CalHFA MyHome Assistance

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CALIFORNIA HOMEBUYER'S MYHOME ASSISTANCE

Note: For details on guidelines not specified below, please refer to the product profile of the applicable first mortgage.

PRODUCT NAMES

? CalHFA MyHome Assistance DPA ? w/FHA 1st

? CalHFA MyHome Assistance DPA ? w/ Conv 1st

ALLOWABLE ORIGINATION ? Wholesale

CHANNELS

? Retail

? May be originated through standard retail origination process

SERVICER

? California Housing Finance Authority = Master Servicer

PROGRAM SUMMARY

? On July 23, 2019, the Federal Housing Administration (FHA) published Mortgagee

Letter (ML) 2019-10, which announced the suspension of the effective date of

Mortgagee Letter 2019-06, "Downpayment Assistance and Operating in a

Governmental Capacity," until further notice.

? Mortgagees are advised to continue following the guidance published in the Single

Family Housing Policy Handbook 4000.1 (SF Handbook) Section II.A.4.d.ii. regarding

this matter.

? The MyHome Assistance Program (MyHome) is a deferred payment, simple interest

rate subordinate loan that may only be used with any CalHFA First mortgage (FHA,

Conventional, standard, plus, etc.).

? Borrowers qualifying under this program must utilize the down payment assistance

associated with this program. The first trust deed is not allowed to be used without

using the DPA.

? The MyHome loan provides up to 3.5% of the sales price or appraised value of the

property, whichever is less, and must be recorded in second lien position.

? Low to moderate income first-time homebuyer can use this loan for down payment

and/or closing costs assistance.

? CalHFA allows qualified homebuyers to layer other down payment assistance loans or

grants to maximize affordability (cannot not be combined with ECTP).

? This program is intended for first-time homebuyers anywhere in California. For

additional reference, visit the CHDAP/MyHome Assistance guidelines posted at

CalHFA's website: :



? CalHFA EIN #: 68-0181576

PRODUCT REQUIREMENT ? 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.

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TERM

AUS DATA ENTRY REQUIREMENTS OF DPA LIEN

GEOGRAPHIC RESTRICTIONS MAXIMUM LOAN AMOUNT MINIMUM CREDIT SCORE

MAXIMUM CLTV RATIOS BORROWER REQUIREMENTS

? The term of the MyHome matches the term of the CalHFA first mortgage, not to exceed 30 years.

? Payments are deferred for the life of the first mortgage. ? Unless specific requirements are met and subordination is allowed by CalHFA, the

MyHome Assistance is due and payable at the earliest of the following events: ? Transfer of title ? Sale of the property ? Payoff or refinance of the first lien ? Upon the formal filing and recording of a Notice of Default (unless rescinded) ? Refinance of the first loan, unless the MyHome is subordinated. ? This is a second lien that will subordinate to the FHA or Conventional first mortgage and must be considered "secured borrowed funds" ? On the loan application, Question H "Is any part of the down payment borrowed" should show as Yes. ? See Housing Authority Products with Second Liens in FT360 in the Resource Center, which can be located at the following link: AuthorityProductswithDPALiensinFT360.pdf ? In the Secondary Financing of the HUD-92900LT FHA Loan Transmittal screen ? Enter the Secondary Financing Source/EIN ? Select the Correct Check box (Gov't ? A Government Entity is the source of the

secondary financing, NP ? A Non-Profit Agency is the source of the secondary financing, Family ? A Family member is the source of the secondary financing, Other ? There is another source of the secondary financing (completed checkbox which will enable if selected) ? Enter the Amount of the Secondary Financing ? In MORNETPlus Community Lending Section of the Streamlined 1003: ? Do not select Community Lending on the Mornet Community Lending screen ? If HFA Second Mortgage being used, Community Second needs to be checked ? If HFA grant is being used neither Community Lending nor Community Second

should be checked

? Please refer to PRMG's "Eligible States" list, which can be found at this link:

? 3.5% of, the lessor of, the purchase price or appraised value (the sales price of the home cannot exceed CalHFA sales price limits for the county in which the property is located). When the applicable government insurer/guarantor requires multiple appraisals, CalHFA will base the MyHome loan amount on the lesser of: 1) the sales price or 2) the lowest appraised value.

