30 Year Fixed

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Florida Housing Finance Corporation FHA Loan Program

Must be referred to AFS for Origination (loan cannot be originated by branch)

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

30 Year Fixed

LTV CLTV2 Purpose Unit Occupancy

Credit Score

DTI Ratio

Reserves

680

50

AUS Determines

96.5 1051 Purchase 1-4

O/O

660-679

45

640-659

45

AUS Determines 1 month + current 6 month

employment history

1. On purchases, the CLTV is further limited to 100% (of the adjusted value) or the standard FHA LTV limit (96.50%)

(depending on the type of financing) if the subordinate lien is NOT from an instrumentality of government or

government agency that is providing down payment and/or closing cost assistance in the form of secondary

financing.

2. Max LTV/CLTV may be exceeded when financing the Funding Fee, however max loan amount may NOT be exceeded

PRODUCT NAMES

? Florida Housing Bond FHA 30 Year Fixed

? Florida Housing Bond FHA Military Heroes 30 Year Fixed ? Florida Housing Assist 2nd DPA ? Florida Housing HLP 2nd DPA

? Florida Housing TBA HFA Hurricane Michael Recovery FHA 30 Year Fixed ? Florida Housing Hurricane Michael 2nd DPA

NEW FLORIDA HOUSING PRODUCT CODE AND CORRESPONDING PRMG PRIOR PRODUCT CODE ALLOWABLE

Effective 9/1/2020 TBA Hurricane Michael Recovery Program with HM DPA Second was released. Florida Housing Product Code = PRMG Product Code: ? Bond FL First = Florida Housing FHA 30 Year Fixed ? Bond FL Military Heroes = Florida Housing FHA Military Heroes 30 Year Fixed

? Retail

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ORIGINATION CHANNELS SERVICER EIN (FEDERAL TAX ID) COVID-19 ADDITIONAL REQUIREMENT

PRODUCT REQUIREMENT

FLORIDA FIRST MORTGAGE

MILITARY HEROES FIRST MORTGAGE LOAN PROGRAM

DOWN PAYMENT/CLOSING COST ASSISTANCE OVERVIEW

? Loans must be referred to the AFS department for origination

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

?

? Florida Housing HFA EIN: 59-3451366

? Please refer to COVID-19 Informational document for guidance pertaining to topics such as Income/VVOE, Title/Recording, Appraisals. Until further notice the guidance in the informational document supersedes the information provided in the product profiles

? ? Housing Authority approval required. Loan must be submitted to eHousingPlus

(Administrator) 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 eHousingPlus Compliance approval.

? The Florida First (FL First) offers eligible borrowers a 30-year, fixed-rate mortgage. Borrowers who qualify for this mortgage program will automatically qualify for down payment assistance through the FL Assist Second Mortgage Program or the FL HLP Second Mortgage Program.

? 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.

? Income and purchase limits apply, see sections below

? The Military Heroes offers eligible borrowers a 30-year, fixed-rate mortgage with a rate that is 25 bps less than the Florida First.

? To be eligible for the Military Heroes Program, borrower(s) must be a veteran whose discharge status is anything other than dishonorable, or active duty personnel from the military (Air Force, Army, Coast Guard, Marine Corps, Navy, National Guard, or the Reserves).

? Borrowers qualifying for this mortgage program will automatically qualify for down payment assistance through the Florida Assist Second Mortgage Program or the FL HLP Second Mortgage Program.

? 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.

? Verification of eligibility may include discharge papers for non-active duty personnel, a current military photo ID for active duty personnel, or alternative documentation that supports eligibility.

? Income and purchase limits apply, see sections below

? Florida Housing offers two second mortgage programs that provides eligible firsttime homebuyers: ? For loans reserved on or after 6/1/21: Florida Housing Assist is a 0.00% deferred second mortgage of up to $10,000 that can be used for down payment, closing costs and prepaids, mortgage insurance premiums, or as a principal reduction to the first mortgage. ? For loans reserved prior to 6/1/21: Florida Housing Assist is a 0.00% deferred second mortgage of up to $7,500 that can be used for down payment, closing costs and prepaids, mortgage insurance premiums, or as a principal reduction to the first mortgage. ? Florida Housing HLP is a 3%, 15 year, fully amortizing 2nd lien in the amount of up to $10,000 that can be used for down payment, closing costs and prepaids, mortgage insurance premiums, or as a principal reduction to the first mortgage.

