dc open doors...dc open doors loan products fha •1 stmortgage up to 96.5% ltv •standard fha loan...

DC OPEN DOORS

LENDER TRAINING

Welcome to DC Open Doors

• Program Overviewo Program Highlights

o Loan Products

o Down Payment Assistance

o Program Facts

o Program FAQs

• Program Processo Reservation Process

o Data Transmission

o Pre-closing Review

o Reservation Extensions

o Direct Funding, Closing

o Post-Closing

o Process FAQs

• Contact Information

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Presentation Summary

Program Highlights• DC Open Doors allows participating lenders to offer affordable

mortgages and down payment assistance to eligible homebuyers.

• DC Open Doors has Continuous Funding for its mortgages AND down payment assistance!o Interest rates are posted daily at www.dcopendoors.com, Facebook (DC Open Doors) and

Twitter (@DCOpenDoors).

• U.S. Bank, National Association is the Master Servicer.

• All participating lenders must:o Be approved by both U.S. Bank and DCHFA

o Participate in all mandatory trainings

• Lenders are encouraged to originate a minimum of $1 Million annually.

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• FHA and Conventional Loan Types

• Open Doors can provide 1st trust alone or 1st trust and DPAL

• Open to First Time and Repeat Homebuyers

• Open to all D.C. Neighborhoods and Wards

• Maximum Borrower Income of $140,640• No Household income test

• $453,100 Maximum 1st Trust Loan Amount

• No Sales Price Limitations

• No Asset Test

• U.S. Bank Overlays & Investor Guidelines Apply

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More Inclusive Affordable

Homeownership!

Program Highlights

DC Open Doors

Loan Products

FHA

• 1st Mortgage up to 96.5% LTV

• Standard FHA Loan

• Standard MIP, upfront and monthly

FHA Plus

• 1st Mortgage up to 96.5% LTV

• Subordinate loan of 3.5% of sales price

• Standard FHA Loan, MIP, etc.

HFA Preferred

HFA Advantage

• 1st Mortgage up to 97% LTV

• Charter minimum, MI Coverage

• Refinances eligible

• Homebuyer education required

Conventional w/DPAL

• 1st Mortgage up to 97% LTV

• Subordinate loan of 3.0% of sales price

• Charter minimum, MI Coverage

• Homebuyer education required

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Government Conventional

Available for FHA and Conventional

Loans

Must be coupled with DC Open Doors 1st

Trust

Amount is 3.0% or 3.5% of sales price

Structured as Subordinate Lien

Can be used in conjunction with other assistance

programs (HPAP, EAHP, etc.)

Forgiven over 5 years, 20% per year

DPAL is 0% &

non-amortizing

(No Payments)

Interest rate on 1st

Trust will be slightly higher when using

DPAL

DPAL is repayable within first 5 years

only upon sale, refinance or transfer

of title

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DC Open Doors

Down Payment Assistance

DC Open Doors –

Program Facts

• Interest Rates Not Credit Score Based

• Rate Offered at Par (No Lender Credit, Points, etc.)

• 50% Maximum Debt to Income Ratio on conventional loans

• 45% DTI FHA loans

• 640 Minimum Credit Score

• The maximum loan amount of $453,100 can only be exceeded by the UFMIP on an FHA loan

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DC Open Doors –

Program FACTS• Charter minimum MI coverage for conventional loans

– 18% at 97% LTV

• Seller Contributions Allowable – Follow FHA/Fannie/Freddie Guidelines

• Buyers can use their own funds plus DPAL for additional down payment or closing costs

• DC Open Doors continues to offer 97% LTV on condominiums

• Homebuyer education requirement can be completed online or face-to-face. Provider must meet standards defined by the National Industry Standards for Homeownership Education and Counseling = (follow FNMA/FHLMC guidelines)

• No DCHFA Review/Requirement of the Home Inspection

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DC Open Doors –

Program FAQs• Why use HFA without DPAL?

o The MI rates are lower on DC Open Doors than on standard conventional loans (HomeReady/Home Advantage)

18% @ 97% LTV 16%@ 95% LTV 12% @ 90% LTV 6%@ 85%LTV

• Is there a maximum sales price for the program?o No, there is not a maximum sales price amount. However, the loan amount may not exceed $453,100 plus

FHA MIP.

