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 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 Retail and Wholesale (All interested Loan Officers and Brokers must attend a required in person lender training provided by Pasco County) Program Approval Subject to Availability Expiration approval expires: 01/02/2020 Housing Authority Pasco County Community Development Division (Authority) 5640 Main Street, Suite 200 New Port Richey, FL 34652 Phone: (727) 834-3445 Contact: Michelle Miller Email: mlmiller@pascocountyfl.net Website: www.pascocountyfl.net Housing Authority EIN 59-6000793 DPA Provider Classification Government Entity Secondary Financing Programs First Mortgage Maximum LTV First Mortgage Maximum CLTV 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 Freddie Mac Fixed 30 Conforming Product (LPA): Refer to Product Profile Freddie Mac Home Possible with Community Second: 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 Freddie Mac Fixed 30 Conforming Product (LPA): Refer to Product Profile Freddie Mac Home Possible with Community Second: 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. Maximum Second Mortgage Loan Amount Second Mortgage Loan Interest Rate Very low income $15,000 Low Income $10,000 Moderate Income $5,000 0% Page 1
Minimum Borrower Down Payment For borrowers with income level 50% and below - $500 For borrowers with income level between 51%-80% - $1,250 For borrowers with income level at 120% -$1,500 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 low monthly payment 30-year loan. There is an Repayment Terms option in the Note the monthly payment may be deferred for the first 5 years depending on borrower s income. Then after the 5 th year monthly payments will commence. If the borrower sells or transfers the property within the first 5 years of ownership, there will be shared appreciation. The shared appreciation is 50% in the first 3 years. In years 4-5 the shared appreciation is 25%. 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 o 30 year fixed rate (No ARM, balloon payment or prepayment penalty) Lenders may not charge more than 4% of their mortgage amount for fees and charges, this includes broker fees, points, underwriting fees and other similar fees. 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 Pasco County, including all six cities in Florida Eligible Properties Acquisition Limit: Existing & New Construction: $240,000 Properties shall be sited on a permanent foundation, with a permanent utility hook-up, and may include: Page 2
Underwriting 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 o No duplexes or homes with attached or detached mother-in-law units. o No tenant occupied properties The following properties are NOT eligible: o Manufactured homes o Property located within a special flood hazard area or repetitive loss area. o Property that has experienced a sinkhole or other ground settlement activity, including remediated or stabilized properties 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, except as described herein: Before submitting the application the Loan Officer is required to reserve the funds for the borrower via email to Louise McIntyre at lmcintyre@pascocountyfl.net The Loan Officer/Broker will assist the borrower in completing the Homebuyer Assistance Program application available on Pasco County s link: http://www.pascocountyfl.net/index.aspx?nid=575 The completed application must be printed and submitted to Pasco County for review and approval. Faxed or emailed packages will not be accepted. All documents provided must be dated within 90 days of application. Upon qualification of the underwriting, the homebuyer will be issued a preapproval letter indicating the amount of 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, and the applicant may own one other home at the time of application. Borrower must be a U.S. Citizens. Ratios cannot exceed maximum 35% front (total housing payment plus homeowner s association fees, if any) and 40% 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.) with an opportunity of approval from the Community Development Division Committee Approval may go up to 40/45%. Assets Borrower must have required amount of their own funds in the transaction for type of first mortgage financing selected. All assets will be considered when calculating annual income (i.e.: checking/savings accounts, IRA s, 401(k) s, CD s, cash value life insurance, etc.) Income Limits April 2018 Income limits Pasco County Income Level 50% AMI 80% AMI 120% AMI 1 $22,400 $33,800 $53,760 2 $25,600 $40,900 $61,440 3 $28,800 $46,000 $69,120 4 $31,950 $51,100 $76,680 5 $34,550 $55,200 $82,920 6 $37,100 $59,300 $89,040 NOTE: If first mortgage guidelines are more restrictive than the Agency s for borrower s income limit, the first mortgage guidelines prevail. Page 3
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 the Dream of Homeownership Workshop homebuyer education class provided by Tampa Bay Community Development Corporation. No other classes are eligible. 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 (Fannie Mae, Documents Freddie Mac and FHA as applicable by loan type) Second Mortgage Loan Loan documents and security instruments must conform to Agency requirements (Fannie Mae, Documents Freddie Mac and FHA as applicable by loan type) PRMG DPA Program Restrictions That Are Not Permitted 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) Special Requirements: All interested Loan Officers and Brokers must attend a required lender training provided by Pasco County, contact Pasco County directly for training reservations. You will not be able to submit borrower applications until this has been completed. Page 4
This Fact Sheet form and any attachments 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. 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 01/02/2019 Name / Title Date Page 5