wholesale division - 21st century home loan · pdf filewholesale division chf access ......

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Offered through 21 st Century Home Loans’ WHOLESALE DIVISION <logo> CHF ACCESS Training Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered trademark of Freddie Mac. This presentation is a summary and is not complete. This information is for mortgage professionals only and should not be distributed to or used by consumers or other third-parties. Information is accurate as of the date shown below and is subject to change without notice.

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Page 1: WHOLESALE DIVISION - 21st Century Home Loan · PDF fileWHOLESALE DIVISION CHF ACCESS ... Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered

Offered through 21st Century Home Loans’ WHOLESALE DIVISION

<logo>

CHF ACCESS Training

Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered trademark of Freddie Mac. This presentation is

a summary and is not complete. This information is for mortgage professionals only and should not be distributed to or used by consumers or

other third-parties. Information is accurate as of the date shown below and is subject to change without notice.

Page 2: WHOLESALE DIVISION - 21st Century Home Loan · PDF fileWHOLESALE DIVISION CHF ACCESS ... Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered

Today’s Challenges

Seller paid DAPs discontinued (Nehemiah, etc.)

More restrictive guidelines/products

Slow market

Struggling Economy

Maxed out sellers

Higher cost of living = Less money to save

Over $7.2 Billion in

1st & 2nd loan

financing since 1993

(53,000 properties)

Page 3: WHOLESALE DIVISION - 21st Century Home Loan · PDF fileWHOLESALE DIVISION CHF ACCESS ... Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered

What

“CHF ACCESS”offers

15-Year Fully Amortized 2nd

Up to 3% of Sales Price

CLTV up to

99.50%

LITTLE TO NO MONEY OUT OF POCKET

1st Loan 2nd Loan Home

Ownership

FHA up to 96.50% LTV

VA available to 100% LTV - Must be approved for VA through 21st

Century Home Loan

Page 4: WHOLESALE DIVISION - 21st Century Home Loan · PDF fileWHOLESALE DIVISION CHF ACCESS ... Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered

CHF ACCESS PROGRAMS

Eligible 1st Mortgage Program Down Payment & Closing Cost Assistance Sample Calculations Income Limit Calculation

Page 5: WHOLESALE DIVISION - 21st Century Home Loan · PDF fileWHOLESALE DIVISION CHF ACCESS ... Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered

CHF Access

1st & 2nd

Page 6: WHOLESALE DIVISION - 21st Century Home Loan · PDF fileWHOLESALE DIVISION CHF ACCESS ... Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered

CHF ACCESS Program

Topic Program Description

State Restriction Available throughout the WHOLE STATE OF CALIFORNIA ONLY!

Program Types FHA 30 Year Fixed

Max LTV 96.50%

Max CLTV 99.50% (Unlimited if funded by a Government Sponsored Entity) – Follow FHA guidelines

Maximum Loan Amount

Conforming: Up to $417,000Jumbo: > $417,000 to $729,750 based on county where property is locatedFHA Loan Limits

Loan Purpose Purchase

Occupancy Owner Occupied

Down Payment Assistance

CHF ACCESS 2nd: • CAN be used to fulfill the borrower’s equity contribution required on

FHA 1st Mortgage

Page 7: WHOLESALE DIVISION - 21st Century Home Loan · PDF fileWHOLESALE DIVISION CHF ACCESS ... Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered

CHF ACCESS 2nd Program

Topic Program Description

Program Types CHF ACCESS 2nd Fixed

Term 15-yrs Fixed-Rate Fully Amortizing

Maximum Loan Amount Sized up to 3% of the Sales Price

Interest Rate 8.25%

Max CLTV 99.50% or higher – Follow FHA guidelines

Use of Funds Proceeds may be used for: DOWN PAYMENT CLOSING COSTS Price Adjustments Up Front or Single Premium MI

No cash back to the borrower from the 2nd loan proceeds• Any overage over POCs must be used to reduce principal

balance• Any overage over $500 results in redraw of loan documents

Page 8: WHOLESALE DIVISION - 21st Century Home Loan · PDF fileWHOLESALE DIVISION CHF ACCESS ... Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered

Sample Scenario: (Purchase Price: $325,000)

Sample 1: Borrower has little or NO money Down - Seller contributing for costs…

CHF ACCESS 1st: 96.50% ($325,000 x 96.50%) $313,625.00 +

CHF ACCESS 2nd (Down Payment): 3% ($325,000 x 3%) $9,750.00 +

Total Financing 1st & 2nd: 99.5% of Sales Price $323,375.00 =

Borrower Required Down Payment: .5% ($325,000 x .5%) $1,625.00

Borrower Contribution: .50% ($1,625) for DP (Seller pay for Closing Costs)

Sample 2: Borrower HAS Down Payment but NO money for Closing Costs...