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? ?

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FLORIDA ASSIST 2ND

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MORTGAGE DPA

? ? ?

?

?

? ?

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Florida Housing Finance Corporation FHA Loan Program

The funds may be used to fund up to 100% of the Borrower's cash requirement to

close, including the down payment, closing costs, pre-paid items and other related

Mortgage Loan fees and expenses.

Any potential cash back to borrower should be applied as a principal reduction to the

first mortgage unless the cash back is from gift funds.

? Gift Funds may be used for down payment, closing costs, debt payment, to

establish reserves for the borrower(s), or any other Agency allowed purpose.

Since this is not the borrower(s)' own funds, a refund of any excess gift funds is

not considered "cash back" for Program purposes and therefore, is permitted.

When refunding gift funds, include a copy of the Agency required Gift Letter in

the compliance file.

? Adhere to FHA guidelines when applying a principal reduction for cash back

other than those received from gift funds.

For reservations on or after 9/1/20: Underwriter Certification requirement: WITHIN

45 DAYS OF LOAN RESERVATION OR prior to closing, whichever comes first;

Underwriter completes the online Underwriter Certification within the eHousingPlus

Lender Portal.

For reservations prior to 9/1/20: Underwriter Certification requirement: WITHIN 45

DAYS OF LOAN RESERVATION; Underwriter completes the online Underwriter

Certification within the eHousingPlus Lender Portal.

The compliance file will be delivered to eHousingPlus and the mortgage file including

the credit package will be delivered to U.S. Bank.

DPA Funds must be provided upfront by lender to be reimbursed by U.S. Bank at

purchase

Additional loan must be created in FT360 to accommodate 2nd lien and should be created at the same time the 1st lien is created for disclosure, document and funding

purposes.

This down payment assistance (DPA) program is available to borrowers at 120% of

AMI or below (adjusted for household size) and can be used to cover down payment

as well as reasonable and customary closing costs.

For loans reserved on or after 6/1/21: Offers up to $10,000

For loans reserved prior to 6/1/21: Offers up to $7,500

This is a second lien that will subordinate to the FHA 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.

The Florida Assist 2nd Mortgage is not forgivable. Repayment is deferred, except in

the event of the sale, transfer, satisfaction of the first mortgage, refinancing of the

property or until such a time the mortgagor ceases to occupy the property at which

time, the Florida Assist will become payable in full.

Any down payment exceeding minimum requirement to be applied to first mortgage

principal.

Please Note: The Florida Assist down payment assistance CANNOT be used to cover

the cost difference between the sales price and appraised value and CANNOT be

used to pay off borrower debt. The difference between appraised value and sales

price or debt repayment must be paid with the borrowers' own funds.

Borrower(s) must not have had an Ownership Interest in their primary residence

within the past 3 years unless purchasing in a Federally Designated Targeted Area or

if they qualify under the Veteran's Exemption.

TRID disclosures are required

The Florida Assist Second Mortgage and the Florida Assist Second Mortgage Note are

available on the eHousing Plus website.

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FLORIDA HLP 2ND MORTGAGE DPA

HURRICANE MICHAEL RECOVERY LOAN PROGRAM FIRST MORTGAGE WITH FORGIVABLE 2ND MORTGAGE

? Additional loan must be created in FT360 to accommodate second lien

? Offers up to $10,000 ? 3% interest rate, 15 Year, fully amortizing second mortgage ? This is a second lien that will subordinate to the FHA 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.

? The Florida HLP Second Mortgage cannot be combined with any of FL Housing's other down payment or grant programs.

