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Government Loan Seminar Sponsored by: Home Builders Association of Lincoln Realtors Association of Lincoln Nebraska Mortgage Association.

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Presentation on theme: "Government Loan Seminar Sponsored by: Home Builders Association of Lincoln Realtors Association of Lincoln Nebraska Mortgage Association."— Presentation transcript:

1 Government Loan Seminar Sponsored by: Home Builders Association of Lincoln Realtors Association of Lincoln Nebraska Mortgage Association

2 Why FHA? Not income sensitive $271,050 max. loan amount January 1, 2009 – simplified loan calculation - 3.5% down payment Minimum total investment from borrower Can be local DPA program or Gift funds from immediate family member Builder / Seller can pay closing cost/prepaids up to 6% maximum

3 FHA Loan Government Insured First Mortgage for 15 or 30 year permanent financing A. Purchase Price X 96.5% = Pre-MIP Loan B. Pre-MIP Loan X 1.75% = UpFront MIP A+B above = Total Loan Monthly MI = Pre-MIP Loan X.55% ÷ premium due monthly Guideline Ratios – 31% and 43% - Slightly higher with compensating factors

4 FHA New Construction Plans & Specs not required if home over 90% complete. Need: - Builder Certification – HUD 92541 - Builders one year warranty – HUD 92544 - Termite statement – NPCA 99A & 99B (wood is acceptable for a pre-treatment) http://www.hud.gov/offices/hsg/sfh/ref/sfhp1-8d.cfm Go to General Requirements

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6 Proposed Construction: Property is approved for mortgage insurance prior to the beginning of construction (no construction has started/no footings poured). Under Construction: Building has started, but is not complete at the time of appraisal. Existing Property Less Than 1 Year Old: Building is complete, but the final completion date (date Cert of Occupancy issued) is less than 1 year old. Still need Builders certification 92451 and 1-yr builder warranty from original builder (one year from date of Cert of Occupancy). What Are the New Construction Stages?

7 Acceptable forms of documentation to obtain a high ratio loan with regards to Inspection Options. Option 1 – available with High-Ratio Proposed Construction, Under Construction, or Existing Construction less than 1 Year Old: - A copy of the Building Permit, and - A Certificate of Occupancy showing clear, and - A Final inspection or Appraisal Report – either of these would need to show documentation that the property is 100% complete - Not available for Condominiums or Manufactured Housing

8 Acceptable forms of documentation to obtain a high ratio loan with regards to Inspection Options. Option 2 – available with High Ratio Proposed Construction, Under Construction, or Existing Construction less that 1 Year Old: - HUD-Approved 10-Year Warranty - Final inspection signed by a Fee Inspector and DE Underwriter or Appraisal Report indicated 100% complete.

9 Acceptable forms of documentation to obtain a high ratio loan with regards to Inspection Options. Option 3 – available with High Ratio Proposed Construction: - Early start letter or conditional commitment from DE Underwriter prior to footing being poured, and - Three inspections from a Fee Inspector documenting that the property is 100% complete, and - Final inspection signed by DE Underwriter

10 VA Whats new ($417,000) with no down Funding fees - Waived if receive VA disability - Disability Grant Program for N/C New Construction Documents - Builder Certification – HUD 92541 - Builders one year warranty – HUD 92544 - Termite statement – NPCA 99A & 99B (wood is acceptable for a pre-treatment) VA Builder ID# Assigned

11 VA Website www.va.gov Benefits Home Loans Construction&Valuation Builder Registration www.va.gov Three forms required: - Builder Information and certification: Click here to download required formatClick here - Form 26-421 (Equal Employment Opportunity Certification) Form 26-421 (Equal Employment Opportunity Certification) - VA Form 8791 (VA Affirmative Marketing Certification) VA Form 8791 (VA Affirmative Marketing Certification) Builder ID# Already Assigned – 217 statewide now http://condopudbuilder.vba.va.gov/2.2/frames.html

12 USDA RD Program Features 100% financing Non-metro only (cities < 20,000) excpt-Norfolk; Columbus No monthly MIP (funding fee of 2%) Low-to-moderate income qualifying First-time homeownership NOT required Closing cost/prepaids and funding fee can be financed if appraisal value supports 100% of total cost Assumablewith credit qualifying New Construciton - Similar guidelines as FHA

13 USDA RD Income Chart http://www.rurdev.usda.gov/rhs/sfh/GSFH_Income_L imits/NE%20GRH.pdf http://www.rurdev.usda.gov/rhs/sfh/GSFH_Income_L imits/NE%20GRH.pdf Proposed Change for 2009 1-4 Person5-8 Person 70,750 93,400

14 Down Payment Assistance Programs Local - Nebraska Housing Resources - NIFA – HBA (when available) - SENCAC / Blue Valley – others www.housingdevelopers.org Reach Affiliates for listing

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16 LMI Owner-Occupied Impact Exemption Refund City of Lincoln Public Works & Utilities

17 Builder initially paid an Impact Fee on subject property Purchase price of the home can not exceed the FHA mortgage limit for Lincoln MSA. Single-family $271,050 Requirements

18 Homebuyer verified income must be at 60% or 80% of median taxable income adjusted for household size. - Must have income verification - Provide previous years 1040 tax return form - Most recent 30 day pay stubs - Both signed & dated

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20 Requirements Homebuyer may only receive this reimbursement once in a five year period. Application must be made no later than 10 days following the execution of the Purchase Agreement.

21 Visit: www.Lincoln.ne.gov – search for keyword Impact Feewww.Lincoln.ne.gov For more information….

22 For more information & questions: Michaela Dugan Assistant Public Works/Utilities Business Manager Public Works and Utilities Department 555 South 10th Street, Suite 203 Lincoln, NE 68508-3994 (office) 402-441-7559 (fax) 402-441-8609 (cell) 402-429-2897 mdugan@lincoln.ne.gov mdugan@lincoln.ne.gov Visit: www.Lincoln.ne.gov – search for keyword Impact Feewww.Lincoln.ne.gov


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