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This information is not intended or authorized for consumer use. Credit and collateral are subject to approval. Terms a nd conditions may apply. This is not a commitment to lend.
Page 1 of 9
Copyright © 2015-2018 Mountain West Financial, Inc. All rights reserved. The mountain logo is the register ed trademark of Mountain West Financial, Inc. Rev 03-25-2020
Loan Eligibility Requirements
Product Code
FF30OD1% - FHA FIXED 30YR OPEN DOORS 1.0% GRANT FF30OD15% - FHA FIXED 30YR OPEN DOORS 1.5% GRANT FF30OD2% - FHA FIXED 30YR OPEN DOORS 2.0% GRANT FF30OD25% - FHA FIXED 30YR OPEN DOORS 2.5% GRANT FF30OD3% - FHA FIXED 30YR OPEN DOORS 3.0% GRANT FF30OD35% - FHA FIXED 30YR OPEN DOORS 3.5% GRANT FF30OD4% - FHA FIXED 30YR OPEN DOORS 4.0% GRANT FF300D45% - FHA FIXED 30YR OEN DOORS 4.5% GRANT OD – OPEN DOORS ZERO-PERCENT SECOND
FF30OD05% - FHA FIXED 30YR OPEN DOORS 0.5% GRANT LLADJ FF30OD1% - FHA FIXED 30YR OPEN DOORS 1.0% GRANT LLADJ FF30OD15% - FHA FIXED 30YR OPEN DOORS 1.5% GRANT LLADJ FF30OD2% - FHA FIXED 30YR OPEN DOORS 2.0% GRANT LLADJ FF30OD25% - FHA FIXED 30YR OPEN DOORS 2.5% GRANT LLADJ FF30OD3% - FHA FIXED 30YR OPEN DOORS 3.0% GRANT LLADJ FF30OD35% - FHA FIXED 30 YR OPEN DOORS 3.5% GRANT LLADJ
Loan Type Property Type Occupancy Purpose Max Sales
Price
Max
Loan Max
LTV/CLTV
Min
FICO Score Max DTI
Ratio
Max
Assistance
FHA
1-unit SFR, FHA &
Gateway approved
condos, PUDs, townhomes.
Owner Occupied Primary
Residence Purchase By County
Lesser of FHA or
conform-ing limits
96.5%/ 105%
680 w/ AUS approval 55% with
AUS approval
Up to 6.0%* Note: >45% DTI,
assistance is up to 5.0%*
Manual: 680
*DPA percentage is subject to change without notice. Verify current percentage with Gateway
Page 2 of 9
Rev 03-25-2020
These program parameters pertain to the housing agency’s guidelines as of the status date noted on this Program Overview. Program
guidelines should be confirmed with the respective agency prior to loan submission to ensure the use of the most current para meters.
When combined with any program, the stricter underwriting guidelines will always prevail.
First Mortage with Community Second Program (CSP)
Status: Approved
Status Date: 03-25-2020
First Mortgage Types: FHA Only
Divisions Approved: Retail/Wholesale
Special Comments/Updates:
Offering Agency Information
Agency Name: Golden State Finance Authority & Gateway Mortgage Group, a division of Gateway First Bank
EIN/Tax ID: GSFA: 68-0322272 (required for gift portion) Gateway: 731577221
Address: Golden State Finance Authority 1215 K Street, Suite 1650 Sacramento, CA 95814
Phone Number: MWF general phone number: 888.463.6470
Fax Number: MWF fax number: 909.793.4210
Contact Person: Contact your MWF BDM/AE
Contact Email Address: MWF BDM/AE email address
Title: DN: Program Administrator MH: Program Coordinator/Trainer BB: Regional Sales Manager JT: Specialty Products Client Liason
Website Links: Golden State Finance Authority www.gatewaycorrespondent.com
Master Servicer: Gateway Mortgage Group, a division of Gateway First Bank (GMG)
Investor: Gateway Mortgage Group, a division of Gateway First Bank (GMG)
Program Administrator: N/A Program Sponsor: GSFA
Training Requirements: Not required but highly recommended.