• What income must be used to determine qualifications under the maximum income requirement?o All borrower income must be documented/verified, regardless of whether or not being used for qualifying

purposes –however, NOT based upon household Maximum Income for all borrowers is $140,640

• Do you allow a non-occupant co-borrower?o Yes, following Investor/Insurer/Servicer guidelines. Income is counted for eligibility

• Is there a maximum origination charge the lender is permitted to collect?o No, however it must be reasonable and customary

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DC Open Doors –

Program FAQs• Can the borrower buy down the interest rate?

o No, all of our loans are quoted with 0 points only (no lender credits, either)

• If I have more than one purchaser, but only one is going to be on the loan, can the other person be on the deed?o Yes, non-borrowers are permitted to be on the title.

• Can the DC Open Doors programs be used for a refinance?o Yes, the HFA Preferred is also a refinance program up to 97% LTV/CLTV

• Can my borrower own any other property at the time of closing on a DC Open Doors loan?o No, the borrower may not have ownership interest in any other property at the time of closing.

• What types of non-resident aliens are allowed under the program?o We follow FHA/FNMA/FHLMC/U.S. Bank guidelines

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DC OPEN DOORS

PROGRAM PROCESS

DC Open Doors

Program Process• No separate application for DC Open Doors – the borrowers meet with Lender

and start loan application

• DCHFA will pay the cost to record the DPAL Deed of Trust, negating the

need for a Lender Estimate/GFE or Closing Disclosure/HUD1o The only allowable fee on DPAL is the cost to record the DOT – NO TITLE INSURANCE ON DPAL

• Lender reserves loan with DC Open Doors (via eHousingPlus website) at time of

rate lock (must have ratified contract)

• Reservation (Rate Lock) starts 70 Day reservation period (delivery &

purchase) – recommended quote to borrower is 30 days

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DC Open Doors

Program Process• DC Open Doors does pre-closing review for all loans

• DC Open Doors coordinates closing with Lender

• Post-closing – eHousingPlus review & U.S. Bank review

• DC Open Doors – always here to answer questions!

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DC Open Doors

– Reservation Process• Reservation = Official Program Rate Lock Date

• Reservation date starts 70 Day period from lock to U.S. Bank purchase post-closingo Recommended quote of 30 days to borrower to allow sufficient time for post-closing

• Reserve Loan Using Online Reservation System (eHousingPlus): o Input as much borrower/loan information into the reservation system as possible to

reduce Pre-Closing Review processing time

o Information must match what is submitted to DCHFA

• Purchase Contracts MUST be Fully Ratified Prior to Reserving a

Loan with DCHFA 14

DC Open Doors

Data Transmission

• DCHFA uses a secure FTP portal for receiving and sending all data, documents, etc.

o FTP portal supports PDF, Word, Excel, etc.;

o Lenders are responsible for transmitting all document submissions via FTP portal;

o Documents are uploaded to DCHFA via secure FTP portal, with specific file naming:

Last Name, First Name – Submission or Document Title

o DCHFA will transmit DPAL closing documents (commitment letters, loan documents, settlement instructions, etc.) via FTP portal;

o DPAL docs are NOT sent to lender via eHousingPlus – the FTP is a separate website;

o Each Lender will be provided with login credentials

FTP link: https://sftp.dchfa.org

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DC Open Doors

Data Transmission • Lenders must designate a system administrator to manage

access to FTP portal

• DCHFA will provide each individual lender with one set of

log-in credentials for access. Credentials can be used by

multiple parties (processors, underwriters, etc.)

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DC Open Doors

Pre-closing ReviewDCHFA reviews all loans for compliance and provides a “Clear to Close” Notice.

