Essex Mortgage Presents February 5 th 2014

1. Essex Mortgage PresentsFebruary 5th 2014 • AE Name • AE email address • AE phone number

2. Mortgage Credit Certificate (MCC) Tax Credit Program

3. Monthly Savings

4. What products can I use with the MCC? • *VA • *FHA • *Conventional • **CHDAP 2ND • **SAPPHIRE • ** USDA • *Tax Credit can help with qualifying – • The tax credit can be used an income to qualify. Or, if DU allows, it can be used to offset debt. • ** A tax credit allowed, but not for credit qualifying purposes.

5. CalHFA MCC Program • Three things considered: • Sales Price Limits - see CalHFA sales price charts • Income Limits – see CalHFA MCC income charts • Ownership status – 3 years tax returns will be required. • All charts are included in this presentation.

6. It starts here…. • The applicant applies for a loan with Broker. • Broker determines if the Applicant is a possible candidate for a CalHFA MCC Tax Credit based on income, acquisition costs, prior ownership and tax liability. • Buyer and seller sign and execute purchase and sale agreement. • Broker provides proper paperwork to Lender (later listed in this PowerPoint). • Essex will require 3 year tax returns, or Affidavit due to low income and no returns filed. • Essex will reserve the funds. • Essex reviews all documentation and provides MCC Certificate. • Essex closes the loan and submits to CalHFA after closing • Essex does not need to submit paperwork to CalHFA prior to our closing, allowing for a quick close. 

7. Where to find MCC Forms

8. Required MCC forms Those marked with an Arrow required at submission – the others will go out with docs.

9. Exception to a 1st time homebuyer CalHFA MCC Tax Credit Program 2014

10. Lender vs. CALHFA Review of Income

11. Notes of Interest on how CalHFA calculates maximum household income forfamily or anyone who is living in the house – not just borrowers . • Schedule C or E Income – do not add back in depreciation. • Negative is a wash, not deducted. • Do not back out 2106 expenses. • 2013 and YTD income (no 2012 income is reviewed since we are in 2014). • P&L’s are okay for 2014. • In question, CalHFA will always take the higher income. • Child Support Payments • Social Security Benefits • Welfare Payments • Spousal support • Sick pay • Disability payments • Deferred income • Any regularly occurring additional income including but not limited to earnings

12. CalHFA MCC Borrower Eligibility

13. CalHFA MCC Property Eligibility

14. ELIGIBLE COUNTIES – All Counties In California!

15. CalHFA Sales Price Limits

17. CalHFA Sales Price Limits

18. CalHFA Sales Price Limits

19. How to determine if a target area? http://www.calhfa.ca.gov/homeownership/fdta/target-area.pdf To assist you in finding maps of federally designated targeted areas within each county, click on the census tract codes of each federally designated targeted area. If you have a street address, you an find the census tract number in which the property is located to compare with the list above by visiting FFIEC web site

20. CHDAP MCC INCOME LIMITS

21. CalHFA MCC INCOME LIMITS

22. CalHFA MCC INCOME LIMITS

23. CalHFA MCC INCOME LIMITS