Transcript Affordable Housing Report for October

LENDER TRAINING
City of St. Petersburg
Housing and Community Development
“Working to Improve our
Neighborhoods” (W.I.N.) Division
January 21, 2010
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WELCOME LENDERS
Introductions
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Tom de Yampert, Manager
Linda Byars, Housing Finance Coordinator
Diane Legg, Loan Processor
Tony Fernandez, Loan Processor
Scott Clarke, Office Systems Specialist
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HOME BUYER LOAN PROGRAM
Maximum Sales Price: $215,555
St. Petersburg city limits only
Applicant must be a first-time homebuyer as defined by HUD
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No ownership during the 3 year period ending on the date of purchase.
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A single parent who has lost homestead property as a result of divorce
Borrower Contribution (Down Payment)
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An amount equal to 2% of the sales price
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May not be borrowed or a gift
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Verification of cash to close
Closing Costs
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W.I.N. Assistance can not exceed an amount equal to 4% of the sales price
Down Payment, Closing Costs and Interest Rate Buy-Down
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Loan Repayment
Loan repayment is determined by the applicant’s Median
Family Income as defined by the U.S. Department of Housing
and Urban Development (HUD); adjusted annually according to
the number of occupants, related or not, living in the household
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$ 8,000 available to households between 50% and 80%
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Amortized 10 years @ 0%
$10,000 available to households under 50% AMI
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Amortized 15 years @ 0%
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Area Median Income (MI) Table
F/Y 2009 – MEDIAN FAMILY INCOME ADJUSTED BY FAMILY SIZE
Family Size
50% MFI
80% MFI
1
$20,700
$33,150
2
$23,700
$37,900
3
$26,650
$42,600
4
$29,600
$47,350
5
$31,950
$51,150
6
$34,350
$54,950
7
$36,700
$58,700
8
$39,050
$62,500
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MEDIAN FAMILY INCOME
Median Family Income (MFI) is annually defined by the U.S.
Department of Housing & Urban Development (HUD). HUD
establishes the MFI specific to the geographic area it applies to and
adjusts the MFI for the number of occupants, related or not, who
occupy the home. The chart attached lists the maximum annual
gross household income for the City of St. Petersburg for the 50%,
and 80% MFI groups, adjusted for household size.
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Household Income - Inclusions
All adults living in the home over the age of 18
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Wages
Salaries
Overtime pay
Commissions
Tips
Bonuses
Net income from business or profession
Interest or dividends
Social Security
Retirement Benefits
Disability Income
Worker’s compensation
Severance pay
Unemployment compensation
Income producing assets
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Income from Assets
Applicants who enjoy assets in excess of $100,000 are not eligible for down payment and
closing cost assistance
Potential income from assets is considered when calculating annual projected or anticipated
income
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Calculate cash value to determine actual or tangible income from an asset
Net sale of assets sold in the past two years with value over $1,000 is considered
income
Calculate “Imputed income” from the sum of asset values using a “passbook rate”
established by HUD
 .02% of value that exceeds $5,000
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Household Income - Exclusions
Income from employment of children, including foster children, under the age of
18
Payments received for the care of foster children
Lump-sum additions to family assets (inheritances or insurance payments)
Income of live-in aids
Reimbursement for the cost of medical expenses
Student financial assistance paid directly to the student
Special pay to a family member serving in the Armed Forces who is exposed to
hostile fire
Gifts
Income in excess of $480 for each full-time student 18 years or older
Adoption assistance payment in excess of $480
Refunds or rebates received in lump sum from SS or SSI
Refunds or rebates for property taxes
Services needed to keep a developmentally disabled family member at home
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First Mortgage Lender
First Mortgage Lender must be:
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State or Federally chartered lending institution
 APR may not exceed most affordable loan facility offered by the lender
for similar style, term and loan amount
Correspondent lending broker of a State or Federally chartered lending
institution
 The maximum yield to the originating lender may not exceed 4% of the
loan amount including yield spread premiums, origination fees,
discount fees, document preparation fees, broker fees, etc.
