Assistance Program: Pima County HOME Down Payment Assistance Loan Code: DAZFHRDPA

Transcription

1 HOMEOWNERSHIP ASSISTANCE PROGRAM SUMMARY Product Description Allowable Origination Channel Program Name Program Approval Expiration Housing Authority Second mortgage loan program to be used in conjunction with: FHA Fixed Rate Fannie Mae Fixed 30 year Conforming Product (DU) Fannie Mae Housing Authority Product Fannie Mae HomeReady with Community Second Freddie Mac Fixed 30 Conforming Product (LPA) Freddie Mac Home Possible with Community Second VA Refer to Product Profile Retail and Wholesale Subject to Availability approval expires: 06/22/2019 Pima County Community Development and Neighborhood Conservation Department (Lender) 801 W. Congress Street Tucson, AZ Family Housing Resources (Administrator) 1700 E. Fort Lowell, Suite 101 Tucson, AZ Contact: Joleen Kaiser Phone: (520) Fax: (520) Website: Housing Authority EIN DPA Provider Classification Government Entity Secondary Financing Programs First Mortgage Maximum LTV First Mortgage Maximum CLTV FHA: 96.5% Refer to Product Profile Fannie Mae Conforming Product: Refer to Product Profile Fannie Mae HomeReady with Community Second: Refer to Product Profile o Purchase only: o 1 unit: LTV >95-97% (NO first-time home-buyer (FTHB) requirement). o Purchase and Limited Cash Out (Rate/Term): o 1 unit: 95% FRM; 90% ARM FHA: May not exceed 100% Refer to Product Profile Fannie Mae Conforming Product: Refer to Product Profile for CLTV requirements, may not exceed limits in product profile Fannie Mae HomeReady: 105%* Refer to Product Profile Page 1

2 The CLTV may not exceed 105% on HomeReady loans, unless further restricted by product profile. The sum of all financing may not exceed 105% of the cost to acquire the property plus any normal prepaid expenses. First Mortgage Fee Restrictions Maximum Second Mortgage Loan Amount Second Mortgage Loan Interest Rate Minimum Borrower Down Payment Loan fee limits may include 1% origination and up to $1,000 in lender fees Up to $3,700 0% $1,000 of their own funds Must have at least one month s mortgage payment as reserves at closing FHA: Refer to Product Profile Fannie Mae Conforming Product: Refer to Product Profile Fannie Mae HomeReady with Community Second: Refer to Product Profile NOTE: If first mortgage guidelines are higher than the Agency s for borrower s minimum investment, the first mortgage guidelines prevail. Second Mortgage Purpose Down Payment Closing Costs Second Mortgage Loan This second mortgage loan is a zero interest no monthly payment 5-year loan with a 5-year Repayment Terms affordability period. The principal balance will be forgiven at the end of the loan term as long as the property remained the borrower s principal residence. Repayment is due in full upon sale, transfer, lease, refinancing, change of ownership or home no longer occupied as primary residence. Loan proceeds may not be used to pay off other loans, advances or consumer debts. However, if any of the following repayment triggering events occur, the principal balance and any accrued interest shall be due and payable in full: Evidence of the act of fraud committed to falsely obtain assistance funds The property is sold Transferred title Refinancing with cash out A default on the first mortgage The borrower(s) ceases to occupy the property as their principal place of residence Upon the death of the last surviving applicant The filing of any bankruptcy by the applicants Upon divorce, unless one of the applicants continues residing in the property by the decree of divorce Loan may be pre-paid in full at anytime Loan is NOT assumable Types of Financing Purchase Money Mortgage o 30 year fixed rate loan must reflect par market rate (No ARM, balloon payment or prepayment penalty) o Loan fee limits may include 1% origination and up to $1,000 in lender fees Occupancy Owner occupied primary residence only Page 2