Program Information:
Program Name(s): Open Doors Program
Program Name Acronym: Open Doors
Program Summary: Designed to increase homeownership opportunities for low-to-moderate income individuals and families in California.
Program Link(s): http://gsfahome.org/lender/guide/opendoors.shtml www.gatewaycorrespondent.com
Lender Participation Agreement: Required
Agency Type: Government
State: CA
County: All counties throughout CA
Specific Location(s): N/A
Borrower Criteria: Per Gateway & GSFA: DACA status borrowers are ineligible
ITINs are ineligible – SS# is required
Borrowers must prove citizenship status per FHA guidelines
Trusts are not allowed
First Time Homebuyer: No first-time homebuyer requirement
Minimum Borrower Contribution: Follow FHA guidelines - See FHA UW Manual https://mwfwholesale.com/documents/?fwp_nav_categories=fha
Income Limits: Follow FHA guidelines - See FHA UW Manual https://mwfwholesale.com/documents/?fwp_nav_categories=fha Currently, FHA has no income limits
Income Calculation Method: Use 1003 income, NOT household income. Co-signer income does not count against the borrower income for qualifying purposes.
Sales Price Limits: Lesser of county or FHA guidelines.
Max loan amount is based on base loan amount, not total loan amount and is the lesser of $510,400 or the limit by county. See: https://entp.hud.gov/idapp/html/hicostlook.cfm
Page 3 of 9
Rev 03-25-2020
These program parameters pertain to the housing agency’s guidelines as of the status date noted on this Program Overview. Program
guidelines should be confirmed with the respective agency prior to loan submission to ensure the use of the most current para meters.
When combined with any program, the stricter underwriting guidelines will always prevail.
Homebuyer Education Required: Follow FHA guidelines - See FHA UW Manual https://mwfwholesale.com/documents/?fwp_nav_categories=fha
Currently, FHA does not have a Homebuyer Education requirement
High Balance Loan Amount: HB not allowed
Maximum Assistance Amount: Note: DPA percentage is subject to change without notice. Confirm current percentage with Gateway. Up to 6.0% of the total 1st mortgage loan amount, including MIP, in the form of a 2.0% deferred 2nd lien and up to 4.0% as a gift.
The Gift from GSFA does not need to be rounded up or down.
For borrowers with DTI >45% (not cumulative), they will have a 1.00% gift adjustment paid for with DPA funds, meaning 5.0% total assistance. Use product codes with LLADJ
2nd lien is to be rounded down to nearest dollar.
Gateway will not allow a 3rd lien on the property. Other MWF approved DPA programs that do not have a lien must have prior Gateway approval
There is no minimum 2nd mortgage amount
Use of Subordinate Funds: Down Payment and/or Closing Costs
Minimum Reserves: Program has no minimum reserves requirement - Follow FHA guidelines
Maximum Assets: Follow FHA guidelines - See FHA UW Manual https://mwfwholesale.com/documents/?fwp_nav_categories=fha
Debt to Income Ratio: Max DTI is 55% with AUS approval
For DTI >45% with AUS approval, Lenders must use the pricing grid on the rate sheet labeled “GOVERNMENT GSFA OpenDoors-LLADJ”.
For manual underwrite:
Max 50% DTI, meet FHA guidelines including compensating factors- DU/LP findings must be included
Minimum FICO: 680 with AUS approval
All borrowers must have at least one credit score.
