1. What Lenders Should Know
OHFA Basic Training
What Lenders Should Know
Welcome to OHFA’s Basic Training “what lenders should know”.
I am Cleo Evans, a coordinator here at OHFA along with Lou Caresani, VP of Client Support at US Bank Home Mortgage, OHFA’s servicer.
Lou will cover two presentations: Funding and delivery of your mortgage file plus underwriting.
So before I begin the presentation, “What Lenders Should Know,” I would ask that you hold your questions until I we open the lines for questions.

2. “We Open the doors to an affordable place to call home”
Introduction
“We Open the doors to an affordable place to call home”
First-time Homebuyer Programs
Early 1980’s
Creation of several loan products
143,000 Ohioians
Here at the Ohio Housing Finance Agency our mission is to “Open the doors to an affordable place to call home” and one way we are able to achieve this mission is through our First-time Homebuyer programs. Our FTHB has been around since the early 1980’s when people camped out all night for an opportunity to get a low interest rate mortgage. And we still offer competitive interest rates and mortgage options to buyers so they can realize their dream of homeownership. The FTHB program has been so successful that OHFA has created several loan products based on our flagship program to meet buyer’s needs.
Currently, we have helped 143,000 Ohioians purchase homes.
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3. Agenda OHFA Programs – Know Thy OHFA Programs Down Payment Assistance
Homebuyer Education
Program Fees
OHFA Lender Portal
Compliance Process
The agenda is to answer the following questions:
Know thy OHFA Programs: I will start with our flagship program First-time homebuyer because when you understand the basic of this program, then you would understand spinoff programs like our Grant for Grads, OHIO Heroes, New Home sweet home, etc
Down payment assistance options
Homebuyer Education – required for specific loans
Program fees – brief overview but Lou will cover this in detail during his presentation
OHFA Lender Portal – our reservation system which is available 24/7
Compliance process – general overview of OHFA’s compliance process

4. OHFA Programs First-time Homebuyer Program Target area loan
Ohio Heroes Program
New Home Sweet Home Program
Grants for Grads-Plus Program
Down payment Assistance Grant
Mortgage Credit Certificate Program
What programs does OHFA offer?
Our FTHB program. This title is a little deceiving because previous homebuyers can participate, which we will discuss later on.
New Home Sweet Home Program
Ohio Heroes Program
Down payment Assistance Grant
Grants for Grads Plus Program
MCC – Mortgage Credit Certificate Program – we will not be discussing this program today, but if you are interested in this program, please call us for further training details.
So let’s discuss our flag ship program the FTHB

5. A person that has: First-time Homebuyer Have never owned real estate;
Have not owned or had an ownership interest in your principal residence in the last three years;
Unless they are a qualified military veteran;
Purchase a home in a target area.
Minimum credit scores 640
Meet income and sales price limits
Qualify for the loan being requested

6. Target Area
A target area is an economically distressed area designated by the U.S. Department of Housing and Urban Development (HUD).
(OHFA download center)

7. Loan Program Features All loans are 30 year fixed rate mortgages
Acceptable loan types:
FHA (including 203k and streamline) VA
USDA-RD,
Fannie Mae/FreddieMac
2 – 1 buy downs are permitted
Interest rates

9. Qualifying properties
Existing homes: single-family dwellings, conforming condominiums, duplexes, and up to four-unit properties
Newly built spec/nearly completed homes: one-unit single-family dwellings
Modular/manufactured (mobile-style) homes: one-unit single-family dwellings, permanently affixed to a foundation (government loan)
Follow underwriting guidelines for specific products
Read from script.

10. Qualifying properties cont…
Properties must meet purchase price limits by county
2 acres – within municipal corporations
5 acres – outside municipal corporations
Exceptions permitted if required by local health or safety code
Read slide

11. New Home Sweet Home Product
All the benefits of our First-Time Homebuyer Program
New Construction Homes
One unit single family dwelling
Extended period of time
At a .25% higher interest rate

12. All the benefits of our First-Time Homebuyer Program
Ohio Heroes Product
All the benefits of our First-Time Homebuyer Program
At a .25% lower interest rate
Program is available to the following full-time employees who are:
Ohioans working in critical professions can also take advantage of a special first-time homebuyer program –it’s our “Ohio Heroes Program” – that has a quarter percent lower interest rate.
Remember during the start of this program I stated there would be overlap, well Heroes applicants still must meet the criteria previously discussed with the FTHB program.
Borrower must:
Be a first-time homebuyer
Be creditworthy: Minimum credit scores may apply
Have a signed purchase and sales agreement for a qualifying property
Income and sales price limits
This program is available to full-time hero employees that fall into one of the following categories. (click)

