Sapphire Program

The “SAPPHIRE” Disclaimer: This information is accurate as of the date shown Below and is subject to change without notice.

November 24, 2015

The “Sapphire” Program • Introductions • Eric L. Frazier MBA Broker NMLS 461807 | Frazier, Eric, Lawrence Brokerage NMLS 1273606

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The Sapphire Programs Highlights Program Income & Loan Limits Program Qualifying Income Underwriting Guidelines Program Summary Questions and Answers Thank You and Disclaimers Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461807 Copyright 2015 by Eric L. Frazier All Rights Reserved

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Introduction • Married 33 years 4 Daughters • One in College., Three MBAs. All In Real Estate

• Born in Memphis Tenn. Native IE. SB. • Residence Riverside 14 years.

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University of Redland Graduate Degrees: BSBAM, & MBA in Finance 33 years as Lender/Mortgage Banker 23 years as Real Estate Agent/Broker Co-Founder of Frazier Group Realty President of The Power Is Now Inc. •

Eric Lawrence Frazier, MBA Mortgage & Real Estate Broker

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Radio | TV | Magazine | Events | Financial Services

President of The OC Realtist (NAREB) BOD of California Assoc. or RE Brokers BOD of California African American Museum BOD of Project Tomorrow (k-12th Ed)

Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461807 Copyright 2015 by Eric L. Frazier All Rights Reserved

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The Mortgage Brokerage • Frazier, Eric, Lawrence Mortgage Brokerage NMLS 1273606 begin March 1st, 2015. Founder and Owner Eric L. Frazier MBA NMLS 461807 has been opening doors to the American Dream for 33 years. It is his passion and mission. He is also a Real Estate Agent/Broker for approximately 23 years CABRE 01143484 and is the co-founder of Frazier Group Realty. • As a Mortgage Broker, Eric Lawrence Frazier is approved with many lenders that offer programs for first time homebuyers, move up buyers, investors, churches, non-profits and foreign nationals. We are a full service mortgage brokerage.

Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461807 Copyright 2015 by Eric L. Frazier All Rights Reserved

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Mortgage Broker Get Results!

• Mortgage Brokers can find the best interest rate for any type of property or loan and do it quickly because they have many options • Mortgage Brokers can process your loan faster than banks because they do not have the bureaucracy that banks have • Mortgage Brokers use contract processors and many lenders so there is no standing in line and waiting to get the loan closed quickly • Mortgage Brokers can work with you regardless of your financial or credit circumstances and will never say no if there is product for you in the world of lending. We know this is not the case for banks.

Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461807 Copyright 2015 by Eric L. Frazier All Rights Reserved

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Mortgage brokers Get Results!

• I am Mortgage Broker and Real Estate broker and proud to be so. I am indebted to the industry for teaching me and the many people who have mentored me over the years to be a mortgage banking professional.

• Now I proudly serve the community independently and work to make home ownership a reality for everyone • Once you use a qualified mortgage broker you will never go direct to a bank again. Please call me today. I can help you. 800-261-1634 x 703 • Licensed CA Only NMLS 1273606.

Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461807 Copyright 2015 by Eric L. Frazier All Rights Reserved

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The “SAPPHIRE” Program

Not having the money for a down payment is no longer an excuse!

The “Sapphire” Program • The Sapphire Program is a program of the National Homebuyers Fund, Inc.. (NHF) is Non-profit benefit corporation, established in 2002. It is a IRS Code section 115 entity and is an affiliate of Rural County Representatives of California.

• NHF provides and manages a variety of homeownership programs on behalf of itself, state and local Housing Finance Agencies and other housing related organizations.

Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461807 Copyright 2015 by Eric L. Frazier All Rights Reserved

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The “Sapphire” Program • NHF is not a direct lender and does not provide nor accept loan applications to or from potential borrowers. Participating Lenders provide potential borrowers with loan applications, applicable fees and APRs and complete program guidelines.

• As a Mortgage Broker, Eric Lawrence Frazier is approved with many lenders that offer programs for first time homebuyers.

The Sapphire program is just one of many programs that are available and will be presented today.

Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461807 Copyright 2015 by Eric L. Frazier All Rights Reserved

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The “Sapphire” Program Purpose of the Program • The “Sapphire” Program provides financing to families and individuals who can afford a mortgage loan but do not have the resources for the down payment and/or closing costs.

What the Program provides • The “Sapphire” Program offers financing on FHA and VA Loans designed to increase homeownership opportunities to low-to-moderate income individuals and families in CA.

Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461807 Copyright 2015 by Eric L. Frazier All Rights Reserved

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Why We Need Sapphire Now! • Seller paid DAPs discontinued • County and City DAPs out of funds or limited funds.

• State DAP programs take too long and have many restrictions.