Owner financing is not acceptable
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Acquisition with Rehabilitation
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Additional funding may be available to home buyers purchasing an
existing structure in need of repair
 The lesser of a maximum of $30,000 or an amount not to exceed a
CLTV of 125% of after rehabilitation appraisal
 A first mortgage construction permanent loan may not adjust or require
requalification prior to conversion to permanent
 Repairs must be completed and the home occupied within 90 days of
loan closing
 Work must be provided by a licensed contractor
 A 20 year amortizing loan @ 0%
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The Application Process
Begins with W.I.N Lending Partners
CRA Agreement
CRA Agreement Bank 2010.doc
CRA Agreement Broker 2010.doc
Homebuyer education
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Tampa Bay Community Development Corp. www.tampabaycdd.org (727) 442-7075
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Community Services Foundation www.csfhome.org (727) 461-0618
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Consumer Credit Counseling Services (800) 741-7040
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Catholic Charities www.housngccdosp.org (727) 893-1313
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St. Petersburg Neighborhood Housing Services www.stpetenhs.org (727) 821-6897
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Home Maintenance Classes – Pinellas County Technical Education
Selecting a home
Realtor
Contractor/Builder
For sale by owner
Loan Processing
Loan Underwriting and Approval
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Selecting the Lender
Homebuyer is free to select a lender from any of those within
the W.I.N Coalition of Lenders
The process of buying a home begins with the first mortgage
lending partner who pre-qualifies the applicant to determine the
first mortgage amount for which the home buyer may qualify
The W.I.N application is completed by the lender and submitted
to the city on behalf of the borrower
The first mortgage lender acts as the liaison between the
borrower and the city
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Selecting the Home
The homebuyer whose income does not exceed 80% MFI may select
any existing or newly constructed single family home, condominium, or
cooperative living unit within the city limits
The home must be inspected in ensure compliance with the city’s
minimum housing standards
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All repairs must be completed prior to closing the loan
The applicant may not move into the home until all repairs are
completed and inspected
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Loan Processing
All applications and supporting documentation are submitted to the
W.I.N. Programs Division of Housing and Community Development,
One 4th Street North, Municipal Services Bldg., 9th Floor, St. Petersburg,
Florida 33701
The lender will provide the city with a fully documented loan
application package and related information as requested on the
HOMEBUYER APPLICATION CHECKLIST AND TRACKING sheet:
Homebuyer Application Checklist-Tracking.tif
Home Buyer Application Packet 1-21-10.doc
Social Security Form 3288.pdf
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– Existing Homes
Prior to approval a city rehabilitation officer will
review the home inspection report for code compliant
issues including chipping and pealing paint and
housing quality standards.
If the report indicates evidence of deteriorated
painted surfaces and if the home was built prior to
1978 then a lead inspection may be required
City policy demands the elimination of any lead
hazard from homes funded by the W.I.N Homebuyer
Loan Program
Also, any substandard housing quality issues must be
addressed prior to closing the loan
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– New Construction
Whether or not the first mortgage lender provides for
construction draw inspection, the W.I.N. rehabilitation officer is
required to perform a property inspection at each draw request.
The rehabilitation officer will review the floor plan, home
elevation drawings and scope of work with the borrower prior to
loan closing.
The city’s Construction Services Department will issue permits,
complete required permit inspection and issue the Certificate of
Occupancy (CO).
The construction must meet the city’s Visitability Requirements
visitability.pdf
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Visitability Ordinance
“Visitable” shall be defined by the
inclusion of architectural and
landscaping design features, which
allow basic access to and within a
residential dwelling by people who use
mobility devices such as wheelchairs
and scooters and which minimize the
cost of future modifications to achieve
accessibility
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Loan Approval
W.I.N Home Buyer loan applications are
underwritten by the city’s Housing Finance
Coordinator who submits recommendation for
approval to the W.I.N Programs manager for
approval.
The Housing Finance Coordinator or the Loan
Processor will be the lender’s point of contact
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Underwriting Criteria
Verification of two years employment
Established credit history and acceptable credit score
Debt-to-Income Ratio not to exceed 41%
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Includes debt with 10 or more payments remaining or payments exceeding $100
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Implied payment of $10.00 for zero balance revolving debt and open accounts
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12 months current rent payments
Liens and collections must be paid-in-full at or prior to closing or removed from the Credit
Bureau Report
Schedule repayment of collection or delinquent accounts must have been established with a
minimum of six consecutive payments made
Borrower must be out of bankruptcy a minimum of 2 years with all debt paid as agreed
No income will be “grossed up”
None resident aliens must provide documentation
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Home Buyer Brochure
2Final W.I.NHomeBuyer2010.pdf
www.flhousing.org/programs
www.stpete.org
www.hud.gov
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