Within Reach™ for FHA Loans

Down Payment Assistance designed to increase homeownership opportunities.

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• 2,290 Homebuyer Programs Across America

• 37% of Down Payment Programs Have No First-Time Homebuyer Requirement

• 91% of Down Payment Assistance Programs Have Available Funds For Buyers

Down Payment Help is Widely Available

Not Available in the state of New York and Washington

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• Borrowers that have achieved financial stability

• Borrowers with lack of down payment / reserves

• Borrowers that have demonstrated the ability to save

• Purchase Clients with no Seller Credits

• Borrowers with limited savings

• LHFS DPA Programs may be used to meet the product minimum down payment investment requirement

Target Borrowers

Not Available in the state of New York and Washington

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• Within Reach™ is a competitively priced government loan program that does not require a minimum down payment from the homebuyer(s)

• Provides borrower(s) with a choice of a 3%, 4%, or 5% assistance

• Proceeds from Within Reach™ program can be used for:• Down Payment

• Closing Cost

• Prepaid Items*

• Earnest Money*

Within Reach™ FHA

Not Available in the state of New York and Washington

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• No minimum borrower cash investment requirement

• FHA 203(b) in accordance with FHA guidelines

• Transferred Case Number Not Allowed

• Transferred Appraisals Not allowed

• 30-year fixed term with full amortization

• Manufactured Housing Allowed

• Conforming FHA loan limits apply as applicable to geographic location

• (High Cost not allowed, must select the lesser of FHA or Conforming limits)

• Down Payment Assistance is Calculated off the total First Mortgage Amount

• Including upfront MIP

Within Reach™ FHANo First

Time Home Buyer

Restriction

Not Available in the state of New York and Washington

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• 640 – 659 Credit Score 3% or 4% with a maximum 45% DTI

• 660 + Credit Score 3%, 4%, or 5% AUS determines DTI

• If DTI > 50% 1 Compensating Factor Required

• 160% of the Area Median Income (AMI)

• Income limits are calculated from income reported on the URLA

• No co-signers or non-occupant co-borrowers

• Borrower(s) must occupy the subject property as their primary residence

• One borrower must complete Home Buyer course

Borrower Eligibility

Not Available in the state of New York and Washington

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Verification of RentIf the borrower is paying rent:

• Rental history must be 0x30, AND

• Written VOR and 12 months

cancelled checks, OR

• Written VOR and 12 months bank statements, OR

• Written VOR and 12 months electronic HUD approved third party verification vendor.

If the borrower lives rent free:

• 3 months savings/reserves (PITIA) required,• Gift funds cannot be used to meet the

savings/reserve requirement.

AND

• Letter from landlord stating no rental payment required.

• Land Home will confirm landlord owns property

Not Available in the state of New York and Washington

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Make certain student loan payments are calculated correctly and are counted in the Debt-To-Income Ratio

Student Loan Reminder

Not Available in the state of New York and Washington

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How Does it Work?

Loan Information 3% Assistance 4% Assistance 5% Assistance

Purchase Price $450,900 $450,900 $450,900

Down Payment $15,782 $15,782 $15,782

Base Loan Amount $435,118 $435,118 $435,118

UFMIP $7,614 $7,614 $7,614

Total Loan Amount $442,733 $442,733 $442,733

2% Loan Origination $8,854.65 $8,854.65 $8,854.65

Total Assistance $13,282 $17,710 $22,137

Not Available in the state of New York and Washington

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Soft Second Mortgage

5 Year mortgage term with Zero (0) Interest Rate

100% forgiven at the end of the 5-year term (61st month)

Borrower must remain current on their mortgage for the second to be forgiven

In the 5-year period the Soft second must be paid in full when

➔ Borrower Sells the Property➔ Borrower Refinances➔ Borrower becomes delinquent on their first mortgage

Not Available in the state of New York and Washington

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• No Payments on the Mortgage Application

• No Second Mortgage File

• No Second Mortgage Approval

• Locking DPA Loan not required

• No Requirement to request DPA Funds

Soft Second Mortgage

Not Available in the state of New York and Washington

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• Must be done using Land Home Financial Services, Inc. eXPRESS portal

• Lock allowed once loan has been Conditionally Approved, and

• Appraisal has been reviewed

** Any locked Within Reach™ loan that does not fund will result in a $400.00 cancellation fee charged to Broker

Locking First Mortgage

Not Available in the state of New York and Washington

Submission Requirements for Within Reach™ for FHA Loans

Not Available in the state of New York and Washington

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• Completed Land Home Submission Checklist

• Approve / Accept - AUS Findings Released to LHFS Wholesale

• No Manual Underwriting

• Refer, Ineligible, Caution Not Allowed

• LOE regarding inquiries in last 120 days

• Earnest Money Deposit Documentation

• Valid Purchase Contract – Minimum 30 Days

• Contract close date must agree with LHFS Turn Times

Fully Processed Files

Not Available in the state of New York and Washington

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Income documentation per AUS including:

• Written VOE covering 2 years

• 30 days of Pay Stubs

• 2 Years W2’s

• Self Employed Borrowers – 2 Years Tax Returns

Income Documentation

Not Available in the state of New York and Washington

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• If the borrower is paying rent

• Rental history must be 0x30

• Written VOR and 12 months cancelled checks, OR

• Written VOR and 12 months bank statements, OR

• Written VOR and 12 months electronic HUD approved third party verification vendor.

• If the borrower lives rent free

• 3 months savings/reserves (PITIA) required, AND

• Gift funds cannot be used to meet the savings/reserve requirement

• Letter from landlord stating no rental payment required

• Land Home will confirm landlord owns property

VOR Submission Required

Not Available in the state of New York and Washington

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Asset Documents per the AUS Findings including:

• 2 Months Bank Statements required on all submissions

• Borrower with the following are not eligible:

• Borrower with overdraw accounts, negative balances at any time

• Excessive NSF’s and/or Overdrafts

• 1 NSF is maximum allowed

Asset Documentation

Not Available in the state of New York and Washington

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All items are required at the time of submission.

Incomplete files will be rejected at time of registration.

Submission Checklist

Not Available in the state of New York and Washington

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URLA Requirements

Not Available in the state of New York and Washington

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URLA Requirements

Not Available in the state of New York and Washington

QUESTIONS

✓Within Reach™ for FHA Loans