California Homebuyer Fund CHF

Transcription

1 California Homebuyer Fund CHF Purchase Primary Residence Loan Type Property Type Max. LTV/CLTV (1) Min. FICO Max DTI FHA VA USDA 1 Unit SFR, Condo, PUD 1 Unit SFR, Condo, PUD 1 Unit SFR, Condo, PUD 96.5% / 105% (2) % 100% / 100% % 100% / 105% (2) % Maximum Loan Amount The lesser of $417,000 or maximum loan amounts permitted by HUD/FNMA 1. Maximum LTV/CLTV calculated on base loan amount (prior to adding the UFMIP, USDA Guaranty Fee, or VAFF) 2. Lesser of 105% or 100% cost to acquire. Cost to acquire = 1 st TD + 2 nd TD + Closing Costs. Secondary Financing MUST BE from a Governmental Instrumentality CHF Websitehttp:// CHF Revised 12/17/2014 Page 1

2 The CHF Platinum Program is designed to assist low to moderate income homebuyers with the purchase of a home, by providing down payment and/or closing cost assistance (currently in the form of a Grant). Many times this assistance means families and individuals can purchase a home much sooner than they thought possible. The program is available for the purchase of an owner occupied principal residence, including agencyapproved condominiums or planned unit developments (PUDs) located in the state of California. It is not limited to first time homebuyers. The Grant can be used towards the homebuyer s down payment and/or eligible closing costs on a variety of Mortgage Loans. It is available for purchases of both new and existing homes, as long as the home will be the primary residence of the homebuyer CHF Revised 12/17/2014 Page 2

3 Age of Credit & Income Documentation Appraisal Requirements Assets Credit, Asset and Income documentation must be no more than sixty (60) days old at the time of submission to US Bank for Pre Purchase approval review Credit Docs must be < 90 days at closing (date of Note) USDA, FHA, VA, appraisal is required regardless of AUS Findings Age of appraisal to be no more than 90 days old at time of submission to US Bank and < 120 days at closing (date of Note) Two months complete bank statements all pages, Gift from family member or household member allowed. Follow Gift requirements as per Agency Guidelines ( FHA, VA, or USDA) to include acceptable donor through gift documentation requirements. 401K or Retirement funds allowed with documented terms of withdrawal. Assumable Subject to Agency s Guidelines Automated Underwriting Desktop Underwriter (DU) with an Approve/Eligible for FHA or VA GUS Approval required for all USDA Loan Prospector and other customized automated underwriting systems are NOT acceptable Manual Underwriting is not permitted Borrower Eligibility Borrower must meet the following requirements: Occupy the residence as their primary residence; non occupant co borrowers are not allowed. FHA/VA/USDA: 115% Area Median Income (AMI). Minimum Credit Score of 640. Maximum DTI of 45%. Meet all required FHA, VA, USDA RHS underwriting criteria. Cash Reserves Established by the AUS (DU or GUS) Co Signers/ Co Borrowers Not Permitted CHF Revised 12/17/2014 Page 3

4 Condo Approval Follow Agency Guidelines per the product type (i.e. FHA, VA, USDA) FHA guidelines for condo s Project must be DELRAP approved (HRAP approvals not allowed) VA Guidelines for condo s must be approved project by VA USDA Guidelines for condo s HO 6 Policy required when the Master Policy does not cover wall in and fixtures. Policy must be paid in full for the first year at time of closing. HO6 Minimum Coverage is 20% of appraised value NOTE: The monthly cost of the HO 6 policy must be included in the calculation of ratios Contributions by Others Conversion Of Principal Residence Follow Agency Guidelines for Product Type (FHA, VA, or USDA) Payment of HOA dues is considered a concession, not a contribution and requires a dollar for dollar downward adjustment to the sales price Not Allowed Eligible Borrowers must not have any ownership interest in any other property at time of closing Counseling Not Required Credit Refer to SPM FHA, VA, or USDA, guidelines for Credit and Significant Derogatory Credit DAP CHF Platinum Grant Funds Grant Funds available from CHF: FHA/VA: Up to 5% of the First Mortgage Loan amount. USDA: Up to 3% of the First Mortgage Loan amount. Proceeds may be used for down payment and/or closing costs; There must be no cash back to the borrower from the Grant Fund proceeds; CHF s EIN is Lenders are required to reflect CHF s EIN on HUD s FHA Loan Underwriting and Transmittal Summary in conjunction with secondary financing assistance, grants or gifts to the borrower when the borrower is receiving an FHA First Mortgage. Lenders upfront the grant at closing to be reimbursed by the Servicer, on behalf of CHF,upon purchase of the Platinum First Mortgage CHF Revised 12/17/2014 Page 4

