golden state finance authority (gsfa) platinum program lender term

GOLDEN STATE FINANCE AUTHORITY (GSFA)

LATINUM PROGRAM

ENDER TERM SHEET – FHA, VA, USDA LOANS

GSFA PLATINUM PROGRAM – Term Sheet (US Bank) – FHA, VA, USDA Page 1 of 6 01/02/24

This Program Term Sheet is not a substitute for first mortgage guidelines. It is the responsibility of the Participating Lender to adhere to Servicer guidelines, federal RESPA laws

and FHA, VA, USDA-RHS, Freddie Mac and Primary Mortgage Insurance Company guidelines.

PROGRAM SPONSOR Golden State Finance Authority (GSFA)

ERVICER

US Bank National Association

ARTICIPATING

LENDERS

Lenders interested in participating in this Program must complete a GSFA Lender

Profile, execute a GSFA Program Lender Agreement, and be an Approved

Correspondent Lender with the Servicer.

The GSFA Lender Profile and GSFA Program Lender Agreement are available for

download from the GSFA Platinum Participant Guide at www.gsfahome.org.

DESCRIPTION

GSFA Platinum

is designed to increase homeownership opportunities for

low-to-

moderate income individuals and families in California. Down Payment

Assistance (DPA) is available in the form(s) stated below.

IRST

ORTGAGE

LOAN TYPES AND

TERMS

Loan Types:

• FHA:

203(b), 203(b)(2), 203(h), and 234(c); in accordance with FHA

guidelines.

o Cooperative housing (co-op) is not eligible.

For Energy Efficient Mortgage (EEM) loans, reference section for

Platinum “Select” eligibility.

• VA: In accordance with VA guidelines under 1810 and 181A.

• USDA RD: In accordance with USDA guidelines.

Loan Term:

• 30-year fixed term with full amortization.

Maximum Loan Amount:

• $766,550.

Max LTV/CLTV:

• Follow loan agency guidelines.

For Conventional Loan options within the GSFA Platinum Pro

gram, please see the

“Lender Term Sheet – Conventional” available for download from the GSFA Platinum

Participant Guide at

www.gsfahome.org.

ORTGAGE

OAN

INTEREST RATES:

Program Manager (NHF) shall publish the Mortgage Rate on its Reservation Portal at

https://nhfresportal.nhfloan.org/login.aspx

on behalf of GSFA.

• The Reservation Portal may be accessed Monday thr

ough Friday between

9:00 AM and 4:00 PM PST/PDT, National Holidays excluded.

• The published Mortgage Rates are subject to change at any time.

DOWN PAYMENT AND

CLOSING COST

ASSISTANCE (DPA)

DPA is available from GSFA for Purchase transactions as outlined below:

DPA Amount:

• Up to 5.50% of the Total First Mortgage Loan amount.

DPA General Terms:

• Proceeds may be used for down payment and/or closing costs.

• There must be no cash back to the borrower from the DPA proceeds.

GOLDEN STATE FINANCE AUTHORITY (GSFA)

LATINUM PROGRAM

ENDER TERM SHEET – FHA, VA, USDA LOANS

GSFA PLATINUM PROGRAM – Term Sheet (US Bank) – FHA, VA, USDA Page 2 of 6 01/02/24

This Program Term Sheet is not a substitute for first mortgage guidelines. It is the responsibility of the Participating Lender to adhere to Servicer guidelines, federal RESPA laws

and FHA, VA, USDA-RHS, Freddie Mac and Primary Mortgage Insurance Company guidelines.

DOWN PAYMENT AND

CLOSING COST

ASSISTANCE (DPA)

CONT.

DPA Form:

For Platinum standard transactions:

• An amortizing 15-year Second Mortgage Loan, sized up to 5.00% of the First

Mortgage Loan Amount.

For Platinum “Select” transactions:

• An amortizing 15-year Second Mortgage Loan, sized at 3.50% of the First

Mortgage Loan Amount, with optional Gift funds, up to 1.50%.

