ohfa basic training what lenders should know. introduction “we open the doors to an affordable...

OHFA Basic Training

What Lenders Should Know

Introduction

• “We Open the doors to an affordable place to call home”

• First-time Homebuyer Programs• Early 1980’s• Creation of several loan products• 143,000 Ohioians

Agenda

• OHFA Programs – Know Thy OHFA Programs

• Down Payment Assistance • Homebuyer Education• Program Fees• OHFA Lender Portal• Compliance Process

OHFA Programs

• First-time Homebuyer Program– Target area loan

• Ohio Heroes Program• New Home Sweet Home Program• Grants for Grads-Plus Program• Down payment Assistance Grant• Mortgage Credit Certificate Program

First-time Homebuyer

A person that has:• Have never owned real estate;• Have not owned or had an ownership interest in your

principal residence in the last three years;• Unless they are a qualified military veteran; • Purchase a home in a target area.• Minimum credit scores 640

• Meet income and sales price limits

• Qualify for the loan being requested

Target Area

• A target area is an economically distressed area designated by the U.S. Department of Housing and Urban Development (HUD).

• http://www.ohiohome.org/homebuyer/publications.aspx#target (OHFA download center)

• http://www.ffiec.gov/Geocode/default.aspx

Loan Program Features

• All loans are 30 year fixed rate mortgages• Acceptable loan types:

– FHA (including 203k and streamline)– VA – USDA-RD, – Fannie Mae/FreddieMac

• 2 – 1 buy downs are permitted• Interest rates

• www.ohiohome.org

Qualifying properties

– Existing homes: single-family dwellings, conforming condominiums, duplexes, and up to four-unit properties

– Newly built spec/nearly completed homes: one-unit single-family dwellings

– Modular/manufactured (mobile-style) homes: one-unit single-family dwellings, permanently affixed to a foundation (government loan)

Follow underwriting guidelines for specific products

Qualifying properties cont…

• Properties must meet purchase price limits by county

• 2 acres – within municipal corporations• 5 acres – outside municipal corporations• Exceptions permitted if required by local

health or safety code

New Home Sweet Home Product

• All the benefits of our First-Time Homebuyer Program

• New Construction Homes• One unit single family dwelling• Extended period of time• At a .25% higher interest rate

Ohio Heroes Product

• All the benefits of our First-Time Homebuyer Program

• At a .25% lower interest rate• Program is available to the following full-time

employees who are:

Ohio Heroes Product

• Active Military and Veterans– Personnel, Armed services & Reserve

forces– 90 days Active Duty for Reserve Forces

(excluding boot camp)– Veterans must have honorable discharge

• Proper documentation required

Ohio Heroes Product cont…

• Firefighters, EMT or Paramedics– Full-time employees (1,200 hours)– Certification card– Letter from payroll– OHFA Form

• Proper documentation required

Ohio Heroes Product cont…

• Health Care Workers– Certified, accredited, or licensed– Employed full-time– Medical office, urgent care, nursing home,

assisted living hospital, etc.• Proper documentation required

Ohio Heroes Program cont…

• Police Officers– Commissioned as law enforcement officer– Employed full-time– General power of arrest

• Proper documentation required

Ohio Heroes Product cont…

• Teachers– Certified teacher, guidance counselor,

administrator/principal or college level instructor

– Employed full-time– Minimum of 12 credit hours

• Proper documentation required

Grants for Grads (G4G) Product

• Be a first-time homebuyer• Meet specific income guidelines • Be an Ohio resident• Graduated from high school or have a GED• Earned an associate's, bachelor's,

master's, doctorate or other postgraduate degree

• Within 24 months of application• One unit dwelling

Grants for Grads cont…

• Benefits equals 2.5% of purchase price

• Issued as a second mortgage with a 0% interest rate with payments deferred

• The loan is forgiven after five years

Down Payment Assistance (DAG)

• April 15, 2013• First-time Homebuyer Program, New Home

Sweet Home, or Ohio Heroes Program• .50% above the FTHB unassisted rate• Benefits equals 2.5% of purchase price • Issued as a second mortgage with a 0%

interest rate with payments deferred• The loan is forgiven after five years

Grants for Grads / Down payment Assistance

• However, a prorated repayment of the remaining balance is due if the home is sold within five years.

DPA Funding Authorization Form

• Advanced Notice– 3 Business Days

• $50 Wiring Fee– Can be charged to borrower– Title Co. forward check to OHFA

• Form needs to be completed by Title Co.– 3 Sections to be completed

• Transaction, Payee, and Banking information• Email requests to DPAfunding@ohiohome.org

Homebuyer Education

• Any OHFA assisted loans• Grants for Grads• Down Payment Assistance Grant• Conventional unassisted• Require Homebuyer Education counseling

Homebuyer Education

• Courses offered through HUD-approved housing counseling agencies in each Ohio county

-OR-• OHFA Streamlined education program

Homebuyer Education

• OHFA interactive area on website

• Website contains Interactive maps where borrower can click and email completed documents directly to the counseling agency.

• Borrower reservation will be confirmed electronically before granting access to site.

OHFA Streamline Homebuyer Education

• Borrower will need to:• Review Homebuyer Guide• Complete 25 question test• Fill out budget worksheet

• Homebuyer documents available:• From lender• On OHFA website: www.ohiohome.org

Homebuyer Education

• Fax homebuyer information

• 614.995.0487

• Expect 7 to 10 day process

Homebuyer Education

• Test and budget to the appropriate agency.

• Counselor will review answers and schedule a one hour telephone counseling session with buyer.

Homebuyer Education

• Borrower will close on their loan.

• The $75 OHFA Administrative Fee, shown on the HUD-1 for the first mortgage, should be made payable to OHFA.

• The $75 fee must be included with the closing package.

Loan Fees

• 1% Origination fee or Zero Origination• $200 Funding fee (US Bank fee)• $85 Tax service fee (US Bank fee)

– Not to exceed $90

• $75 Admin fee– OHFA’s Streamline Homebuyer Education (if applicable)

• $50 Wire funding fee• .25% Adverse market fee (Fannie Mae fee)

– Conventional loans only

Are there any OHFA requirements?

• Borrower(s) must meet household income and purchase price limits

• Credit score limits• Reservation good for 60 days• Spouse releasing dower and Co-signers

– Income of spouse releasing dower is part of household income

– Co-signer not considered co-borrower for OHFA purposes– Both are prohibited from being on the title and deed

Are there any OHFA requirements? cont.

• The Federal Recapture Tax provision applies to:– First-time Homebuyer Program– Ohio Heroes Program– Grants for Grads– New Home Sweet Home

• OHFA will reimburse recapture tax.

How to register an applicant?

• Lender Portal• Username and password• Main contact person• www.ohiohome.org• Add to favorites

Compliance Process

Process Loan

Submit Commitment Package

Wait for OHFA

Approval

Submit DPA Funding Request

Close Loan

Submit OHFA

Purchase Package

Send Mortgage file to US

Bank

US Bank Purchase Mortgage

Who should I call with my questions?

• OHFA Representative

• US Bank MRBP helpdesk

800.562.5165

mrbp.helpdesk@usbank.com