ARKANSAS DEVELOPMENT FINANCE AUTHORITY · MOVE-UP . PROGRAM GENERAL GUIDELINES. First Lien - 30...
33
ARKANSAS DEVELOPMENT FINANCE AUTHORITY SINGLE FAMILY PRODUCTS MASTER SERVICER: ServiSolutions A D F A
Transcript of ARKANSAS DEVELOPMENT FINANCE AUTHORITY · MOVE-UP . PROGRAM GENERAL GUIDELINES. First Lien - 30...
ARKANSAS DEVELOPMENT FINANCE
AUTHORITY SINGLE FAMILY PRODUCTS
MASTER SERVICER: ServiSolutions
A D F A
WHO IS ADFA?
1985 Established State Agency
NO State General Revenue
ADFA’s enabling legislation authorizes it to borrow money and issue bonds for affordable housing, various business & economic development projects, and capital improvements for state agencies.
A D F A
2
WHO IS ADFA?
B O N D S
A D F A
3
ADFA PROGRAMS
ADDI
MOVE-UP
DPA
MCC
or
A D F A
4
MOVE-UP PROGRAM FEATURES
MOVE-UP PROGRAM GENERAL GUIDELINES
First Lien - 30 Year Fixed Mortgage Program: VA, RD, FHA, or HFA Conventional 95% or 97%
- Conforming Loan Limits ($424,100) - Non Occupant Co-Borrowers Allowed – Follow Guidelines
Reservations made from 9:00am to 7:00pm Working business days only
Rate is set daily and sent to all participating lenders
Follow Product Guidelines from each program: Looking for APPROVE / ELEGIBLE only!!
A D F A
6
MOVE-UP PROGRAM GENERAL GUIDELINES
No 1st time homebuyer requirement
No Income Limits; except when matched with MCC or ADDI
Primary residence only
Manufactured Housing allowed for government-backed loans only
NEW Reduced Loan Funding Fee ($200) & Reduced Tax Servicing Fee ($75) BOTH: netted at purchase by Master Servicer. SRP = 1.75% ; VA= 1.25%; Origination Fee (optional)= 1.00%
$
A D F A
7
MOVE-UP PROGRAM GENERAL GUIDELINES
“MOVE-UP” 1st MORTGAGE
ARKANSAS DEVELOPMENT FINANCE AUTHORITY
FHA VA RD CONVENTIONAL CREDIT SCORE 660 640 DEBT-TO-INCOME
45% UNDERWRITING DU
DU DU 95%
DU 97%
DU LIMITS Purchase Price Limit—Follow Product Guidelines for Co-Signers
ADDI has Income Limits BENEFITS No Income Limits—DPA can be added CASH BACK DPA: POC Items + $100 available at Closing
Forgivable DPA: POC Items
A D F A
8
HOMEBUYER EDUCATION CLASS FOR ADFA PROGRAMS
ADFA REQUIRED FOR ONE
HOMEBUYER
REQUIRED FOR BOTH BUYERS
NO CLASS REQUIRED
ANY LOAN + ADDI * CONVENTIONAL + DPA FHA + DPA
VA + DPA
RD + DPA
A D F A
9 *Follow each programs specific guidelines to meet compliance.
MOVE-UP PROGRAM FEATURES
MOVE UP HFA PREFERRED CONVENTIONAL
HFA PREFERRED
CONVENTIONAL
ARKANSAS DEVELOPMENT FINANCE AUTHORITY
95% 97% CREDIT SCORE 640 DEBT-TO-INCOME Maximum is 45% (Anything above is not allowed) UNDERWRITING DU (No Manual Underwriting allowed) REQUIREMENT Education Course* Education Course* RESTRICTIONS No Income Limits
Sales Price Conforming Loan Limit Primary Residence Only
MI COVERAGE 90.01% to 95% = 16% 85.01% to 90% = 12% 80.01% to 85% = 6%
18%
A D F A
11 *If both borrower(s) are 1st time homebuyers.
12
MORTGAGE INSURANCE COVERAGE: FHA & HFA COMPARISON
LTV Standard HomeReady HFA Preferred
95.01 - 97.00% 35% 25% 18% 90.01 – 95.00% 30% 25% 16% 85.01 – 90.00% 25% 25% 12% 80.01 – 85.00% 12% 12% 6%
30-year fixed-rate scenario Purchase Price: $126
FHA mortgage Note Rate: 4.875% | LTV: 96.50%
HFA Preferred mortgage Note Rate: 5.25% | LTV: 97%
Base First Mortgage $121,590 $122,220 Down Payment $4,410 $3,780 Upfront MIP Rate (%) 1.75% 0.00% MI Premium (Annual %) 0.85% 0.98% Financed MI $2,128 $0 Total First Mortgage $123,718 $122,220 Monthly MI $86 $100
Total Monthly Payment $1,056 $1,090 When Loan is 80% LTV $1,056 $990
$630 Lower down payment
No upfront MI premium
No need to finance MI
$1,498 in additional equity
Ability to cancel MI*
Long Term Savings (no MI)
HFA Preferred™ Benefits
Based on ADFA Move-up program as of 5/8/18. Restrictions apply. See, Fannie Mae Selling Guide, B3—4.1—03, B7—1—02, and B—8.1—04.