(See Platinum “Select” Eligibility section for details.)

For Platinum “Assist-to-Own” transactions:

• A deferred Second Mortgage Loan, sized at 3.50% of the First Mortgage Loan

amount, with optional Gift funds, up to 2.00%.

(See Platinum “Assist-to-Own” Eligibility section for details.)

Amortizing Second Mortgage Loan Terms:

• 15-year Loan Term.

• Note Rate of Second Mortgage is same as the Note Rate of First Mortgage.

• Amortizing loan with monthly payments.

• Second Mortgage is due and payable upon sale, refinance or payoff of the First

Mortgage.

• No subordination allowed.

• Lender must conform to federal RESPA and Truth-in-lending laws in disclosing

the terms of the Second Mortgage.

Deferred Second Mortgage Loan Terms:

(“Assist-to-Own” Transactions)

• Note Rate of Deferred Second Mortgage is 0%.

• Non-amortizing loan; no monthly payments are due.

• Second Mortgage is deferred and due and payable in full upon sale or refinance

of First Mortgage.

• No subordination allowed.

• Lender must conform to federal RESPA and Truth-in-lending laws in disclosing

the terms of the Second Mortgage.

Lender upfronts the DPA amount at closing to be reimbursed by the Servicer, on behalf

of GSFA, upon purchase of the Platinum First Mortgage Loan.

GOLDEN STATE FINANCE AUTHORITY (GSFA)

LATINUM PROGRAM

ENDER TERM SHEET – FHA, VA, USDA LOANS

GSFA PLATINUM PROGRAM – Term Sheet (US Bank) – FHA, VA, USDA Page 3 of 6 01/02/24

This Program Term Sheet is not a substitute for first mortgage guidelines. It is the responsibility of the Participating Lender to adhere to Servicer guidelines, federal RESPA laws

and FHA, VA, USDA-RHS, Freddie Mac and Primary Mortgage Insurance Company guidelines.

PLATINUM “SELECT”

ELIGIBILITY

The following First Mortgage Loan Types are eligible for the Platinum “Select” feature:

• FHA Energy Efficient Mortgage (EEM);

• USDA RD; and

• FHA or VA Mortgages where borrower has one of the following occupations in

California:

o Medical and Healthcare workers;

o Peace Officers, Sheriff, Border Patrol Agents, Correctional Officers and

others serving in a Law Enforcement capacity;

o Firefighters, CalFire, paramedic, and Emergency Medical Technicians

(EMTs), including administrative staff that supports firefighters; or

o Current members of the California State Teachers Retirement System

(CalSTRS) or University of California Retirement Plan (UCRP),

employees of a California accredited Private, Charter or Public School

District or California State University, Junior College or Private College,

including school administration and staff.

Lenders are required to upload documented evidence of a borrower’s eligible

occupation within five (5) business days of submitting a loan re

servation online.

Acceptable file formats include .pdf, .bmp, .gif, .jpg, .jpeg and .img.

For USDA RD loans, lenders must upload the GSFA Reservation Confirmat

ion and

DPA Funding Commitment Notice to USDA’s Guaranteed Underwriting System (GUS)

to obtain a conditional commitment from USDA RD.

PLATINUM “ASSIST-

TO-OWN” ELIGIBILITY

For Platinum “Assist-To-Own” transactions, borrowers must work for a GSFA Member

County:

GSFA Member Counties are as follows:

• Alpine, Amador, Butte, Calaveras, Colusa, Del Norte, El Dorado, Glenn,

Humboldt, Imperial, Inyo, Kings, Lake, Lassen, Madera, Mariposa, Mendocino,

Merced, Modoc, Mono, Monterey, Napa, Nevada, Placer, Plumas, San Benito,

San Luis Obispo, Santa Barbara, Shasta, Sierra, Siskiyou, Solano, Sonoma,

Sutter, Tehama, Trinity, Tulare, Tuolumne, Yolo, and Yuba Counties.

