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OHFA Basic Training What Lenders Should Know. Introduction “We Open the doors to an affordable place to call home” First-time Homebuyer Programs Early.

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Presentation on theme: "OHFA Basic Training What Lenders Should Know. Introduction “We Open the doors to an affordable place to call home” First-time Homebuyer Programs Early."— Presentation transcript:

1 OHFA Basic Training What Lenders Should Know

2 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

3 Agenda OHFA Programs – Know Thy OHFA Programs Down Payment Assistance Homebuyer Education Program Fees OHFA Lender Portal 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

5 First-time Homebuyer A person that has: 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). ns.aspx#target (OHFA download center)http://www.ohiohome.org/homebuyer/publicatio ns.aspx#target

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

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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

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

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 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:

13 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

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

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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

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

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

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

20 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

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

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.

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

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

25 Homebuyer Education Courses offered through HUD-approved housing counseling agencies in each Ohio county -OR- OHFA Streamlined education program

26 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.

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:

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31 Homebuyer Education Fax homebuyer information Expect 7 to 10 day process

32 Homebuyer Education Test and budget to the appropriate agency. Counselor will review answers and schedule a one hour telephone counseling session with buyer.

33 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.

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

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

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.

37 How to register an applicant? Lender Portal Username and password Main contact person Add to favorites

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45 Compliance Process Process Loan Submit Commitmen t 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

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


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