? Based on associated CalHFA first trust deed program ? 640 minimum credit score with CalHFA FHA (Standard or CalPlus) ? 640 minimum credit score with CalHFA Conventional (Standard or CalPlus) ? All borrowers must meet the minimum representative credit score requirements ? The lowest minimum represented credit score of all borrowers on the application will

be used ? Follow CLTV requirements of first trust deed program, not to exceed 105% ? 45% Maximum DTI (regardless of automated underwriting decision or compensating

factors) ? No manual underwriting allowed

? First-time homebuyers (unless borrower was affected by a natural disaster in California. Refer to the CalHFA Borrowers Affected by Natural Disasters section)

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CALHFA BORROWERS AFFECTED BY NATURAL DISASTERS

QUALIFYING

? Must be a U.S. Citizen, permanent residence alien or qualified alien.

? Meet credit, income and loan requirements of CalHFA's first mortgage loan program, the CalHFA approved lender and the mortgage insurer/guarantor.

? All borrowers, including co-borrowers, must reside in the home and meet the definition of a first-time homebuyer.

? A first-time homebuyer is defined as a borrower who has not had an ownership interest in any principal residence during the previous three years.

? Non-occupant co-borrowers are not allowed. If a borrower is not occupying the property they cannot be on the deed of trust.

? Non-borrowing parties cannot be on the deed, including non-borrowing spouses ? Effective with all reservations on or after 2/1/19, non-occupant co-signors are not

allowed ? Registered Domestic Partners are treated the same as spouses ? Lenders are required to confirm borrower compliance per the Citizenship, Alienage

and Immigration Status list. Lenders should only document compliance in their inhouse loan file. Please do not forward documentation to CalHFA during the loan submission process. ? Borrowers under Deferred Action, the Dreamer's Act or DACA (EAD Code C33, C14, etc.) are not eligible. Although, these individuals may have been granted permission to remain in the U.S. for a period of time, DACA/Deferred Action does not grant a legal status. PRMG requires all borrowers to document proof of legal residency in the U.S. Additionally, they must follow the applicable guidelines for income (typically 2 year history and likely to continue for 3 years as applicable.) A borrower with DACA/Deferred Action status would not be able to meet the borrower eligibility documentation requirements (i.e., green card or meet applicable agency standard guidelines for income) and therefore is not be eligible.

? Effective for loans reserved on or after June 25, 2018, CalHFA will waive its first-time homebuyer requirement for borrowers who were impacted by California natural disasters, beginning with the October 2017 wildfires.

? Those borrowers whose owner-occupied home was destroyed or declared uninhabitable may apply for CalHFA first mortgage programs, including the MyHome Assistance Program or School Teacher and Employee Assistance Program for down payment and/or closing cost assistance.

? To be eligible for CalHFA Natural Disaster financing: ? Previous property must be located in an area declared as a Major Disaster and posted on the Federal Emergency Management Agency (FEMA) website ? Previous property must have been the borrower's primary residence ? Previous property must have been destroyed or declared uninhabitable with supporting documentation supplied from either (i) the insurance company or (ii) the local government jurisdiction ? Borrowers affected by a declared Major Disaster are eligible to purchase a new home using CalHFA loan programs within three (3) years of that Major Disaster's declaration date ? Borrowers must meet all other CalHFA loan program guidelines, including published income limits for their county, and property sales price limits

? For retail, this program may be layered with CalHFA Mortgage Credit Certificate Tax Credit Program (MCC Tax Credit Program) or other Mortgage Credit Certificate (MCC) programs for first-time homebuyers only.

? For wholesale, this program may be layered with other Mortgage Credit Certificate (MCC) programs for first-time homebuyers only. CalHFA's Mortgage Credit Certificate Tax Credit Program (MCC Tax Credit Program) is not eligible for wholesale.

