter the loan amount and then click on the Update button to add the second mortgage assistance to the first mortgage loan reservation. (Added 05/17/18) RESERVE AFFORDABLE INCOME SUBSIDY (AIS) GRANT INCOME QUALIFIED FREDDIE MAC HFA ADVANTAGE LOAN ONLY To reserve the Affordable Income Subsidy Grant funds, immediately following the second mortgage loan reservation, click on the Add Additional tab. The lender will be responsible for calculating the amount of the additional subsidy based upon borrower AMI (view AMI limits on page 10) and enter that amount in the ADDITIONAL LOAN tab. The subsidy must be for the exact amount ($1500 or $2500) based upon borrower AMI - no more and no less. Follow the detailed step-by-step instructions on the next page. (Added 05/17/18) UNDERWRITE AND CERTIFY Lenders underwrite & are responsible for credit decisions of the loans in the program. Servicer does not re-underwrite loans. Following credit approval AND WITHIN 15 DAYS OF LOAN RESERVATION, Underwriter completes the online Underwriter Certification within the ehousingplus Lender Portal.

16 HFA of Manatee County Single Family Program Page!16 FREDDIE MAC AIS GRANT INSTRUCTIONS

17 HFA of Manatee County Single Family Program Page!17 REQUEST DOWN PAYMENT ASSISTANCE FUNDS With a minimum of three (3) business days prior to closing and after the Underwriter Certification has been completed, and with a scheduled closing date, the Lender s authorized representative must fill out and execute the Down Payment Assistance Funding Request Form available in the system, under FORMS. The Request Form must be printed, signed, and scanned in pdf, jpg, tiff or png format. Three (3) business days prior to funding, the Lender sends a complete, executed pdf or scanned version of the DPA Funds Request Form, to Angela Abbott angelaabbott@cfl.rr.com (Rev 2/3/14) Anything received by 2 pm ET will be verified that day and the requests forwarded to the HFA. Requests received after 2 pm ET, will be processed by 12 noon ET the following day. Special Attention will be given to Forms received on Fridays to ensure that they are sent before start of business on Monday. Any s received over the weekend will be processed on Monday and for Holidays on the next business day. The DPA Funds Request Form is reviewed by ehousingplus (ehp) for accuracy. Lenders will be contacted by ehp if the Form cannot be verified. Verified forms are sent to the HFA of Manatee County and to the Trustee (US Bank, NA) by ehp. US Bank wires funds to the closing agent. Funds are wired directly to the Closing Agent/Title Company and NOT the Lender or Borrower. Please make sure that instructions are provided to internal Processor/Closer and to the Title Company/Closing Agent. If the Loan does not close on the Loan Closing Date indicated on the Request Form, Lender agrees to cause the funds to be returned to (US Bank, NA) for the credit of the Authority s account not later than the close of business on the business day following the Loan Closing Date. Wiring instructions for the return of funds are as follows: US Bank, 777 E. Wisconsin Avenue, Milwaukee, WI ABA A/C US Bank Trust Wire Clearing A/C Ref Manatee HFA/ Attn James Audette/ IT S IMPORTANT that lenders (1) have the borrower(s) sign the letter that meets requirements of (appears in the auto-fill Loan Forms available for closing labeled as ) and retain original with copies to borrower, US Bank and a copy in the FHA Case Binder. FOLLOW US BANK requirements USB002. (Rev 7/1/13) Please make sure that Angela Abbott s address is added to your white lists/contacts as other s related to the DPA Funds Request may be sent. Should you have any questions, please contact Angela Abbott angelaabbott@cfl.rr.com (Rev 2/3/14)

18 HFA of Manatee County Single Family Program Page!18 CLOSE Borrower executes the Affidavit (Mortgagor & Seller/Builder Affidavit & Lender Certificate) and the Down Payment Assistance Award letter. IT S IMPORTANT that lenders have the borrower(s) sign the DPA Award Letter. Lenders retain original, copies in their FHA Case Binder, to borrowers and to U.S. Bank. (Rev 7/29/14) The use of a separate HUD-1 Disclosure for the second mortgage will no longer be required. Instead, lenders are required to use a DPA Loan Disclosure Form created to further clarify the terms of the Second Mortgage for the borrower. The disclosure is generated from the ehousingplus Lender portal and is signed at closing by the borrower. (Effective 05/22/17) CLOSE - BORROWER RECEIVING AFFORDABLE INCOME SUBSIDY GRANT The lender will fund the additional Affordable Income Subsidy (AIS) grant at closing. It is critically important that the lender does NOT combine the second mortgage assistance received from the HFA of Manatee County Key to Homeownership Program with the AIS grant on the CD. The AIS must be reflected on Page 3, Section L of the CD as Affordable Income Subsidy. This AIS Grant must be reflected in DU or LP findings, along with the Second Mortgage provided by the HFA of Manatee County Key to Homeownership Program. Any questions about the preparation of the CD should be directed to US Bank HFA Division The AIS grant must be used for down payment and closing cost assistance only. (Added 05/17/18) SHIP / SUBMIT There are two (2) files shipped post closing: File #1 is the Compliance File and it is sent to ehousingplus. The Compliance File Checklist is found within the ehousingplus Lender Portal in the Loan Forms section. File #2 is the Mortgage File including Credit Package and it is sent to US Bank. The US Bank Delivery and Funding Checklist is found within the US Bank web site. To locate the US Bank Checklist click on this link: Click on US Bank Lending Manuals. Pop-up box will appear, click on Continue. Web page will be redirected to US Bank All Regs site. Click on Housing Finance Authority folder. EXCEPTIONS Lenders are notified by ehousingplus and US Bank of exceptions. Exceptions for both ehousingplus and U.S. Bank are available in the ehousingplus web-based system.

