Calplus my home & zip

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CALPLUS FHA LOAN PROGRAM, MY HOME AND ZIP Eric L. Frazier MBA President and CEO CAL BRE 01143485 NMLS 461807 800-401-8994 x 703 The Power Is Now Inc. CAL BRE 1980407 NMLS 1435243

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PRESENTATION DISCLAIMER This presentation is for real estate professionals only and is intended for the exclusive use of licensed real estate and mortgage lending professionals in accordance with local laws and regulations . It is not intended for the general public. Rates and programs are subject to change without notice.

The Power is Now Inc. is an Equal Opportunity Employer, Real Estate Broker and Mortgage Broker and does not discriminate against individuals on the basis of race, gender, color, religion, national origin, age, disability, veteran status, or other classification protected in originating loans or providing and real estate services.

PRESENTATION DISCLAIMER The Power Is Now Mortgage Services is a Mortgage Brokerage licensed by the State of California Bureau of Real Estate (license #1980407) and the National Mortgage License System and Registry (license #1435243), and is a division of The Power Is Now Inc. (license # 01980407).

The Power Is Now Inc. is not affiliated with any state or federal agency. The Power Is Now Real Estate Services is also licensed by the State of California Bureau of Real Estate (licensed #01980407), and is a division of The Power Is Now Inc. The Power Is Now Inc., is an equal housing lender.

Our corporate office is located at 3739 6th Street Riverside, CA 92501. Our Telephone and Fax number is 800-401-8994. Eric Lawrence Frazier MBA, is a California licensed Loan Originator (NMLS license # 461807), and a licensed Real Estate Broker (CA Bureau of Real Estate license #01143484).

Restrictions may apply to all loan programs. The Information and/or data is subject to change without notice and is intended for real estate and mortgage professionals only. If you are a consumer please contact us for a loan estimate on fees, charges and APR. All loans are subject to credit approval. The information is not a commitment to lend or extend credit. All loans or products are available in California only. The Power Is Now Mortgage Services and Real Estate Services are divisions of The Power Is Now Inc., and are only licensed to conduct business in the State of California.

ZERO TO LITTLE MONEY DOWN Bob Wages Jackies Wages Rental Income Total Inc.

$ $ $ $

3,000.00 3,500.00 6,500.00

Mortgage Car Payment Car Payment credit cards Student Loans 50K Total Credit/Rent/Mo.

$ $ $ $ $ $

2,396.91 300.00 150.00 2,846.91

Saving account

$500

Budget Income taxes 15% Food Electric/Gas bill Water trash Cable Gasoline Household Entertainment clothes/shoe/personal Total Living Expense

$ $ $ $ $ $ $ $ $ $

1,125.00 400.00 200.00 100.00 100.00 400.00 200.00 300.00 200.00 3,025.00

Credit & Rent Mo. Total Living Expense Total Cost of Living

$ $ $

2,846.91 3,025.00 5,871.91

Total income Total Cost of Living Disposable income

$ $ $

6,500.00 5,871.91 628.09

Purchase Price Down Payment Loan Amount Upfront MI Total Loan Amt. Interest Rate/APR Principal and Interest Taxes Home Ins. Mortgage Ins. Total Payment PITI

Cash Requried to Closed: Down payment Closing cost Total Down ZIP Closing Cost Credit My Home Total Credit

$ 350,000 0.035 $ 12,250 $ 337,750 1.75% $ 5,911 $ 343,661 Rate: 4.25%APR: 5.798% $ 1,691 1.25% $ 365 0.35% $ 102 0.85% $ 239 $ 2,397

3.50% $ 12,250.00 4% $ 12,250.00 $ 24,500.00

Current Housing DR. Mortgage Vacancy 25% Income Total Income Front DR

$ 2,396.91 $ $ $ 6,500.00 37%

Total Debt to Income Ratio.

Montly Debt $ 2,846.91 Montly Income $ 6,500.00 BACK DR 44%

-4% $ (12,250.00) -3.50% $ (12,028.12) $ (24,278.12)

Total Cash Required

$

221.88

Out of Pocket Expenses: Home Ispection Appraisal Fee Credit Report Fees

$ $ $

350.00 500.00 100.00

Total Out of Pocket Exp:

$

1,171.88

4

PROGRAM SUMMARY The CalPLUS FHA loan program is a fully amortized thirty 30year fixed interest rate FHA-insured first mortgage.

This loan is combined with the CalHFA Zero Interest Program (ZIP) for closing cost assistance.

AND The MY Home Program for down payment assistance.

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PROGRAM SUMMARY The FHA ZIP second loan is only available with CalPLUS and is a silent second loan for either 3.5% or 4.50% of the CalHFA FHA total ďŹ rst mortgage loan amount, including Up Front Mortgage Insurance Premium (UFMIP).

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PROGRAM SUMMARY The interest rate is zero percent (0.00%) and the payment(s) are deferred for the life of the first mortgage or until the property is transferred or the first mortgage loan is refinanced.

