Maryland CDA MMP Conventional DPA Program

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Maryland CDA MMP Conventional Program Must be referred to AFS for Origination (loan cannot be originated by branch) Must be processed by Corporate Processing Team (loan cannot be processed by branch)

DPA options subject to change based on market conditions. Must confirm availability with Housing Authority.

30 Year Fixed

LTV1

CLTV

Purpose

Unit

Occupancy

Credit Score

DTI Ratio

97

105

Purchase

1

O/O

640

502

1. For properties where the resale restrictions survive foreclosure or recordation of deed in lieu of foreclosure,

property limited to an 80% LTV

2. For loans reserved on or after 7/14/2023: 50% DTI allowed with AUS approval

PRODUCT NAMES

Maryland CDA Conventional Loan Program

? Maryland MMP Conventional 30 Year Fixed Flex 6000 ? Maryland MMP Conventional 30 Year Fixed Flex 3% Loan ? Maryland MMP Conventional 30 Year Fixed Advantage 6000 ? Maryland MMP Conventional 30 Year Fixed 1st Time Advantage 3% ? Maryland MMP Conventional 30 Year Fixed 1st Time Advantage 4% ? Maryland MMP Conventional 30 Year Fixed 1st Time Advantage 5%

? Maryland MMP 2nd DPA Advantage 6000 ? Maryland MMP 2nd DPA 1st Time Advantage 3% ? Maryland MMP 2nd DPA 1st Time Advantage 4% ? Maryland MMP 2nd DPA 1st Time Advantage 5% ? Maryland MMP 2nd DPA Flex 6000 ? Maryland MMP 2nd DPA Flex 3% Loan

? Maryland MMP 2nd DPA Partner Match

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ALLOWABLE ORIGINATION CHANNELS SERVICER EIN (FEDERAL TAX ID) PRODUCT REQUIREMENT

MMP PROGRAM OVERVIEW

DPA MARYLAND MMP ADVANTAGE 6000

Maryland CDA Conventional Loan Program

? Maryland Montgomery Homeownership Program 2nd DPA (this DPA can ONLY be used with Maryland MMP Conventional 30 Year Fixed first mortgage, no exceptions)

? Retail ? Loans must be referred to the AFS department for origination. ? Must be processed by Corporate Processing Team (loan cannot be processed by branch). Branch to assign Processing queue 000 ? PALS Corp and send email with Loan Number and Borrower name to processingoverflow@

? U.S. Bank = Master Servicer ? Maryland CDA = Program Administrator/Compliance



? Maryland CDA EIN: 52-6002033

? Housing Authority approval required. Loan must be submitted to the agency and approved by them in the required timeframe as outlined in the product profile and on their website. Loan may not proceed to docs or funding without agency approval.

? You will submit all the required documentation through Lender Online and assuming there are no conditions you will receive compliance approval within 24 to 48 hours. If there are conditions compliance approval will take longer, review lender online for turn times.

? Borrowers qualifying under this program must utilize one of the down payment assistance options from the MMP. The first trust deed is not allowed to be used without using the DPA.

? Maryland MMP Conventional Flex 3% Loan and Maryland MMP Conventional 30 Year 1st Time Advantage 3%, 4%, 5%: Borrowers will receive a 30-Year fixed rate MMP first mortgage along with a deferred 2nd mortgage of 3%, 4%. 5% DPA to be used towards down payment and/or closing costs.

? Maryland MMP Conventional 30 Year Fixed Advantage 6000 and Maryland MMP Conventional 30 Year Fixed Flex 6000: Borrowers will receive a $6,000 30-Year 2nd lien with a 0% interest rate. An additional 3rd lien may also be available from the Partner Match DPA.

? Housing Authority approval required. Loan must be submitted to the agency and approved by them in the required timeframe as outlined in the product profile and on their website. Loan may not proceed to docs or funding without agency approval.

? Note: In order to obtain the down payment assistance, you MUST obtain the first mortgage through the Maryland MMP Advantage 6000 Program.

? Additional loan must be created in FT360 to accommodate second and should be created at the same time the 1st lien is created for disclosure, document and funding purposes.

? Down payment assistance is in the form of a deferred, repayable 2nd lien. ? Maryland MMP Advantage 6000 loan includes a $6,000 down payment assistance.