? This down payment assistance (DPA) program is available to borrowers who meet the income limit requirements found here:

? The Florida HLP Second Mortgage carries a monthly payment. The unpaid balance of the Florida HLP Loan will become payable in full in the event of sale, transfer, satisfaction of the first mortgage, refinancing of the property or until such a time the mortgagor ceases to occupy the property.

? Any down payment exceeding minimum requirement to be applied to first mortgage principal.

? Please Note: The Florida HLP down payment assistance CANNOT be used to cover the cost difference between the sales price and appraised value and CANNOT be used to pay off borrower debt. The difference between appraised value and sales price or debt repayment must be paid with the borrowers' own funds.

? Borrower(s) must not have had an Ownership Interest in their primary residence within the past 3 years unless purchasing in a Federally Designated Targeted Area or if they qualify under the Veteran's Exemption.

? TRID disclosures are required ? The Florida HLP Second Mortgage and the Florida HLP Second Mortgage Note are

available on the eHousing Plus website. ? Additional loan must be created in FT360 to accommodate second lien

? Effective 9/1/2020 TBA Hurricane Michael Recovery Loan Program with HM DPA Second was released.

? The Hurricane Recovery Loan Program offers a borrower a 30-year fixed rate first mortgage and a 2nd mortgage up to $15,000.

? The second mortgage program provides eligible borrower(s) with funds that can be used for down payment, closing costs and prepaids, mortgage insurance premiums, or as a principal reduction to the first mortgage.

? This program is available for borrowers purchasing in hurricane recovery area which includes: Bay, Calhoun, Franklin, Gadsden, Gulf, Holmes, Jackson, Liberty, Taylor, Wakulla & Washington Counties.

? The 2nd DPA is not a stand-alone second mortgage program. In order to receive Hurricane assistance, a borrower must use one of the Florida Housing first mortgage loan products.

? The DPA is a five (5) year forgivable second mortgage. ? The DPA assistance amount is up to $15,000. ? There is no interest and no monthly payments for the DPA. ? The DPA assistance amount is forgiven 20% each year for 5 years. ? Any unpaid principal balance (UPB) will be forgiven for those active duty military

personnel which are required to relocate and sell their property as a result. Proof of relocation must be provided to US Bank Home Mortgage for forgiveness of remaining UPB. ? The borrower(s) must have a minimum FICO score of 640.

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FLORIDA ASSIST 2ND MORTGAGE DPA AND FLORIDA HLP 2ND MORTGAGE DPA DOCUMENTS

? The borrower is not required to be a first-time homebuyer, for the purpose of the Hurricane Michael Recovery Loan Program ONLY, the First Time Homebuyer Requirement is waived in the 11 Hurricane Michael counties.

? Borrower must meet both the income and purchase price limits which can be found on ehousingPlus website for this program.

? Borrower must have a signed real estate purchase agreement for a specific property in the specific counties.

? Homebuyer education is only required for first time homebuyers. ? Income and purchase price limits refer to ehousingplus website under TBA Hurricane

Michael Program guidelines as it is county specific: ? ? Reservation Timeline:

? Reservation to Underwriter Certification 45 days ? Reservation to loan purchase 60 days ? Any down payment exceeding minimum requirement to be applied to first mortgage principal. ? The Hurricane Michael Recovery Loan Program cannot be combined with any of FL Housing's other down payment programs. However, the Hurricane Michael Recovery Loan Program can be combined with other stand-alone down payment assistance programs provided by other agencies like SHIP. ? 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. ? There is no cash back allowed to the borrower. ? The DPA is reserved when the first mortgage loan is reserved. ? The DPA loan documents are available in eHousingPlus Lender Portal. ? PRMG will be uploading two packages one to eHousingPlus for compliance review and to U.S. Bank for purchase of the closed loan file. ? The lender will fund the first and second mortgage. The lender is reimbursed at time of loan purchase. ? Note: DPA funds CANNOT be used to cover the cost difference between the sales price and the appraised value and CANNOT be used to pay off borrower debt. The difference between appraised value and sales price or debt repayment must be paid with borrower's own funds. ? Enter Florida Housing Hurricane Michael Loan Recovery EIN on HUD's FHA Loan Underwriting and Transmittal Summary in conjunction with secondary financing assistance, grants or gifts to the borrower when the borrower is receiving an FHA First Mortgage. ? Create a 2nd loan in FT360 ? Loan is TRID compliant ? The LE & CD's can come from doc magic ? Closing docs needed ? Final CD and the remainder of the closing docs can come from the eHousing website ? FL Assist