The CalPLUS loan is not subject to Recapture Tax.

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ELIGIBILITY Eligible Homebuyers This program is available for both first-time and non- first-time homebuyers

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ELIGIBILITY Homebuyer Education Homebuyer Education is required for one occupying first-time homebuyer. Homebuyer Education is not required for non-first-time homebuyer(s).

• Online Homebuyer Education through eHomeTM • Face-to-Face Homebuyer Education through NeighborWorks America, NID or through one of the HUD approved Housing Counseling Agencies

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ELIGIBILITY Owner Occupancy

• Non-occupant co-signers are allowed per FHA guidelines • Non-occupant co-signers: o must not occupy the property

o must not be on title or have a vested interest in the property o must sign all loan documents except the security instrument(s) o will have their income, assets, liabilities and credit histories considered by underwriters 1 0

PROPERTY REQUIREMENTS • Sales price of the home cannot exceed CalHFA’s sales price limits established for the county in which the property is located.

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PROPERTY REQUIREMENTS • Property must be a single-family, one-unit residence, including FHA- approved condominium/PUDs.

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PROPERTY REQUIREMENTS • Manufactured homes are permitted with the following parameters: o Minimum credit score: 700 o Maximum LTV/CLTV: 90.00% o Maximum loan term: 20 years

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PROPERTY REQUIREMENTS o Maximum age of property: 25 years o Manual Underwriting is not permitted on manufactured homes o All manufactured homes must meet FHA requirements

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ADDITIONAL PROPERTY GUIDEILNES • Guest houses, “granny” units, and “in law” quarters are eligible

o Must be zoned for Single Family Occupancy

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ADDITIONAL PROPERTY GUIDELINES o Cannot be zoned for 2-4 units o Must meet underwriting guidelines and city/county zoning ordinances o May not be income-producing; shall be for personal use only

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ADDITIONAL PROPERTY GUIDELINES • Leaseholds/Land Trusts and Co-ops are not permitted • Non-permitted additions/alterations must follow FHA guidelines

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ADDITIONAL PROPERTY GUIDELINES •Lot size cannot exceed five (5) acres maximum • Properties must meet the requirements of FHA and the California Health and Safety Code

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ADDITIONAL PROPERTY GUIDELINES • Defects and/or repair conditions identified by the appraiser on the appraisal report must be corrected prior to purchase •All units must be complete with respect to construction or repairs and ready to occupy

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PROPERTY FLIPPING • FHA first-mortgage under-writing guidelines apply CalHFA requires a copy of all appraisals as required by FHA. When multiple appraisals are required, CalHFA will base the subordinate loan amount(s) on the lesser of the sales price or lowest appraised value.

2 0

MAXIMUM LOAN AMOUNT The maximum loan amount (excluding UFMIP) cannot exceed FHA loan limits for the county in which the property is located.

2 1

FHA HIGH BALANCE LOAN LIMITS All loans with a base loan amount exceeding $424,100 will be subject to an additional fee.

2 2

MAXIMUM SALES PRICE LIMITS The Sales Price of the home cannot exceed CalHFA Sales Price Limits for the county in which the property is located.

2 3

QUALIFYING INCOME VS. PROGRAM COMPLIANCE INCOME Qualifying income is the income used by the underwriter to determine that the borrowers have the ability to meet their monthly obligation.

This income may differ from the income used by CalHFA for program compliance purposes. All sources of income must be used to determine program compliance income limits.

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ADDITIONAL PROPERTY GUIDELINES The income of all borrowers cannot exceed the published CalHFA income limits detailed in this program handbook established for the county in which the property is located.

2 5

MAXIMUM PROGRAM COMPLIANCE INCOME LIMITS CalHFA will calculate family income for CalPLUS FHA loan eligibility. “Family income” is defined as the annualized gross income of a mortgagor, and any other person who is expected to: 1. be liable on the mortgage 2. be vested on title; and 3. live in the residence Due to federal regulations, CalHFA is required to compile all information regarding borrower’s income.

2 6

FAMILY INCOME INCLUDES: Gross pay, Overtime, Bonuses, Commissions,Part-time employment, Dividends, Interest, Annuities, Deferred income Welfare payments, Disability payments Alimony, Social security benefits, Child support payments, Veterans Administration (VA) compensation, Pensions, Human assistance/ services, Gross rental or leased income, Unemployment compensation, Any regularly occurring additional income, Sick pay, Income received from Trust or Business & Investments from all sources (both taxable and non-taxable) including but not limited to earnings

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FAMILY INCOME EXCLUDES: • Gifts – casual, sporadic or irregular • Lump sum additions to household assets, such as inheritances, insurance settlement, capital gains, student financial assistance, settlements for personal or property losses

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FAMILY INCOME EXCLUDES: • Education scholarships paid directly to the student • Foster child care payments, adoption assistance payments if not used to credit qualify for the loan • Income from household members not on title or the loan

• Food stamps

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QUALIFYING RATIOS The maximum total Debt-to-Income (DTI) ratio cannot exceed 45.00% for automated underwriting or 43.00% for manual underwriting.

