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Franklin County and Ohio Housing Trust Funds Down Payment Assistance Programs. Guidelines and Underwriting Presenter: Isabel Giles Loan Program Coordinator.

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Presentation on theme: "Franklin County and Ohio Housing Trust Funds Down Payment Assistance Programs. Guidelines and Underwriting Presenter: Isabel Giles Loan Program Coordinator."— Presentation transcript:

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2 Franklin County and Ohio Housing Trust Funds Down Payment Assistance Programs. Guidelines and Underwriting Presenter: Isabel Giles Loan Program Coordinator

3 Agenda 1. Introduction / Objective 2. Franklin County / OHTF DAPs 3 Guidelines & underwriting 4. Questions

4 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

5 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.

6 Funds are provided on: First come first serve bases and are subject to availability. For Both Grants

7 Eligibility Criteria 500$ Contribution Income Limit n Property /Loan Limit Illness Loan Vs. Value Franklin County DAP & OHTF DAP Guidelines Location Ratios 31/43

8 Grants Guidelines I Franklin County DAP OHTF DAP Location :Franklin Co. outside tax district 010 Principal Residency. Fist Time H-B or 3 yrs. Income: Up to 80% HUD-MSA Loan amounts can’t exceed the FHA amount for CMSA Location: Franklin County. Principal Residency. First Time H-B or 3 yrs. Income: Up to 65% HUD-MSA Loan amounts can’t exceed the FHA amount for CMSA

9 Grants Guidelines I Franklin County DAP OHTF DAP Amount: Up to $4K DP& $2K CC Household Income is used to calculate income eligibility. Borrower contribution: $500 Borrower can’t have more than $3K in liquid assets Amount: 3% purchase price up to $3K. The lesser. Household Income is used to calculate income eligibility. Borrower contribution: $500 Borrower can’t have more than $5K in liquid assets

10 Grants Guidelines I Franklin County DAP OHTF DAP 0% interest. No payments 6 yrs. Lien Can NOT be combine with any other program. Property must meet local housing codes (DS&S) / Certificate of occupancy 0% interest. No payments 5 yrs. Lien Works with ADDI, EDCI. Not with any form of OHFA’s DAP Property must meet local housing codes (DS&S) / Certificate of occupancy

11 Grants Guidelines Franklin County DAP OHTF DAP Home inspection w/all utilities running. Lead-Base Paint Hazard test for 1978 or older buildings. Must be included with the application package. Home inspection w/all utilities running. Lead- Base Paint hazard test for 1978 or older buildings. Must be included with the application package.

12 Grants Guidelines I Franklin County DAP OHTF DAP Eligible use of funds. (*) Loan assistance is not assumable. Underwriting ratios: 31/43 The Loan assistance becomes immediately due and payable in the event of Fraud or 1 st Lien assumption. Eligible use of funds. (*) Loan assistance is not assumable. Underwriting ratios: 31/43 The Loan assistance becomes immediately due and payable in the event of Fraud or 1 st Lien assumption.

13 Grants Guidelines I Franklin County DAP OHTF DAP LTV (1 st +2 nd ) must not exceed the estimated property value. 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 LTV(1st +2 nd ) must not exceed the estimated property value. 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

14 Grants Guidelines I Franklin County DAP OHTF DAP 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 Homeport will request a schedule for closing 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 Homeport will request a schedule for closing

15 Grants Guidelines I Franklin County DAP 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. 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.

16 Grants Guidelines I Franklin County DAP OHTF DAP Cash Back to the borrower is not allow. 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 Cash Back to the borrower is not allow. 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

17 Grants Guidelines I Franklin County DAP OHTF 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. 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.

18 Grants Guidelines I Franklin County DAP OHTF DAP Homeport prepare and sends the 2 nd Mortgage doc. to the Title Company for its execution and recording at the Recorders office. The promissory Note will be closed at Homeport. The Title Company execute the first and second mortgage.. Homeport prepare and sends the 2 nd Mortgage doc. to the Title Company for its execution and recording at the Recorders office. The promissory Note will be closed at Homeport. The Title Company closes the first mortgage.