• Loan programs in general have more restrictive guidelines/products • Low inventory – Higher prices more money • Sellers market – Higher prices and no or limited seller credit • Higher cost of living = Less money to save Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461807 Copyright 2015 by Eric L. Frazier All Rights Reserved

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The “Sapphire” Program Highlights

NHF Sapphire Down Payment Assistance Value Value to homebuyer

Value to lender/broker/realtor

•Provides a 3% or 5%-sized non-repayable grant for down payment and/or closing costs •Grant is not a lien (not calculated in CLTV or DTI) •Available statewide (CA) •Not restricted to 1st Time Homebuyers

•Selling tool: Ability to offer down payment assistance options •Flexibility of financing: Can be combined with other programs, including MCCs •No Delays!

Purchase a home with little to no money out of the pocket!

Potential Business Increase

Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461807 Copyright 2015 by Eric L. Frazier All Rights Reserved

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NHF Sapphire Program The program is designed to increase homeownership opportunities for low-to-moderate income borrowers.

It is a 1st Mortgage Loan with a 3% or 5% Down Payment Assistance Grant.

Grant Proceeds can be used for: • Down payment • Closing costs • Prepaid item(s) • Earnest money

Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461807 Copyright 2015 by Eric L. Frazier All Rights Reserved

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Mr. & Mrs. Homebuyer

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Mr. & Mrs. Homebuyer

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Mr. & Mrs. Homebuyer

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Mr. & Mrs. Homebuyer

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Program Income & Loan Limits

Program Income Limits 2015 115% of HUD AMI • • • • • • •

Riverside Orange County Los Angeles County San Diego County San Francisco Santa Clara Contra Costa

$ 80,155.00 $ 98,780.00 $ 80,155.00 $ 83,950.00 $117,185.00 $122,245.00 $106,835.00

Income limits as of 10/13/2015 Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461807 Copyright 2015 by Eric L. Frazier All Rights Reserved

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Sapphire Income Limits (up to 115% AMI) County

Program Income Limits

County

Program Income Limits

County

Program Income Limits

Alameda

$106,835

Marin

$117,185

San Mateo

$117,185

Alpine

$109,135

Mariposa

$80,155

Santa BĂĄrbara

$86,710

Amador

$80,155

Mendocino

$80,155

Santa Clara

$122,245

Butte

$80,155

Merced

$80,155

Santa Cruz

$100,050

Calaveras

$80,730

Modoc

$80,155

Shasta

$80,155

Colusa

$80,155

Mono

$80,550

Sierra

$80,155

Contra Costa

$106,835

Monterrey

$80,155

Siskiyou

$80,155

Del Norte

$80,155

Napa

$96,830

Solano

$85,675

El Dorado

$82,225

Nevada

$80,155

Solano (city of Vacaville)

$98,526

Fresno

$80,155

Orange

$98,785

Sonoma

$84,640

Glenn

$80,155

Placer

$82,225

Stanislaus

$80,155

Humboldt

$80,155

Plumas

$80,155

Sutter

$80,155

Imperial

$80,155

Riverside

$80,155

Tehama

$80,155

Inyo

$82,225

Sacramento

$82,225

Trinity

$80,155

Kern

$80,155

San Benito

$83,720

Tulare

$80,155

Kings

$80,155

San Bernardino

$80,155

Tuolumne

$80,155

Lake

$80,155

San Diego

$83,950

Ventura

$98,095

Lassen

$80,155

San Francisco

$117,185

Yolo

$83,030

Los Angeles

$80,155

San JoaquĂ­n

$80,155

Yuba

$80,155

Madera

$80,155

San Luis Obispo

$88,665

Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461807 Copyright 2015 by Eric L. Frazier All Rights Reserved

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Program Loan Limits FNMA/FHLMC & HUD

HUD Loan Limit

Conforming Loan Limit • • • • • • • •

Riverside San Bernardino County Orange County Los Angeles County San Diego County San Francisco Santa Clara Contra Costa

$ 417,000.00 $ 417,000.00 $ 625,500.00 $ 625,500.00 $ 562,350.00 $ 625,500.00 $ 625,500.00 $ 625,500.00

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Riverside San Bernardino County Orange County Los Angeles County San Diego County San Francisco Santa Clara Contra Costa

Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461807 Copyright 2015 by Eric L. Frazier All Rights Reserved

$ 335,350.00 $ 335,350.00 $ 625,500.00 $ 625,500.00 $ 562,350.00 $ 625,500.00 $ 625,500.00 $ 625,500.00

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Program Qualifying Income Borrower Qualifying Income

Borrower Qualifying Income • Borrower qualifications is based on Qualified repayment Income • Only the Applicants income used for Qualifying is considered in order to meet the program income limits • All income documented that borrower receives on a consistent basis must meets FHA’s Effective income guidelines (2 year history and is likely to continue).

– For example: Retirement income, Overtime income, Bonus income, part-time income must have a 2 year history and the likelihood to continue.

Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461807 Copyright 2015 by Eric L. Frazier All Rights Reserved

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Eligibility Guidelines

Borrower Eligibility • Borrower Eligibility: – Be a U.S. citizen, permanent resident alien, or qualified alien – Owner Occupied Primary Residence only.

– You do not have to be a first time homebuyer to participate in the program – You may own other properties – must meet FHA requirements.

