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Transcript of Freddie Mac’s HFA Advantage Mortgage Colorado … Mac’s HFA Advantage Mortgage Colorado Housing...
Freddie Mac’s HFA Advantage Mortgage
Colorado Housing and Finance Authority (CHFA)
Tom Ward
May, 2016
NOTE: This document is not a replacement or substitute for the information found in the Single-Family Seller/Servicer Guide, and/or terms of your Master Agreement and/or Master Commitment.
HFA Advantage Mortgage:
…available exclusively through
participating
State or Local
Housing Finance Agencies
Maximum 97% LTV / 105% TLTV
HFA income limits
HFA homebuyer education
All delivery fees waived
Guarantee fees lowered
Charter-level mortgage insurance available
© 2016 Freddie Mac 2Colorado Housing and Finance Authority
Objective / Agenda
HFA Advantage is available exclusively to Housing Finance Agencies
Resources
Underwriting and
Processing Tips
Features and Benefits
General Requirements
Objective: Familiarize you with the benefits, key features and requirements for
Freddie Mac’s low down payment mortgage offering: HFA Advantage
© 2016 Freddie Mac 3Colorado Housing and Finance Authority
Key Features: HFA Advantage
• 97% LTV / 105% TLTV (Affordable Seconds® only)
• No Minimum LTV
• Purchase/No Cash-out Refinance
• First-time homebuyers, repeat buyers
• 1- unit primary residence*
(Detached / attached, PUDs, Condominiums)
• All borrowers must occupy the mortgaged
premises as their primary residence, and
• May not, as of the note date, or the Effective
Date of Permanent Financing for Construction
Conversion and Renovation Mortgages, have
any other ownership interest in any other
residential properties.
*Manufactured homes are not eligible
• No reserves required
• Fixed rate
HOME
POSSIBLE
&
HOME
POSSIBLE
ADVANTAGE
Loan Prospector®
only(no manual underwriting)
HFA ADVANTAGE
Income Limits
Established
by HFA
© 2016 Freddie Mac 4Colorado Housing and Finance Authority
Features and Benefits:
LTV Ratio
HFA Advantage
Mortgage Insurance
Coverage
Standard
Mortgage
Insurance
Coverage
Greater than 80% up to 85% 6% 12%
Greater than 85% up to 90% 12% 25%
Greater than 90% up to 95% 16% 30%
Greater than 95% up to 97% 18%
Flexible mortgage insurance options described in Section 4701.1 are not permitted.
Lender-paid and financed mortgage insurance premiums are not permitted if LTV > 95%.
Note: HFA paid upfront, single MI premium is acceptable.
Post-purchase and Early Delinquency Counseling: Borrower Disclosure
Mortgage Insurance:
© 2016 Freddie Mac 5Colorado Housing and Finance Authority
HFA Advantage vs FHA: Insurance Costs
© 2016 Freddie Mac 6Colorado Housing and Finance Authority
Check-In: Borrower Eligibility
Are the HFA Advantage Mortgage offerings
available only to first-time homebuyers?
No, but the borrower may not, as of the
note date*, have any ownership interest
in any other residential properties
*…or the Effective Date of Permanent Financing for
Construction Conversion and Renovation Mortgages
© 2016 Freddie Mac 7Colorado Housing and Finance Authority
Qualifying Income / Income Limits
• Qualifying Income must
include all stable monthly
income for all borrowers.
• CHFA will determine income
eligibility based upon their
own income limits.
© 2016 Freddie Mac 8Colorado Housing and Finance Authority
Sources of Funds
Flexible
Sources of Funds
Financing Concessions» 3% LTV/TLTV ratio > 90%
» 6% LTV/T LTV ratio > 75% < 90%
» 9% LTV/TLTV ratio < 75%
Premium Financing
Unsecured Loan: Originating Lender (Refer to Guide Section 5501.4)
Borrower Personal Funds
IDA: include matching funds only if
not subject to recapture tax
Rent Credits
Trade Equity
Community Savings
deposited by the Borrower
Depository accounts
Loan secured by Finan Asset
Sale of Borrower Asset
Cash on hand
Trust disbursement
Pooled funds
Other
Borrower Funds
Gifts–Related Person Gift/Grant: Agency or Seller
(as the originating lender)
Affordable Seconds Employer Assisted Homeownership
Benefit IDA: matching funds subject to recapture tax
© 2016 Freddie Mac 9Colorado Housing and Finance Authority
Features and Eligibility:
All borrowers must participate in a homeownership
education program before the Note Date.* Homeownership
education program must be provided by CHFA
» A copy of a Homeownership Education Certification, or another
document with comparable information, to be retained in the mortgage
file
Homeownership Education
*…or the Effective Date of Permanent Financing for Construction Conversion and Renovation Mortgages
Purchase Transactions Require:
All borrowers must satisfy CHFA homebuyer
education requirements
© 2016 Freddie Mac 10Colorado Housing and Finance Authority 10
Underwriting & Processing Tips
© 2016 Freddie Mac 11Colorado Housing and Finance Authority
Must be…
Submitted to Loan Prospector
No Manual Underwriting
Underwriting Path:
© 2016 Freddie Mac 12Colorado Housing and Finance Authority
Must be…
Submitted to Loan Prospector
No Manual Underwriting
Underwriting Path:
© 2016 Freddie Mac 13Colorado Housing and Finance Authority
Loan Prospector Feedback Certificate
Compliance with HFA Income Limits is
a Selling Representation and Warranty
© 2016 Freddie Mac 14Colorado Housing and Finance Authority
Sources of Funds: Affordable Seconds®*
Subsidized secondary financing or other financial assistance, evidenced in land
records, that is provided by an Agency and that meets the requirements of Section
4204.1
*HFA Advantage secondary financing source must be an
Affordable Second, and it may not be a home equity line of credit
Note: RHS Leveraged Seconds are not permitted with HFA Advantage
www.FreddieMac.com/singlefamily/expmkts/affprod.html
LP Data Entry Option: If the payment begins on
or after the 61st payment of the First Lien you
may enter the amount into the “Total Gift Fund”
field
» Do not include in qualifying ratios
» Manually calculate TLTV ratio
Variety of sources such as:
a municipality which includes any duly
authorized authority or agency of the federal,
state, local or municipal government; a nonprofit
community or religious organization (other than
a credit union); the borrower’s employer; or a
Regional Federal Home Loan Bank under one of
its affordable housing programs that meet the
requirements of Guide Section 4204.1.
Evidenced in land records
© 2016 Freddie Mac 15Colorado Housing and Finance Authority
Wrap Up
How does it benefit
borrowers?
What are its key
features?
Who does it serve?
How can HFA Advantage be YOUR affordable lending solution?
© 2016 Freddie Mac 16Colorado Housing and Finance Authority
Resources www.FreddieMac.com/singlefamily/hfa.html
© 2016 Freddie Mac 17Colorado Housing and Finance Authority
HFA Advantage Program Contacts
Tamela Hartsfield 469-346-0292
Dennis Smith 571-385-7386
© 2016 Freddie Mac 18Colorado Housing and Finance Authority
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today’s session
Thank you for your participation!