DCHFA is reviewing for the following:o Loan Application Form 1003 for accuracy

o Maximum Borrower Income of $140,640

o Proof of Income (*see checklist)

o Ratified Purchase Contract

o Homebuyer Education (If Applicable)

o DPAL (If Applicable)

• DPA Loan Funding Request form & Wiring Instructions

• Need 3 business days to process DPAL funding

*Always reference the Review Checklist to ensure your package is complete.

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DC Open Doors

Pre-Closing Review• Files reviewed on “first come, first served” basis;

• We will receive an email alert when a loan file has been uploaded by a lender. Files will be logged upon receipt;

• Files missing documentation will be taken out of the review queue and placed in pending queue until the files are complete;

• DCHFA commits to a timely pre-closing review time from receipt of a completed package;

• File Approved – DC Open Doors Sends ‘Clear to Close’ Notice

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DC Open Doors

– Reservation Extensions

Lenders must request all reservation

extensions in writing

[email protected]

All extensions will trigger Extension

Fees

70 Day Base Rate Lock

30 Day Extension –0.25% of Loan

Amount Fee

100 Days Total

20 Day Extension –0.50% of Loan

Amount Fee

120 Days Total

Extension Fees are netted from ALL loans delivered after 70 Days

Avoid Extension Fees – Quote 30

Day Locks to Borrowers!

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• DCHFA prepares DPAL closing documents and uploads to FTP for lender to access

• Lender downloads DPAL closing documents and sends to settlement company with 1st

trust docs

• DCHFA funds the DPAL directly to settlement company

o DCHFA NEEDS 3 BUSINESS DAYS TO PROCESS FUNDING. PLEASE ENSURE DCHFA HAS SUFFICIENT TIME TO FUND THE DPAL

• If a first trust loan contains deficiencies, or for any other reason cannot be purchased by U.S. Bank, the lender is responsible for reimbursing DCHFA for the DPAL

o DCHFA will send a letter to the lender requesting reimbursement including wiring instructions and timing

o Failure to reimburse DCHFA for a DPAL closed with a first trust loan that is not purchased by U.S. Bank could result in lender suspension.

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DC Open Doors

Direct Funding

and Closing – DPAL only

DC Open Doors Post-ClosingThree Parallel Processes Start Immediately After Closing:

• DC Open Doors & DPALo Copies of Executed Note, Closing Disclosure & DOT for 1st Trust Loan

o Original Borrower Recertification, Note & Recorded DOT mailed to DCHFA

• eHousingPlus Compliance Reviewo Package is sent to eHP in Weston, FL

o eHP will follow DCHFA’s Post-Closing Review File Checklist for review:

• Copy of checklist – available on eHousingPlus

• Copy of the Borrower Recertification

• Final executed 1003

• Copy of executed Closing Disclosure

• Certified true copy of Executed DOT and Note for all financing

o eHousingPlus compliance approval is required before U.S. Bank will purchase loan

• U.S. Bank Purchase Reviewo Package is sent to U.S. Bank via docVelocity Imaging

o Standard purchase file – please refer to US Bank for complete document list

o Please ensure package is complete

o Allow time for review and purchase – reservation timeline management is critical

• eHousingPlus Approval & U.S. Bank Approval Required

• Loan purchased!

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Borrower starts process

• Meets with Lender

• No separate application for DC Open Doors

• DCHFA pays the cost to record the DPAL DOT, if applicable

• No other fees allowed on DPAL

Lender Reserves Loan

• Reservation = Rate Lock

• Starts 70 Day Reservation Period

• Need fully executed purchase contract

• Can be before or after underwriting approval

Pre-Closing Review

• Required for all loans, with or without DPAL

• Submitted to DCHFA via FTP

• Complete files reviewed

Funding, Closing

• DCHFA funds DPALs directly at closing

• DCHFA sends DPAL loan docs to Lender via FTP

• 3 business days needed to fund DPAL

• Loan closes!

