Assistance Program: City of Jacksonville Head Start to Homeownership Program Code: DFLJAHOME

Transcription

1 HOMEOWNERSHIP ASSISTANCE PROGRAM SUMMARY Product Description Allowable Origination Channel Program Name Second mortgage loan program to be used in conjunction with: FHA Fannie Mae Fixed 30 year Conforming Product (DU) Fannie Mae Housing Authority Product Fannie Mae HomeReady with Community Second VA Retail Required Mandatory Lender Training - Branch 407 Branch Manager-George Mateo, Loan Officer Tamika Peterkin, Loan Officer David Pressly, Loan Officer Stephanie Robinson Origination Period: November 14, 2017 through November 14, 2018 Program Approval Expiration Housing Authority Subject to Availability approval expires: 11/14/2018 City of Jacksonville (Authority) 214 N. Hogan Street, 7 th Floor Jacksonville, FL Contact: Susan Harnage Phone: (904) SHARNAGE@coj.net Website: Housing Authority EIN DPA Provider Classification Government Entity Secondary Financing Programs First Mortgage Maximum LTV First Mortgage Maximum CLTV FHA: Refer to Product Profile Fannie Mae Housing Authority Product. 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: Refer to Product Profile Fannie Mae Housing Authority Product. 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: Refer to Product Profile 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. Page 1

2 First Mortgage Fee Restrictions Maximum Second Mortgage Loan Amount Second Mortgage Loan Interest Rate Minimum Borrower Down Payment IMPORTANT: The only fee allowed to be charged to the borrower by PRMG is a $750 processing fee. When locking the first mortgage, PRMG staff MUST contact Secondary for a loan level pricing adjustment (LLPA) to be applied to the loan to accommodate the additional processing and underwriting fee that would generally be charged to the borrower. Allowable closing costs: o Lender Processing fee not to exceed $750 o Inspection fees, including pest inspection o Appraisal o Escrow Prepaids o Homeowner s insurance for 1 year o Home Warranty for 1 year o Tax Service fee o Home ownership training class o FHA Mortgage Insurance / PMI for 1 year o Doc Stamps / Recording fees o Property Survey o Title Insurance City will review CD/HUD-1 and make changes if applicable. Once the CD/HUD-1 is approved by the City of Jacksonville they will the closing agent with the approval and begin the check process. Allow a minimum of days prior to closing for City of Jacksonville to provide the funds to the closing agent. PRMG is NOT advancing DPA funds. $15,000 for borrowers up to 59% AMI $12,500 for borrowers 60% to 80% AMI $10,000 for borrowers 81% to 140% AMI NOTE: PRMG is not participating in any repair assistance as PRMG does not allow escrow holdbacks/repair. 0% Borrower is required to contribute a minimum of $1,000 or the lesser of $500 earnest money plus cost of HQS inspection from borrower own funds. FHA: Refer to Product Profile Fannie Mae Housing Authority Product. 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 Repayment Terms This second mortgage loan is a zero interest no monthly payment forgivable 10-year loan. As long as the property remains as borrower s principal residence then the second mortgage loan will be forgiven in full at the end of the maturity date. Repayment is due in full upon sale, transfer, lease, refinancing, change of ownership or home no longer is occupied as primary residence. Loan proceeds may not be used to pay off other loans, advances or consumer debts. Page 2

3 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 (No ARM, balloon payment or prepayment penalty) Occupancy Owner occupied primary residence only 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 Duval County, Florida Eligible Properties Acquisition Limit: Existing & New Construction: $330,050 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 All repairs 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, Freddie Mac and VA, except as described herein: The Loan Officer will prequalify borrower and will , fax or deliver the H2H Down Payment Request Form along with the following items: o City of Jacksonville Application o 1003 o 1008 o PRMG Pre-Approval Letter/Approval Letter City reviews, authorizes and s/faxes H2H back to PRMG with the pre-approval subsidy amount and 60-day date to submit a full application packet to include the following: o Sales contract, o Precontract agreement o Affidavit of Value (City Document) o Loan Approval, o Updated 1008 (if applicable) o Appraisal (if completed) o Copies of the income verification documents (VOE, current pay stubs, child support, etc) Page 3

4 o Bank statements for the most recent 6 months (including 401K, IRA, CD and any other assets) o Counseling Certificate o Contact name and phone number for inspection and money order payable to the inspection company for the inspection. Buyer MUST be present at the initial inspection. All of these documents MUST be received BEFORE the inspection will be ordered. Appraisal and homebuyer education class certificate can be submitted later. o If repairs are required a reinspection will need to be ordered. The City will review the final inspection. Final H2H Subsidy Approval Letter will be provided to PRMG with an expiration date of 120 days. A copy of DPA Approval Letter MUST be in each file. City reviews file for all final and missing documentation, including appraisal report. PRMG sets the closing date with the closing agent, City reviews CD/HUD days prior to closing. W-9 will be required from the closing agent. Borrower executes in house documents. City prepares Note and Mortgage and forwards to closing agent. Borrower executes the following documents with closing agent, closing agent must provide to City: o Signed CDs/HUD-1 (all) o W.D.O. report o Copy of property survey o Copy of check to inspection company o Original recorded City Mortgage and Note o Affidavit of Value (City form) Eligible Borrowers Borrower(s) must qualify for the first mortgage selected. Borrower does not have to be a first-time homebuyer; however they may not currently own any other property at time of application. Resident of Duval County, Florida. Assets Borrower must have required amount of their own funds in the transaction for type of first mortgage financing selected. Income Limits 2017 INCOME LIMITS Household Size Up to 59% AMI 60% AMI Up to 80% AMI 81% AMI Up to 140% AMI 1 $27,059 $27,060 $36,050 $36,051 $63,140 2 $30,959 $30,960 $41,200 $41,201 $72,240 3 $34,799 $34,800 $46,350 $46,351 $81,200 4 $38,639 $38,640 $51,500 $51,501 $90,160 5 $41,759 $41,760 $55,650 $55,651 $97,440 6 $44,879 $44,880 $59,650 $59,751 $104,720 7 $47,939 $47,940 $63,900 $63,901 $111,860 8 $51,059 $51,060 $68,000 $68,001 $119,140 NOTE: If first mortgage guidelines are more restrictive than the Agency s for borrower s income limit, the first mortgage guidelines prevail. MI Coverage FHA: Refer to Product Profile Fannie Mae Housing Authority Product Refer to Product Profile 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 Page 4

5 Special Provisions Homeownership Counseling: Refer to product profile for specific product requirements Borrowers must successfully complete eight hours of homebuyer class training provided by Habitat for Humanity or Jacksonville Urban League 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 HUD-1. 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 Second Mortgage Agreement (at closing) First Mortgage Loan Loan documents and security instruments must conform to Agency requirements (FHA, Fannie Documents Mae, Freddie Mac as applicable by loan type) Second Mortgage Loan Documents DPA Program Restrictions That Are Not Permitted Loan documents and security instruments must conform to Agency requirements (FHA, Fannie Mae, Freddie Mac as applicable by loan type) PRMG 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. Special Requirements: 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) City Funding Requirement, no exceptions: PRMG MUST provide closing statement fourteen business days prior to closing. PRMG must provide the contact information for the closing agent and ensure the City has a W-9 for the closing agent. PRMG executed a Lender Agreement in order to participate in this program. Approved must be in 2 nd lien position. This Fact Sheet form and any attachments MUST be placed in each loan file at the time of submission. Page 5

6 Additional Comments: ELIGIBLE APPROVAL 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 12/08/2017 Name / Title Date Page 6