CHF ACCESS 1st: 96.50% ($325,000 x 96.50%) $313,625.00 +

Borrower Funds (Down Payment): 3.5% ($325,000 x 3.5%) $11,375.00 +

CHF ACCESS 2nd (Closing Costs): 3% ($325,000 x 3%) $9,750.00

Total Financing 1st & 2nd: 99.50% of Sales Price $325,000.00 =

Borrower Contribution: 3.5% ($11,375) for DP

Page 9: WHOLESALE DIVISION - 21st Century Home Loan · PDF fileWHOLESALE DIVISION CHF ACCESS ... Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered

Sample Scenario: (Purchase Price: $325,000)

Sample 3: Borrower has NO money for D/P OR C/C - Receiving Gift Funds of 5%...

CHF ACCESS 1st: 96.50% ($325,000 x 96.50%) $313,625.00 +

CHF ACCESS 2nd (Down Payment): 3% ($325,000 x 3%) $9,750.00

Total Financing 1st & 2nd: 99.50% of Sales Price $323,375.00 =

Gift Funds Received 5% ($325,000 x 5%) $16,250.00

.5% given for DP 0.5% ($325,000 x .5%) $1,625.00

4.5% towards CC 4.5% ($325,000 x 4.5%) $14,625.00

Borrower Contribution: ZERO ($0)

Page 10: WHOLESALE DIVISION - 21st Century Home Loan · PDF fileWHOLESALE DIVISION CHF ACCESS ... Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered

Program Income Limits

Topic Guidelines

Income LimitCalculation

Based on Qualifying Income Only (not Household Income)

Only the income used for Qualifying is considered in order to meet the Program Income Limits

Income Limit = 120% of HUD AMI

Income Limits To calculate the Program Income Limit by County, refer to:

http://www.huduser.org/datasets/il.html

Tip: Create an Income Limit spreadsheet

Page 11: WHOLESALE DIVISION - 21st Century Home Loan · PDF fileWHOLESALE DIVISION CHF ACCESS ... Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered

ADDITIONAL GUIDELINES

Eligibility GuidelinesGeneral Underwriting GuidelinesPricing, Costs and Fees

Page 12: WHOLESALE DIVISION - 21st Century Home Loan · PDF fileWHOLESALE DIVISION CHF ACCESS ... Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered

Eligibility Guidelines

Topic GuidelinesBorrower Eligibility Purchase of Owner-Occupied Primary Residences Only

NO 1st Time Homebuyer RequirementMAY OWN OTHER PROPERTIES – must meet FHA requirements

Property Eligibility Single Family Residences PUD’s FHA Approved Condos Manufactured Homes – Must meet FHA requirements

Income Limits 120% of HUD Area Median Income (AMI)

Sales Price Limits Not Applicable

First Time Homebuyer Not Required

Non Occupying Co-Borrowers/Co-Signers

NOT ALLOWED

Homebuyer Education Required

Minimum Homebuyer Contribution

NONE required

Page 13: WHOLESALE DIVISION - 21st Century Home Loan · PDF fileWHOLESALE DIVISION CHF ACCESS ... Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered

Underwriting Guidelines

Topic GuidelinesUnderwriting UW Method:

DU / LP allowed – Must be risk scored by FHA Scorecard Approve/Eligible, Accept or Accept Plus recommendations Manual UW allowed

**Unless specifically specified, Follow Standard FHA guidelines PLUS

21st Century FHA overlays**

Minimum Credit Scores

NO MINIMUM FICO SCORES required

Follow 4155 guidelines PLUS 21st Century overlays

Price Adjustments apply – See First Mortgage rate sheet

Max Debt Ratio 43% Maximum DTI

Reserves NONE required

Mortgage Insurance Follow standard FHA MIP

Buy-Downs NOT ALLOWED

Page 14: WHOLESALE DIVISION - 21st Century Home Loan · PDF fileWHOLESALE DIVISION CHF ACCESS ... Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered

UW Guidelines cont’d…

Topic Guidelines

Seller Contributions Allowed up to 6%

Gift Funds Allowed from family members

Other Sources of Assistance

Gift Funds 401k loans Grants Section 8 programs (subject to FHA guidelines)

Prepayment Penalty

No Prepayment Penalty

Assumability Allowed per FHA guidelines

Page 15: WHOLESALE DIVISION - 21st Century Home Loan · PDF fileWHOLESALE DIVISION CHF ACCESS ... Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered

ACCESS Fees & Charges

Topic Guidelines

Interest Rates Interest Rates available on the 21st Century Home Loan Rate Sheet found

on the individual website – www.21lending.com

Contact 21st Century Home Loan for more information

Origination Fees Up to 1.00% on 1st Mortgage only (RETAINED BY BROKER)

Discount Fees Buyer or Seller Discounts allowed subject to consumer laws • Discount Points allowed for additional lender compensation (subject to

Lender’s discretion)

Rebate/Discount Pricing

See 21st Century rate sheet

FMC Fees See doc order form or contact your Account Executive for lender fees

Allowable Fees Must be reasonable and customary and fully disclosed to the borrower in accordance with all agencies, federal, state and local laws

Follow 21st Century rules on limitation of fees for FHA loans