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DC Open Doors – Process

Summary

Post Closing

Post Closing

• Compliance Review file mailed to eHousingPlus

• Purchase file uploaded to U.S. Bank

• DPAL original docs sent to DCHFA

Post Closing

• eHousingPlus communicates any deficiencies to Lender.

• Approves loan

• Notifies U.S. Bank

Post Closing

• U.S. Bank communicates any deficiencies to Lender.

• Approves loan

• Purchases loan

• 70 Day Reservation Period

Extensions

• Must be requested PRIOR to expiration

• Must be requested in writing

• Trigger Extension Fees

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• Subordinate financing listed as Source of Down Payment/Closing Costs on

1003

• All lender and DCHFA numbers required to reflect the same amounts

• All files MUST have the MCC-001 Document whether or not there is an

MCC with the loan or not!!!!!!!!!!!!

• After an approval is issued, no changes to DU, 1003, U.S. Bank approvals,

etc. can be made. If so, it must be reviewed again with revisions.

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FAQs and Tips

LENDERS DO NOT CANCEL DC OPEN DOORS

LOANS IN SYSTEMPlease email us at

[email protected] to cancel a loan

• Lender should submit loan files as close to the loan settlement date as possible, but not less than 5 business days before;

• Please coordinate with your Secondary/Loan Ops Department about locks (timing and how-to)

• No specific MI company is required on DC Open Doors’ loans o Refer to U.S. Bank for a list of acceptable MI Providers

• HFA Preferred (FNMA) loans must be run through DU and coded as “HFA Preferred” o Must receive DU “Approve/Eligible” Findings

• HFA Advantage (FHLMC) loans must be run through LP and coded as “HFA”. o Must receive Accept findings.

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FAQs and Tips

DC Open Doors

Contact Information

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Program Administration

• Lisa Hensley, Single Family Director

• 202-777-1635

• [email protected]

• Bill Milko, Single Family Deputy Director

• 202-777-1642

• 202-321-2156

• [email protected]

Website and Social Media

• Website: www.DCOpenDoors.com (All forms, presentations, etc. are in For Participating Lenders Only section)

• Twitter: @DCOpenDoors (Follow us!)

• Facebook: www.facebook.com/DCOpenDoors (Like our page!)

Additional Contacts

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U.S. Bank

• U.S. Bank Guidelines:• https://hfa.usbank.com/HFA_Division.html

• Post-Closing Package:

• Upload via docVelocity Imaging

• Required Original Documents:

• Mail to: U.S. Bank Home Mortgage, HFA Division Note Vault 1550 American Blvd. E, Suite 440, Bloomington, MN 55425

• Help Desk: (800) 562-5165 or [email protected]

eHousingPlus

• Website: www.ehousingplus.com

• Mailing Address: 3050 Universal Blvd., Suite 190, Weston, FL 33331

• Phone: (954) 217-0817

• Email Address: [email protected]

Common Conditions

o Correct Fees!!!!! on the LE & CD.

o Property address mismatch on Flood Cert, Note and other Loan Documents.

Example: Unit #XXX, #XXX, Unit XXX – ALL MUST MATCH!!!

o Demand Feature not checked on the Closing Disclosure.

o List of Service Providers not provided.

o Source of Funds on 1003 must reflect Subordinate Financing/DC Open Doors (or

Secured Borrowed Funds) for loans with DPA.

o AU Findings must reflect program type (HFA Preferred or HFA Advantage) so that MI

requirements are correct and findings are correct.

o NO title insurance/fees other than cost to record! Let your title company know up front.

• 1st Trust Closing Disclosure must reflect TOTAL DPAL amount and the cost to

record needs to be reflected as paid by DCHFA

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DC Open Doors Program

Instructions for after the Live Webinar Program Training

• Step #1 Attend the eHousingPlus Lender Portal System Software Training

• This training is only required for anyone who will reserve funds, print forms, view the program pipeline and clear exceptions. System software training is conducted on a weekly basis via Live Webinar. Please click on this link to register : https://attendee.gotowebinar.com/rt/718343202475270145

• Step #2 After System Software Training - Apply for user credentials.