13. Active Military and Veterans
Ohio Heroes Product
Active Military and Veterans
Personnel, Armed services & Reserve forces
90 days Active Duty for Reserve Forces (excluding boot camp)
Veterans must have honorable discharge
Proper documentation required
(Read script)
Proper documentation required like the DD214 to validate qualification

14. Ohio Heroes Product cont…
Firefighters, EMT or Paramedics
Full-time employees (1,200 hours)
Certification card
Letter from payroll
OHFA Form
Proper documentation required
(Read script)
FYI…Full-time is considered paid service for a minimum of 1200 hours per year.
(next slide will have a OHFA work experience form)

15. This is a form created by OHFA for Firefighters only.

16. Ohio Heroes Product cont…
Health Care Workers
Certified, accredited, or licensed
Employed full-time
Medical office, urgent care, nursing home, assisted living hospital, etc.
Proper documentation required
(Read script)

17. Ohio Heroes Program cont…
Police Officers
Commissioned as law enforcement officer
Employed full-time
General power of arrest
Proper documentation required
(Read Script)

18. Ohio Heroes Product cont…
Teachers
Certified teacher, guidance counselor, administrator/principal or college level instructor
Employed full-time
Minimum of 12 credit hours
Proper documentation required
(Read script)
Please remember that for all the Heroes categories, you must provide a paystub to prove full-time employment and credentials to validate position and/or profession.
If you are not sure and you need clarification contact your OHFA representative.
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19. Grants for Grads (G4G) Product
Be a first-time homebuyer
Meet specific income guidelines
Be an Ohio resident
Graduated from high school or have a GED
Earned an associate's, bachelor's, master's, doctorate or other postgraduate degree
Within 24 months of application
One unit dwelling
So let’s talk about the first assistance option.
The Grants for Grads program’s concept is to provide Ohio’s recent college graduates with the financial incentive to seek employment in Ohio and establish their home in Ohio rather than relocating to another state.
Of course OHFA requires that the borrower be a FTHB like our flagship program and they must meet specific income guidelines, which are higher than our usual non-target limits.
They must be an Ohio resident and have graduated from high school. You may want to make a note of this: We do not need a copy of their High School diploma. However, it needs to be noted on the Loan Commitment Voucher, if they attended high school in or out of the state of Ohio. Please note that we do need a copy of their college degree. They must have received their degree within 24 months of application. The degree can be from any college even outside of Ohio.

20. Benefits equals 2.5% of purchase price
Grants for Grads cont…
Benefits equals 2.5% of purchase price
Issued as a second mortgage with a 0% interest rate with payments deferred
The loan is forgiven after five years
This program offers the qualified borrower 2.50% of the purchase price as a grant.
Lenders are used to seeing the 2.50% assistance as a grant; however, OHFA has packaged the assistance in the form of a forgivable 2nd mortgage:
that is forgivable after five years.
However, If the borrower moves out of Ohio prior to that five year time frame, (Click)

21. Down Payment Assistance (DAG)
April 15, 2013
First-time Homebuyer Program, New Home Sweet Home, or Ohio Heroes Program
.50% above the FTHB unassisted rate
Benefits equals 2.5% of purchase price
Issued as a second mortgage with a 0% interest rate with payments deferred
The loan is forgiven after five years
Yes, OHFA offers down payment assistance in the form of a grant and our grants for grads , which is in the form of a silent second.
Both are 2.50% of the purchase price. In the case of a 203k or 203b with repairs then it’s calculated on acquisition cost stated on 203K worksheet (purchase price and repairs).
As of January 24, 2013, OHFA directly funds this fee t o the title company..
(Click)

22. Grants for Grads / Down payment Assistance
However, a prorated repayment of the remaining balance is due if the home is sold within five years.
That borrower is responsible for paying back a pro-rated portion of that grant as this graph shows.
Less that a year (12months) 100%
12 months to 24 months 80%
24 months to 36 months 60%
36 months to 48 months 40%
48 months to 60 months 20%
It is important for your clients to know and understand this component of our G4G program.

