Golden State Finance Authority (GSFA) Platinum Down Payment Assistance Program - Freddie Mac HFA Advantage

• 1% for borrowers >80% AMI
• 5% for borrowers <80% AMI

<80% AMI: HFA Charter level mortgage insurance coverage for Freddie Mac HFA Advantage:

• 01-85% LTV: 6%
• 01-90% LTV: 12%
• 01-95% LTV: 16%
• 01-97% LTV: 18% (Single premium financed MI is NOT permitted with LTVs 95.01-97%).

>80% AMI will have standard MI coverage:

• Monthly BPMI is Cancellable.
• Delegated MI is allowed up to 97%.
• Any MI company can be used for the Platinum program.
• Borrower paid monthly, single premium and split premium are allowed

Freddie Mac Advantage: Required for one borrower if all borrowers are first time homebuyers. HBE course must be completed prior to closing. See CreditSmart Homebuyer Education. .  Per US Bank Freddie Mac Home Possible Advantage homebuyer education requirements or Fannie Mae HomeReady homebuyer education requirements are acceptable as well. U.S. Department of Housing and Urban Development (HUD)

Income limits for Conventional <80% AMI are determined by county and loan type.

≤ 80% AMI (Area Median Income):

These borrowers have separate, more attractive pricing and DPA options; and are eligible for the Charter Level Coverage MI for the Freddie Mac HFA Advantage product.

> 80% AMI:

Income limits are based on the county in which the property is located and will be effective for all Conventional loans.

These borrowers have l have separate pricing and DPA options and have standard coverage MI.

See Platinum Income Limits

Income limits for targeted areas are the same as the standard Platinum income limits.

Conventional:

• <680; 45% with LPA Accept 
• >680 50% LPA Accept 

GSFA Paid MI:

• 45% (660-679 credit score); 50% (680+ credit score).
• For manually underwritten conventional loans, maximum allowable DTI is 36% unless a lower maximum DTI is required for product/property type per GSE or Insurer.

• Title only borrowers: Neither GSFA or the master servicer, US Bank, have any overlays regarding title only borrowers. Follow US Bank HFA Lending Guide Then select Enjoy Housing Agency Services/Learn More
• Citizenship:
  See Underwriting section 713.5. NPRA Documentation Requirements for USCIA or Visa documentation.
  
  Non U.S. citizens for loan purposes are categorized as follows:
• Permanent Resident Alien
• Non Permanent Resident Alien
• Non Resident Alien

See: US Bank HFA Lending guide
Select 'Learn More" in the 'Enjoy Housing Finance Agency Services' area. Section 711.3 Eligible borrowers/non-US Citizens.

• 2-4 units
• Manufactured Housing Condominiums
• Co-op
• Second Home
• Investment Property
• Any property with a PACE or HERO loan not being paid off.
• Condominiums not allowed for borrowers <80% AMI.

• For purchase transactions with an outstanding PACE loan on the property, the PACE loan cannot be assumed by borrower even when assessed to the tax bill. The PACE funding must be paid in full prior to or at the closing of our mortgage. Subordination is not allowed.
• Refinance transactions with outstanding PACE loans: Must be paid in full. Subordination is not allowed.
• Refinance transactions paying off PACE funding can be classified as a no-cash-out refinance.

• When the LTV/CLTV >95%, the borrower cannot retain ownership interest in other properties financed by U.S. Bank.

• 1st Mortgage Clause: Mountain West Financial, Inc., its successors and assigns 1209 Nevada St. Ste. 200 Redlands, CA 92320.
• 2nd Mortgage Clause: N/A

Per US Bank Guidelines, flood insurance is required to be equal to or greater than the lowest of the 3 amounts. Total of all liens (second liens only if serviced by US Bank), insurable value, or NFIP Maximum of $250,000.

Borrower paid Origination: 2.00%

Origination to Broker:         1.50%

Origination to MWF:           0.50%

• Originator is to submit loan in the MWF origination portal and issue the initial disclosure.
• Originator is to submit loan in the MWF origination portal and issue the initial disclosure.

CF30USPL1% - Freddie Mac HFA USB PLATINUM 1%
CF30USPL5% - Freddie Mac HFA USB PLATINUM 5%

• US Bank requires an Anti-Steering disclosure for all wholesale loans.
• The Master Servicer Funding fee is charged to MWF and is deducted at loan purchase.
• MLM/LQB will fire at initial a 400.00 Servicing Funding fee in block A payable to Mountain West Financial. There will only be the one fee in block A. This is disclosed as $400 Servicing Funding payable to MWF in Section A.   
• US Bank: This fee is a secondary market cost to the MWF and is not part of the primary transaction, therefore it is not appropriate to charge this fee in section B or C of the LE/CD. Any addition to the lender’s fees to the borrower to offset this charge must never reflect as a charge payable to US Bank and must always be listed in Section A, paid to MWF (for example, included in the Origination Charges or as a separate line-item charge). Any fees added to Section A must be included in the TRID points & fees test.

Conventional loans must be run through Freddie Mac’s Loan Product Advisor (LPA) and receive a purchase eligible Accept through LPA.

When running LPA on Conventional, show the Platinum funds as a gift in LPA and have it remain as secondary financing in LQB.

HFA Advantage through LPA: “Accept” (select “Home Possible Advantage for HFAs”).

For  GSFA-Paid MI, UW is to remove MI payment from LQB screen.

NOTE: My Community Mortgage (MCM), HomeReady & standard products are NOT permitted.

In addition to other Investor Feature Identifiers that may apply:

IFI 583 should be used for Home Possible mortgages with an Affordable Second.

Permitted for loans with an LTV of 95% or below.

At least one borrower must have a usable credit score and an indicator score must be established and meet the required limits.

Maximum allowable DTI is 36%.

2 months PITIA (principal, interest, taxes, homeowner's insurance, mortgage insurance, association fees) reserves required unless product/property type requires a lower DTI or > 2 months reserves per GSE or insurer.

• Standard prior-to-doc conditions.
• Cash back to buyer can only come from excess EMD money.

See US Bank HFA Overlays

• Required lien perfection documentation: Complete and recorded copy of HCD 4334 form. US Bank will only accept HCD 433C if a HCD search is included.

For those documents where e-signature is allowed, borrower(s) may sign those documents no more than 3 business days prior to closing (the date the wet signed documents are signed).

Credit Package is sent to US Bank. The US Bank Delivery and Funding Checklist are found within the US Bank web site. See: Checklist, Click on US Bank Lending Manuals. Pop-up box will appear, click on Continue. Web page will be redirected to US Bank site. Click on Housing Finance Authority folder.

Addresses for Transfer of Service letter to borrower:

1. Servicing transferred to U.S. Bank National Association Attn: Customer Service PO Box 21948 Eagan, MN 55121-4201 Phone: 800-365-7772
2. Borrower is to send payments to U.S. Bank National Association P.O. Box 790415 St. Louis, MO 63179-0415

Note: Address for payments received by the lender after U.S. Bank purchase should be sent using overnight delivery to:
U.S. Bank Home Mortgage
Attn: Payment Processing 4801 Frederica St. Owensboro, KY 42301