5 Deed Restriction Documentation Allowed per Agency guidelines (FHA, VA, USDA) Reservation Confirmation Form CHF Platinum Program Funding Commitment Notice CHF Platinum Grant Letter (if applicable) Down Payment Assistance Funding Form (USB002) & attachment (If DPA funds are being used) if applicable EEM Not Allowed Eligible Properties 1 Unit SFR, PUD, or Condo Owner Occupied, Principal Residences Homes with defects and/or repair conditions identified by the appraiser on the appraisal report must be corrected prior to close of escrow Escrow Holdbacks not allowed Eligible Purpose Purchase Only Employment Verification Wage Earners: Current paystubs covering at least 30 days YTD earnings 2 years W 2s for Non First Time Homebuyers Verbal VOE as per AUS messaging All Gaps > 30 days and job changes must be explained in writing and documented (i.e. previous VOE s) Self Employed Borrowers: Lenders must verify the existence of the borrower s business within 30 calendar days prior to the note. Existence of the borrower s business must be verified by a third party, such as a CPA, regulatory agency, or the applicable licensing bureau if possible. Borrower s business address and phone listing must independently verified Two years personal and business federal returns with all schedules required to evidence at least a 24 month history of self employment CHF Revised 12/17/2014 Page 5

6 Escrow Hold back Not Allowed Flipping Policy Lender must document the file with evidence that the property seller in a purchase money transaction is the owner of the subject property Any substantial increase or decrease by the current owner, in the Sales Price the borrower is paying, requires lender to conduct a careful review of the appraisal and the comparable sales to assure that the current sales price is supported. This review may require documentation of any work that has been done by the current owner to support a substantial increase Follow the SPM flipping policy for VA & USDA Follow FHA Flipping Policy & Waiver for FHA transactions Homebuyer Education Not required HPML (High Price Mortgage Loans) Eligible on FHA Loans only Not Eligible on VA or USDA Loans Income Compliance/Qualifying COMPLIANCE INCOME(same as Credit Qualifying Income) Same as the income reflected on the 92900LT, , or USDA Total Repayment Income Compliance Income Limits for Eligibility Check: FHA, VA, USDA Income Limits QUALIFYING INCOME: Defined as any eligible income as definedby FHA, VA, or USDA, that can be utilized as effective income for qualifying. CHF Revised 12/17/2014 Page 6

7 Ineligible Properties IRS #4506 T Hazard & Flood Insurance Hazard & Flood Insurance Deductibles Manufactured housing Multiple units, including guest houses, granny units, in law quarters, and any separate units containing kitchen facilities are not eligible Leaseholds/Land Trusts and Co ops are not permitted Non permitted additions/alterations must follow FHA/VA or USDA guidelines Lot size cannot exceed five (5) acres maximum Lender to process the 4506Ts for all borrowers, requesting most recent 2 years transcripts of 1040s or 1040EZ with all schedules when applicable. W T validation only is not eligible for this program program requires full 4506T tax transcripts for the previous 2 years NOTE: This would include personal returns and business returns as applicable. Hazard Insurance Proof of protection against loss or damage from fire and other hazards covered by an extended coverage endorsement along with proof of payment for the first year's premium. This may be in the form of a policy or binder. Appropriate coverage should also be obtained for any localized perils (i.e. flood, sinkhole, mine subsidence, volcanic eruption, and avalanche) that are not coverage by standard property insurance. a) Policy must reflect the borrower(s) name(s) and match other supporting documents. b) Must contain the agent(s) signatures, their address and telephone number. It must also reflect the company name and policy number. c) Policy is in effect on the day of closing (coverage in force). d) The full property address must be referenced and precisely match all other supporting documentation. e) Provide proof the policy is paid for the first year. Acceptable Evidence of Payment of Hazard Insurance Policy stating premium amount is paid in full. Cancelled check (copy of front). A paid receipt from the insurance agent or insurance company. Payment deducted on the HUD 1 Max Hazard Deductible Max Hazard Deductible Property Type FHA/VA USDA 1 Unit Unless a higher max amount is required by state law, may not exceed greater of $2,500 or 2.5% of face amount of policy Unless a higher max amount is required by state law, may not exceed $1000 CHF Revised 12/17/2014 Page 7

