1. PHFA Pennsylvania Housing Finance Agency Processor Training 1/17/2014

2. What is PHFA? Pennsylvania Housing Finance Agency Would be considered an “investor” Offer multiple loan programs for all 4 loan types: Conventional, FHA, USDA, and VA Offer multiple “assistance” programs in conjunction with 1 st mortgage loans

3. PHFA Programs

5. HFA Preferred Risk Sharing No PMI – Up to 97% LTV No 1 st time homebuyer requirement, but borrowers cannot have any other ownership interest Must be approve/eligible Minimum borrower contribution = $1000 Maximum income calculations for both HFA programs http://www.phfa.org/forms/sellersguide/appendi ces/b.pdf

6. HOMEstead Assistance Loan Provides up to $10,000 in down payment and closing cost assistance in the form of a no-interest, second mortgage Based on NEED Liquid assets may not exceed $5000 after closing Funds are forgiven at a rate of 20% per year over 5 years First mortgage through Keystone Home Loan program (FHA, VA, or RD only)

7. PHFA Process PHFA does not issue preapproval letters However, Form 1 can be used for PHFA to review any issues prior to submitting the UW package http://www.phfa.org/forms/sellersguide/f orms/01.pdf

9. PHFA Process Loan is locked by LO through Pipeline Plus Lender processes and underwrites the file and submits the UW package to PHFA for review Use Form 51 for a list of required documents All loans MUST be locked with PHFA prior to sending in compliance package

10. PHFA Process Documents must be assembled in order of From 51 and MAILED to PHFA – Overnight packages to: PHFA, Homeownership Division, 211 N. Front St. Harrisburg, PA 17101 – Regular mail package to: PHFA, Homeownership Division, PO Box 8029, Harrisburg, PA 17105-8029 Be sure to include completed Form 51 on top of stack order Allow up to 5 business days for PHFA to make a decision, most likely 1-2 days FYI, per PHFA will be automated soon, but for now all docs must be mailed

11. Form 51

12. PHFA Underwriting Decision All notices and reports can be retried via Pipeline Plus https://lenders.phfa.org/ Approval – Loan is eligible to be sold to PHFA – Contains purchase conditions (these conditions should be submitted with the purchase package) Suspension – Additional documentation is required to complete review – Docs should be emailed to hopcompliance@phfa.org or faxed to 717-780-3872hopcompliance@phfa.org Denial – PHFA cannot approve the loan

13. PHFA Pipeline Plus

15. PHFA Requirements All loan terms are 30 years All residences must be owner-occupied, primary residences Taxes and Insurance are ALWAYS escrowed Properties must be less than 4 acres (certain exceptions apply up to 10 acres) All properties require a pest inspection Income limits apply to HFA Preferred and Keystone Home Loan programs HFA Preferred cannot be condos and must be 1 unit

16. PHFA Contact Info Homeownership Hotline 800.822.1174 Questions?