? FL Assist Second Mortgage Note (for the FL Assist Second Mortgage.) ? FL Assist Second Mortgage (for the FL Assist Second Mortgage.) ? FL HLP ? FL HLP Second Mortgage Note (for the FL HLP Second Mortgage.) ? FL HLP Second Mortgage (for the FL HLP Second Mortgage.) ? HURRICANE MICHAEL RECOVERY PROGRAM ? Hurricane Recovery Second Mortgage

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VETERANS EXCEPTION

TARGETED AREAS AUS DATA ENTRY REQUIREMENTS OF DPA LIEN

TRAINING AGENCY LINKS

? Hurricane Recovery Second Mortgage Note

? Veterans Exception refers to the Congressional Act that permanently exempts qualified veterans from the Internal Revenue Code 143 requirement of being a First Time Homebuyer when utilizing loan programs that rely on mortgage revenue bond financing as its funding source.

? Veterans need not be First Time Homebuyers if he or she served in the active military, naval, or air service, and who was discharged or released therefrom under conditions other than dishonorable.

? Borrower(s) qualifying under the Veterans Exception must certify that they meet the requirements on the Mortgagor Affidavit.

? Borrowers purchasing in a Federally Designated Targeted Area are exempt from the First-Time Homebuyer Requirement. Refer to the Program Guidelines on the eHousing Plus website for eligible census tracts:

? 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 ? For applications taken prior to 3/1/21, in MORNETPlus Community Lending

Section of the Streamlined 1003 and for applications taken on or after 3/1/21 in the MORNET Plus Community Lending Section of the Fannie Mae Additional Data Form: ? 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

? For program and system training ? eHousingPlus offers training:

? Anyone who will reserve funds, complete an underwriter certification, print forms or clear exceptions is highly encouraged to attend a 30-minute training. Register to attend:

? For underwriting, delivery and funding information ? see U.S. Bank website

? For additional reference, Florida Housing guidelines posted on eHousingPlus website:

? TBA Hurricane Michael Loan Recovery Loan Program Guidelines:

? In addition to any Product Profile requirements, you must always meet the published HUD guidelines and master servicer, U.S. Bank, lending criteria. If published HUD guidelines or U.S. Bank are more restrictive then what is allowed in the Product Profile, you must always defer to HUD Guidelines.

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MINIMUM LOAN AMOUNT MAX. LOAN AMOUNT

GEOGRAPHIC RESTRICTIONS HURRICANE MICHAEL RECOVERY GEOGRAPHIC RESTRICTIONS PURCHASE PRICE LIMITS

MORTGAGE TYPES FEES

? For underwriting, delivery and funding information ? see U.S. Bank website then click on U.S. Bank Lending Manuals

? All PRMG staff can access all end Agency guidelines though AllRegs Online at . Instructions on how PRMG staff can access the AllRegs service is available in the Resource Center.

? Use the following link to access the HUD Housing Handbooks site, and from there, obtain access to the 4000.1 Handbook:

? s/handbooks/hsgh

? Access the All Regs version of the Handbook at: ? ? No Minimum Loan Amount

? The maximum loan limit is county specific set by HUD and can be further limited by purchase limits set by Florida Housing.

