"Homeport" Program

Report
Franklin County and Ohio Housing Trust Funds
Down Payment Assistance Programs.
Guidelines and Underwriting
Presenter:
Isabel Giles
Loan Program Coordinator
Agenda
1. Introduction / Objective
2. Franklin County / OHTF DAPs
3 Guidelines & underwriting
4. Questions
Objective
The purpose of this seminar is to equip
participants with the knowledge and
understanding of the Franklin County and
Ohio Housing Trust Funds down payment
assistance programs
Grants Objective
• Offer to low and low-medium income families
and individuals who would otherwise not
qualify, an opportunity to purchase their own
home through the use of these Funds
• Prospective homebuyers must comply with
the guidelines established for the programs.
For Both Grants
• Funds are provided on:
First come first serve bases and are subject to availability.
Eligibility Criteria
Franklin County DAP
& OHTF DAP
Property
/Loan
Limit
500$
Contribution
n
Guidelines
Location
Illness
Loan
Vs.
Value
Ratios
31/43
Grants Guidelines I
Franklin County DAP
• Location :Franklin Co. outside
tax district 010
• Principal Residency. Fist Time
H-B or 3 yrs.
OHTF DAP
• Location: Franklin County.
• Principal Residency. First Time
H-B or 3 yrs.
• Income: Up to 80% HUD-MSA
• Income: Up to 65% HUD-MSA
• Loan amounts can’t exceed
the FHA amount for CMSA
• Loan amounts can’t exceed
the FHA amount for CMSA
Grants Guidelines I
Franklin County DAP
OHTF DAP
• Amount: Up to $4K DP& $2K
CC
• Amount: 3% purchase price up
to $3K. The lesser.
• Household Income is used to
calculate income eligibility.
• Household Income is used to
calculate income eligibility.
• Borrower contribution: $500
• Borrower contribution: $500
• Borrower can’t have more
than $3K in liquid assets
• Borrower can’t have more
than $5K in liquid assets
Grants Guidelines I
Franklin County DAP
OHTF DAP
• 0% interest. No payments
• 0% interest. No payments
• 6 yrs. Lien
• 5 yrs. Lien
• Can NOT be combine with any
other program.
• Works with ADDI, EDCI. Not
with any form of OHFA’s DAP
• Property must meet local
housing codes (DS&S) /
Certificate of occupancy
•
Property must meet local
housing codes (DS&S) /
Certificate of occupancy
Grants Guidelines
Franklin County DAP
OHTF DAP
• Home inspection w/all utilities
running.
• Home inspection w/all utilities
running.
• Lead-Base Paint Hazard test
for 1978 or older buildings.
Must be included with the
application package.
• Lead- Base Paint hazard test
for 1978 or older buildings.
Must be included with the
application package.
Grants Guidelines I
Franklin County DAP
OHTF DAP
• Eligible use of funds. (*)
• Eligible use of funds. (*)
• Loan assistance is not
assumable.
• Loan assistance is not
assumable.
• Underwriting ratios: 31/43
• Underwriting ratios: 31/43
• The Loan assistance becomes
immediately due and payable
in the event of Fraud or 1st
Lien assumption.
• The Loan assistance becomes
immediately due and payable
in the event of Fraud or 1st Lien
assumption.
Grants Guidelines
Franklin County DAP
• LTV (1st+2nd) must not exceed
the estimated property value.
OHTF DAP
I
• LTV(1st +2nd) must not exceed
the estimated property value.
• Lender will send applicant to
Homeport to fill out application
• Lender will send applicant to
Homeport to fill out application
• Lender must obtain all
verifications & documentation
necessary to establish the
borrower’s eligibility for DAP
• Lender must obtain all
verifications & documentation
necessary to establish the
borrower’s eligibility for DAP
Grants Guidelines
Franklin County DAP
• Homeport reviews applications
within 20 business days of
receiving a completed pack.
OHTF DAP
I•
Homeport reviews applications
within 20 business days of
receiving a completed pack.
