Assistance Program: Prince George s County, Maryland Pathway to Purchase First Time Homebuyers Assistance Code: DMDPRINCE

Transcription

1 Assistance Prgram: Prince Gerge s Cunty, Maryland Pathway t Purchase First Time Hmebuyers Assistance Cde: DMDPRINCE HOMEOWNERSHIP ASSISTANCE PROGRAM SUMMARY Prduct Descriptin Allwable Originatin Channel Prgram Name Secnd mrtgage lan prgram t be used in cnjunctin with: FHA Fannie Mae Fixed 30 year Cnfrming Prduct (DU) Fannie Mae Husing Authrity Prduct Fannie Mae HmeReady with Cmmunity Secnd Freddie Mac Fixed 30 Cnfrming Prduct (LPA) Freddie Mac Hme Pssible with Cmmunity Secnd VA Retail Lan Officer Mandatry Certificatin required in rder t participate in this prgram cntact Prince Gerge s Cunty directly. Upn cmpletin f the mandatry lender training the Lan Officer will be prvided with a Certificatin Number, the certificatin number must appear n all lan applicatins. Pathway t Purchase First Time Hmebuyers Assistance Prgram Apprval Expiratin Husing Authrity Subject t Availability apprval expires: 12/01/2018 Prince Gerge s Cunty (Authrity) 9200 Basil Curt, Suite 504 Larg, MD Cntact: Karan Stewart Phne: kastewart@c.pg.md.us Website: Husing Authrity EIN DPA Prvider Classificatin Gvernment Entity Secndary Financing Prgrams First Mrtgage Maximum LTV First Mrtgage Maximum CLTV FHA: Refer t Prduct Prfile Fannie Mae Husing Authrity Prduct. Refer t Prduct Prfile Fannie Mae Cnfrming Prduct: Refer t Prduct Prfile Fannie Mae HmeReady with Cmmunity Secnd: Refer t Prduct Prfile Purchase nly: 1 unit: LTV >95-97% (NO first-time hme-buyer (FTHB) requirement). Purchase and Limited Cash Out (Rate/Term): 1 unit: 95% FRM; 90% ARM Freddie Mac Fixed 30 Cnfrming Prduct (LPA) Freddie Mac Hme Pssible with Cmmunity Secnd VA Refer t Prduct Prfile FHA: Refer t Prduct Prfile Fannie Mae Husing Authrity Prduct. Refer t Prduct Prfile Fannie Mae Cnfrming Prduct: Refer t Prduct Prfile fr CLTV requirements, may nt exceed limits in prduct prfile Fannie Mae HmeReady: Refer t Prduct Prfile Freddie Mac Fixed 30 Cnfrming Prduct (LPA) Freddie Mac Hme Pssible with Cmmunity Secnd VA Refer t Prduct Prfile The CLTV may nt exceed 105% n HmeReady lans, unless further restricted by prduct prfile. The sum f all financing may nt exceed 105% f the cst t acquire the prperty plus any nrmal prepaid expenses. Page 1

2 Assistance Prgram: Prince Gerge s Cunty, Maryland Pathway t Purchase First Time Hmebuyers Assistance Cde: DMDPRINCE First Mrtgage Fee Restrictins Maximum Secnd Mrtgage Lan Amunt Secnd Mrtgage Lan Interest Rate Minimum Brrwer Dwn Payment The maximum allwed fees t charge are up t 2 pints / 2% maximum (including lan riginatin, underwriting and applicatin fee). If additinal pints are charged t by the rate dwn, a lck cnfirmatin will be required when the applicatin is submitted. Up t $10,000 0% Brrwer is required t cntribute a minimum f 1.75% f the final purchase price r 50% f liquid assets ver $3,000, whichever is greater. Gift funds may nt be used twards the 1.75% brrwer requirement. Fannie Mae Husing Authrity Prduct. Refer t Prduct Prfile Fannie Mae Cnfrming Prduct: Refer t Prduct Prfile Fannie Mae HmeReady with Cmmunity Secnd: Refer t Prduct Prfile Freddie Mac Fixed 30 Cnfrming Prduct (LPA) Freddie Mac Hme Pssible with Cmmunity Secnd VA Refer t Prduct Prfile NOTE: If first mrtgage guidelines are higher than the Agency s fr brrwer s minimum investment, the first mrtgage guidelines prevail. Secnd Mrtgage Purpse Dwn Payment Clsing Csts Secnd Mrtgage Lan This secnd mrtgage lan is a zer interest n mnthly payment frgivable 10-year lan. As Repayment Terms lng as the prperty remains as brrwer s primary residence then the secnd mrtgage will be frgiven in full at maturity date. Repayment is due in full upn sale, transfer, lease, refinancing, change f wnership r hme n lnger is ccupied as primary residence. Lan prceeds may nt be used t pay ff ther lans, advances r cnsumer debts. Hwever, if any f the fllwing repayment triggering events ccur, the principal balance and any accrued interest shall be due and payable in full: Evidence f the act f fraud cmmitted t falsely btain assistance funds The prperty is sld Transferred title Refinancing with cash ut A default n the first mrtgage The brrwer(s) ceases t ccupy the prperty as their principal place f residence Upn the death f the last surviving applicant The filing f any bankruptcy by the applicants Upn divrce, unless ne f the applicants cntinues residing in the prperty by the decree f divrce Lan may be pre-paid in full at anytime Lan is NOT assumable Types f Financing Purchase Mney Mrtgage 30 year fixed rate (N ARM, balln payment r prepayment penalty) Occupancy Owner ccupied primary residence nly All c-brrwers must ccupy Brrwer(s) may nt have an wnership interest in any ther residential dwelling at the time f lan clsing Gegraphic Lcatin Prperties must be lcated within Prince Gerge Cunty, Maryland Eligible Prperties Acquisitin Limit: Existing and New Cnstructin - $307,000 Page 2

