Presentation on theme: "Kentucky Housing Corporation MBA of the Bluegrass Educational Roundtable 2012."— Presentation transcript:
Kentucky Housing Corporation MBA of the Bluegrass Educational Roundtable 2012
Overview for Today New Income Limits GNMA Secondary Market MRB Down Payment Assistance KHC Homebuyer Tax Credit (MCC) Certified Realtors / Marketing Unemployment Bridge Program (UBP) Latest Mortgagee Letters Things to Come Q & A
Expanded Income Limits COUNTYMRB (1-2)MRB (3 +)GNMA Fayette, Woodford, & Jessamine $67,229$77,314$117,425 Bourbon, Clark & Scott $80,520$93,940$117,425
MRB & GNMA Interest Rates Sign up for EGRAM rate push outs sent every morning at 10:00!!!
Repeat Homebuyers Statewide FHA, VA and RHS Purchases 2 FHA Refinance Products 30 Year Amortization Competitive Interest Rates Higher Income Limits All lenders now have access. Third Party Originators recently added!!! Benefits of GNMA Secondary Market
Repeat homebuyers now has access to Down payment assistance (DAP) statewide Income Limits –Based on county of property –Applicants Income Only!!! –Income Range: ($92,750 - $124,775) Benefits of GNMA Secondary Market
Acreage Waivers not required –30% rule Borrower may own other real estate property the day of closing as long as GNMA is owner occupied. Less documentation KHCs homebuyer tax credit can be used with GNMA Secondary Market Program –Some restrictions apply Advantage GNMA VS. MRB
GNMA Secondary Market Interest Rates will change with market Push out EGRAMS every morning at 10:00 45 day lock.25% cancellation fee for fallout No free extensions Zero point rates priced with and without DAP
FHA, VA and RHS –Minimum 640 credit score –All KHC DAPs may be used –Maximum ratios 40/45% –AUS approval required for FHA / VA –RHS manual underwriting, will accept GUS GNMA Secondary Market credit standards
Credit Qualifying Streamline with appraisal -CLTV 125% -FHA Loans only Rate term Refinance -CLTV 97% -All loan types Cash back on both not to exceed $500.00 GNMA Secondary Market FHA Refinance Programs
Purchases only with 60 day lock-in for no additional fee. Periodic Special Pricing 20% down Conventional Product still available No Cancellation Fee if loan falls out. Special Funding Lottery & Section 8 to Homeownership voucher programs only available through MRB funding source. MRB Benefits
MRB Extension Policy 5 days Free 6-15 days for $150.00 16-30 days for a total of $250.00 After 30 days must go to market rate Contact KHC prior to the reservation expiring
Lottery for Special Funding Single Parents, Disabled, and Elderly Households
Lottery Program Single Parent, Disabled, or Elderly Households Available annually on a lottery basis (July 2012) Existing or new construction property with a purchase price limit of $115,000 Interest rate set at 3.00% fixed for 30 years –Based on minimum ratios 29/41 –If borrower qualifies at current MRB or GNMA interest rate then must go with the higher rate. Zero point rate no origination charges to the borrower Must follow MRB guidelines
Must be a first time homebuyer –Unless property is located in a targeted county. Regular and HOME DAP available Household Income Limits: –$28,000 for 1-2 person households –$33,000 for 3 or more persons Must have 640 minimum credit score and AUS Approval Only FHA, VA and RHS Lottery Program Single Parent, Disabled, or Elderly Households
KHC Downpayment Assistance Programs Only home buyers obtaining a MRB or GNMA Secondary Market government first mortgage are eligible for a KHC second mortgage product. All DAPs take a lien position.
Regular DAP Down Payment Assistance up to $6,000 –First Mortgage Funding Source (MRB or GNMA) Income Limits apply New & existing properties Must go maximum on first mortgage amount True repayable second mortgage Amortized over 10 years at a 6% interest rate. –Borrowers must qualify with the payment –$66.61 maximum Regular DAP monthly payment
HOME DAP HOME DAP income limits apply for both MRB & GNMA First Mortgage Funding Source Second mortgage loan up to $4,500 Must go maximum on first mortgage amount Forgiven over 5 years –no monthly repayment required Borrower must use all liquid assets prior to accessing the HOME Funds less 2 months PITI. Existing property up to a purchase price of $195,700 Will require a HQS inspection Seller responsible for all repairs
KHCs Homebuyer Tax Credit Program Formerly known as the Mortgage Credit Certificate (MCC) Program
Homebuyer Tax Credit Benefits Life of the Loan Tax Credit Helps borrower to qualify for more house Reduced Fees with KHC GNMA Secondary Market Program Effectively reduces interest rate
KHCs Homebuyer Tax Credit A homebuyer who obtains KHCs Tax Credit is entitled to a Tax Credit equal to 25% of their mortgage interest paid in a year, not to exceed $2,000. –The MCC is effective for the Life of the Loan. –Can carry forward any unused credit for 3 years. –Borrower is charged $500 at closing. Fee reduced to $200 if First Mortgage is through KHCs GNMA Secondary Market Program –Homebuyer claims the Tax Credit on yearly tax return.