• If loan assistance is approved,
Homeport will notify borrower
and lender in writing by
sending a Commitment Letter
• If loan assistance is approved,
Homeport will notify borrower
and lender in writing by
sending a Commitment Letter
• Homeport will request a
schedule for closing
• Homeport will request a
schedule for closing
Grants Guidelines
Franklin County DAP
• Lender or Title Co. submit the
Final HUD1 48 hrs. prior to the
scheduled date for closing.
• Funds Distribution: Homeport
will wire funds to the Title
company after the review and
approval of the final HUD 1
settlement statement.
I•
OHTF DAP
Lender or Title Co.: submit the
Final HUD1 48 hrs. prior to the
scheduled date for closing.
• Funds Distribution: Homeport
will wire funds to the Title
company after the review and
approval of the final HUD 1
settlement statement.
Grants Guidelines
Franklin County DAP
• Cash Back to the borrower is
not allow.
OHTF DAP
I•
Cash Back to the borrower is
not allow.
• Any unused proceeds that
remain at closing must be
returned to Homeport.
• Any unused proceeds that
remain at closing must be
returned to Homeport.
• Lender and Title Co. must
notify Homeport if for any
reason loan couldn’t close the
scheduled day
• Lender and Title Co. must
notify Homeport if for any
reason loan couldn’t close the
scheduled day
•
Grants Guidelines
Franklin County DAP
• If the closing does not occur
within a 30 day period after
receipt approval of Funds, the
loan approval for the Funds
must be reviewed to make
sure no changes have
occurred.
OHTF DAP
I•
If the closing does not occur
within a 30 day period after
receipt approval of Funds, the
loan approval for the Funds
must be reviewed to make
sure no changes have
occurred.
Grants Guidelines
Franklin County DAP
• Homeport prepare and sends
the 2nd Mortgage doc. to the
Title Company for its execution
and recording at the Recorders
office.
OHTF DAP
I•
Homeport prepare and sends
the 2nd Mortgage doc. to the
Title Company for its execution
and recording at the Recorders
office.
• The promissory Note will be
closed at Homeport.
• The promissory Note will be
closed at Homeport.
• The Title Company execute
the first and second mortgage.
• The Title Company closes the
first mortgage.
• .
Grants Guidelines
Franklin County DAP
• Title Company must record the
executed 2nd mortgage and
mail it back to Homeport after
recorded, within 10 days after
the closing.
• Title Co. must submit to
Homeport copy of the 1st Lien,
Prom. Note and HUD1 w/all
attachments already executed
within 10 business days after
closing
•
•
OHTF DAP
I
• Title Company must record the
executed 2nd mortgage and
mail it back to Homeport after
recorded, within 10 days after
the closing.
• Title Co. must submit to
Homeport copy of the 1st
Lien, Prom. Note and HUD1
w/all attachments already
executed within 10 business
days after closing
Grants Guidelines
Franklin County DAP
OHTF DAP
I
• The 2nd mortgage loan, as
evidenced by a promissory
note is closed in the name of
Franklin County Board of
Commissioners.
• The 2nd mortgage loan, as
evidenced by a promissory
note is closed in the name of
Homeport
Eligible Use of Funds
- DOWN PAYMENT
- ORIGINATION FEES
- APPRAISAL COSTS
- CREDIT REPORT FEES
- TITLE BINDER AND TITLE POLICY
- SURVEY
- PROPERTY INSPECTION
- CLOSING FEES
- RECORDING FEES
- MIP THAT MUST BE PREPAID
- E.P.A. ENDORSEMENT
2012 HUD Income Guidelines
FAMILY SIZE
60%
KNOX
65%
80%
100% KNOX 115% 140%
65%
115%
ONE YEARLY 28,350 26,250 30,700 37,800 47,250 46,400 54,350 66,150
TWO YEARLY 32,400 29,950 35,100 43,200 54,000 53,000 62,100 75,600
THREE YEARLY 36,450 33,700 39,500 48,600 60,750 59,600 69,900 85,050
FOUR YEARLY 40,500 37,450 43,900 54,000 67,500 66,250 77,650 94,500
FIVE YEARLY 43,750 40,450 47,400 58,350 72,900 71,550 83,850 102,100
SIX
YEARLY 46,980 43,450 50,900 62,650 78,300 76,850 90,050 109,600
SEVEN YEARLY 50,200 46,450 54,400 67,000 83,700 82,150 96,250 117,200
EIGHT YEARLY 53,460 49,400 57,900 71,300 89,100 87,450 102,500 124,750
Lender Loan Processing
• Loan Application:
- Lender sends applicant to Homeport to complete application
and disclosure statement.