19 Grants Guidelines I Franklin County DAP OHTF DAP Title Company must record the executed 2 nd mortgage and mail it back to Homeport after recorded, within 10 days after the closing. Title Co. must submit to Homeport copy of the 1 st Lien, Prom. Note and HUD1 w/all attachments already executed within 10 business days after closing. 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

20 Grants Guidelines I Franklin County DAP OHTF DAP The 2 nd mortgage loan, as evidenced by a promissory note is closed in the name of Franklin County Board of Commissioners. The 2 nd mortgage loan, as evidenced by a promissory note is closed in the name of Homeport

21 - 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 Eligible Use of Funds

22 2012 HUD Income Guidelines FAMILY SIZE60%KNOX65%80%100%KNOX115%140% 65%115% ONEYEARLY28,35026,25030,70037,80047,25046,40054,35066,150 TWOYEARLY32,40029,95035,10043,20054,00053,00062,10075,600 THREEYEARLY36,45033,70039,50048,60060,75059,60069,90085,050 FOURYEARLY40,50037,45043,90054,00067,50066,25077,65094,500 FIVEYEARLY43,75040,45047,40058,35072,90071,55083,850102,100 SIXYEARLY46,98043,45050,90062,65078,30076,85090,050109,600 SEVENYEARLY50,20046,45054,40067,00083,70082,15096,250117,200 EIGHTYEARLY53,46049,40057,90071,30089,10087,450102,500124,750

23 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.

24 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.

25 Closing Instructions Fax final HUD-1 to Isabel Giles at hours before closing. Notify ext. 160 if figures change. The Title Co. must return the following documents to Homeport within 10 days after closing:  Copy of 1 st Mortgage already executed and recorded  Copy of executed Promissory Note for 1 st Lien  Original 2 nd Mortgage already executed and recorded  Final HUD 1 already executed  Original Signed Sellers Uniform Relocation Act Disclosure Form Provided by Homeport, if applies

26 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.

27 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. e submit The following documents in one package. The loan will not be underwritten until the application package is complete. Borrower must meet with a Homeport’s Housing advisor to complete additional Forms. Please allow 20 business days from receipt of a completed package for review and funding approval -Loan Funding Request -Lender approval letter -Homebuyer Education Certificate (from certified HUD agency) - Final 1003 signed by M.L.O and applicant.

28 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. e submit The following documents in one package. The loan will not be underwritten until the application package is complete. Borrower must meet with a Homeport’s Housing advisor to complete additional Forms. Please allow 20 business days from receipt of a completed package for review and funding approval -Three most recent bank statements -Sixty days of most recent paystubs -Proof of additional income: SSI, child support, alimony, etc. -Most recent W2 from all employers -

29 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. e submit The following documents in one package. The loan will not be underwritten until the application package is complete. Borrower must meet with a Homeport’s Housing advisor to complete additional Forms. Please allow 20 business days from receipt of a completed package for review and funding approval -Most recent three yrs. of Tax returns. -For all self-employed: YTD of P&L statement signed and dated. -Signed purchase contract with all modifications attached. Copy of appraisal with all sheets. -Home inspection report from a independent 3 rd party professional, conducted with all utilities running.

30 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. e submit The following documents in one package. The loan will not be underwritten until the application package is complete. Borrower must meet with a Homeport’s Housing advisor to complete additional Forms. 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. -Seller’s occupancy certification, if applies. -Original Signed Seller Uniform Relocation act, if applies. -The Good Faith estimate.

31 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. Loan Funding Request

32 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 Grievance Letter

33 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. _________________________________________________________ SignatureDate Sworn to before me and subscribed in my presence this. (Date) _____________________________________________ Notary Public, State of Ohio My Commission expires _________________________ Affidavit of Income

34 Questions?


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