>45% DTI (not cumulative) will have a 1.00% gift adjustment paid for with DPA funds i.e. up to 5.0% assistance
Maximum LTV/CLTV: FHA guidelines which is 96.5%/105%
Occupancy: Borrower(s) must occupy as primary residence
MCC Permitted (Y/N): Yes
1st Loan/Repayment Terms:
Interest Rate: Rates are available in PML
Term: Fully Amortized 30-Year fixed
Loan Purpose Type: Purchase only
Mortgage Insurance: FHA UFMI 1.75%
2nd Loan/Repayment Terms:
Interest Rate: 0%
Term: 30-Year
Repayment-If Deferred, # of Months
Due upon sale, refinance or payoff of 1st mortgage. Re-subordinations are not allowed
Forgiveness of Debt (if any): None
Lien Position (2nd, 3rd, 4th): 2nd only. GSFA & Gateway will not subordinate to allow the borrower to refinance to a lower rate
If using a different MWF-approved DPA in lieu of Open Doors standard assistance, prior Gateway approval is required.
3rd liens are not allowed Grant is forgiven at closing – no lien position
Property Requirements:
Eligible Properties: Single family properties only; 1-unit SFR, FHA & Gateway approved condos, PUDs, townhomes. GSFA allows for the following condo project approval process:
https://www.hud.gov/sites/dfiles/OCHCO/documents/4000.1hsgh.pdf FHA Spot approvals are allowed
Page 4 of 9
Rev 03-25-2020
These program parameters pertain to the housing agency’s guidelines as of the status date noted on this Program Overview. Program
guidelines should be confirmed with the respective agency prior to loan submission to ensure the use of the most current para meters.
When combined with any program, the stricter underwriting guidelines will always prevail.
Ineligible Properties: Manufactured Homes
2-4 Units
Co-ops
Second Homes
Investment Property
Tribal land
Land Trusts
Any property with a PACE or HERO loan not being paid off. Properties with resale restrictions (MWF-approved restriction for age 55+ is acceptable)
Other Property Owned: May own other property at closing per FHA guidelines.
Home Warranty/Termite Inspection:
Gateway and GSFA do not require a home warranty or termite inspection
Other Property Requirements: 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.
Escrow holdbacks are not allowed
1st Mortgage Fees (Payable to):
Origination Fee: Max 2.00% (1.50% to Broker, 0.5% to Corp.) Discount points are not allowed
Underwriting Fee: $995 to MWF
Processing Fee: Standard broker processing fee that broker currently charges is allowed
Tax Service Fee: None
Compliance Review Fee: N/A – Gateway nor GSFA do not require a pre-compliance review
Master Servicer Funding Fee: $399 to Gateway
Other Fees: See MWF Wholesale Fee Chart.
2nd Mortgage Fees (Payable to):
Processing Fee: N/A
Other Fees: Doc prep fee of $295 to MWF
Comments: N/A
Registration/Submission:
Lock Timeframe: Loans are locked for 30 days Partial Exemption Disclosure is issued at Lock Contact MWF Lock Desk for questions:
# of Days for Rate Lock: Loans are locked for 30 days
Extension Policy: 3 extensions are allowed - up to max 30 days in total extensions. The loan must meet guidelines at the time of extension
Extension Term Extension Fee
1-3 days .0375%
4-7 days .0875%
8-15 days .1875%
16-30 days .3750%
Cancelation Policy: .Currently, no cancellation fee applies
Additional Lock Requirements: See rate lock policies and procedures. MWF does not allow discount points for lock extensions.
Disclosures:
First Mortgage Registration: The Broker will be responsible for issuing a Full Disclosure Package on the 1 st, as the Broker does now on a standard 1st mortgage file, including the Taxpayer Consent form, if applicable
Assistance/Subordinate: 2nd lien is TRID exempt- Second mortgage partial exemption disclosure is found on GSFA’s website and must be included on the closed file. A CD is not required for second lien. Disclosure of the loan terms are included in the Borrowers’ Acknowledgement of Second Lien Loan Terms. Gateway does require a ULI number for the second lien, or a letter from the MWF Compliance department stating one is not provided as the 2nd lien is not considered a separate credit decision.