• Loan Officers who will NOT reserve funds in the eHousingPlus Lender Portal but DO need their name to appear in drop down to receive credit for originating a DCHFA DC Open Doors loan, click on this link: http://www.ehousingplus.com/user-credentials/loan-officers-wout-system-access/

• Loan officers, processors, closers, shippers and post closers who need access to the lender portal and do NOT currently have an eHousingPlus Lender Portal username and password, please click this link: https://services.ehousingplus.com

• Look for the Sign-In button, directly below click on the link “Register for User ID”.

• Complete the required information and submit the form.

• Loan officers, processors, closers, shippers and post closers who need access to the lender portal and DO currently have an eHousingPlus Lender Portal username and password, please click this link:http://www.ehousingplus.com/user-credentials/existing-users-add-programs/

• Use the FlexCode: AEROMANCY (code will expire in 5 business days)

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https://attendee.gotowebinar.com/rt/718343202475270145

http://www.ehousingplus.com/user-credentials/loan-officers-wout-system-access/

https://services.ehousingplus.com/

http://www.ehousingplus.com/user-credentials/existing-users-add-programs/

LETS START WITH THE BASICS

➢ The Mortgage Credit Certificate (“MCC”) is NOT a down payment assistance

program or a mortgage loan

➢ The MCC program provides a federal income tax credit similar to the federal

first-time homebuyer tax credit

➢ The DC MCC is a federal income tax credit that may

1) Reduce the amount of federal income tax the borrower is required to pay

2) Provide more available income to pay the monthly mortgage payment

➢ The Credit Amount for the DC MCC is 20% and there is NO

annual cap on the amount!

DC’S MCCS

EXAMPLE 1

$280,000 Loan Amount

4.50% Interest Rate

1st Year’s Interest = $12,507

X 20% Tax Credit = $2,501 Benefit

$46,150.02

$208 Monthly Benefit

Borrower is still able to take a deduction for the remaining 80% of interest paid for that year.

Don’t wait for tax time to reap the benefits!

Adjust dependents on your W-4 Form so that you increase your net take home pay!

Example is for i l lustrative purposes only. Please consult a Tax Advisor.

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DC’S MCCS

WHAT ARE THE BENEFITS?

EXAMPLE 2

$400,000 Loan Amount

4.50% Interest Rate

1st Year’s Interest = $17,868

X 20% Tax Credit = $3,573 Benefit

$65,928.60

$297 Monthly Benefit

Borrower is still able to take a deduction for the remaining 80% of interest paid for that year.

Don’t wait for tax time to reap the benefits!

Adjust dependents on your W-4 Form so that you increase your net take home pay!

Example is for i l lustrative purposes only. Please consult a Tax Advisor.

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DC’S MCCS

WHAT ARE THE BENEFITS?

DC’s MCC Loan Options

➢ Option #1- DC’s MCC may be used as a STAND ALONE product with a

Conventional, VA or FHA 30 Year Fixed Rate Mortgage or an FHA

Adjustable Rate Mortgage

➢ May not be used with bond loans

OR

➢ Option #2- DC’s MCC may be combined with a DC Open Doors Loan. If this

option is utilized, the lender must follow the stricter of the program

requirements

DC’S MCCS

Guidelines differ from the DC Open Doors Loan Programs:

▪ Borrowers must be first time homebuyers

▪ Must not have had an ownership interest in a principle residence within the

most recent 3 year period

▪ Exception for residences purchased in a Targeted Area (see chart)

▪ Exception for Veteran’s utilizing a one-time exception

▪ Maximum income is based upon HOUSEHOLD income

▪ Household income is the income of all members of the household, even if not taking

an ownership interest in the home (excluding full-time student dependents)

▪ Household Income Limits are based upon the household size

▪ Acquisition costs (sales price) may not exceed Program Limits

▪ Single Family residences, only (no 2-4 unit properties)

▪ Can be provided in conjunction with a DC Open Doors loan program or

without a DC Open Doors loan program

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DC’S MCCS

WHAT ARE THE REQUIREMENTS?