The interest rate is 0.00%, there are no monthly payments, the 2nd is a deferred lien. ? The DPA funds are to be used for the down payment and/or closing costs of the

mortgage loan. ? Borrower is required to be a first-time homebuyer. ? If the $6,000 exceeds the total down payment and closing costs needed for the

transaction, the excess funds will be applied by the lender to a principal curtailment. The 2nd lien amount available for this product is strictly $6,000 and no higher or lower loan amounts are allowed. ? The lender will advance the funds at closing and the Community Development Administration (CDA) will reimburse the lender after the loan is post-closing

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approved by CDA

? This option is TRID COMPLIANT/ Initial and final LE & CD are needed

DPA MARYLAND MMP 1ST ? Note: In order to obtain the down payment assistance, you MUST obtain the first

TIME ADVANTAGE 3%,

mortgage through the Maryland MMP 1st Time Advantage Program.

1st TIME ADVANTAGE 4% ? Additional loan must be created in FT360 to accommodate second and should be

DPA, 1st TIME ADVANTAGE 5%

created at the same time the 1st lien is created for disclosure, document and funding purposes.

DPA

? Down payment assistance is in the form of a deferred, repayable 2nd lien.

? Maryland MMP 1st Time Advantage 3%, 4%, or 5% loan includes a 0.00%, deferred

2nd lien that is 3%, 4%, or 5% DPA of the total first mortgage loan amount.

? The lien is to be used for the down payment and/or closing costs of the mortgage

loan.

? Borrower is required to be a first-time homebuyer, unless borrower is purchasing in

a targeted area or is using a Veterans exemption for the first-time homebuyer.

? If the 3%, 4% or 5% exceeds the total down payment and closing costs needed for

the transaction, the excess funds will be applied by the lender to a principal

curtailment.

? The 2nd lien amount available for this product is 3%, 4%, or 5% DPA.

? The lender will advance the funds at closing and the Community Development

Administration (CDA) will reimburse the lender after the loan is post-closing

approved by CDA

? This option is TRID COMPLIANT/ Initial and final LE & CD are needed

? Partner Match not eligible with the Maryland MMP 1st Time Advantage 3%.

Assistance from employers, builders, non-profits, etc. may be utilized by the

borrower in combination with this product but will not be matched by CDA funds.

? Maryland HomeCredit MCC not available with 1st Time Advantage.

DPA MARYLAND MMP ? Note: In order to obtain the down payment assistance, you MUST obtain the first

FLEX 6000

mortgage through the Maryland MMP Flex 6000 Program.

? Additional loan must be created in FT360 to accommodate second and should be

created at the same time the 1st lien is created for disclosure, document and funding

purposes.

? Down payment assistance is in the form of a deferred, repayable 2nd lien.

? Maryland MMP Flex 6000 loan includes a $6000, 0.00%, deferred 2nd lien.

? The lien is to be used for the down payment and/or closing costs of the mortgage

loan.

? Borrower may be repeat or first-time homebuyer.

? The lender will advance the funds at closing and the Community Development

Administration (CDA) will reimburse the lender after the loan is post-closing

approved by CDA

? This option is TRID COMPLIANT/ Initial and final LE & CD are needed

DPA MARYLAND MMP ? Note: In order to obtain the down payment assistance, you MUST obtain the first

FLEX 3% LOAN

mortgage the the Maryland MMP 1st Time Advantage 3% Loan Program.

? The down payment assistance is in the form of a 3% of the MMP first mortgage total

loan amount.

? There is no interest and no monthly payment.

? The DPA is deferred for 30 years.

? The DPA assistance is used towards down payment and/or closing costs.

? Borrower may be repeat or first-time homebuyer.

? If the 3% exceeds the total down payment and closing costs needed for the

transaction, the excess funds will be applied by the lender to principal curtailment.

Maryland CDA Conventional Loan Program

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PARTNER MATCH DOWNPAYMENT / CLOSING COST ASSISTANCE

MONTGOMERY HOMEOWNERSHIP PROGRAM 2nd DPA

Maryland CDA Conventional Loan Program

? Additional loan must be created in FT360 to accommodate second and should be created at the same time the 1st lien is created for disclosure, document and funding purposes.

? The lender will advance the funds at closing and the Community Development Administration (CDA) will reimburse the lender after the loan is post-closing approved by CDA.

? Additional loan must be created in FT360 to accommodate second and should be created at the same time the 1st lien is created for disclosure, document and funding purposes.

? NOTE: In order to utilize this down payment assistance, you MUST obtain the first mortgage through either the Maryland MMP Conventional 30 Year Fixed Advantage 6000 or the Maryland MMP Conventional 30 Year Fixed Flex 6000. This DPA can not be combined with the Maryland MMP Conventional 30 Year Fixed.

? Assistance is in the form of a 0% interest rate deferred loan. The CDA matches the funds from a Partner (see below) dollar-for-dollar up to a maximum of $2500. The loan is repayable when the home is sold or transferred, or when the first mortgage is paid off or refinanced.

