Greater Minnesota Housing Fund Gap Loan Calculation
CHANGE YELLOW VARIABLES ONLY!!
(1) Sale Price (2) Gross HH Income (3) Family Size (4) Savings/Equity Proceeds $ $ $ 161,000 42,000 4 -
Statewide Median Income By Family Size
Family Size Multiplier Median Inc. $ 80% of Median $ 60% of Median $ 1 0.7 47,740 38,192 28,644 $ $ $ 2 0.8 54,560 43,648 32,736 $ $ $ 3 0.9 61,380 49,104 36,828 $ $ $ 4 1 68,200 54,560 40,920 5 1.08 $ 73,656 $ 58,925 $ 44,194 6 1.16 $ 79,112 $ 63,290 $ 47,467 7 1.24 $ 84,568 $ 67,654 $ 50,741 8 1.32 $ 90,024 $ 72,019 $ 54,014
RESULTS: (27) GAP AMOUNT
$ 15,000
Based on income and sale price as calculated below, not to exceed $15,000
CALCULATION SCHEDULE: Family of 4 Median Income $ 80% of Median $
68,200 54,560
(Maximum family income to qualify for gap assistance) Gap Calculation:
Mortgage Calculation (Front ratio only):
(5) Mortgage Product (6) Interest Rate (7) Term (8) Housing Expense Ratio (9) Annual Taxes (10) Annual Insurance (11) Monthly Private Mortgage Insur. (12) Monthly Payment Assistance (13) Closing Costs (14) Minimum PI (15) Minimum PITI (16) Minimum Mortgage Amount CASA 6.00% 40 25% $ 1,500 $ 500 $ 70 enter as (neg) $ (75) 3.2% $ 713 $ 950 $ 129,647
(17) Purchase Price (18) Plus Closing Costs & Prepaids (19) Less First Mortgage Amount (20) Less Homebuyer Funds (21) Less ECHO/HAF Assistance (22) Less Other Assistance Funds (23) Less Equity/Savings (24) Calculated Gap Loan Amount
$ 161,000 $ 4,600 $129,647 $ 500 $ 3,000 $ $ 32,453
Applicant Information
Applicant Name(s) Property Address City, State, ZIP
GAP CALCULATION INSTRUCTIONS
IMPORTANT: Fill in the Applicant Information and save a copy of the gap calculation template to a new Excel worksheet for each buyer. NOTE: Box with *** indicates the cell is automatically calculated or filled in based on data entered in the worksheet.
Formula Number Instructions (See Procedure Manual for Additional Information)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22) (23) (24) (25) (26) (27) Enter the home purchase price. Deduct any TIF or other project-based assistance that reduces the sale price. Do not deduct any sources of secondary financing--they will be entered in boxes 21 or 22. Enter the gross income of all members of the household. Income should be calculated using MHFA guidelines. Enter the family size of the household. For GMHF, household is allowed to retain $5,000 of liquid assets. Enter any liquid assets above $5,000 not already allocated for downpayment or closing costs. See procedure manual for more information. Enter the name of the first mortgage product (e.g., CASA, Fannie Mae, FHA). Enter the interest rate on the first mortgage (cannot exceed current market rate + 1 percent). Enter the term of the loan (must be at least 30 years). For a 15 year term with a 30-year amortization, enter 30. Enter 25%. GMHF gap financing is calculated based on a 25% housing expense ratio, even if the buyer's first mortgage product allows for a higher ratio. This ratio cannot be less than 25%. Enter an estimate of annual property taxes. Enter an estimate of annual homeowner's insurance. Enter an estimate of monthly PMI. Do not enter if buyer's first mortgage will be less than 80 percent of sale price. Enter any HAF monthly assistance from MHFA ($20-60). Must enter it as a negative (-) number. If buyer is HAF-eligible, the monthly assistance must be used before tapping GMHF assistance. Contact MHFA for more information on HAF program guidelines. Enter an estimate of closing costs based on the percentage of sale price (e.g., 3%). Closing costs cannot exceed 3.5 percent of first mortgage amount, excluding prepaids. Do not include prepaids in the closing costs figure. *** Minimum PI (amount required by GMHF based on a 25% housing expense ratio) is calculated based on the information provided. *** Minimum PITI (amount required by GMHF based on a 25% housing expense ratio) is calculated based on the information provided and includes PMI. *** Minimum mortgage amount (amount required by GMHF based on a 25% housing expense ratio) is calculated based on the information provided. *** Filled in using number entered in box 1. Will default to the percentage entered in box 13. Enter the actual closing costs before making the final gap calculation. Cannot exceed 3.5% of mortgage amount. Do not include prepaids. Will default to the minimum required mortgage amount. Enter actual mortgage amount if higher. Important: Actual mortgage amount cannot be less than the mortgage amount calculated in box 16. Will default to 1% of the sale price. Enter the amount of actual homebuyer funds used for the downpayment. Must be at least 1% of the sale price for GMHF. Enter the amount of any MHFA HAF or ECHO downpayment, entry cost assistance, or equity contribution loan. Do not enter the value of HAF monthly assistance because it has already been included in box 12. Enter the amount of any other downpayment or closing assistance received by the household. Include gifts, employer assistance, etc. *** Filled in using figure entered in box 4. *** Calculated based on all information provided. May exceed gap amount allowed by program guidelines. Enter the amount of prepaid expenses that must be covered at closing. Important: GMHF gap funds are not available to cover prepaids. They must be covered by the buyer's personal funds, a gift, or another source. *** Calculates the total amount of funds the buyer must provide at closing. *** Actual gap loan amount available to the applicant based on GMHF program guidelines ($2,000 minimum and $15,000 maximum).