19 HFA of Manatee County Single Family Program Page!19 PROGRAM TIMELINE Buyers must have a fully executed sales contract for a specific property in order to have funds reserved or be on a waiting list. 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 cannot be reserved for the buyer until such time as the buyer presents a valid contract. To assure that loans are purchased, please follow the Processing, Delivery and Purchase Timetable below. Please DO NOT reserve loans that cannot meet the timetable. This is particularly important with respect to new construction, foreclosures and short sales. Please wait to reserve funds UNTIL 45 DAYS PRIOR TO CLOSING. Loans not purchased within the timeframe below, cannot be purchased. The revolving pool of funds assures continuous funding. unnecessary to rush to reserve funds. Fund availability makes it Loan Processing, Delivery and Purchase Timetable: Once a loan is reserved in the ehousingplus system and is provided the Servicer s Loan number, the loan must be: Underwriter certified within 15 days of loan reservation; Closed and delivered to the Servicer within 45 days of loan reservation; and Purchased within 70 days of loan reservation. Any loan not purchased within 70 days is ineligible for purchase unless the lender chooses a one-time only 30-day extension. The cost of the extension is $375. The $375 extension fee is due whether or not loans are ultimately delivered and/or purchased. The $375 will be netted by the Servicer when loans are purchased. If an extension is permitted, but the loan is not purchased, the originating lender will be billed for the extension fee of $375. Any outstanding fees owed by the Lender may result in that Lender becoming ineligible to participate in the program. At 101 days, a loan that hasn t been delivered is cancelled and cannot be reinstated. Again, the extension is offered once per loan and no further extensions will be allowed. Furthermore, regardless of choosing an extension, any loan not purchased within the approved timeframe will become the liability of the originating lender, including any down payment assistance provided at closing. An extension request is available online by clicking on this link. Extension Request form that is completed and submitted online. must be submitted BEFORE the 70th day after loan reservation. Program Docs hold the Remember that the form Term of MCC Program By law the current election to use allocation for MCCs is available for loans closing through December 31, The Issuer may choose to allocate additional funds to another MCC program. (Rev )

20 HFA of Manatee County Single Family Program Page!20 PROGRAM FEES FIRST MORTGAGE FEES 1.00% may be charged and retained by lender as an Origination Fee. But No Discount Fees may be charged. At loan purchase by US Bank, lenders net 2.75% as the Authority is paying the 1.75% SRP. In this program, 1st and 2nd mortgages and notes are NOT exempt from Documentary Stamp Tax. The 1st mortgage and note and 2nd note are NOT exempt from Intangible Tax. HOWEVER, the 2nd mortgage, pursuant to Section , Florida Statutes, IS EXEMPT from intangible tax. This language appears on the second mortgage. Effective for all loan closings April 16, 2016 and after. (Added 07/27/16) ehousingplus First Mortgage Fee The program includes a first mortgage Compliance/Admin Fee (See $ below) and a penalty fee of $100 for files that are chronically deficient. The Compliance/Admin Fee is collected at closing, payable to ehousingplus and submitted with the Compliance File. ONLY Cashier s or Corporate checks are acceptable and the fee may not be financed. (Rev 05/17/18) HFA of Manatee Key to Homeownership Loan $300 HFA of Manatee Key to Homeownership Loan AND MCC $425 HFA of Manatee Key to Homeownership Loan AND Affordable Income Subsidy Grant $375 HFA of Manatee Key to Homeownership Loan AND MCC AND Affordable Income Subsidy Grant $500 The Compliance/Admin Fee is the fee charged by the Program Administrator/Compliance Agent to process the applicant/borrower from Origination to Compliance Approval, and to assess that the lenders originating such loans are following Program guidelines for the benefit of the eligible borrower(s). The Program Administrator/Compliance Agent tracks the loan via its web-based system, and assists the lender in processing the loan ensuring eligibility to the program available offerings, which can include various rate options, and down payment assistance. (Added 10/14/15) The Compliance/Admin fee includes the review of information and documents delivered in the form of a Compliance File by the originating lender, on behalf of the borrower. Additionally the Compliance review verifies that the lender has charged only the fees allowed by the Program. Contrary to this, approval may be denied and/or fees may have to be reimbursed to the borrower. The compliance file processing consists of required affidavits, application, closing documents, certain non-mortgage documents, tax returns where applicable and other predefined Program documents that are disclosed to the potential borrower(s). This is required to ultimately receive Compliance Approval. These documents can support both the first mortgage and any down payment assistance available, and are required to ensure eligibility to the Program, Federal, State and Local requirements, where applicable. The Compliance review verifies that the data and documents submitted meet all requirements, and may include those for first-time homebuyer, income limits, sales price limits, targeted areas, homebuyer education, rate, term, points, fee limits, LTV, FICO score, special state, city, county program requirements for qualified military, first responders, teachers, etc.). (Rev 08/22/16)