Costs

➢DCHFA charges $450 as an MCC Issuance Fee when done in

conjunction with a DC Open Doors Loan Program or VA Loan

➢DCHFA charges $1,500 as an MCC Issuance Fee when the MCC is

issued without a DC Open Doors Loan Program

➢ The lender is permitted to charge an additional $450 MCC

Processing Fee

➢DO NOT FORGET THE EHOUSING PLUS FEE!!!!! ($275 for a

stand alone MCC. $450 for an MCC with Open Doors)

DC’S MCCS

Non-targeted

Area Family of

2 or less

Non-targeted

Area Family of 3

or more

Targeted Area

Family of 2 or

less

Targeted Area

Family of 3 or

more

$140,640 $164,080 $140,640 $164,080

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DC’S MCCS

Single-Family

Unit

Non-targeted $625,764

Targeted $764,823

Income Limit:

Sales Price Limits

Dis t r ic t o f Columbia , Census Trac t 34

Dis t r ic t o f Columbia , Census Trac t 47 .01

































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DC’S MCCS

WHAT ARE THE TARGETED AREAS?

Target Areas in DC

HPAP

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Below is the HPAP Homebuyer Assistance Table.

Please note that closing cost assistance for all eligible households will be up to $4,000.

The per client gap financing assistance will cap at $80,000. The closing cost assistance

is distinct from, and in addition to, gap financing assistance which is shown below.

Maximum Household Size

Assistance 1 2 3 4 5 6 7 8

Per household income less than or equal to top in each range:

Very low income households

$80,000

$25,000-

$38,000

$25,000-

$43,450

$25,000-

$48,900

$25,000-

$54,300

$25,000-

$58,650

$25,000-

$63,000

$25,000-

$67,350

$25,000-

$71,700

Low income households

$64,000

$38,001-

$49,150

$43,451-

$56,150

$48,901-

$63,150

$54,301-

$70,150

$58,651-

$74,550

$63,001 -

$78,900

$67,351-

$83,300

$71,701-

$87,700

$56,000

$49,151-

$52,200

$56,251 -

$59,700

$63,151-

$67,150

$70,151-

$74,600

$74,551-

$79,250

$78,901-

$83,900

$83,301-

$88,600

$87,701-

$93,250

$40,000

$52,201-

$60,800

$59,701-

$69,500

$67,151-

$78,200

$74,601-

$86,900

$79,251-

$92,300

$83,901-

$97,750

$88,601-

$103,150

$93,250-

$108,600

Moderate income households

$32,000

$60,801-

$74,500

$69,501-

$85,150

$78,201-

$95,800

$86,901-

$106,400

$92,301-

$113,100

$97,751-

$113,100 $103,151-

$113,100 $108,601-

$113,100

$16,000

$74,501-

$83,600

$85,151-

$95,550

$95,801-

107,500 $106,401-

$119,450

$113,101-

$126,900

$113,101-

$126,900

$113,101-

$126,900

$113,101-

$126,900

The amount of financial assistance provided to a very low-, low- or moderate-income household shall be the

combined total of Gap Financing Assistance and Closing Costs Assistance.

Community Based Organizations

FACILITY NAME ADDRESS PHONE NUMBER

Housing Counseling Services, Inc.

2410 – 17th Street, NWWashington, DC 20009

(202) 667-7006

Latino Economic Development Corporation

641 S Street, NWWashington, DC 20001

(202) 588-5102

Lydia’s House, Inc. 4101 Martin Luther King Jr. Ave., SWWashington, DC 20032

(202) 373-1050

University Legal Services, Inc. 1800 Martin Luther King Jr. Ave., SEWashington, DC 20020

(202) 889-2196

University Legal Services, Inc. 3939 Benning Road, NEWashington, DC 20019

(202) 396-1200

University Legal Services, Inc. 220 “I” Street, NE # 130Washington, DC 20002

(202) 547-4747

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To apply for assistance or receive more information, please contact one of the following CBOs:

QUESTIONS?

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