-
Lender provides to Homeport all the information listed on the
Submission Checklist .
• Eligibility Verification:
Lender obtains all verifications and documentation necessary to
establish the borrower’s eligibility for the Grant assistance.
Lender Loan Processing
• Underwriting:
Lender will calculate the expected down payment assistance and
make recommendation to Homeport.
• Commitment Submission Package
Homeport will attempt to approve package within 20 business days.
• Commitment Approval
Homeport send to lender/borrower a commitment letter.
Loan must be closed within 30 days of approval.
Closing Instructions
•
Fax final HUD-1 to Isabel Giles at 221-8591 24 hours before closing. Notify
her @ 221-8889 ext. 160 if figures change.
•
The Title Co. must return the following documents to Homeport within 10
days after closing:
 Copy of 1st Mortgage already executed and recorded
 Copy of executed Promissory Note for 1st Lien
 Original 2nd Mortgage already executed and recorded
 Final HUD 1 already executed
 Original Signed Sellers Uniform Relocation Act Disclosure Form
Provided by Homeport, if applies
Homeport Closing Process
• Borrower will meet with a Homeport Housing Advisor for one on one
appointment to review applicant’s budget, which must show a
balanced budget.
• Counselor will handle and disclose to the borrower the covenants of
the Grants, the Ohio Homebuyers’ Protection Act Informational
Document
• Counselor verifies the borrower receives clarifications and
understanding of all clauses in the Notes it and signs all required
documents.
Required Documentation From Lenders
Submission Checklist
Submit the following documents in one package. Application will not be
underwritten until the package is complete. Allow 20 business days from
receipt of a completed package for review and funding approval
-
Loan Funding Request
.
e submit The following documents in one
package.
The
loan
will
not
be
underwritten
Lender approval letter
until the application package is complete.
Borrower must meet with a Homeport’s
Homebuyer Education Certificate (from certified HUD agency)
Housing advisor to complete additional
Forms. Please allow 20 business days from
Final 1003 signed by M.L.O and applicant.
receipt of a completed package for review
and funding approval
Required Documentation From Lenders
Submission Checklist Cont….
Please submit the following documents in one package. Application will not be
underwritten until the package is complete. Please allow 20 business days
from receipt of a completed package for review and funding approval
-
-
-
Three most recent bank statements
.
e submit The following documents in one
package. The loan will not be underwritten
Sixty
days the
of most
recent paystubspackage is complete.
until
application
Borrower must meet with a Homeport’s
advisor
complete
additional
ProofHousing
of additional income:
SSI,to
child
support, alimony,
etc.
Forms. Please allow 20 business days from
Most
recent W2
all employers
receipt
offrom
a completed
package for review
and funding approval
Required Documentation From Lenders
Submission Checklist Cont……
Please submit the following documents in one package. Application will not be
underwritten until the package is complete. Please allow 20 business days
from receipt of a completed package for review and funding approval
-
-
-
Most
threeThe
yrs. of following
Tax returns.
e recent
submit
.
documents in one
package. The loan will not be underwritten
For all self-employed: YTD of P&L statement signed and dated.
until the application package is complete.
Borrower must meet with a Homeport’s
Signed purchase contract with all modifications attached.
Housing advisor to complete additional
Copy
of appraisal
with allallow
sheets. 20 business days from
Forms.
Please
receipt of a completed package
for review
rd
Home inspection report from a independent 3 party professional,
and funding
approval
conducted with all utilities
running.
Required Documentation From Lenders
Submission Checklist Cont……
Please submit the following documents in one package. Application will not be
underwritten until the package is complete. Please allow 20 business days
from receipt of a completed package for review and funding approval
-
-
-
-
.