Lenders are required to upload documented evidence of a borrower’s eligible

occupation within five (5) business days of submitting a loan reservation online.

Acceptable file formats include .pdf, .bmp, .gif, .jpg, .jpeg and .img.

GOLDEN STATE FINANCE AUTHORITY (GSFA)

LATINUM PROGRAM

ENDER TERM SHEET – FHA, VA, USDA LOANS

GSFA PLATINUM PROGRAM – Term Sheet (US Bank) – FHA, VA, USDA Page 4 of 6 01/02/24

This Program Term Sheet is not a substitute for first mortgage guidelines. It is the responsibility of the Participating Lender to adhere to Servicer guidelines, federal RESPA laws

and FHA, VA, USDA-RHS, Freddie Mac and Primary Mortgage Insurance Company guidelines.

DPA SECOND

MORTGAGE LOAN

DOCUMENTATION

Required DPA Second Mortgage Loan Documents include:

• Promissory Note

• Deed of Trust

• Funding Commitment Notice

• Second Loan Estimate and Closing Disclosure (for all loan options with

Amortizing Second Mortgages)

• Partial Exemption Disclosure (for “Assist-to-Own” transactions only)*

GSFA must serve as the Lender and beneficiary for the Sec

ond Note and Security

Instrument.

Lender is required to reflect GSFA’s EIN on HUD’s FHA Loan Underwriting and

Transmittal Summary in conjunction with secondary financing assistance or gifts to the

borrower when the borrower is receiving an FHA First Mortgage. GSFA’s EIN is 68-

0322272.

Lender is responsible for recording the Second Mortgage Loan Security Instrument.

*Fees charged on the DPA Deferred Secon

d Loan cannot exceed 1% of the DPA

Second Loan amount (recording fees and transfer taxes are n

ot included in the 1%

maximum).

BORROWER

ELIGIBILITY

Occupancy:

• Borrower must occupy the residence as their primary residence.

• For non-occupant co-borrowers, refer to loan agency guidelines.

Eligible Properties:

• Single Family (1 -4 Unit) properties ONLY, as allowed per Agency guidelines.

• Manufactured housing allowed with a minimum of 660 FICO and maximum DTI

of 45% (no manual underwriting)

• Approved Condos and Townhomes

Income Limits (based on county of property):

• Follow agency guidelines.

Minimum Credit Score:

• 640.

Maximum DTI:

• FHA, VA and USDA RD: 45% (Up to 50% for FICOs 680 and higher except on

manufactured housing)

Homebuyer Education:

• Please refer to loan agency for specific requirements.

MORTGAGE

INSURANCE

Follow agency guidelines.

UNDERWRITING

• No manual underwriting for FHA loans.

• Borrower must meet all required FHA, VA, USDA-RHS underwriting criteria.

GOLDEN STATE FINANCE AUTHORITY (GSFA)

LATINUM PROGRAM

ENDER TERM SHEET – FHA, VA, USDA LOANS

GSFA PLATINUM PROGRAM – Term Sheet (US Bank) – FHA, VA, USDA Page 5 of 6 01/02/24

This Program Term Sheet is not a substitute for first mortgage guidelines. It is the responsibility of the Participating Lender to adhere to Servicer guidelines, federal RESPA laws

and FHA, VA, USDA-RHS, Freddie Mac and Primary Mortgage Insurance Company guidelines.

RESERVATIONS

Lender shall register Qualifying Mortgage Loans (“QML”) using the Reservation Portal

at https://nhfresportal.nhfloan.org/login.aspx

• The Reservation Portal may be accessed Monday through Friday between 9:00

AM and 4:00 PM PST/PDT, National Holidays excluded.

• In order to access the Reservation Portal, user shall obtain a “User ID” from the

Lender’s “Password Management Contact”.

Reservations:

• The Reservation Portal will identify whether a loan registration initially qualifies

as a QML based on Income and Credit Score Limits provided by the Lender.