Eligibility Requirements Must meet MRB Eligibility Requirements –Income, purchase price, and target/non-target counties Cannot be used with KHCs MRB first mortgage Programs. But, can be used with KHCs GNMA Secondary Market Program. Loan Options: –FHA, VA, RHS, FNMA & FMLC Conventional –All loan types must be 30 year fixed rate.
Federal Recapture Tax The Federal Recapture Tax does apply to the Homebuyer Tax Credit / MCC Program. –May apply if homebuyer sells their home within the first 9 years of homeownership and: Homebuyer realizes a gain on the sale of their home and Household income exceeds allowable income limits as adjusted for each year of homeownership. KHCs Recapture Tax Reimbursement Program DOES NOT apply to the MCC Program.
Must attend one of KHC's real estate continuing education courses offered free of charge statewide through local associations. This KHC Financing course is approved for 3 hours –1,151 real estate agents in 114 counties have become KHC-Certified. Tax Credit marketing campaign kicked off last month –Each KHC-Certified Agent will receive a sign rider for the Tax Credit.
Marketing Efforts Homes.com & Zillow MBA newsletters KAR website Advertorials for Nationwide Open House Campaign Certified Real Estate Agent Classes Sign riders and Posters
HPC Statistics 1/1/2011-3/31/2012 Total Contacts 12,895 80% of homeowners dont know their loan type 95% have a fixed rate loan Over 30% wait until they are 90 days behind to call for help UBP Closed Loans 2,337 Committed approximately 30 million in funds
Unemployment Bridge (Loan) Program Loan option for eligible homeowners to help with making their mortgage payments. The homeowner, must have: –Experienced a job loss or reduction in income within the last 3 years due to changing economic conditions, through no fault of their own AND –Demonstrate a need for assistance Maximum amount of assistance is $25,000 or 12 months, whichever occurs first. –Of the $25,000, the maximum amount for reinstatement is $7,500.
Unemployment Bridge (Loan) Program The borrower must meet the following guidelines and the mortgage must be with a participating lender. –Maximum amount of liens on the property cannot exceed $275,000. –Maximum of two liens permitted on the property. –The PITI must exceed 31% of the gross monthly income OR –The borrower must have experienced a 15% reduction in income. –Maximum liquid reserves is 6 months PITI (excluding retirement funds). –Borrower must sign a hardship affidavit –UBP is only available to borrowers whose mortgage servicing company has enrolled as a participating servicer.
ML 2012-4 Annual & Upfront MI Changes Case Numbers April 9, 2012 Annual increases to 120 bps for LTV at or below 95% Annual increases to 125 bps for LTV above 95% Upfront increases from 1 to 1.75%
ML 2012-4 Contd Streamline Refinances for loans endorsed on or before May 31, 2009 with case numbers assigned June 11, 2012 Annual decreased to 55 bps from 1.25% Upfront decreased from 1 to 0.01% of base loan amount
FHA Refi Payment Comparison Loan endorsed before May 31, 2009. $100,000 Loan amount at 3.75%, case number… Assigned Today $100,000 Base loan + 1% Upfront MIP = $101,000 Total Loan Amount P&I $467.75 Tax $110.00 Ins $ 80.00 MIP 1.25 $ 104.17 PITI = $ 761.92 Assigned June 11, 2012 $100,000 Base loan +.01% Upfront MIP = $100,010 Total Loan Amount P&I $463.16 Tax $110.00 Ins $ 80.00 MIP.55 $ 45.83 PITI = $ 698.99
ML 2012-3 Miscellaneous Underwriting Issues Self-Employed docs Disputed Accounts (Postponed July 1) Collections policy (Postponed July 1) Identity of Interest relationships
Things to Come… RHS Rural Refinance Program FHA EEM Program 203K Streamline Lottery Announcement soon