A D F A
12
ADDI PROGRAM FEATURES
ADDI PROGRAM GENERAL GUIDELINES
14
NEW! 10% of purchase prices, up to $10,000
5-Year term forgivable, soft 2nd mortgage loan
Can be used for Down Payment, Closing Cost, and POCs.
Income Restricted: 80% of area Median Income or below
No 1st time homebuyer requirement Primary Residence only
Requires Homebuyers Education class for borrower (s), due prior closing
1 2 3 4
5
6
A D F A
ADDI PROGRAM GENERAL GUIDELINES
15
A D F A
Household Income Limits at 80% of Median Income. Income is based on the number of household residents.
ADDI PROGRAM GENERAL GUIDELINES
A D F A
U.S. Department of Housing & Urban Development requirement
New! You pick your inspector
ADFA pays initial & final inspection ($125 + 42¢ / Mile) ADFA must dispatch inspectors in order to pay them
20-30 minute inspection maximum
Tech-Savvy inspector (Scan Docs & Email)
ADDI Funds cannot be use for repairs or to pay down debt. Only available with ADFA Move-Up (No Stand-Alone)
16
ADDI PROGRAM GENERAL GUIDELINES
17
A D F A
DPA PROGRAM FEATURES
DPA PROGRAM GENERAL GUIDELINES
A D F A
19
DPA Assumes the lending guidelines of “ADFA MOVE-UP” Interest rate matches 1st Mortgage (Move-Up) Only available with ADFA Move-Up (no stand-alone)
Borrower does not have to be a 1st time homebuyer
Cannot be used for repairs or to pay debt to qualify
Borrowers may increase Down Payment thus reducing First Mortgage amount
Borrower can receive POC items back at closing, plus additional $100
20
DPA PROGRAM GENERAL GUIDELINES
20
A D F A
From $1,000 up to $10,000
10-year Amortization Term, 2nd Mortgage
Rate: Same as 1st Mortgage
No Additional Inspections Requirements by ADFA
No Household Income Limit
No Purchase Price Restriction (no jumbo)
Can be used for Down Payment, Closing Cost, and POCs.
1 2 3 4 5
6 7
DPA & ADDI COMPARISON AND OVERVIEW
ADDI & DPA
22
DPA ADDI AMOUNT $1,000 to $10,000
Community 2nd Mortgage 10% of purchase price,
up to $10,000 Community 2nd Mortgage
TERM 10-Year Amortization, 2nd Mortgage
5-Year Forgivable, Soft 2nd Mortgage*
RATE Matches 1st Mortgage N / A
ADFA PROGRAM Move-Up Move-Up 1st TIME HOMEBUYER CLASS
Program Guidelines Requires Pre-Purchase Homebuyer Education Class
HOUSEHOLD INCOME LIMIT
No Limits 80% Area Median Income or Below
INSPECTION No Inspection HQS Inspection Required**
FEES NONE NONE
* No monthly payments. Pro-Rated over 60-months. ** ADDI: Income verification needs to be approved before ordering HQS Inspection.
A D F A
RESERVATIONS MOVE-UP, ADDI, DPA, & MCC
70-day purchase timeline remains in effect from date loan is reserved or ‘locked’ in our Reservation System.
If ADFA has not received a closing package within 70 days of the reservation date, the reservation will automatically be cancelled unless notified by the lender that an extension is needed. If ADFA has received a closing package then the 30 day extension will automatically go into effect and the $375 extension fee will be netted out at purchase.
If ADFA is notified that an extension is needed and the loan ends up cancelling after 70 days the extension fee will still be collected by ADFA.
23
A D F A
MORTGAGE CREDIT CERTIFICATE PROGRAM FEATURES
MORTGAGE CREDIT CERTIFICATE
We are not Tax Professionals and cannot give tax advice. We will provide examples of how the MCC
works. We recommend that borrowers seek the advice of a qualified tax professional when
deciding whether or not to take advantage of an MCC.