? Partner Match funds can be combined with the basic MMP DPA's (i.e. the $6000 0% interest rate 2nd liens offered under the Maryland MMP Conventional Advantage 6000 and Maryland MMP Conventional Flex 6000 products). If this is the case, the Partner Match will become a 3rd lien.

? These funds offer additional down payment and/or closing cost assistance. ? Partners can be:

? Employers under the House Keys 4 Employees (HK4E) or the Smart Keys 4 Employees (SK4E) programs. The SK4E allows an additional $1000 (on the same terms) if the property being purchased is within 10 miles of the borrower's place of employment or within the boundaries of the local jurisdiction AND if the property is located in a Priority funding area () ? Also note that State of Maryland employees can receive a total HK4E contribution, representing the contribution from both the employer and the HK4E program.

? Builders/Developers under the Builder/Developer Incentive Program (BDIP) ? Community partners under the Community Partners Incentive Program (CPIP) ? Partner Match not eligible with the Maryland MMP 1st Time Advantage 3%. Assistance from employers, builders, non-profits, etc. may be utilized by the borrower in combination with this product but will not be matched by CDA funds. ? Partners establish the eligibility criteria and terms for their contributions, which can be a loan or a grant. ? The borrower must complete the Verification of Partner Contribution form and is responsible for ensuring that the partner contribution is available at settlement. ? Lender requests the Partner Match funds along with the regular DPA funds through Lender Online. ? A list of partners can be found at the MMP website: ? This option is TRID COMPLIANT/ Initial and final LE & CD are needed

? The Montgomery Homeownership down payment assistance can ONLY be used with the Maryland MMP Conventional 30 Year Fixed first mortgage. You cannot combine this DPA with any other DPA.

? The maximum DPA loan will be 40% of the total household income with a maximum total of $25,000 per home.

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TARGETED AREAS

INITIAL DISCLOSURES/FINAL DOCUMENTS

Maryland CDA Conventional Loan Program

? The DPA assistance is used towards down payment or closing costs. ? The DPA has a 0% interest rate and payment is deferred for the life of the first lien. ? The Montgomery program is available only to First Time Homebuyers. Borrowers

who currently own or have owned a home within the previous three years are no longer eligible (unless purchasing in a Targeted Area or the Borrower is a veteran using their exemption for the first time). ? Borrower cannot own any other real property at time of closing. ? Property must be located in Montgomery County. ? Partner Match Programs ? No matching funds provided. External assistance (such as other partner funds that don't require a match) may be utilized as long as it meets insurer/investor/servicer guidelines. ? An additional loan must be created in FT360 to accommodate the second and should be created at the same time the 1st lien is created for disclosure, document and funding purposes. ? The DPA lien will be in the name of the Maryland Department of Housing and Community Development (CDA). The DPA funds come from Montgomery County and are distributed by Maryland Department of Housing CDA. ? The DPA will be funded by the lender at closing. CDA reimburses the lender after post-closing approval is provided by CDA. ? Maryland MCC NOT available with this program. ? Loan documents are available on Maryland Housing website. ? Maryland's Counties fall into three categories when it comes to Targeted Areas. ? Fully Targeted ? All properties in these counties are in a Target Area. ? Partially Targeted ? Some properties in these counties are in a Target Area ? Non-Targeted Counties ? No properties in these counties are in a Target Area. ? To determine if a property is in a Targeted Area, refer to the Maryland Mortgage Program Mapper Guide here: ? Make sure you PRINT the Mapper information. ? Initial Disclosures ? INITIAL LE's ? BUYERS/ BORROWERS CONFIRMING AFFIDAVIT ? INITIAL ? SELLER CONFIRMING AFFIDAVIT- INITIAL ? Final Documents ? INITIAL AND FINAL CD ? DPA CLOSING INSTRUCTIONS ? DPA COMMITMENT LETTER ? DPA DEED OF TRUST ? DPA NOTE ? BUYERS/ BORROWERS CONFIRMING AFFIDAVIT- FINAL ? NOTICE TO BORROWER FOR CALCULATING POTENTIAL RECAPTURE TAX (08-30-

18) ? SELLER CONFIRMING AFFIDAVIT- FINAL ? TAX EXEMPT FINANCE RIDER TO RECORD WITH FIRST DOT ? Closers to verify Exhibit B (page 12 of the DPA Deed of Trust) is fully executed prior to recording. ? E-Signed forms are accepted except on the following final closing docs: ? DPA Deed of Trust ? DPA Deed of Trust Note ? All applicable Riders including the Tax Exempt Finance Rider (required for all

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