CalHFA Loan Programs, Down Payment Assistance to Keep Your Home California

Transcription

1 CalHFA Loan Programs, Down Payment Assistance to Keep Your Home California Tuesday, May 2, :00 p.m. 2:00 p.m. finance.car.org (213)

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3 Today s #FinanceB2B Speakers Sharyl Silva Steve Gallagher Tom Nann Sara Sutachan CalHFA KYHC / CalHFA CalHFA CALIFORNIA ASSOCIATION OF REALTORS 5

4 Overview: what to look for? CALHFA Loan Products CalPlus Conv. & FHA MyHome ECTP Cal EEM & Grant MCC Eligibility Borrower Property Keep Your Home California Five Unique Programs Principal Reduction Program Unemployment Mortgage Assistance Mortgage Reinstatement Assistance Program Transition Assistance Program Reverse Mortgage Assistance Pilot Program Resources Loan Production Preferred Loan Officers Loan Program Matrix Conventional FHA Loan Scenario Calculator Marketing Materials Keep Your Home CA Participating Servicers Eligibility Calculator

5 For a full recording of webinar Speaker slide deck Speaker bios

6 Financing Options for Low to Moderate Income Californians Presented by: Sharyl Silva 4/25/17

7 Introduction to CalHFA To create and finance progressive housing solutions so more Californians have a place to call home. State of CA agency Work with approved lenders Self-Sustaining

8 Borrower Eligibility First-Time Homebuyers Income Limits Apply Minimum Credit Score % DTI Homebuyer Education Required

9 Property Eligibility Sales Price Limits Single Family Residence and Condos in CA Owner Occupied Only 1 Year Home Warranty Except New Construction

10 CalPLUS Program FHA %LTV / 105% CLTV Conventional 97% LTV / 105% CLTV High Balance Available > $424,100 Has exclusive access to ZIP 3rd lien 3 or 4% options Zero Interest Deferred Payments Closing Costs Only

11 MyHome Assistance Program (MyHome) Loan Amount is 3.5% of sales price/appraised value Deferred Payments Used for down payment and/or closing costs Can t be combined with ECTP

12 Extra Credit Teacher Program (ECTP) Teachers, administrators, school district employees & staff members that work in any CA K-12 public schools Charter Schools County/Continuation Schools Loan Amount High Cost County Greater of $15,000 or 3.5% of sales price/appraised value Non High Cost County Greater of $7,500 or 3.5% of sales price/appraised value

13 Extra Credit Teacher Program (ECTP) Deferred Payments Used for down payment and/or closing costs Typically most assistance than MyHome Can t be combined with MyHome

14 Scenario CalPLUS Conventional CalPLUS FHA Purchase Price $400,000 Purchase Price $400,000 LTV 96.5% $386,000 LTV 96.5% $386,000 MyHome $14,000 MyHome $14,000 ZIP $15,440 ZIP $15,710 CLTV % $415,440 CLTV % $415,710 Closing Cost 4% $16,000 Closing Cost 4% $16,000 Total Due $ Total Due $290.00

15 Cal-EEM + Grant Program Includes costs of energy-efficient improvements Additional 4% Grant First-Time and Non First-Time homebuyers Can be combined with MyHome or ECTP

16 Mortgage Credit Certificate Tax Credit Program (MCC) Dollar for Dollar tax deduction 20% tax credit rate $450 Fee w/calhfa 1st $750 w/out CalHFA 1st Combined with all CalHFA programs Unused portion can be rolled forward for up to 3 years

17 CalHFA Tools/Resources Preferred Loan Officers Loan Program Matrix Loan Scenario Calculator Marketing Materials

18 CalHFA Tools/Resources (Con't) Re-subordination Process for CalHFA Junior Loans CalHFA Homeowners - Hardship Assistance (forbearance, modification, short sale, etc ) CalHFA Loan Servicing

19 Sharyl Silva Housing Finance Specialist Lender Relations/Outreach Phone (916) Fax (916)

20 Keep Your Home California State-Run, Federally-Funded Foreclosure Prevention Programs

21 About Keep Your Home California California s Hardest Hit Fund program Federally-funded (US Treasury), state-managed (CalHFA) Fully implemented in February 2011 Goal is to help prevent avoidable foreclosures for eligible low and moderate income homeowners Qualifying homeowners can receive up to $100,000 in mortgage payment assistance in total Five unique programs, all designed to address different aspects of the foreclosure crisis Services are provided free of charge 23

22 General Homeowner Eligibility Requirements Meet low and moderate income limits Complete and sign a Hardship Affidavit must be able to document the reason for hardship Mortgage loan is delinquent or in imminent default Adequate income to sustain mortgage payments after assistance and/or modification is provided, according to program and/or participating servicer guidelines Cannot be in active bankruptcy Servicer participation is required for homeowners to access benefits 24

23 General Property Eligibility Requirements Property must be located in California Property must be owner occupied, primary residence Assistance only available for the first mortgage No Home Equity Lines of Credit or mobile homes that are not real property Current unpaid principal balance of first mortgage cannot exceed $729,750 Reverse Mortgage Assistance Pilot Program limit is $625,500 Property cannot be abandoned, vacant or condemned 25

24 Five Programs Principal Reduction Program $100,000 to reduce the outstanding principal balance Unemployment Mortgage Assistance $3,000 per month, for up to eighteen (18) months Mortgage Reinstatement Assistance Program $54,000 to catch-up past due mortgages Transition Assistance Program $5,000 to help with relocation expenses Reverse Mortgage Assistance Pilot Program $25,000 to reinstate past-due property expenses Homeowners can receive assistance from more than one program, but the maximum combined assistance cannot exceed $100,000 per household 26

