the sapphire grant product 3/28/2014 1. sapphire product do not need to be a first time homebuyer...

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The Sapphire Grant Product 3/28/2014 1

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Sapphire Grant Product 3% or 5% can be used for down payment, closing costs or origination fee The Grant is forgiven; no repayment required ½% down can be gift (5% all grant) Borrower Paid Origination Only Max broker comp: 1 ½% (can be paid by buyer, seller, 3 rd party, or with grant funds), PLUS reasonable processing fee. Be sure this in included in box 1 of GFE. SFR’s, PUD’s, or FHA approved condos; FLIPS YES, 203k NO Minimum Fico: 620 Maximum Loan: $417,000 including UFMIP or VA funding fee Ratios: Must receive a DU Accept. Owner Occupied Non occupant co-signors allowed (co signors income not considered in limitations Non occupant co borrowers not allowed. 115% of Medium Income Limitations; pp_Income_Limits.aspx Income calculated per HUD or VA guidelines- not by family size Customary and reasonable closing cost fees allowed Manual lock at (must be in Ready for Docs 3030NHF – FHA 30yr fixed 3% 30305NHF – FHA 30yr fixed 5% 3030VNHF – VA 30yr fixed 3% 30305VNHF – VA 30yr fixed 5% 3/28/2014 3

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Page 1: The Sapphire Grant Product 3/28/2014 1. Sapphire Product Do not need to be a first time homebuyer Can be used with an FHA, VA, or USDA 1 st trust deed

The Sapphire Grant Product

3/28/2014

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Page 2: The Sapphire Grant Product 3/28/2014 1. Sapphire Product Do not need to be a first time homebuyer Can be used with an FHA, VA, or USDA 1 st trust deed

Sapphire Product

Do not need to be a first time homebuyer

Can be used with an FHA, VA, or USDA 1st trust deed

Can be combined with a CalHFA MCC to reduce ratios.

The rate is different depending on the amount of the grant chosen.

NOTE: The grant of 3% or 5%, whichever

you choose, is based on the total loan amount, including MIP, not on sales price or appraised value.

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Page 3: The Sapphire Grant Product 3/28/2014 1. Sapphire Product Do not need to be a first time homebuyer Can be used with an FHA, VA, or USDA 1 st trust deed

Sapphire Grant Product

3% or 5% can be used for down payment, closing costs or origination fee

The Grant is forgiven; no repayment required

½% down can be gift (5% all grant) Borrower Paid Origination Only Max broker comp: 1 ½% (can be paid

by buyer, seller, 3rd party, or with grant funds), PLUS reasonable processing fee. Be sure this in included in box 1 of GFE.

SFR’s, PUD’s, or FHA approved condos; FLIPS YES, 203k NO

Minimum Fico: 620 Maximum Loan: $417,000 including

UFMIP or VA funding fee Ratios: Must receive a DU Accept.

Owner Occupied Non occupant co-signors allowed (co

signors income not considered in limitations

Non occupant co borrowers not allowed. 115% of Medium Income Limitations;

http://www.nhfloan.org/Programs/NHF_Sapp_Income_Limits.aspx

Income calculated per HUD or VA guidelines- not by family size

Customary and reasonable closing cost fees allowed

Manual lock at [email protected] (must be in Ready for Docs Status)

3030NHF – FHA 30yr fixed 3% 30305NHF – FHA 30yr fixed 5% 3030VNHF – VA 30yr fixed 3% 30305VNHF – VA 30yr fixed 5%

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Page 4: The Sapphire Grant Product 3/28/2014 1. Sapphire Product Do not need to be a first time homebuyer Can be used with an FHA, VA, or USDA 1 st trust deed

IMPORTANT! – How to enter on the 1003

The Sapphire Grant is NOT a lender credit nor an “other asset”. There are 2 places on the 1003 which the grant funds need to be entered correctly in

order for the DU to run properly. The below are screen prints of how to enter in DO/DU. We want your approval to be accurate. AVOID incorrect approvals – due to incorrect input. These are screen prints from POINT.

Important factors in getting a positive approval would be lower ratios and good credit . How to enter on Page 1 of the 1003 under source of down payment:

List as FHA Gift Source Nonprofit/Religious/Community-Non-Seller Funder

How to enter on Page 2 of the 1003 under the asset screen: Gift

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Page 5: The Sapphire Grant Product 3/28/2014 1. Sapphire Product Do not need to be a first time homebuyer Can be used with an FHA, VA, or USDA 1 st trust deed

Sapphire Income Limits 2014

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Page 6: The Sapphire Grant Product 3/28/2014 1. Sapphire Product Do not need to be a first time homebuyer Can be used with an FHA, VA, or USDA 1 st trust deed

Sapphine 2014 Income Limits

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Page 7: The Sapphire Grant Product 3/28/2014 1. Sapphire Product Do not need to be a first time homebuyer Can be used with an FHA, VA, or USDA 1 st trust deed

Can I have an MCC Tax Credit with the Sapphire Product? Yes!

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Page 8: The Sapphire Grant Product 3/28/2014 1. Sapphire Product Do not need to be a first time homebuyer Can be used with an FHA, VA, or USDA 1 st trust deed

Combine your Sapphire with an MCC Credit – however remember MCC requires you to be a 1st time h/b, Sapphire does not.

• An MCC Credit can help you reduce your ratios.

• When using a MCC Credit, use the CalHFA income/sales limits, whichever is lower.

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