3 All co-borrowers must occupy Borrower(s) may not have an ownership interest in any other residential dwelling at the time of loan closing Geographic Location Properties must be located within Pima County or City of Tucson, Arizona Eligible Properties Acquisition Limit: Existing $160,000 & New Construction: $228,000 Properties shall be sited on a permanent foundation, with a permanent utility hook-up, and may include: Single family - detached, attached Condominiums or Townhomes or Planned Urban Development -detached, attached Must be currently occupied by the owner, vacant or occupied by the homebuyer The purchase price must not be higher than the appraised value The purchase contract must contain the following language Sale contingent upon City of Tucson/Pima County environmental clearance The borrower must arrange for a home inspection with one of the property inspection companies listed on the FHR guidelines page 2 see link: These companies are certified by the City/County to complete the Housing Quality Standards Inspection in addition to the regular home inspection. The property must PASS all criteria of the HQS inspection. A copy of the home inspection will need to be provided to Family Housing Resources prior to loan closing. All repairs called for by inspection MUST be completed prior to closing. Underwriting Refer to product profile for additional property eligibility requirements, not all property types are allowed on all products. Lender to pre-approve all borrowers for the first mortgage product. Standard FHA, Fannie Mae Conforming Product, Fannie Mae HomeReady, VA, except as described herein: The Loan Officer/Broker will refer the borrower to FHR for eligibility review prior to signing a purchase contract. Upon qualification of the underwriting, the homebuyer will be issued a preapproval letter indicating the amount of assistance. Borrower must apply and obtain Housing Authority s Approval Letter for the Down Payment Assistance. Upon approval, a copy of DPA Approval Letter MUST be in each file. Eligible Borrowers Borrower(s) must qualify for the first mortgage selected. Borrower does not have a to be a first time homebuyer, however, they cannot own any home at time of application. Borrower must be a U.S. Citizens or have a Permanent Resident status. Ratios cannot exceed maximum 31% front (utilities and maintenance items are not included in front end ratios) and 45% back (total housing payment, plus homeowner s association fees, if any, AND other recurring debts such as credit card payments, car payments, student loans, etc.). Must not owe any amounts to the City of Tucson for Section 8 or Public Housing Assets Borrower must have required amount of their own funds in the transaction for type of first mortgage financing selected. Applicant cannot have liquid assets exceeding $10,000 after closing except for amounts invested in financial instruments designated as a retirement account such as an IRA or 401k. Income Limits 80% AMI Pima County Effective May 10, 2018 Page 3

4 NOTE: 1 Person 2 Persons 3 Persons 4 Persons 5 Persons 6 Persons 7 Persons 8 Persons $33,950 $38,800 $43,650 $48,500 $52,400 $56,300 $60,150 $64,050 If first mortgage guidelines are more restrictive than the Agency s for borrower s income limit, the first mortgage guidelines prevail. MI Coverage FHA: Standard UFMIP and monthly if applicable Fannie Mae Conforming Product Refer to Product Profile Fannie Mae HomeReady and Conforming (DU) Products: Standard mortgage insurance requirements must be met, if applicable, as described in Product Profile Special Provisions Homeownership Counseling: Refer to product profile for specific product requirements Borrowers must successfully complete a face to face 8-hour homebuyer education class provided by a Family Housing Resources a HUD approved counseling agency: Borrower s Certification of Completion of Homeownership Counseling is required Fannie Mae HomeReady Only: See Product Profile for Homeownership Counseling requirements. Freddie Mac Home Possible Only: See Product Profile for Homeownership Counseling requirements. All: May be funded by a municipality, state, county or local housing finance agency, non-profit organization, a regional Federal Home Loan Bank or an employer May be used to fund all or part of the down payment or closing costs The more restrictive down payment requirement between the product and the second mortgage will apply No reporting requirements permitted DPA Processing Fee Costs incurred for down payment 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 Closing Disclosure. Special Feature Code N/A Underwriting Requirements Receipt of borrower s approval from DPA provider Receipt of DPA Funds (at closing) No cash back at closing (at closing) Copy of DPA s Executed Note and Subordinate Mortgage (at closing) First Mortgage Loan Loan documents and security instruments must conform to Agency requirements (FHA, Fannie Documents Mae, Freddie Mac, VA as applicable by loan type) Second Mortgage Loan Documents Loan documents and security instruments must conform to Agency requirements (FHA, Fannie Mae, Freddie Mac, VA as applicable by loan type) Page 4

5 DPA Program Restrictions That Are Not Permitted Special Requirements: PRMG The may not Restrict the transfer of servicing rights of the first Mortgage Require prior notification or approval from the sponsoring authority in the event of the transfer of the first mortgage servicing rights. If there is any evidence of this verbiage in the subordinate documents, the program will no longer be eligible. The First Mortgage may not be subject to a bond program loan documents and security instruments must conform to Agency requirements (FHA, Fannie Mae as applicable by loan type) Upon approval, PRMG/Broker is required to submit the following loan documents prior to closing: Loan Estimate Credit Report Purchase Contract FHR requires a minimum of 30 days to process the application after all the information has been received. This Fact Sheet form and Housing Authority s Borrower Approval Letter MUST be placed in each loan file at the time of submission. Additional Comments: Approved with Closing Instructions for Closing the DPA Mortgage must be recorded in 2nd lien position. Note: The assistance may have restrictions with using another layer of down payment assistance notify FHR immediately. APPROVAL ELIGIBLE INELIGIBLE The DPA IS eligible for use with the programs below The DPA IS NOT eligible for use with the programs below CONV (DU) FHA VA USDA CONV FHA VA USDA X X X X PRMG Approved by: PRMG DPA Review Department 6/22/2018 Name / Title Date Page 5