25 Principal Reduction Program Assists homeowners who owe more than their home is worth and/or have an unaffordable mortgage payment per program guidelines Benefit assistance up to $100,000 per household Can be used to help homeowners achieve an affordable mortgage payment even if the assistance provided leaves the homeowner with positive equity Loan-to-value ratio must be below 140% after assistance is provided Debt-to-income ratio cannot be below 25% after assistance is provided Loan-to-value ratio greater than 120% qualifies as a hardship indicative of imminent default 27

26 Unemployment Mortgage Assistance Helps eligible homeowners who have experienced involuntary job loss and who are receiving California EDD unemployment benefits or have received California EDD unemployment benefits within prior 30 days Benefit assistance up to $54,000 per household Provides temporary benefit assistance in the form of a mortgage payment subsidy for maximum of 18 months Monthly benefit up to $3,000 or 100% of the first lien mortgage loan PITIA, whichever is less Not eligible if a Notice of Default was filed more than 60 days ago 28

27 Mortgage Reinstatement Assistance Assists eligible homeowners by providing reinstatement assistance to catch-up on the past-due amount of their first lien mortgage loan Benefit assistance up to $54,000 per household Participation is limited to a one-time payment Homeowner must be at least two payments behind at time of application Homeowner must be able to demonstrate that payment is affordable, per guidelines Can follow UMA if homeowner emerges from unemployment hardship but still needs help to pay loan current 29

28 Transition Assistance Program Provides transition assistance benefits to homeowners who can no longer afford their home and avoid foreclosure by agreeing to a short sale or deedin-lieu of foreclosure Benefit assistance up to $5,000 per household Helps homeowners make a smooth transition to alternative housing Benefit assistance provided directly to homeowners Homeowners who received HAFA funds or assistance from a proprietary program of $5,000 or more are ineligible 30

29 Reverse Mortgage Assistance Pilot Program Provides assistance to qualifying senior homeowners who are in danger of losing their home due to their property expense arrearages associated with their reverse mortgage loan Benefit assistance up to $25,000 per household Reinstates property taxes, homeowner s insurance, and other approved property-related expenses Provides an advance of approved property expenses for up to an additional twelve (12) months to enable the homeowner to recover from their hardship Application process must begin with the servicer 31

30 How to Apply Call the Keep Your Home California Counseling and Processing Center at KEEP (5337) Hours: Mon Fri 7am 7pm; Sat 9am 3pm; Closed Sun Translation service is available so calls can be taken in virtually any language Contact one of the HUD approved housing counseling agencies certified to conduct Keep Your Home California counseling sessions. 32

31 External Counseling Agencies Currently partnered with 30 HUD-approved housing counseling agencies at over 40 offices across the state In-person option for homeowners to apply Agencies sorted by county on the KYHC website 33

32 Application Process Counseling sessions typically take minutes to complete (varies by program) All homeowners listed on the mortgage must apply At the end of the counseling session, a comprehensive packet explaining next steps and the required documentation is sent to the homeowner Homeowners must return all required documents Once documents are received, Keep Your Home California will work with the homeowner s servicer and will make the final determination on approval to fund Median processing time is 50 days (program to date through Q4 2016)

33 Items Homeowner Should Have Available When They Apply Paper and something to write with for notes Mortgage loan number Recent wage or income information Current monthly expenses Explanation of hardship

34 Results 72,000 households have received assistance $1.67 billion in funding provided Assistance has been provided to homeowners in all 58 counties of California 94% of homeowners still own their homes 24 months after receiving assistance 98% still own after 12 mos; 99% still own after 6 mos 36

35 Economic Impact Report In January, KYHC released The Economic Impact of Keep Your Home California: A Statewide and Regional Analysis Examined funding data from Statewide and regional information available Webpage: Report: Press Release: 37

36 Economic Impact Report Results Purpose was to quantify the total economic impact of all KYHC programs $2.5 Billion economic impact in the state Statewide multiplier of 2.0 Preserved 8,100 jobs $441 million in employee income $81 million in tax revenue $1.1 billion in property value 38

37 Economic Impact Report Implications Ripple effect across multiple economic sectors Results vary by region based on industrial density and economic opportunities Demonstrates the impact KYHC assistance has on surrounding communities: Homeowners, neighbors, local businesses, local government, state KYHC still has an important role to play in 2017 and beyond as the economic recovery continues 39

38 Conclusion Many homeowners across the state are in need of assistance and are likely candidates for Keep Your Home California Important to continue raising awareness about the programs We need your help! Marketing materials are available on the website Attend as many community events as possible (265 in 2016) Share success stories of homeowners who are willing to be profiled online ( 40

39 Resources Available on the Website Participating Servicers lists all servicers and shows their participation level by program Eligibility Calculator answer 12 Yes or No questions to see which programs may be an option for you Household Income Limits varies by county Calendar of Events list of upcoming foreclosure prevention events throughout California Success Stories homeowners who received assistance Reports and Statistics interactive map of CA (shows assistance by county), charts and graphs, and all quarterly reports provided to US Treasury Frequently Asked Questions News and Media videos, press releases, news stories, blogs and other updates

40 For more information, please visit Or call KEEP (5337) Follow us on: Thank You! 42

41 Questions? Webinar recording and slides will be posted on financeworkshops.car.org If your question did not get answered, 43

42 Save the Date! Upcoming Finance Helpline B2B Webinars Wednesday, May 17th 10 am 11 am Topic TBD Tuesday, June 6th 10am-11am Topic TBD

43 Thank you! (213)