– Non occupying Co-borrowers/Co-signers are NOT ALLOWED. – Meet Credit, income & Loan requirements of the lender & NHF. Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461807 Copyright 2015 by Eric L. Frazier All Rights Reserved

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Property Eligibility • Property Eligibility: – SFR Single Family Residences – PUDs Planned Unit Condominiums – Agency Approved Condos – 1 units properties only – Manufactured Homes (680 minimum fico for maximum financing)

Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461708 Copyright 2015 by Eric L. Frazier All Rights Reserved

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Ineligible Properties • Ineligible: – Two to four units – Rental homes – Co-ops – Investment properties – Recreational, vacation or second homes

Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461708 Copyright 2015 by Eric L. Frazier All Rights Reserved

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Underwriting Guidelines

Underwriting Guidelines • Minimum Credit Scores: – Minimum Credit scores 620+ – Non-traditional Trade line – Not allowed must have min. middle score 620

• Max Debt Ratio: – Debt Ratio determined by AUS/DU – 56.9% DR is the Max but is possible to exceed it with DU approval – DU – Refer/Eligible: Housing ratio 31% Total Debt Ratio 43% – 1 month reserves may be required if AUS/DU approval is not granted – No reserves requirement on DU approved loans • AUS/DU Defined: Fannie Mae’s Desktop Underwriter. An automated underwriting system or decision engine that approves loans or refers them an underwriter for approval or denial Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461807 Copyright 2015 by Eric L. Frazier All Rights Reserved

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Cancellation/Extension Policy •If a loan is canceled for whatever reason, whether withdrawn or denied, NHF is charging a $400 cancellation fee. Lender requires that the loan be approved prior to locking for 30 days but would recommend not locking until all prior to doc conditions are met to avoid the possibility of a cancellation fee •If a loan has been canceled it may only be re-locked after 30 calendar days from the cancellation date •Extensions may be considered on a case by case basis, at a minimum fee of .375% of the loan amount; it may be higher depending on the market conditions at the time •When a loan is locked under the Sapphire Program, a $400 cancellation fee applies regardless if the loan is withdrawn or denied at underwriting Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461807 Copyright 2015 by Eric L. Frazier All Rights Reserved

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Program Summary

Program Summary • NOT Limited to First Time Home Buyers • NO “Recapture Tax” if home is sold later • NO Sales Price Limits • Financing available for Down Payment and Closing Costs • CLTV’s up to 96.50% -little to no money down & out of pocket closing costs – inspections, credit and appraisal fees.

• No Minimum Borrower Contribution Required • Ratios stretched up to 56.9% DTI with DU approval • Manual Underwrite 31/43 DTI • 1 Units only • Manufactured Homes with minimum 680 fico score • Grant from 3% to 5% • Seller credit up to 6% Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461807 Copyright 2015 by Eric L. Frazier All Rights Reserved

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Thank you for attending!

Agents Inform your buyers!

Buyers inform your friends and family!

Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461807 Copyright 2015 by Eric L. Frazier All Rights Reserved

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Grant up to 5%

Thank you • On behalf of Eric Frazier Mortgage Brokerage and the Power Is Now Radio thank you for joining the Buyers and Sellers Club program today. I hope the information provided will help you achieve the dream of home ownership. • Please read the important disclaimer on the last page.

legal

Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461807 Copyright 2015 by Eric L. Frazier All Rights Reserved

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Disclaimer: • The main purpose of sharing this information is to assist borrowers in understanding the loan programs that are available in the market place. While Eric Lawrence Frazier Mortgage Brokerage, staff, employees, contractors and contributors take care to ensure the accuracy of the content of the loan program information , Eric Lawrence Frazier Mortgage Brokerage, makes no warranties as to the accuracy of the information contained within these materials. Furthermore, every attendee who has received this information uses it understanding that he or she must still conduct his or her own original legal research, analysis and opinion from their legal counsel. All non-legal professionals are urged to seek legal advice from a lawyer.

• Eric Lawrence Frazier Mortgage Brokerage specifically disclaims any liability for any loss or damage any participant may suffer as a result of the information contained within this PowerPoint.

• While the information contained in this power point presentation addresses guidelines and issues surrounding mortgage programs, this PowerPoint point does not constitute legal advice, nor include all the rules, guidelines and restrictions that are related to the program. All non-legal professionals are urged to seek legal advice from a lawyer.

• Upon the completion and submission of a loan application for the Sapphire Program, all the appropriate legal disclosures will be provide at the time.

• The Power Is Now Radio is not mortgage company or real estate company but an online radio platform to broadcast and promote information about homeownership.

Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461708 Copyright 2015 by Eric L. Frazier All Rights Reserved

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Real Estate Broker  CABRE #01143484 CA Mortgage Broker NMLS: 461807

Frazier, Eric, Lawrence Broker Company NMLS 1273606 | Eric L. Frazier Broker NMLS 461807 Copyright 2015 by Eric L. Frazier All Rights Reserved

The “SAPPHIRE” Disclaimer: This information is accurate as of the date shown Below and is subject to change without notice.

November 24, 2015