23. DPA Funding Authorization Form
Advanced Notice
3 Business Days
$50 Wiring Fee
Can be charged to borrower
Title Co. forward check to OHFA
Form needs to be completed by Title Co.
3 Sections to be completed
Transaction, Payee, and Banking information
requests to
Lenders need to provide a 3 day advanced notice to OHFA, That is business days, keep in mind OHFA is not open on Saturday and Sundays, and Holidays. You must have commitment approval prior to forwarding the authorization form.
OHFA does assess a $50 fee which can be charged to the borrower.
So instruct the Title company that the $50 Wiring fee should be listed to Ohio Housing Financing Agency, because the tile company is responsible for forwarding the fee to OHFA.
$50 fee needs to be forwarded from the title company in order to obtain OHFA purchase approval.
The authorization form has three sections to be completed, transactions, payee and banking information.
Please remember to forward the form to the DPA funding when completed.

24. Any OHFA assisted loans Grants for Grads Down Payment Assistance Grant
Homebuyer Education
Any OHFA assisted loans
Grants for Grads
Down Payment Assistance Grant
Conventional unassisted
Require Homebuyer Education counseling

25. OHFA Streamlined education program
Homebuyer Education
Courses offered through HUD-approved housing counseling agencies in each Ohio county
-OR-
OHFA Streamlined education program
The borrower has 2 options when completing their homebuyer education:
They can either select courses offered thru a HUD-approved counseling agency in Ohio Or
They can use OHFA’s streamlined education program.
If you or your client decides to use OHFA streamline process (click)

26. OHFA interactive area on website
Homebuyer Education
OHFA interactive area on website
Website contains Interactive maps where borrower can click and completed documents directly to the counseling agency.
Borrower reservation will be confirmed electronically before granting access to site.
It is interactive on OHFA’s website.
Borrowers can utilize interactive maps where they can click and completed documents directly to the counseling agency.
Also, the borrowers reservation will be confirmed electronically before granting access to the site. Borrower should wait at least 24 hours before they attempt to register for counseling.

27. OHFA Streamline Homebuyer Education
Borrower will need to:
Review Homebuyer Guide
Complete 25 question test
Fill out budget worksheet
Homebuyer documents available:
From lender
On OHFA website:
To complete the OHFA’s streamline process the borrower will need to
Review the Homebuyer Guide
Complete a 25 question test
And complete a budget worksheet
These homebuyer documents are available from the lender or from OHFA’s website at

28. To access the homebuyer education process, the borrower will need to go to OHFA’s website and select the Homeownership option circled in Red.

29. Select the menu option circled in red

30. Here are the menu options for Homebuyer education documents circled in red.
The following are PDF files which can be downloaded:
-Homebuyer Guide
-Homebuyer Education Test
-Monthly Budget Form
And OHFA’s Fax Cover Sheet for those not using interactive system
The red arrow identifies the link the borrower should click on to start the interactive counseling registration.

31. Fax homebuyer information 614.995.0487 Expect 7 to 10 day process
Homebuyer Education
Fax homebuyer information
Expect 7 to 10 day process
If the borrower decides to use the manual process and fax their test and budget and have OHFA assign a counselor it can take up to 7 to 10 business days before your client is contacted, so we encourage the interactive process online.

32. Test and budget to the appropriate agency.
Homebuyer Education
Test and budget to the appropriate agency.
Counselor will review answers and schedule a one hour telephone counseling session with buyer.
After OHFA assigns a counseling agency we then forward the test & budget to the appropriate agency and the counselor will review the answers and schedule a one hour telephone counseling session with the buyer.

33. Borrower will close on their loan.
Homebuyer Education
Borrower will close on their loan.
The $75 OHFA Administrative Fee, shown on the HUD-1 for the first mortgage, should be made payable to OHFA.
The $75 fee must be included with the closing package.
Once the borrower closes on their loan, and has used OHFA’s streamline process, the $75 OHFA Administrative Fee should be shown on the HUD-1 for the first mortgage and made payable to OHFA.
The $75 Admin Fee must be included with the closing package.