• Lender reserves DPA at the time of First Mortgage Loan registration via the

Reservation Portal.

• Upon completion of the reservation, the Reservation Portal will provide Lender

with an electronic “Reservation Confirmation” and “DPA Funding Commitment

Notice”.

• The Reservation Confirmation is valid for 60 days.

• The Reservation Confirmation and DPA Funding Commitment Notice must be

submitted with the Mortgage Loan File to Servicer for purchase.

• Both the First Mortgage Loan and the DPA Second Mortgage Loan (if

applicable) must be purchased by Servicer within 60 days of reservation.

• Modifications to a reservation will require approval from the Program Manager.

• Lender may cancel the reservation via the Reservation Portal, which will

provide electronic confirmation of cancellation to Lenders. A cancellation fee of

$400 will apply to each cancelled reservation.

• If a Lender cancels a reservation, lenders may re-register, only

after 30

calendar days from cancellation date, via the Reservation Portal.

• Extensions:

o For loans not yet delivered to the Master Servicer, an extension to a

reservation will require approval f

rom the Program Manager. The

Program Manager will invoice the lender for the extension fee. For

loans delivered to the Master Servicer, an expired loan will be extended

automatically to allow for review and purchase, until the maximum

extensions have been reached. Loans extended by the Master Servicer

will be netted at loan purchase. Two extensions are available for (15)

days each. The cost of an extension is 0.25% of the total First Loan

amount.

GOLDEN STATE FINANCE AUTHORITY (GSFA)

LATINUM PROGRAM

ENDER TERM SHEET – FHA, VA, USDA LOANS

GSFA PLATINUM PROGRAM – Term Sheet (US Bank) – FHA, VA, USDA Page 6 of 6 01/02/24

This Program Term Sheet is not a substitute for first mortgage guidelines. It is the responsibility of the Participating Lender to adhere to Servicer guidelines, federal RESPA laws

and FHA, VA, USDA-RHS, Freddie Mac and Primary Mortgage Insurance Company guidelines.

FEES AND POINTS

Participating Lender should refer to Servicer Website for guidelines at:

https://www.allregs.com/tpl/?r=834d6d45-cf5a-4e97-90fb-7a518f82c73a

Fees and Points Lender may charge to Borrower:

• Origination Fee:

o Up to 2.50% of the First Mortgage.

• Discount Points: 0.00% (This Program does not allow Discount Points to be

charged to the Borrower).

• Lender may charge customary and reasonable closing costs and fees with full

disclosure in accordance with FHA, VA, USDA and federal, state and local laws

and regulations.

Fees to Servicer from Lender (Servicer nets at purchase):

• Funding Fee: $400.

• Tax Service Fee: $84.

• Servicing Fee: $175.

EES AND

OINTS

CONT.

Funds to Lender from Servicer at Loan Purchase:

• 100% of the outstanding principal amount of the First Mortgage Loan and the

DPA Second Mortgage Loan or Gift.

• Servicing Release Premium (based on First Mortgage):

o 0.50%.

LOAN DELIVERY AND

PURCHASE

• Lender should refer to Servicer Website

• https://www.allregs.com/tpl/?r=834d6d45-cf5a-4e97-90fb-7a518f82c73a

for

loan delivery and purchase guidelines.

• The Reservation Confirmation and DPA Funding Commitment Notice from

GSFA must be submitted with the mortgage loan file. Servicer

shall not

purchase a Mortgage Loan without these documents.

• A fee of up to 6% of the loan amount will be charged to lenders for closed First

Mortgage Loans with DPA Second Mortgage Loans or Gifts that are not

delivered to the Servicer for purchase or are not eligible for purchase by the

Servicer. GSFA will reimburse the lender for the full DPA amount with an

invoice for this non-delivery fee. Lenders with excessive non-deliveries will be

prohibited from participating in the GSFA Platinum Program.