Product Guidelines
Florida Housing Finance Corporation
SFMRB Program 2006
Product Code 3104FL
Home Investment Partnerships Loan (HOME)
Several states and local municipalities have enacted legislation that define High Cost loans based on APR and fee thresholds which may or may not relate to the HOEPA thresholds. These types of loans typically have various restrictions. It is the policy of U.S. Bank Home Mortgage not to purchase any loan defined as “high cost” under any federal or state law/regulation or local ordinances, and any subsequent amendments thereto.
Lien Code
L03
Product
Description Borrowers must be first-time homebuyers. Exception: Borrowers buying in Targeted Areas including disaster affected areas considered Targeted are not required to be first-time homebuyers. A first-time homebuyer is someone who has not owned and occupied their principal residence in the three year period preceding closing. All applicants must be considered irrespective of age, race, color, religion, national origin, sex, marital status, military status or physical handicap. Maximum Loan Amount Up to $10,000.00. Except in High Cost Counties and households with a disabled member where the maximum is increased to $14,999.00. Eligible Properties Program funds may be used for new mortgages (not refinance) and to finance single family or multi-unit residences (up to 4 units) that are the primary full-time residence of the borrowers. If purchasing a two unit dwelling, the borrower must maintain one unit as their primary residence. Recreational, mobile, seasonal or other types of vacation or non-permanent homes are not eligible under the program. New and existing, detached or attached, condos, town homes and also manufactured or modular homes that meet FHA requirements. Properties are for residential purposes so no more than 15% may be used in a trade or business (including day care). “Business” does not include rentals in a multi-unit property. Eligible Transactions For persons with incomes not exceeding those shown on the HOME Income Chart, Florida Housing will provide HOME funds, on a first-come, first-served basis, in an amount equal to the LESSER of up to 25% (but not to exceed $14,999) of the purchase price of the Single Family Residence except in high cost counties defined below, where the maximum is increased to $25,000 OR the amount necessary under Florida Housing’s Mortgage Purchase Program or the mortgage insurer’s requirements to meet the ratio of monthly mortgage payment (principal, interest, taxes and insurance(s) to monthly income established by Florida Housing under the HOME program (“HOME Loan”).
Subordinate Financing
The HOME Loan will be secured by a second mortgage on the property in accordance with Agency secondary financing requirements, as applicable. The following requirements will apply: 1. The first mortgage must be a Bond loan purchased under this Mortgage Purchase Program. HOME sales price limits remain the same for any number of units. 2. The HOME second mortgage when combined with the first mortgage may not exceed Agency (i.e. FHA, Fannie Mae, etc.) allowable amounts for the loan type but in any case may not exceed 105%. 3. The HOME Loan must be serviced by the Servicer. 4. Both first and second mortgage loans must meet all the applicable insurer/guarantor requirements and, if applicable, be acceptable to Fannie Mae or Freddie Mac. 5. The required monthly payment under the first mortgage (monthly payments are not applicable for HOME Loans), plus other housing expenses and all recurring charges, cannot exceed the borrower’s reasonable ability to pay as per Agency and the mortgage insurer requirements. 6. The source, amount and repayment terms must be disclosed in the mortgage application, and the borrowers must acknowledge that he or she understands and agrees to those terms.
Subordinate Financing
Homebuyer Education
7. No commitment or origination fee will be charged for the HOME Loan; however, the Mortgage Lender may collect and retain a $75.00 application fee for each HOME Loan. 8. Lenders will apply the following before using HAP funds: a. Seller contributions; b. Costs that can be financed in the mortgage; c. Gift or Grant funds. 9. Complete a Summary of Income form. (http://www.ehousing.cc/FHFC%2005/HOME/04%2056%20HOMESummaryofIncome.PDF) “Anticipated Income” section, Line 7 to be inserted as Grand Total Income on the Affidavits/’Certifications form. (http://www.ehousing.cc/FHFC06/Affidavit%208-14-06.pdf) 10. The HOME Loan is due-on-sale, refinance, payoff of the first mortgage or whenever the borrower ceases to occupy the property. 11. Acquisition costs cannot exceed the Bond program limits of the corporation in effect at the time of the Mortgage Lender’s written commitment of funds to the borrower. The first mortgage must meet Federal Truth-in-Lending Disclosure requirements and any other applicable state and federal lending regulations. 12. The first and second mortgages must be recorded in the following order: First Mortgage, Assig 13. Florida Housing does not permit cash back to the borrower. Borrowers are permitted a reimbursement of overage of earnest money deposit to the extent any minimum contribution has been satisfied and permitted by Agency guidelines. 14. If a borrower utilizes a HOME Loan, he/she may not utilize a HAP or HAMI Loan. 15. Historic properties are not eligible for HOME funds. 16. High Cost Counties Defined as Baker, Bay, Brevard, Broward, Charlotte, Clay, Collier, Duval, Flagler, Hernando, Hillsborough, Indian River, Lake, Lee, Manatee, Martin, Miami-Dade, Monroe, Nassau, Okaloosa, Orange, Osceola, Palm Beach, Pasco, Pinellas, St. Johns, St. Lucie, Sarasota, Seminole, Walton 17. HOME loans are limited to one unit properties Homebuyer counseling will be required for all borrowers (those on the Note). Acceptable counseling includes counseling provided by (1) SHIP approved Homebuyer counseling agencies, (2) any agency listed on the HUD website, (3) an MI provider, (4) online counseling provided by VA or non-profits funded by Fannie Mae if acceptable to the Agency (FHA, VA, Fannie, Freddie). A link of is provided on the Forms and Guide page of the Website. The counseling requirement is waived for non-first time homebuyers. http://www.floridahousing.org/Home/HomebuyersRenters/FTHB/HomebuyerEducation.htm
Minimum Borrower Funds
Florida Housing encourages but does not mandate the use of Homebuyer's available cash assets for down payment and closing costs. HOME loans require consideration of assets. Use the Summary of Income form that is available online.
Qualifying Rate and Term Currently interest Rate is 0.00%. The HOME Loan is due-on-sale, refinance, payoff of the first mortgage or whenever the borrower ceases to occupy the property. Closing Costs / Prepaids No commitment or origination fee will be charged for the HOME Loan; however, the Mortgage Lender may collect and retain a $75.00 application fee for each HOME Loan. Required Documents Preclosing- Notice to Sellers, Environmental Review Checklist, Lead Disclosure (Built prior to 1978), Funds Request, Subsidy 2nd Mortgage Calculation Certification and Transmittal Fax Cover Sheet for Funds Request. Closing- Mortgage, Note, HOME DPA Acknowledgement Form and Homebuyer Assistance Agreement. Documents can be located on the following webpage. http://www.ehousing.cc/fhfc06.htm See Maximum Sales Prices on page 21 of the Origination Guidelines. Also see Income Limits on pages 22 and 23 of the Origination Guidelines. (Attached)
Note