3 0

MINIMUM CREDIT SCORE • Credit Score 640

o Manually Underwritten loans: 660 o Manufactured Housing: 700

3 1

MINIMUM CREDIT SCORE • A borrower with no credit score may be eligible as long as an occupant borrower(s)has a credit score that meets the minimum representative credit score requirement

3 2

MINIMUM CREDIT SCORE • When all borrowers have a credit score, they must meet the minimum representative credit score requirements. The middle score of the lowest-scoring borrower should be used to determine eligibility

3 3

MINIMUM CREDIT SCORE o If a tri-merged credit report is used, use the middle score

o If a merged credit report only returns two scores, use the lower score o If a merged credit report only returns one score, that score must be used

3 4

ZERO TO LITTLE MONEY DOWN Bob Wages Jackies Wages Rental Income Total Inc.

$ $ $ $

3,000.00 3,500.00 6,500.00

Mortgage Car Payment Car Payment credit cards Student Loans 50K Total Credit/Rent/Mo.

$ $ $ $ $ $

2,396.91 300.00 150.00 2,846.91

Saving account

$500

Budget Income taxes 15% Food Electric/Gas bill Water trash Cable Gasoline Household Entertainment clothes/shoe/personal Total Living Expense

$ $ $ $ $ $ $ $ $ $

1,125.00 400.00 200.00 100.00 100.00 400.00 200.00 300.00 200.00 3,025.00

Credit & Rent Mo. Total Living Expense Total Cost of Living

$ $ $

2,846.91 3,025.00 5,871.91

Total income Total Cost of Living Disposable income

$ $ $

6,500.00 5,871.91 628.09

Purchase Price Down Payment Loan Amount Upfront MI Total Loan Amt. Interest Rate/APR Principal and Interest Taxes Home Ins. Mortgage Ins. Total Payment PITI

Cash Requried to Closed: Down payment Closing cost Total Down ZIP Closing Cost Credit My Home Total Credit

$ 350,000 0.035 $ 12,250 $ 337,750 1.75% $ 5,911 $ 343,661 Rate: 4.25%APR: 5.798% $ 1,691 1.25% $ 365 0.35% $ 102 0.85% $ 239 $ 2,397

3.50% $ 12,250.00 4% $ 12,250.00 $ 24,500.00

Current Housing DR. Mortgage Vacancy 25% Income Total Income Front DR

$ 2,396.91 $ $ $ 6,500.00 37%

Total Debt to Income Ratio.

Montly Debt $ 2,846.91 Montly Income $ 6,500.00 BACK DR 44%

-4% $ (12,250.00) -3.50% $ (12,028.12) $ (24,278.12)

Total Cash Required

$

221.88

Out of Pocket Expenses: Home Ispection Appraisal Fee Credit Report Fees

$ $ $

350.00 500.00 100.00

Total Out of Pocket Exp:

$

1,171.88

35

36

PRESENTATION DISCLAIMER This presentation is for real estate professionals only and is intended for the exclusive use of licensed real estate and mortgage lending professionals in accordance with local laws and regulations . It is not intended for the general public. Rates and programs are subject to change without notice.

The Power is Now Inc. is an Equal Opportunity Employer, Real Estate Broker and Mortgage Broker and does not discriminate against individuals on the basis of race, gender, color, religion, national origin, age, disability, veteran status, or other classification protected in originating loans or providing and real estate services.

PRESENTATION DISCLAIMER The Power Is Now Mortgage Services is a Mortgage Brokerage licensed by the State of California Bureau of Real Estate (license #1980407) and the National Mortgage License System and Registry (license #1435243), and is a division of The Power Is Now Inc. (license # 01980407).

The Power Is Now Inc. is not affiliated with any state or federal agency. The Power Is Now Real Estate Services is also licensed by the State of California Bureau of Real Estate (licensed #01980407), and is a division of The Power Is Now Inc. The Power Is Now Inc., is an equal housing lender.

Our corporate office is located at 3739 6th Street Riverside, CA 92501. Our Telephone and Fax number is 800-401-8994. Eric Lawrence Frazier MBA, is a California licensed Loan Originator (NMLS license # 461807), and a licensed Real Estate Broker (CA Bureau of Real Estate license #01143484).

Restrictions may apply to all loan programs. The Information and/or data is subject to change without notice and is intended for real estate and mortgage professionals only. If you are a consumer please contact us for a loan estimate on fees, charges and APR. All loans are subject to credit approval. The information is not a commitment to lend or extend credit. All loans or products are available in California only. The Power Is Now Mortgage Services and Real Estate Services are divisions of The Power Is Now Inc., and are only licensed to conduct business in the State of California.

Eric L. Frazier MBA President and CEO CAL BRE 01143485 NMLS 461807 800-401-8994 x 703 The Power Is Now Inc. CAL BRE 1980407 NMLS 1435243

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