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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