34. Loan Fees 1% Origination fee or Zero Origination
$200 Funding fee (US Bank fee)
$85 Tax service fee (US Bank fee)
Not to exceed $90
$75 Admin fee
OHFA’s Streamline Homebuyer Education (if applicable)
$50 Wire funding fee
.25% Adverse market fee (Fannie Mae fee)
Conventional loans only
Read slide
This information is noted on OHFA’s “Notice of Rate Change” and on the Product’s Term Sheet, which is located in the bulletin board section in Lender Online.

35. Are there any OHFA requirements?
Borrower(s) must meet household income and purchase price limits
Credit score limits
Reservation good for 60 days
Spouse releasing dower and Co-signers
Income of spouse releasing dower is part of household income
Co-signer not considered co-borrower for OHFA purposes
Both are prohibited from being on the title and deed
(Read Script)
Reservations are good for 60 days. After 60 days our cancellation policy kicks in and we will automatically cancel loan.

36. Are there any OHFA requirements? cont.
The Federal Recapture Tax provision applies to:
First-time Homebuyer Program
Ohio Heroes Program
Grants for Grads
New Home Sweet Home
OHFA will reimburse recapture tax.
Recapture applies to all loans purchased under our FTHB, Heroes and G4G’s and the Home Sweet Home Program
It applies when the home is sold – prior to 9 years, when there is a gain on the sale, and household income limit is exceeded.
But the borrower won’t need to worry about that issue because we will reimburse any recapture that homebuyer that purchase their home (March 1, 2006 and after) under our program.

37. How to register an applicant?
Lender Portal
Username and password
Main contact person
Add to favorites
To register your applicant for one of our programs you would use Lender Portal. This is a reservation tracking system that allows our participating lenders to track loans reserved under our programs from the beginning to final purchase approval by OHFA.
To access this system your main contact has to have assigned you an username and password.
Lender Portal can be accessed through OHFA’s website To make it easier to reach later, add the site to your favorites.

38. On the home page of our website in the lower right corner is the Lender Portal icon. Click on it ( next slide)

39. And this screen should appear.
I recommend adding this to your favorites so you won’t need to constantly go through our home page to get here.
You will need a username and password to access Lender Portal. If you have not been assigned a username and password contact your person in charge to get one.
If you have a username and password enter it…
FYI…these fields are case sensitive

40. Once you are in LOL click on the “New Reservation” tab.
Screen should display reservation options to choose from based on applicants loans.
Bond is for government loans like FHA, VA, and USDA-rural development
FNMA are Fannie Mae loans.
But you also need to determine if the loan is with an origination fee or without…please make sure you choose the right category because a lot of people miss this…with origination fee, use the OHFA Bond Series…without origination fee, use the Zero Point.
Heroes are for people meeting categories discussed earlier in the presentation
Grants for grads.
Next you must know whether the property is in a target or non-target area. If you are not sure, you can utilize our Target Area Maps. You will need your Census Tract number too.
And finally, you must also know whether you want our 2.5% assisted funds.
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42. This is the screen you will see if you select a 2.5% option.
Notice next to “Program” it states what you have selected.
Tab through the fields you need to complete, but I would like to request you complete as many fields as possible…even the current address fields.
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43. If you select Grants for Grads or an unassisted loan then you should (next slide)

44. You will get an assigned reservation number.
Print your reservation page.
Now that you have reserved your loan …next slide

45. Compliance Process What happens now
Process Loan
Submit Commitment Package
Wait for OHFA Approval
Submit DPA Funding Request
Close Loan
Submit OHFA Purchase Package
Send Mortgage file to US Bank
US Bank Purchase Mortgage
What happens now
Your company should process the loan to ensure borrower(s) meet the requirements and underwriting guidelines for that product.
Next submit our commitment package paperwork for review and approval so borrower can close. FYI…it depends on the volume of loans we receive each day that determines when we will review your loan. Also keep in mind that there may be errors or corrections needed before we can issue an approval. Most of us will notify the person noted on our Loan Voucher about corrections so they can get what we need in a timely manner. But if you don’t hear anything, check Lender On-Line’s Loan Status to check the status of the loan.
All commitment approval letters will be available in Lender Portal – this commitment approval is good for 30 days.
Close loan and submit OHFA its final purchase pkg. 20 days after closing and send US Bank the mortgage file so they can fund your loan once we have approved the final OHFA purchase package.

46. Who should I call with my questions?
OHFA Representative
US Bank MRBP helpdesk
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