Page 5 of 9
Rev 03-25-2020
These program parameters pertain to the housing agency’s guidelines as of the status date noted on this Program Overview. Program
guidelines should be confirmed with the respective agency prior to loan submission to ensure the use of the most current para meters.
When combined with any program, the stricter underwriting guidelines will always prevail.
Disclosures for the 2nd are found at GSFA/NHF website: https://nhfresportal.nhfloan.org/login.aspx?ReturnUrl=%2f The gift is listed as GSFA Gift Funds. The Open Doors docs must come from the GSFA/NHF website: No exceptions per GSFA
Loan Submission: See http://www.gatewaycorrespondent.com/overlay-matrix/forms/ for required docs.
QM: Standard procedures apply – 1st lien must comply
HPML: Standard procedures apply – Gateway allows 1st lien HPML
Appraisal
Appraisal Requirements: Appraisal condition ratings of C 5 and C 6 are ineligible
Condos require an HOA Certification form
Underwriting
AUS: 55% max DTI with LPA approval
Income worksheet or explanation of income calculation must be included in the loan file.
2nd lien should show as an Affordable Second in AUS
Trusts are not allowed
Manual Underwriting: Allowed if credit score is 680 or higher, with restrictions: Per Gateway, max 50% DTI, meet FHA guidelines including compensating factors & LP findings. File must include copy of LPA finding of Caution/Refer/Ineligible
Co-Signors: Allowed. Follow FHA guidelines - See FHA UW Manual https://mwfwholesale.com/documents/?fwp_nav_categories=fha
Non-Occupant Co-Borrowers: Allowed. Follow FHA guidelines - See FHA UW Manual https://mwfwholesale.com/documents/?fwp_nav_categories=fha
Gift Funds: Allowed
Seller Contribution: Allowed up to Interested Party Contributions guidelines: 6% max
Prior-to-Doc Conditions: Standard prior to doc conditions apply
Prior-to-Funding Conditions: Standard prior to funding condidtions apply
Compliance File: No pre-compliance review required
MWF Overlays: Note: Standard Gateway overlays do not apply to Open Doors. Do not refer to Gateway’s Overlay matrix
MWF: 2-4 units are ineligible property types
Loan Documents/Funding
Linked Loan: The Open Doors 2nd lien is the linked loan
Closing Disclosure: Closing Instructions (both general and loan specific) must be included in the file
Hazard Insurance Information: Beneficiary for the 1st mortgage: Mountain West Financial, Inc. its sucessors and assigns. Upon MWF sale of 1st to Gateway, MWF will update endorsement to read: Gateway Mortgage Group, a division of Gateway First Bank ISAOA/ATIMA, PO Box 5013, Troy, Michigan, 48007-5013 Beneficiary for the 2nd mortgage: Gateway Mortgage Group, a division of Gateway First Bank ISAOA/ATIMA, PO Box 5013, Troy, Michigan, 48007-5013
Hazard/Flood Insurance Max Deductible:
If Flood Insurance is applicable, it must include both the 1st & 2nd lien max deductible is the greater of 2.5% or $2,500 Flood insurance must show Gateway as the beneficiary within 5 days of loan purchase. Flood insurance provider must be a NFIP provider or a FHA approved flood insurance private carrier
MERS: MERS registration is required for the 1 st lien only. Gateway’s MERS # is 1002877
Cash Back allowed? Yes, with limitations: MRI must be met/remaining cash back cannot exceed sourced EMD
Max Cash to Borrower: MRI must be met/remaining cash back cannot exceed sourced EMD
Page 6 of 9
Rev 03-25-2020
These program parameters pertain to the housing agency’s guidelines as of the status date noted on this Program Overview. Program
guidelines should be confirmed with the respective agency prior to loan submission to ensure the use of the most current para meters.
When combined with any program, the stricter underwriting guidelines will always prevail.
Excess Funds: Reduce the grant amount
Loan Doc Provider at Closing: Closing docs are pulled from GSFA lender portal for the 1 st
Closing docs are pulled from https://nhfresportal.nhfloan.org/login.aspx?ReturnUrl=%2f , 9:00 am to 4:00 pm M-F, excluding National Holidays for the 2nd.
