First Home Program Updates Affordable Housing Conference October 30, 2013

Agenda Welcome & Introductions Brief presentations on MaineHousing, VA, RD and FHA Questions & Answers

MaineHousing Who are we? In state investor. Contract with approved lenders. Work with real estate professionals. Work with VA, RD & FHA.. Help first-time homebuyers!

MaineHousing Why use our program? Reduced rate. Help with downpayment & closing costs. Finance improvements into one loan. Purchasing a mobile home. Payment protection for unemployment.

Eligibility Basics  Income & purchase price limits.  Credit score 640+  Total debt to income ratio ≤ 41%  First-time homebuyer

Operation New Home Owned a home they lived in within the last 3 years, but do not own one now or are selling their home. Can be combined with VA, FHA or RD, PPI, MHSI, and Uninsured. MaineHousing Mortgages for Honorably Discharged Veterans and Active Duty Military who are non first-time homebuyers

Program Options  Advantage  Purchase Plus Improvement  Mobile Home Self-Insured

Advantage Provides a credit of $2,000 at closing. Applicant must contribute 1% of loan amount. Homebuyer Education required. Slightly higher rate.

Purchase Plus Improvement Allows needed repairs to be financed in one MaineHousing loan. One interest rate, one note, one mortgage, one payment. Min $500, Materials $1,000, Contractual labor up to $35,000. Basic livability improvements & energy star appliances.

Mobile Home Self Insured For single-wide and double-wide mobile homes on own land or in a park that don’t qualify for mortgage insurance. Purchase price limited to $150,000. Rate is 1 point higher than First Home. 5% downpayment (3% own $). 640 score, 29/41 ratios.

IRS Recapture tax

Recapture Tax Reimbursement! For loans closed on or after January 1, 2013 Sellers who owed & paid recapture tax can request reimbursement from MaineHousing for the amount of recapture tax they paid!

Maine HOPE H ome O wnership P rotection for un E mployment Payment protection for existing and new MaineHousing borrowers who become involuntarily unemployed

Maine HOPE One-time assistance of 4 months PITI. 0%, deferred, subordinate loan; no monthly payments, no closing costs. Repaid when sold, transferred, refinanced, or no longer principal residence. Contact MaineHousing for more info.

Primary Goal is to replace pre-1976 mobile homes with new Energy Star certified manufactured homes. The initiative provides a first low rate mortgage through MaineHousing and a 5 year deferred due on sale second mortgage for $30,000. Mobile Home Replacement Initiative

Eligible Applicants  Must own & occupy a pre-76 mobile home.  Household income at or below 80% of MaineHousing’s First Home income limits  Must qualify for the uninsured option (80% LTV) under First Home or Operation New Home.

MaineHousing Resources

Questions? Comments? MaineHousing