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					Who is New Hampshire Housing?

   • New Hampshire Housing is a
     non-profit public benefit
     corporation established by
     the state legislature. The
     Authority operates a broad
     range of programs designed
     to assist low and moderate
     income persons and families
     obtain safe decent and
     affordable housing.
What goes on in
         Homeownership….
• Education
   – First time homebuyer seminars
   – Publications
   – Continuing education and support for
     lenders
   – Realtor training
• Purchase mortgages / underwrite
• Origination (specialty programs)
What New Hampshire Housing
looks for in a borrower

• 1st time home buyer – or buying in a targeted
  area
  – Never owned a home they can buy anywhere in the state
  – Owned a home in the past 3 years they need to purchase in
    a targeted area
• Verifiable income that does not exceed our
  Income limits and at the same time makes
  sense! (all household income)
• Purchase price on home that does not exceed
  our limits
The Steps……….
• Check all household income..
   – This is really important make sure to count everyone
   – Income must be verified
• Do they have at least 1% of their own money….
   – Another important issue we need to see the 1% on the HUD
     and a bank statement
• Borrowers affidavit needs to be explained and
  completed
   – Please do not send in incomplete
More steps……….
• Your underwriter needs to
  review the file
• Loans need to be insured -
  we accept FHA/ VA/ RD/ MI
• If a borrower has 20% to put
  down only Pool Insurance will
  be required. (We can prior
  approve these to guarantee
  purchase)
• Most recent 3 years tax
  returns SIGNED
   – 4506 at closing is fine
      however you are
      responsible for submitting
      those returns
How about
ratios, credit scores, etc….
 • Credit Scores
    – We have no score
      requirements but someone
      might
    – Any derogatory credit
      issues should be explained
    – Get real with your borrower
      it is time that a credit score
      is higher than an IQ!
 • No Asset Limitation
 • Ratios – good luck!
NEW, NEW, NEW
• 25% minimum ratio for housing.
• All appraisals need interior and exterior pictures.
• Any properties that are bank owned need a home
  inspection and addressing repairs needed (not a hold
  harmless!).
• Hazard insurance for single wide mobiles must be
  enough to replace.
• Once we purchase loans we will be looking for proof
  of payment on the one time PMI.
Let’s talk about
going “Back to the Future”…..

 • Underwriter should
   really read the appraisal
 • Say goodbye to crazy
   ratios!!!
 • Underwrite for long
   time investment
 • Collections…..
    – $250 per item max
      $1,000
    – Medical, case by case
Property stuff……..
• We don’t really have
  any property
  requirements
  – Must meet basic living
    requirements
• 1-4 family owner
  occupied homes
  – Be careful 75% of rental
    must be added to
    income, make sure to
    watch the income limits
More about property…
• 600 sq. ft. minimum
   – If you want an exception to
     this rule an appraisal will
     need to be ordered to be
     reviewed
• Manufactured housing
  either on it’s own land
  or in a New Hampshire
  Housing approved
  cooperative.
   – No seal – no deal
Now there’s a limit…..
• Post and piers on stick built
  homes are not considered
  permanent foundations
• Wells and septics that are
  shared and not on the
  property be financed
• Mobile homes built prior to
  1976
• Private roads that do not
  have a recorded
  maintenance agreement
Still More……………
• Studio condos
• Homes without
  heating systems
• Excess acreage
Current Loan Products…..

               •   0-point

               • 1-point

               .
Cash Assistance Option
• 0-point + up to 4% grant (grant amount
  determined off base loan amount)
• Money can be used for down payment and or
  closing costs
  – Money can not be used to buy down the rate
• 1% down payment (borrowers own money)
• Rider added to mortgage for repayment of
  grant
  – Money is repaid all or nothing
Purchase Rehab
• Up to $40,000 for repairs, renovations and
  improvements designed to address
  obsolescence, improve energy efficiency,
  improve safety and extend the useful life of
  the property.
• Appraisal must be made as is and as complete
• Added on to the loan – just one loan
• You close the loan send rehab money with
  closed package- your work is done!
• If you have any doubts if a property is
 good for a purchase rehab – we will be
 glad to make that decision for you.
Loans originated by
New Hampshire Housing
EHRL
(emergency home repair loan)

 • Loan must be current
 • Property must be owner occupied
 • For major repairs that
   homeowners insurance does not
   cover
 • Up to $15,000
 • Loans with a pre-existing problem
   do not qualify.
Philip S. Rader Divorced
Borrower Initiative

• Must be refinancing due to divorce
  agreement
• Have at least 1 dependant child
• Stay within our purchase price and
  income limits
Recapture Tax
• In order for Recapture
  Tax to apply these items
  need to take place
  – Under 9 years
  – Profit on sale
  – Over income limit
  = RECAPTURE
What’s so bad about
Recapture Tax?
Reminders….
• Income – be careful! (you must look at all
  household income)
• 3 years tax returns, signed
• Borrowers who currently reside in a mobile
  home park would have to purchase in a
  targeted area
• Please follow the correct stacking list
  – All forms available on the WEB
More…..
• RD loans – we will finance on purchase price
  or appraised value – which ever is less
• Seller concession same as secondary market
  3&6
• We DO NOT participate in MERS
• FHA MICS have to be assigned over to us
Concerns
• Mortgage Insurance
• Property types
• Etc., etc. etc……
Important Numbers, Etc.
•   www.nhhfa.org              •   Lending Analysts
•   Funding people                 (underwriters)
    – Patty Lazott                  – Denise Beaurivage
        • 310-9254                      • 310-9248
    – Connie Cote                   – Brenda Wade
        • 310-9246                      • 310-9322
•   Reservation, condos, etc        – Carolyn Boland
    – Mim Suanet                        • 310-9276
        • 310-9243
                               •   Mortgage Coordinator
                                    – Christine Hager
                                        • 310-9244
And saving you green….

				
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