If property was built in 1978 or before, a Lead-Based paint Test must be
conducted and a report showing the results must be submitted with the
package.
e submit The following documents in one
package. The loan will not be underwritten
until the application package is complete.
Seller’s occupancy certification, if applies.
Borrower must meet with a Homeport’s
Housing advisor to complete additional
Original
Signed
Seller Uniform
Relocation
act, if applies.
Forms.
Please
allow
20 business
days from
receipt of a completed package for review
and funding approval
The Good Faith estimate.
Loan Funding Request
BORROWER’S NAME(S)
_______________________________________________________
PROPERTY ADDRESS
_______________________________________________________
CITY, STATE, ZIP
_______________________________________________________
CLOSING DATE
_______________________________________________________
TITLE AGENT
_______________________________________________________
ADDRESS
_______________________________________________________
CITY, STATE, ZIP
_______________________________________________________
PHONE
_______________________________________________________
REQUESTED AMOUNT
_______________________________________________________
CHECK/WIRE TO TITLE CO. AS FOLLOWS:_______________________________________
LENDER CONTACT
_______________________________________________________
PHONE
___________________________FAX_________________________
PLEASE ALLOW 20 BUSINESS DAYS FROM RECEIPT OF A COMPLETED PACKET FOR FUNDING APPROVAL.
Grievance Letter
IF APPLICATION IS DENIED, YOU MAY APPEAL THE DECISION AS FOLLOWS:
• REQUEST A REVIEW OF THE DECISION BY SUBMITTING A WRITTEN REQUEST TO THE HOUSING ADVISOR YOU HAVE
WORKED WITH WITHIN TEN DAYS FROM THE DATE OF THE DENIAL.
• THE HOUSING ADVISOR WILL NOTIFY YOU TO SET UP A MEETING, WHICH MEETING SHALL BE HELD WITHIN TWENTY
DAYS OF RECEIPT OF YOUR REQUEST FOR REVIEW.
• IF THE ISSUES ARE NOT RESOLVED AT THIS MEETING, YOU MAY REQUEST TO MEET WITH THE DIRECTOR OF HOUSING
COUNSELING. SUCH REQUEST MUST BE MADE IN WRITING TO THE DIRECTOR OF HOUSING COUNSELING WITHIN FIVE
DAYS OF YOUR MEETING WITH THE HOUSING COUNSELOR. THE DIRECTOR OF HOUSING COUNSELING, OR DESIGNEE,
WILL HAVE TEN WORKING DAYS TO RESEARCH THE INFORMATION AND WILL SCHEDULE A MEETING WITH YOU, IF
NECESSARY. THE DIRECTOR OF HOUSING COUNSELING WILL FORWARD THE DECISION TO YOU BY CERTIFIED MAIL NO
LATER THAN FIVE WORKING DAYS AFTER THE DECISION HAS BEEN MADE.
• IF THE DECISION IS NOT SATISFACTORY, YOU MAY APPEAL THE DECISION TO THE PRESIDENT OF COLUMBUS
HOUSING PARTNERSHIP, OR DESIGNEE WITHIN FIVE WORKING DAYS OF RECEIPT OF THE DECISION MADE BY THE
DIRECTOR OF HOUSING COUNSELING. SUCH REQUEST MUST BE MADE IN WRITING AND ADDRESSED TO THE
PRESIDENT. THE PRESIDENT OR DESIGNEE, WILL REVIEW THE INFORMATION AND WILL MEET WITH PERSONS
NECESSARY TO MAKE A DECISION. THE PRESIDENT WILL FORWARD THE FINAL DECISION TO YOU BY CERTIFIED MAIL,
NO LATER THAN THIRTY DAYS AFTER RECEIPT OF YOUR LETTER
Affidavit of Income
HOMEPORT
Housing Advisory Center
Down Payment assistance Program
Franklin County DAP
I, __________________________, certify, under penalty of perjury, that I do not receive any form of income and have no
indication that income will become available within the next 12 months.
____________________________________
_____________________
Signature
Date
Sworn to before me and subscribed in my presence this
.
(Date)
_____________________________________________
Notary Public, State of Ohio
My Commission expires _________________________
Questions?

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