21 HFA of Manatee County Single Family Program Page!21 US Bank Fees LOAN RESERVATIONS APRIL 30, 2018 AND AFTER - $80 Tax Service Fee and $400 Funding Fee. These fees will be netted out at time of purchase by US Bank. See US Bank Bulletin L TAX SERVICE FEE CHANGE for further details. (Rev 04/16/18) LOAN RESERVATIONS PRIOR TO APRIL 30, $58 Tax Service Fee and $400 Funding Fee. These fees will be netted out at time of purchase by US Bank. See US Bank Bulletin L TAX SERVICE FEE REDUCTION for further details. (Rev 05/15/17) LENDER FEES Lenders are permitted to charge reasonable and customary charges for out of pocket expenses and costs. Other financing costs such as legal fees and underwriting fees may be charged and courier fees may be charged if such fees are normally charged. Lenders may charge the usual and reasonable settlement costs. Settlement costs include titling and transfer costs, title insurance, survey fees or other similar costs. Other allowable fees include doc prep fees, notary fees, hazard, mortgage and life insurance premiums, recording or registration charges, prepaid escrow deposits and other similar charges allowable by the insurer/guarantor. "Junk" fees are not a defined term and may not be charged. Excessive fees are not permitted in the program.

22 HFA of Manatee County Single Family Program Page!22 COMPLIANCE INCOME CALCULATION Underwriters should remember that CALCULATION OF PROGRAM (COMPLIANCE) INCOME IS DIFFERENT THAN CALCULATION OF INCOME FOR CREDIT PURPOSES. The Bond program requires that underwriters consider the income of borrowers and their spouses (regardless of their address) and all household members 18 years of age or older(related or unrelated). Use the information below as a general guide. Because each case is different, please contact Bond Compliance if you have questions. Unlike income that is averaged for credit underwriting, the bond program is concerned with actual current income. You should be reviewing the YTD income, the income of the last 4 months and the income shown on previous tax returns for consistency. You should not be averaging income. If there are not inconsistencies in earnings, use the guidelines for each loan type to determine current gross monthly income. Current gross monthly income is multiplied by remaining months in the year to determine "total current annualized income". For the tax year in which the closing occurs, consider YTD income. Then establish current base income for the balance of the year using the guidelines for each type of income. Then consider any additional income. For assistance, contact the Compliance Office. Gross monthly income is the sum of monthly gross pay; any additional income from overtime, part-time employment, bonuses, income from self-employment, dividends, interest, royalties, pensions, VA compensation and net rental income, other income (such as alimony, child support, public assistance, sick pay, social security benefits, unemployment compensation, income received from trusts, and income received from business activities or investments, continuation of which is probable based on foreseeable economic circumstances based upon the Mortgagor's Affidavit (to such effect), all as computed at the time of application for a mortgage loan and confirmed at the time of closing. We will check information with respect to gross monthly income obtained from the reservation form, Underwriter s Certification and applicable certificates and affidavits executed the date of the Closing of the Mortgage Loan, provided that any gross monthly income not included for credit underwriting purposes must be included in determining gross monthly income. The limit is the limit and any amount over the limit is not acceptable. Include the income of non-borrower co-habitants who will reside in the property. However, do not include (1) dependents that are claimed on tax returns but who will not permanently reside in the home the majority of the time and (2) cosigners. The Affidavit, executed by the borrower(s), and certified by the lender, must include the total verified annual household income. This program considers HOUSEHOLD INCOME not income of the borrower. Household income includes the income of borrower, spouse. Remember if persons are not divorced they are married. We count the income of the spouse whether they reside in property or not. Also include the income of all who will reside in the home 18 years of age or older (children, parents on social security, etc). Questions regarding the calculation of income for program purposes should be directed to the Compliance office services@ehousingplus.com or There is also a chat feature available online. There are many variables and the Compliance office will be pleased to assist.

