SUBJECT: Federal Home Loan Bank of Topeka Homeownership Set-aside Program (HSP)

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DATE: February 21, 2018 SUBJECT: Federal Home Loan Bank of Topeka Homeownership Set-aside Program (HSP) Attached is a Fact Sheet for the above referenced grant program, available for homes purchased

1 DATE: February 21, 2018 SUBJECT: Federal Home Loan Bank of Topeka Homeownership Set-aside Program (HSP) Attached is a Fact Sheet for the above referenced grant program, available for homes purchased within the States of Colorado, Kansas, Nebraska and Oklahoma. This program can be used in conjunction with FHA Fixed Rate products.. Income eligible homebuyers can obtain a DPA up to $5,000 for down payment and closing cost. This amount is subject to change upon re-evaluation by the FHLB of Topeka. Any change in this amount would require resubmission of this program to Ditech for evaluation. NOTE: Program approval expires: 12/31/2018 v Review all material and forms completely to ensure that agency guidelines are met. v While this fact sheet serves as a guide, the loan reviewer is ultimately responsible for consulting the product summary to ensure compliance with the specific loan product v Ditech is not obligated to provide documents and/or requirements to DPA program v This Fact Sheet provides a program overview. For complete program information and additional guidance contact: Member banks would contact FHLB of Topeka. Jessica Puvogel v DPA approved for Delegated and Non-Delegated Clients ONLY v Delegated and Non-Delegated Clients must be approved by FHLB of Topeka v Currently not available for Broker transaction 1 02/21/2018- AMM

2 Product Description Program Approval Expiration Grant Provider Classification Minimum Borrower Down Payment Grant program to be used in conjunction with: FHA Fixed Rate Subject to Availability approval expires: 12/31/2018 Government Agency Federal State or Local government $500 down payment. If the homebuyer fails to meet the $500 contribution requirement, the member will forfeit the entire grant amount. FHA: Refer to product summary NOTE: If first mortgage guidelines are higher than the Agency s for borrower s minimum investment, the first mortgage guidelines prevail. First Mortgage Maximum LTV Refer to product summary Maximum CLTV Refer to product summary NOTE: *The CLTV may exceed 100% on FHA loans provided that the borrower receives no cash back at settlement. The sum of all financing may not exceed 100% of the cost to acquire the property plus any normal prepaid expenses. DPA Purpose Down payment Closing costs (including prepaids) Minimum DPA Amount N/A Maximum DPA Amount $5,000 Types of Financing Purchase Money Mortgage Occupancy Owner occupied primary residence only All co-borrowers must occupy Borrower(s) may not have ownership interest in any other residential dwelling at the time of loan closing. All borrowers/co-borrowers/co-owners must be household members of the property being purchased. Geographic Location Eligible Properties Properties must be located within the limits of: Colorado, Kansas, Nebraska, and Oklahoma Acquisition Limit: None stated. Eligible properties include single-family dwellings, townhouses, condominiums, cooperative housing units or manufactured housing (must be affixed to a permanent foundation and titled as real estate) to be used as the homebuyer s primary residence. Properties shall be sited on a permanent foundation, with a permanent utility hook-up. Manufactured homes must be classified as real estate at time of application ALL repairs called for by inspections MUST be completed prior to closing. The property cannot be both units in a duplex, where one unit is the household s primary residences and the other unit is 1 02/21/2018- AMM

3 investment property. Refer to product summary for additional property eligibility requirements Underwriting Lender to pre-approve all borrowers for first mortgage product. Standard FHA except as described herein: A copy of DPA Form MUST be in each file Eligible Borrowers Borrower(s) must qualify for the first mortgage selected. First Time Home Buyers (FTHB) only - Borrowers may not currently own a house and may not have owned a house during the last three years prior to making application. Member certifies, at the time of reservation, at least one homebuyer is a first-time homebuyer Is divorced but has only owned a residence with a former spouse; Have only owned a residence not permanently affixed to a permanent foundation in accordance with applicable Regulations; Has only owned a property that was not in compliance with State, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure; or Is a household displaced as a result of a Federally Declared Disaster (as designated by FEMA) within 24 months of the reservation date. All borrowers/co-borrowers/co-owners must be household members of the property being purchased. Assets Borrower must have required amount of their own funds in the transaction for type of first mortgage financing selected Income Limits Borrowers combined annual income per household must be at or below 80% of area median income adjusted by family size: See attached Income Limits NOTE: If first mortgage guidelines are more restrictive than the Agency s for borrower s income limit, the first mortgage guidelines prevail. MI Coverage Refer to product summary Special Provisions Homeownership Counseling Refer to product summary for specific product requirements: The homebuyer education must be taken from a provider approved by one of the FHLBank designated organizations shown below. Homebuyers may take the homebuyer education course from any approved provider regardless of the state in which the property being purchased is located. Colorado Housing Finance Authority: Kansas Consumer Credit Counseling Service, Inc.: Nebraska Housing Developers Association: 2 02/21/2018- AMM

4 Oklahoma Homebuyer Education Association United States Department of Housing and Urban Development (HUD): Federal National Mortgage Association: Federal Home Loan Mortgage Corporation: Habitat for Humanity Homebuyer education must be completed within the current or previous calendar year of the purchase closing date. Ensure the homebuyer education provider has included the date of course completion on the homebuyer education certificate. Borrower s Certification of Completion of Homeownership Counseling is required For households with more than one homebuyer, only one homebuyer must complete the homebuyer education course and be named on the certificate. No reporting requirements permitted. Real Estate Retention Agreement to be executed at closing. FHLBank recommends the required homebuyer education course be taken prior to the loan closing. DPA Processing Fee Special Feature Code Costs incurred for downpayment assistance secondary financing program may only be included in the amount of the second lien. The fee cannot be included in the first mortgage transaction or appear on the CD /HUD-1. N/A Underwriting Requirements Receipt of borrowers approval from DPA provider Receipt of DPA Funds (at closing) No cash back at closing (at closing) Fully Executed Five-Year Real Estate Retention Agreement (at closing) Note: The following attachment form MUST be placed in each file Affordable Housing Program Income Limits Contact HCD at to obtain income limits for household sizez /21/2018- AMM

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Assistance Program: City of Austin Shared Equity Down Payment Assistance Code: DTXSHARED

Assistance Program: City of Austin Shared Equity Down Payment Assistance Code: DTXSHARED HOMEOWNERSHIP ASSISTANCE PROGRAM SUMMARY Product Description Allowable Origination Channel Program Name Second mortgage loan program to be used in conjunction with: FHA Fixed Rate Fannie Mae Fixed 30-year