? Max HUD Limits for all counties can be found here:

? The property must not exceed Florida Housing county specific Sales Price Limits. These limits are subject to change can be found in their program guidelines which can be access here:

? Available in the State of Florida ? Please refer to PRMG's "Eligible States" list, which can be found at this link:

? Available in the following specific counties in Florida: Bay, Calhoun, Franklin,

Gadsden, Gulf, Holmes, Jackson, Liberty, Taylor, Wakulla & Washington

? Purchase price limits are county-specific and change annually. Refer to the program guidelines on the eHousing Plus website for current limits:

? Documentation required to verify purchase price eligibility: ? Closing Disclosure (CD) ? Final URLA or 1003 ? Hurricane Michael Loan Recovery Program purchase price limits refer to

ehousingplus website under TBA Hurricane Michael Program guidelines as it is county specific: ? ? 203(b) Home Mortgage Insurance ? 234(c) Mortgage Insurance for Condominiums 1st ? First Mortgage ? 1.00% Origination Fee charged. Realtor Transaction Fees, if charged, cannot exceed $400. These costs cannot be deducted from down payment assistance funds ? TBA Hurricane Michael Loan Recovery Loan Program ONLY ? NO ORIGINATION FEE (for all other fees see below) ? Standard PRMG Underwriting and Processing Fee to be charged ? Florida Housing Fees: Compliance/Admin Fee $225 payable to eHousing. $400 Funding Fee paid by buyer or seller to PRMG ? In addition to the fees above, other customary third-party fees such as credit report fee, appraisal fee, insurance fee, or similar settlement or financing costs may be

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charged

? In all cases the lender must meet federal and Florida lending laws regarding fees and charges.

2nd

? Florida Assist Second

? Only fees to record the FL Assist Second Mortgage should be charged on the GFE and HUD-1 OR LE and CD.

? Please note the FL Assist Second Mortgage is the only second mortgage collateral document that requires recording. The FL Assist Second Mortgage Note does not require recording.

? Florida HLP Second

? Recording Fees: Fees to record the FL HLP Second Mortgage should be charged on the GFE and HUD-1 OR LE and CD.

? $175 Servicing Fee payable to "Investor Servicing Fee" on second mortgage LE/CD

? Please note the FL HLP Second Mortgage is the only second mortgage collateral document that requires recording. The FL HLP Second Mortgage Note does not require recording.

? TBA Hurricane Michael Loan Recovery Second

FIRST LOAN INTEREST RATES

? Recording fee ONLY

? eHousingPlus posts the First Mortgage interest rates daily on their website

? All loans must be delivered and purchased by U.S. Bank within 115 days of rate lock.

? This information is posted on the daily rate sheet. Rates can be subject to intra-day pricing changes.

? Note: there are no extensions for the Florida Housing FHA program. Loans purchased after the maximum delivery date will be charged 25 bps late fee and this fee will be netted from the Participating Lender's SRP at loan purchase.

DOCUMENTATION

? Full/Alt Doc ? Evidence of Borrower's valid government-issued photo identification or written

statement from lender verifying review of valid government-issued photo identification is required

? Per Florida Housing guidelines, copies of tax returns or transcript (or a combination of either) for the last three tax years for borrower(s) and spouse, even if spouse is not on the loan. If 1040s are provided, transcripts must also be provided to support

the 1040 returns. For any additional years of income documentation is required, if all income used to qualify a loan for the borrower is made up exclusively of wage earner income reported on a W2 and/or fixed income reported on a 1099 (i.e., social security or VA benefits) transcripts are not required, unless full tax returns are required for the borrower by the AUS (i.e., borrower employed by family members). If multiple borrowers are qualifying on the loan, but the tax returns are not filed jointly, and one borrower requires full returns, but the other borrowers

are qualified exclusively on W2 and/or fixed income then no transcripts are required for the W2/fixed income borrower and 1040 transcripts are required for the self-employed borrower/borrower requiring full returns. When using this option, there can also be no tax returns included in the loan file (including if tax returns are required to be reviewed by the PRMG underwriter for MCC Approval or other purpose). If the borrower earns other income that is used to qualify that would be able to be validated with 1040 transcripts (i.e., rental income from tax returns, etc.) then 1040 transcripts are required to validate that income. A completed and executable (signed) 4506-C must be submitted with the loan file.

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