Homeownership Initiatives

Transcription

1 Homeownership Initiatives HOMEOWNERSHIP OPPORTUNITIES PROGRAM TRAINING DATE: PRESENTED BY: Ronna Edwards, Community Investment Compliance Analyst II

2 Homeownership Opportunities Program AVAILABLE TO ANY FHLBI MEMBER HOP Homeownership Opportunities Program Down payment and closing cost assistance for eligible first-time homebuyers Each member could potentially access a maximum of $500,000 2

3 Homeownership Opportunities Program HOP- DOWN PAYMENT AND CLOSING COST ASSISTANCE FOR FIRST-TIME HOMEBUYERS 3

4 Who can use the HOP program? FIRST TIME HOMEBUYERS First time homebuyers: Person(s) who has had no ownership in a principal residence during a three year period ending on the date of the purchase of the property. A single parent who has only owned a home with a spouse while married Person(s) who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations. 4

5 Homeownership Opportunities Program HOP: DOWN PAYMENT AND CC ASSISTANCE 1) Member Originated First Mortgage Can request up to $8,000 in HOP funds Minimum loan term of 5 years Minimum amortization of 15 years 2) Non-member Originated First Mortgage Can request up to $4,000 in HOP funds Matching funds requirement of 3:1 5 See Implementation Plan for detailed requirements

6 HOP Requirements/Guidelines: FOR HOUSEHOLDS Minimum $1,000 cash contribution: Must be the borrower s own funds Must have 12 months of continuous employment Homebuyer counseling required*: Face to face and HUD or State certified program, or FHLBI-approved online counseling with one-on-one follow-up with member Up to $150 of grant funds may go toward payment See FHLBI s Counseling Resource Guide - 6

7 HOP Requirements/Guidelines: FOR TRANSACTIONS Maximum Front-End Ratio (PITI): 35% Minimum term / amortization: 5 years / 15 years Rehab costs: Paid by 3 rd party or outside of closing Ineligible transactions: Non-arm s length No construction-perm Other assistance funds are allowed Appraisal is required 7 See the Implementation Plan for further details

8 Eligible Properties MUST BE OWNER OCCUPIED Single-Family Detached (1-4 family) Condominiums Townhomes Modular and Manufactured Homes All properties must be titled as real estate and be permanently affixed to a foundation Duplexes 8 Potential rental income to be included in income qualification calculation Non-eligible Properties Member REO Properties

9 Eligible Closing Costs Loan origination fees Doc prep fees Credit report Closing fees Attorney fees Appraisal fee Title Insurance Recording Fees 30 days prepaid interest Up to 10* months of escrow Taxes and/or HO insurance Flood Insurance See Implementation Plan for full list of eligible closing costs *newly revised number of months 9

10 Disbursement Workbook HOUSEHOLD QUALIFICATION FORM (HQF) 10

11 Disbursement Workbook: HOUSEHOLD QUALIFICATION FORM (HQF) 11

12 HOP Disbursement Process Workflow Member/Agency Determines first time homebuyer would qualify for HOP funds. Collects necessary documents to verify income etc. NO FHLBI Requests clarification from member via . Member Completes required HOP documents and mails disbursement request package to FHLBI. 12 Member Gathers clarifying information and submits to FHLBI via secure or hard copy mail. FHLBI Reviews disbursement request and documentation. Files are typically reviewed within 10 business days. Disbursement Approved? Disbursement Approved? NO FHLBI Notifies member and returns or destroys file. YES! FHLBI Deposits funds in members CMS account. Purchase transaction must close within 30 days. Member completes Post Closing Statement with closing details and sends CD to FHLBI.

13 HOP Web Page 13

14 HOP Post Closing Statement TO BE PROVIDED WITH CD 14

15 HOP CLOSING REQUIREMENTS FHLBI REVIEW Maximum of $250 Cash Back at closing Minimum of $1,000 Cash Contribution from the homeowner Net of any cash back Down Payment and Eligible Closing Costs are sufficient to warrant the grant amount Minimum 5 year Loan Term, Minimum 15 year Amortization Maximum 35% PITI Front End Ratio No Member-owned REOs or Construction-Perm Loans Any Rehab Costs were paid by 3 rd Party or POC Closed within 30 days of disbursement 15

16 HOP Closing Requirements 16

17 HOP Closing Requirements 17

18 HOP Closing Requirements 18

19 HOP Closing Requirements Uses of Funds Down Payment: $5,000 ($180,000 - $175,000) Closing Costs*: $4,000 DP + CC = $9,000 HOP Grant: $8,000 Homebuyer s Own Cash Deposit: $1,000 Cash to Close: $-200 POC Closing Costs: $ Total Cash: $1, *see I-Plan for eligible closing costs 19

20 HOP Monitoring FHLBI PERFORMS SEMI-ANNUAL SAMPLING At a minimum, members should maintain (in their files) the documents described below for every HOP recipient: 1. A copy of the final, fully executed Closing Disclosure 2. A copy of the disbursement request and all documentation obtained and used to qualify the household at enrollment 3. A copy of the fully executed and recorded retention document 4. Evidence of completion of housing counseling prior to the loan closing 5. First-time Homebuyer affidavit 6. Evidence of required recipient s $1,000 cash contribution 7. Evidence of other required matched funds, if necessary 20

21 QUESTIONS? Please visit the FAQs posted on the HOP home page where you can find answers to common questions. If you have additional questions not covered in the FAQ, please contact Ronna Edwards at: 21

22 CONTACT INFORMATION CID: Rori Chaney Community Lending Manager Ronna Edwards Compliance Analyst Mark Stermer Compliance Analyst Ashlen Nisley Compliance Analyst 22