8 Association Policy for Condo/PUD Project Deductible may not exceed the higher of $2500 or 2.5% of the policy s insurance limits for all covered losses Deductible may not exceed the higher of $2500 or 2.5% of the policy s insurance limits for all covered losses 1 Unit Property Type Max Flood Deductible FHA/VA Unless a higher max amount is required by state law or agency, $2,000 Max Flood Deductible USDA Unless a higher max amount is required by state law or agency, $2,000 Association Policy for Condo/PUD Project Unless a higher maximum amount is required by state law, the maximum deductible clause may not exceed $25,000 Unless a higher maximum amount is required by state law, the maximum deductible clause may not exceed $25,000 Liabilities As per SPM standard FHA, VA, or USDA guidelines Loan Fees GFE Box 1 Customary lender origination fees not to exceed 1.50% of the loan amount. This limit must include all lenderfees. Other customary third party fees such as credit report fee, appraisal fee, insurance fee or similar settlement or financing cost may also be charged Maximum origination Fee = to 1.50% Discount Points: 0.00% US Bank Funding Fee $30 (May be charged to Borrower and must be disclosed on GFE and HUD 1) Tax Service $85 (May be charged to Borrower and disclosed on GFE and HUD 1) $ reservation cancellation charged to Retail Branch and/or Regional Operations Center 6% of Loan Amount for Non delivery fee charged to Retail Branch and/or Regional Operations Center CHF Revised 12/17/2014 Page 8

9 Locks/Registration SPM Loan Approval w/ compliance income review is required prior to Loan Lock/Loan Registration All locks & loan registration will be done by the Corporate Secondary Lock Desk This will be a manual request from the loan officer/processor Lock is good for 30 days Lock Request Form must be ed to the Lock Desk by 3:00 PST daily. Lock confirmation will be returned within 24 hours Lender automatically reserves funds for Down Payment Assistance at the time of Loan registration Modifications to a reservation will require approval from Program Manager with CHF Electronic confirmation of reservation, Reservation Confirmation, will be provided to Lender if loan registration determines that the loan initially qualifies as a Qualified Mortgage Loan. Cancellation Fee of $400 will be applied by CHF for each cancelled loan this will be billed to the Retail Branch and/or Regional Operations Center Loan may be re registered after 30 calendar days from cancellation date Follow initial lock process Reservation extensions available at a minimum cost of.375% this is the responsibility of both the Retail Branch & Regional Operations Center Max DTI Max.# RE owned Maximum Loan Amount Maximum DTI 45.00% regardless of automated underwriting decision or compensating factors Borrower may not have any ownership interest in any other property at time of closing and must occupy the subject property as their primary residence with occupancy 60 days of closing. This includes ownership in a Manufactured/Mobile Home whether permanently affixed or not. The lesser of $417,000 or maximum loan amounts permitted by HUD/Fannie Mae Maximum LTV/CLTV Minimum Credit Score Standard FHA, VA, and USDA guidelines Additional subordinate loan(s) and grants may also be eligible 640 for FHA, VA, and USDA CHF Revised 12/17/2014 Page 9

10 Mortgage Credit Certificate (MCC) Mortgage Credit Certificate Tax Credit may be layered with this product, HOWEVER no MCC credit may be used in the underwriting. (i.e. may not be used as income or as a credit to the proposed housing expense) Mortgage Loan Types and Terms 30 year fixed term with full amortization: FHA: 203(b) and 234(c); in accordance with FHA guidelines. VA: in accordance with VA guidelines USDA RHS: in accordance with USDA guidelines. New Construction Product Codes Allowed FHA T100CHF VA T200CHF USDA T400CHF 30 year fixed rate only Occupancy Primary Residence / Owner Occupied Only Pre Closing Review by Agency Private Road Recapture Subordinate Financing None Recorded easement granting ingress & egress to subject property Recorded Road Maintenance Agreement Not subject to recapture Must come from a Community Second (Governmental Instrumentality) FHA must meet the requirements per the C.2.a, and Mortgagee Letters & VA must meet the requirements of VA Circular USDA refer to SPM USDA matrix for requirements CHF Revised 12/17/2014 Page 10

11 Required Documentation Form Name Completed by: Grant Letter Borrower Registration/Lock Confirmation CHF at Time of Lock/Registration Provided by Lock Desk / Secondary 4506T Request for Transcript of Tax Return Borrower(s) SSA 89 Copy of the Income Limit NOTES: Authorization for the Social Security Administration (SSA) to Release Social Security Number (SSN) Verification If Applicable Printed off website Lender uses all standard 1 st Mortgage Documents Borrower(s) Loan Officer to be included at time of loan submission CHF Revised 12/17/2014 Page 11

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