3 Assistance Prgram: Prince Gerge s Cunty, Maryland Pathway t Purchase First Time Hmebuyers Assistance Cde: DMDPRINCE Prperties shall be sited n a permanent fundatin, with a permanent utility hk-up, and may include: Single family - detached, attached Cndminiums r Twnhmes r Planned Urban Develpment -detached, attached Must be currently ccupied by the wner, vacant r ccupied by the hmebuyer HQS inspectin must be cnducted by American Prperty Cnsultants, Inc. (APC). A $139 initial inspectin fee is required and is due and payable t APC befre the HQS inspectin. All repairs must be cmpleted prir t clsing can be scheduled nce the inspectin is scheduled by American Prperty Cnsultants (APC), an additinal fee f $139 will be charged fr a missed appintment. Missed appintments include failure f the seller/wner t arrive within 10 minutes f scheduled appintment, n access n scheduled date r failure t have utilities turned n. Lan Officer r Brrwer must request a HQS Inspectin using the HQS Inspectin Request Frm available n APC website: Lk fr: "PATHWAY TO PURCHASE Prgram n the left menu bar under HQS and click n the prgram name. Prf f the APC initial inspectin must be submitted with the applicatin/submissin package. The request may be submitted by r by fax n , and shuld be submitted prir t the FHA appraisal inspectin. The inspectin fee must be paid with a credit/debit card thrugh the APC web site. (Please nte that the request fr an HQS Inspectin des nt guarantee r reserve funds.) APC will make initial cntact with Lan Officer r Realtr within 48 hurs f receiving the Inspectin Request and payment t verify that unit is ready fr inspectin and schedule the inspectin. All utilities must be turned n. After cnfirmatin by PRMG Lan Officer r Realtr f access t the prperty, APC will have 5 days t schedule and cmplete the inspectin. APC will infrm the Lan Officer/Realtr f the inspectin results in writing. Prf f the APC initial inspectin must be submitted with the applicatin package. In the case f a failed HQS Inspectin, Lan Officer r Applicant shuld schedule fllw-up inspectin with APC, when repairs are cmpleted. All deficiencies identified in the HQS Inspectin Reprt that are an eminent threat t life, health and safety, as determined by the HQS Inspectr (e.g., the presence f mld) Hme inspectin required by a licensed inspectr, prvide cpy f the invice r the inspectr s license as prf inspectin was cmpleted. Hme inspectin reprt is nt required. Underwriting Refer t prduct prfile fr additinal prperty eligibility requirements, nt all prperty types are allwed n all prducts. Lender t pre-apprve all brrwers fr the first mrtgage prduct. Standard FHA, Fannie Mae Cnfrming Prduct, Fannie Mae HmeReady, Freddie Mac and VA, except as described herein: Lan Officer Certificatin Number must appear n all applicatins, n exceptins. Prir t submitting a cmpleted applicatin package, Brrwer must request the HQS inspectin at Brrwer is required t submit a cpy f the first mrtgage apprval letter and an executed purchase cntract prir t cmpleting the Pathway t Purchase applicatin. Allw fr a minimum f 21 business days t prcess and clse the applicatin. Page 3