The first lien and second lien closing docs need to be dated the same date.
eSign is prohibited per Gateway
Note Closed in the Name of: 1st is closed in MWF’s name, then endorsed to Gateway:
“Pay to the order of Gateway Mortgage Group, a division of Gateway First Bank without recourse”
2nd closes in GSFA’s name
Requesting Docs: MWF pulls the docs from GSFA website https://nhfresportal.nhfloan.org/login.aspx
Wiring of Funds: MWF funds both 1st & 2nd The 2nd and gift are included in the wire of the 1st.
Notice Prior to Funding: 48 hours
Title Insurance: Required. The 2nd lien does not require a separate policy
Impound Requirements: FHA guidelines
Required Documents: MWF will provide the closing documents for signing Note, Deed of Trust and Partial Exemption Disclosure. Locks will issue the Partial Exemption
Disclosure at Registration GSFA must be the beneficiary on the 2nd TD documents
Collateral Process: See checklist at http://www.gatewaycorrespondent.com/overlay-matrix/forms/
Post Closing
Credit Package Delivery/Checklist: See http://www.gatewaycorrespondent.com/overlay-matrix/forms/ for required docs, including the Fraud Report. Gateway credit/collateral checklist: Resource Center/Associated and GSFA Open Doors Checklist: Resource Library/GSFA Open Doors Client Checklist for 2 nd loan Docs/Delegated File Submission Checklist
Use the General and Open Doors checklists
Original 1st and 2nd Notes:
Gateway Mortgage Group LLC
Correspondent Note Custodian
244 South Gateway Place
Jenks, OK 74037-3448 Recorded 1st & 2nd TDs: Same address, attention Correspondent Final Documents
Compliance File Delivery/Checklist:
See http://www.gatewaycorrespondent.com/overlay-matrix/forms/ for required docs.
# of Days to Purchase File: Locks are available for 30 days
Extension Requests: See http://www.gatewaycorrespondent.com/overlay-matrix/forms/
Additional Requirements: None
Page 7 of 9
Rev 03-25-2020
These program parameters pertain to the housing agency’s guidelines as of the status date noted on this Program Overview. Program
guidelines should be confirmed with the respective agency prior to loan submission to ensure the use of the most current para meters.
When combined with any program, the stricter underwriting guidelines will always prevail.
BOLT: OBTAIN PRICING AND REGISTER
Step 1: From the Pricing screen, after entering the borrower and property information, enter the Appraised
Value and Sales Price.
Step 2: Select “Yes” for 2nd Financing.
Page 8 of 9
Rev 03-25-2020
These program parameters pertain to the housing agency’s guidelines as of the status date noted on this Program Overview. Program
guidelines should be confirmed with the respective agency prior to loan submission to ensure the use of the most current para meters.
When combined with any program, the stricter underwriting guidelines will always prevail.
Step 3: Insert the LTV % of the 1st and 2nd liens (Max 2nd is 2% of the 1st TD).
Step 4: Change Loan Originator is paid by to Borrower
Page 9 of 9
Rev 03-25-2020
These program parameters pertain to the housing agency’s guidelines as of the status date noted on this Program Overview. Program
guidelines should be confirmed with the respective agency prior to loan submission to ensure the use of the most current para meters.
When combined with any program, the stricter underwriting guidelines will always prevail.
Step 5: After running pricing, select "price 2nd lien" for the 1 st lien program you want to register.
Step 6: When the second lien program results screen appears, select “register” for the OD – OPEN DOORS ZERO-
PERCENT SECOND program.
Step 7: Once 1st and 2nd are registered, go to Page 2 on Application Information screen
Step 8: Enter GSFA Grant/Gift amount in Assets section under Cash Deposit (up to 4.5% of 1 st mortgage loan
amount).