23 HFA of Manatee County Single Family Program Page!23 The Servicer requires the complete closing and credit documentation as identified on their specific loan delivery checklists. Lenders may rely on the same documentation for program compliance purposes.although mentioned in this section of the guidelines, VOE s and VOD s, current pay stubs which delineate current period, W-2's, for all borrowers from all employers, and bank statements to verify assets may be included to the extent required by the Servicer for their purposes. Figures shown on all documents should be consistent. (Rev ) Because a program qualifier is income, even if not required for credit purposes (i.e. automated underwriting), you should be seeking the two most current paystubs with YTD. Do not include in the compliance file, keep copies for your records. Although reference is made to the last 4 to 6 weeks income, Underwriters should be reviewing the income tax returns submitted to verify that there are no unexplained and/or unacceptable differences current income to past income. Examples below not intended to serve as exclusive methodology. Please contact the Compliance office with questions regarding individual cases. Please note that the income reported for bond income calculation CAN NEVER BE LOWER THAN THE INCOME USED TO QUALIFY FOR CREDIT PURPOSES. Hourly Employees For the tax year in which the loan is closing, use the Year to Date base income. If consistent, utilize the base to determine the balance of the year by 1.Using last 4 to 6 weeks' pay stubs, identify hourly rate of pay and average number of regular hours worked per week. Multiply hourly rate times regular weekly hours. Multiply result times number of weeks for balance of year and add to YTD for an annualized base salary. 2. If the person has no other sources of income (for example: overtime, bonus, commissions, second jobs, interest, dividends, child support, alimony, public assistance), this will be the Current Total Annual Income. 3. Compare the total annual income in #2 above to Paystubs, VOE s, previous year s income per W2's and tax returns. You should not find significant differences. In some cases, the Current Total Annual Income will be higher than the previous year's income. Variances should be attributable to increases/decreases in pay or number of hours worked. You should not find significant differences. In some cases, the Current Total Annual Income will be higher than the previous year's income. Variances should be attributable to increases/ decreases in pay or number of hours worked.

24 HFA of Manatee County Single Family Program Page!24 Salaried Employees 1. Using last 4 to 6 weeks' pay stubs, identify weekly (or other frequency) rate of pay. Multiply rate times the number of regular pay periods in the year (52 weeks, 12 months, 24 semi-months) 2. If the person has no other sources of income (for example: overtime, bonus, commissions, second jobs, interest, dividends, child support, alimony, public assistance), this will be the Current Total Annual Income. 3. Compare the total annual income in #2 above to Paystubs, VOE s, previous year s income per W2's and tax returns. You should not find significant differences. In some cases, the Current Total Annual Income will be higher than the previous year's income. Variances should be attributable to increases/decreases in pay or number of hours worked Business, Self Employment 1. Use the quarterly tax returns and financial statements to identify the current NET year to date income. 2. Divide the year to date income by the number of months during which it was earned and multiply times remaining number of months in year. Add to actual YTD. ADD DEPRECIATION. 3. If the person has no other sources of income (for example: overtime, bonus, commissions, second jobs, interest, dividends, child support, alimony, public assistance), this will be the Current Total Annual Income. 4. Compare the total annual income in #2 above to the previous year's income per W2's and tax returns. You should not find significant differences. Verified Termination of Overtime, Commission, Bonus, Seasonal, Periodic, One Time Overtime, Bonus, Commissions Using last 4 to 6 weeks' pay stubs, identify the year to date total earnings of the borrower. Subtract the Current Total Base Income (see above) to arrive at the total year to date extraordinary income. If verification of termination of overtime, commission or bonus is provided in writing (i.e. a letter from an employer) or such termination is due to a change of employment, use the current YTD overtime, commission or bonus, do not annualize and add as a lump sum to the Current Total Annual Income. Regular Overtime, Bonus, Commissions 1. Using last 4 to 6 weeks' pay stubs, identify the year to date total earnings of the borrower. Subtract the Current Total Base Income (see above) to arrive at the total year to date extraordinary income. 2. Divide the year to date extraordinary income by the number of pay periods during which it was earned (to obtain an average). Multiply times the appropriate factor (Balance of year weeks, months, semi- months, etc.) for balance of year figure and add to actual YTD extraordinary income for annual income. 3. If the person has no other sources of income (for example: second jobs, interest, dividends, child support, alimony, public assistance), this will be the Current Total Annual Income. Compare the total annual income in #2 above to Paystubs, VOE s, previous year s income per W2's and tax returns. You should not find significant differences. In most cases, the Current Total Annual Income will be higher than the previous year's income. It will also generally be higher than the annualized year to date income. The variances should be attributable to increases/decreases in pay.