4 Assistance Prgram: Prince Gerge s Cunty, Maryland Pathway t Purchase First Time Hmebuyers Assistance Cde: DMDPRINCE Nte: The 21- business days prcessing time des nt include the number f days an applicatin has been in PRMG underwriting pipeline. THEREFORE, NO APPLICATION WILL BE ACCEPTED FROM A PARTICIPATING LENDER UNLESS THERE ARE AT LEAST 21 BUSINESS DAYS REMAINING ON THE FINAL SALES CONTRACT OR AN EXECUTED AMENDMENT IN PLACE, EXTENDING THE CONTRACT FOR AT LEAST 21 BUSINESS DAYS. THE 21 BUSINESS DAY TIMELINE IS FROM THE DATE OF LOAN APPLICATION ACCEPTANCE IN THE PATHWAY TO PURCHASE OFFICE, EXCLUDING HOLIDAYS. Upn qualificatin f the underwriting, the hmebuyer will be issued an Apprval letter indicating the amunt f assistance. Upn apprval, a cpy f DPA Apprval Letter MUST be in each file. Eligible Brrwers Brrwer(s) must qualify fr the first mrtgage selected. Brrwer must be a first time hmebuyer must nt have wned a hme anywhere within the three previus years. Husing r frnt end mnthly debt t incme rati f 35%. Ttal r back end mnthly debt t incme rati f 47%. N exceptins. Assets Brrwer must have required amunt f their wn funds in the transactin fr type f first mrtgage financing selected. Incme Limits 51% - 80% AMI Effective January 1, Persn 2 Persns 3 Persns 4 Persns 5 Persns 6 Persns 7 Persns 8 Persns $61,800 $70,600 $79,450 $88,250 $95,350 $102,400 $109,450 $116,500 NOTE: If first mrtgage guidelines are mre restrictive than the Agency s fr brrwer s incme limit, the first mrtgage guidelines prevail. MI Cverage FHA: Refer t Prduct Prfile Fannie Mae Husing Authrity Prduct Refer t Prduct Prfile Fannie Mae Cnfrming Prduct Refer t Prduct Prfile Fannie Mae HmeReady and Cnfrming (DU) Prducts: Standard mrtgage insurance requirements must be met, if applicable, as described in Prduct Prfile Freddie Mac Fixed 30 Cnfrming Prduct (LPA) Freddie Mac Hme Pssible with Cmmunity Secnd VA Refer t Prduct Prfile Special Prvisins Hmewnership Cunseling: Refer t prduct prfile fr specific prduct requirements Brrwers must successfully cmplete a face t face hmebuyer educatin class prvided by a HUD apprved hmewnership cunseling agency Brrwer s Certificatin f Cmpletin f Hmewnership Cunseling is required Prince Gerge s Cunty des NOT allw nline hmebuyer educatin curse. Fannie Mae HmeReady Only: See Prduct Prfile fr Hmewnership Cunseling requirements. Freddie Mac Hme Pssible Only: See Prduct Prfile fr Hmewnership Cunseling requirements. All: May be funded by a municipality, state, cunty r lcal husing finance agency, nn-prfit rganizatin, a reginal Federal Hme Lan Bank r an emplyer May be used t fund all r part f the dwn payment r clsing csts Page 4

5 Assistance Prgram: Prince Gerge s Cunty, Maryland Pathway t Purchase First Time Hmebuyers Assistance Cde: DMDPRINCE The mre restrictive dwn payment requirement between the prduct and the secnd mrtgage will apply N reprting requirements permitted DPA Prcessing Fee Csts incurred fr dwn payment assistance secndary financing prgram may nly be included in the amunt f the secnd lien. The fee cannt be included in the first mrtgage transactin r appear n the HUD-1. Special Feature Cde N/A Underwriting Requirements Receipt f brrwer s apprval frm DPA prvider Receipt f DPA Funds (at clsing) N cash back at clsing (at clsing) Cpy f DPA s Executed Nte and Secnd Mrtgage Agreement (at clsing) First Mrtgage Lan Lan dcuments and security instruments must cnfrm t Agency requirements (FHA, Fannie Dcuments Mae, Freddie Mac as applicable by lan type) Secnd Mrtgage Lan Dcuments DPA Prgram Restrictins That Are Nt Permitted Lan dcuments and security instruments must cnfrm t Agency requirements (FHA, Fannie Mae, Freddie Mac as applicable by lan type) PRMG Pathway t Purchase First Time Hmebuyers Assistance may nt Restrict the transfer f servicing rights f the first Mrtgage Require prir ntificatin r apprval frm the spnsring authrity in the event f the transfer f the first mrtgage servicing rights. If there is any evidence f this verbiage in the subrdinate dcuments, the prgram will n lnger be eligible. Special Requirements: The First Mrtgage may nt be subject t a bnd prgram lan dcuments and security instruments must cnfrm t Agency requirements (FHA, Fannie Mae as applicable by lan type) PRMG executed a Lender Agreement in rder t participate in this prgram. Apprved must be in 2 nd lien psitin. This Fact Sheet frm and any attachments MUST be placed in each lan file at the time f submissin. Additinal Cmments: APPROVAL ELIGIBLE INELIGIBLE The DPA IS eligible fr use with the prgrams belw The DPA IS NOT eligible fr use with the prgrams belw CONV (DU) FHA VA USDA CONV FHA VA USDA X X X X PRMG Apprved by: PRMG DPA Review Department 12/01/2017 Name / Title Date Page 5