Kent & Sussex - Delaware State Housing Authority

Report
Delaware State Housing
Authority
Governor’s Conference on Housing
DSHA Homeownership Programs
October 11, 2012
DSHA is committed to following all aspects
of the Fair Housing Act in our efforts to
promote responsible homeownership and
obtaining competitive and safe financing
for homebuyers.
Agenda
• Overview of Program
• DSHA Mortgage Products
• Eligibility Guidelines
• Eligible Loan Products and Eligibility Guidelines
• Second Mortgage Assistance Loan (SMAL)
• Rebuilding Our Communities (ROC)
• Live Near Your Work (LNYW)
3
Overview of DSHA Mortgage
Programs
DSHA Mortgage loans are designed for income-qualified families.
Advantages to borrowers include:
– Below-market interest rates
– Downpayment Assistance Second Mortgages
DSHA requires borrowers to meet certain eligibility criteria including:
– Purchase price limits
– Income limits
– Owner-occupancy requirements
– Restricted to properties located in Delaware
4
Mortgage Products
Welcome Home Loans - Mortgages For First-Time Homebuyers
Home Again Loans - Mortgages For Repeat Homebuyers
Loans for Heroes - Mortgages For Qualified Veterans
• FHA-VA-USDA 30 year fixed-rate loans
• Conventional 30 year fixed-rate loans
FHA Welcome Home 30 Year Fixed Rate 3.00%*
FHA Home Again 30 Year Fixed Rate 3.25%*
*Rates as of 10/1/12 and are subject to change.
(Above rates are for loans without downpayment assistance.)
Loans for Heroes program provides qualified veterans (as defined in 38 USC Section 101)
with a 50 bps rate reduction on DSHA first mortgage programs.
5
Homebuyer Income Limits
County
New Castle
Kent & Sussex
6
1 to 2 Person
Households
3 + Person
Households
Non-targeted
$81,500
$93,725
Targeted
$97,800
$114,100
Non-targeted
$73,300
$84,295
Targeted
$87,960
$102,620
Area
Eligible Properties
Single-Family Units
• Agency-Approved Condominiums
• Planned Unit Developments (PUD’s)
• 1-4 Unit Properties
– Must meet DSHA purchase price limits and Agency guidelines.
• Manufactured Housing
– Must meet Agency guidelines / requirements.
Properties Not Eligible for DSHA Financing:
• Rental homes
• Co-ops
• Investment properties
• Recreational, vacation, or second homes
7
Home Purchase Price Limits
County
Type Of Loan
1 Unit
2 Units
3 Units
4 Units
New Castle
Non-targeted
$387,692
$496,292
$599,907
$745,569
Targeted
$473,845
$606,579
$733,220
$911,251
Non-targeted
$347,307
$438,972
$530,613
$659,438
Targeted
$424,486
$536,521
$648,527
$805,979
Non-targeted
$346,153
$437,514
$528,881
$657,250
N/A
N/A
N/A
N/A
Kent
Sussex
Targeted
8
Downpayment Assistance Programs are
available for all borrowers.
Second Mortgage Assistance Loan (SMAL):
• 0%* interest rate *Rates are subject to change
• Loan is repaid upon maturity of 1st Mortgage, refinance, sale of the
property or when title is transferred.
Rebuilding Our Communities (ROC):
• 0% interest rate
• Loan is forgivable over 10 years (1/120th forgiven each month)
Live Near Your Work (LNYW):
• Grant provided through participating employers; varies from $1,000 to
$5,000 (LNYW grantees are not subject to the increased assisted loan rate
adjustment.)
9
DSHA Second Mortgage Assistance
Loan (SMAL)
• Loan amounts up to $10,000 as required for loan closing.
• Funds must be used toward downpayment and settlement costs.
• Interest free for the life of the loan.
• Repayment is deferred for 30 years, or until the first mortgage is
refinanced, or the property is sold or transferred - whichever comes first.
• The SMAL is secured by a mortgage on the property.
• The SMAL can only be used with a DSHA Mortgage.
– Borrowers must participate in a U.S. Department of Housing and Urban
Development (HUD)-approved housing counseling program/
homeownership education.
– Borrowers must have the property inspection completed by an ASHI,
NACHI Delaware Chapter, or NAHI-CRI Certified Home Inspector.
10
Rebuilding Our Communities (ROC)
• Delaware State Housing Authority (DSHA) created
the Rebuilding Our Communities (ROC) to promote
the purchase of homes within areas of the state that
have experienced high foreclosure rates.
•
•
11
ROC is a forgivable second mortgage to be used
for the purchase of foreclosed or abandoned single
family housing in qualified census tracts.
ROC loans provide homebuyers with $25,000
towards downpayment, closing costs and initial
loan balance reduction for ROC-eligible properties.
ROC (cont’d)
• A DSHA first mortgage must be used to access ROC funds. First
mortgage rates will be the same rates offered for SMAL assisted
loans.
• All borrowers will receive the full $25,000. Amounts available
in excess of downpayment and customary closing costs and
fees must be used to reduce the initial loan amount of the
first mortgage loan.
12
Additional Eligibility Requirements
• Must be in a ROC-qualified census tract.
• Homes must be sold at a minimum of 1% below appraised value.
• ROC is forgiven over a 10 year period prorated monthly (1/120th) as long as
subject property remains the borrower’s primary residence.
• Must meet the ROC definition of foreclosed or has been vacant for 90 days.
• All homes must be inspected by an ASHI, NAHI-CRI, or NACHI Delaware
chapter certified home inspector.
• Must have a lead based paint visual assessment if built prior to 1978.
13
Definition of Foreclosed or Abandoned Property
A residential property located in an ROC census tract may be
eligible if any one of the following conditions apply:
• Property has been vacant for 90 days or more at the time the
sales contract was signed; or
• The property’s owners current mortgage is delinquent at least 60
days delinquent and the owner has been notified; or
• The property owner is 90 days or more delinquent on tax
payments; or
• Foreclosure proceedings have been initiated or completed.
14
ROC Qualified Census Tracts
New Castle
Kent
Sussex
Wilmington
103
408
502
3
139.01
414
518.02
5
141
430
6.01
147.03
6.02
148.08
7
149.03
8
149.05
9
150
15
152
16
154
17
155
21
156
22
158
23
159
26
160
27
163.02
An interactive map of eligible tracts can be found on DSHA’s website.
15
ROC Household Income Limits
Income Limits For Households at 120% of Area Median Income (AMI)
1 Person
Household
2 Person
Household
3 Person
Household
4 Person
Household
5 Person
Household
6 Person
Household
New Castle
$68,520
$78,240
$88,080
$93,725
$93,725
$93,725
Kent
$53,160
$60,720
$68,280
$75,840
$81,960
$84,295
Sussex
$52,680
$60,120
$67,680
$75,120
$81,240
$84,295
County
16
DSHA Maximum Allowable Fees
• Origination Fee – 0.00%
– 1% Conventional Loan Delivery Fee required for all Conventional
loans
• Discount Points – 0.00%
• Other Closing Costs – Normal and customary fees are allowed
including appraisal fee; credit report fee; survey fee; title insurance
fee, etc.
– Must be charged in accordance with agency policies
17
DSHA Contacts
Telephone: 302-577-5001
Fax: 302-577-5021
Gary Hecker
Housing Finance Manager
Lender Support
Bill Salamone
Mortgage Loan Officer II
Compliance Review/
Lender Support
18
Karen Flowers
Office Manager
Initial Package Review/
Pending Conditions

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