25
A D F A
MORTGAGE CREDIT CERTIFICATE Federal Tax Credit
26
BORROWER MUST BE – 1st time homebuyer (No Primary Residence ownership within last 3 years), purchasing home in a targeted county, a Veteran or spouse of a Veteran
IRS Restrictions by County & Household Income Limits
Federal Tax Credit 50% of Mortgage Interest up to $2,000 per year
Purchase Price Limit is $270,000
FREE with ADFA Mortgage products (OPTIONAL: $150 Lender Fee) -1/2% Issuance Fee, for Stand-Alone MCC.
Homebuyer can adjust federal withholdings to increase take home pay by $166 per month. (Should check with tax professional first)
26
A D F A
MORTGAGE CREDIT CERTIFICATE Federal Tax Credit
Borrower claims Tax Credit when they file their Form 1040 annually, and must use Form 8396 to claim the credit.
A first-time homebuyer is an eligible borrower who has NOT had a present ownership interest in a principal residence at any time during the three year period prior to the date of closing. This ruling applies to a non-borrower spouse or any co-occupant.
A Targeted County is a qualified census tract or an area of chronic economic distress as designated by the IRS.
Each county has an Income Limit that the household cannot exceed based on the size of the household.
ADDI funds may be used for MCC fees
27
A D F A
MORTGAGE CREDIT CERTIFICATE DOLLAR PER DOLLAR TAXCREDIT
28
50%
50%
EXAMPLE: $7,000 MORTGAGE INTEREST
SUBTRACT $2,000 FROM FEDERAL INCOME TAX OWED
YOU CAN STILL DEDUCT THE OTHER $3,500 MCC allows you to deduct 50% of the
mortgage interest owed up to a maximum of $2,000.
A D F A
WITHOUT MCC example:
29
GROSS INCOME $50,000
MORTGAGE INTEREST $7,000 DEDUCTION TAXABLE INCOME $43,000
FEDERAL INCOME TAX $6,450
A D F A
WITH MCC example:
30
GROSS INCOME $50,000 50% $3,500 MORTGAGE INTEREST $7,000 DEDUCTION $46,500 TAXABLE INCOME $43,000 “TAXED AT 15%” $6,975 FEDERAL INCOME TAX $6,450 MAX MCC CREDIT $2,000 TOTAL DUE $4,975 SAVED $1,475
A D F A
MORTGAGE CREDIT CERTIFICATE FOR RECAPUTRE TAX TO APPLY…
31
I. Your home is sold or disposed of within 9 years of being purchased, for reasons other than death; and
II. There is a capital gain on the sale of your home, and III. Your household income for the year in which you sell your home
exceeds federal recapture tax limits
MCC CAN’T REDUCE YOUR FEDERAL INCOME TAX IF YOU DON’T
OWE ANY TAXES!
We estimate that 97% of the borrowers will not be subject to the Recapture Tax.
For more information regarding this provision, please contact the IRS or a tax professional.
ALL MUST
BE MET
A D F A
ServiSolutions CONTACT INFORMATION
HOURS OF OPERATION:
8 AM to 5 PM, Central Time Monday through Friday
BY TELEPHONE:
If you only want to make a payment by phone and do not need to speak to a customer service representative, select OPTION 1 from the phone menu. Please have your account information ready. 334.244.4350 866.339.2432 (Toll free) 855.819.8081 (Toll free for Washington customers)
BY FAX:
Please ensure your loan number is listed on your fax request.
Customer Service: 334.271.3104
BY EMAIL:
TO ADDRESS A MORTGAGEE CLAUSE:
ServiSolutions, a division of the Alabama Housing Finance Authority ISAOA ATIMA P.O. Box 242967 Montgomery, AL 36124-2967
If you have any questions, email [email protected].
ALL OTHER INQUIRIES:
P.O. Box 242967 Montgomery, AL 36124-2967
FOR DELIVERIES AND PAYOFFS:
7460 Halcyon Pointe Drive, Suite 200 Montgomery, AL 36117
32
A D F A
ADFA CONTACT INFORMATION
33
OUTREACH TEAM Tim Wooldridge Director of Outreach (870) 926-8758 [email protected] Kyle Putman Outreach Specialist-Northwest (501) 551-1276 [email protected] Issac Morales Outreach Specialist-Central (501) 765-6543 [email protected] Derrick Rose Public Information Officer (501) 682-5904 [email protected]
COMPLIANCE TEAM Denise Wells Single Family Assistant Manager (501) 682-5466 [email protected] Dean Norman Single Family Compliance (501) 682-5935 [email protected] Virginia Wright Single Family Compliance (501) 682-5923 [email protected]
Leslie Quisenberry Single Family Compliance (501) 682-5930 [email protected]
A D F A