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HOMEBUYER EDUCATION

MAXIMUM INCOME

MINIMUM BORROWER CONTRIBUTION CALHFA SUBORDINATE FINANCING

? The MCC credit may be used for credit qualifying purposes as per investor guidelines. ? For full CalHFA MCC Tax Credit Program underwriting guidelines and details see

website: ? Homebuyer education counseling will be required for one occupying borrower on

each loan transaction. ? The homebuyer education course must be taken with one of the following:

? Online on the eHomeAmerica website ? ? Face-to-Face Homebuyer Education through NeighborWorks America or through one of the HUD approved Housing Counseling Agencies

? CalHFA's required eHome homebuyer education class costs can vary but typically ranges from $50 to $120, including immediate access to their completed certification for printing (must use the

? site for this price, other homebuyer education courses prices vary.) ? Lenders are required to calculate income to qualify borrower(s) for loan approval

using first trust deed guidelines. CalHFA will recalculate the borrower's income pursuant to tax compliance. ? Qualifying income is the income used by lender to determine that the borrowers have the ability to meet their monthly obligation. Follow guidelines from the first trust deed program. This income may differ from the income used by CalHFA for tax compliance purposes. All sources of income must be used to determine program compliance income limits. ? The "Maximum Tax Compliance Income" of all borrowers cannot exceed the published CalHFA Income Limits established for the county in which the property is located. ? Effective 2/1/19, CalHFA will use the lender's credit qualifying income, calculated per agency requirement for income limits. ? CalHFA will calculate family income for CalHFA FHA loan program and CalHFA Conventional loan program eligibility. "Family income" is defined as the annualized gross income of a mortgagor, and any other person who is expected to: ? be liable on the mortgage, be vested on title; and live in the residence being

financed. ? Different income limits apply depending on the associated CalHFA first. ? Limits for use with CalHFA FHA first mortgage can be found at the following link:

? Limits for use with CalHFA Conventional first mortgage (not currently offered) can be

found at the following link: ? Non-purchasing spouse's income is not counted in the income limit. ? Underwriter will use the income per the loan application and will request information in writing on number of individuals occupying the property if it is determined to be needed. ? No borrower minimum required investment.

? This product may be layered with the following down payment and/or closing cost assistance option, for first-time homebuyers only:

? CALHFA ZIP ? May be used for closing costs and/or down payment. ? If used with MyHome Assistance, must be recorded in third lien position. ? See section at beginning of product profile for more information

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OCCUPANCY

? All borrowers must occupy the property as their primary residence.

? All borrowers must occupy the financed residence as the principal residence within 60

days of closing.

? Property must be owner-occupied for the term of the loan or until the property is sold.

? Non-occupant co-borrowers are not allowed.

PROPERTY REQUIREMENTS ? The sales price of the home cannot exceed CalHFA's county specific, sales price limits.

? Property must meet the requirements of the applicable CalHFA first mortgage, which

include the California Health and Safety Codes.

? Eligible properties include:

? Single Family Residences

? Condos

? PUDs

? Manufactured Homes

? Properties with accessory unit (see section below)

? Ineligible properties include, but are not limited to:

? 2-4 Units

? Leaseholds/Land Trusts

? Co-ops

? Properties sold at auction

? Properties larger than 5 acres

? Indian land (leased or fee simple)

PROPERTIES WITH

? Guest houses, granny units and in-law quarters are eligible under the following

ACCESSORY UNIT

conditions:

? Must be zoned for Single Family occupancy

? Cannot be zoned 2-4 units

? Must meet investor guidelines and city/county zoning ordinances

? May not be income-producing and must be for personal use only

ANTI-FLIPPING POLICY

? Follow corresponding first trust deed program requirements

DOCUMENT EXPIRATION ? Follow associated first trust deed document expiration dates

UNDERWRITING

? Only eligible in conjunction with a CalHFA first mortgage.

? Loan must be submitted for underwriting by CalHFA concurrent with the CalHFA first:

California Housing Finance Agency

Single Family Lending ? MS 300

500 Capitol Mall, Ste. 400

Sacramento, CA 95814

877-922.5432

Main phone number: 916.326.8000 Main fax number: 916.326.6424

? Loan submission to CalHFA must include:

? Signed Underwriter Approval

? FHA -92900-LT w/signed 92900-A page 3/ Conventional - 1008

? Conventional: Genworth MI Cert

? Final Automated Underwriting (DU) Findings

? PRMG Underwriting Approval

? Final or Initial signed 1003 - Electronic signatures require date

? Credit Report ? Must match final AUS

? Income: Verification of Employment (VOE) ? Written or verbal with start date and

must be 60 days or less

? Paystub(s) ? Pay period must be 60 days or less

? W-2(s)/1040s (as required) ? most current year for all sources

? Additional income verification as required (refer to the program handbook)

? CalHFA Tax Return Affidavit (available in Resource Center) and Verification of

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