Transcript Government Loan Seminar - Nebraska Mortgage Association

Government Loan Seminar
Sponsored by:
Home Builders Association of Lincoln
Realtors Association of Lincoln
Nebraska Mortgage Association
Why FHA?
• Not income sensitive
• $271,050 max. loan amount
• January 1, 2009 – simplified loan calculation
- 3.5% down payment
• Minimum total investment from borrower
• Can be local DPA program or
• Gift funds from immediate family member
• Builder / Seller can pay closing cost/prepaids up to 6%
maximum
FHA Loan
• Government Insured First Mortgage for 15 or 30 year
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permanent financing
A. Purchase Price X 96.5% = Pre-MIP Loan
B. Pre-MIP Loan X 1.75% = UpFront MIP
A+B above = Total Loan
Monthly MI = Pre-MIP Loan X .55% ÷ premium due monthly
Guideline Ratios – 31% and 43%
- Slightly higher with compensating factors
FHA New Construction
• Plans & Specs not required if home over 90%
complete. Need:
- Builder Certification – HUD 92541
- Builder’s one year warranty – HUD 92544
- Termite statement – NPCA 99A & 99B (wood is
acceptable for a pre-treatment)
http://www.hud.gov/offices/hsg/sfh/ref/sfhp1-8d.cfm
Go to “General Requirements”
What Are the New Construction Stages?
• Proposed Construction: Property is approved for mortgage
insurance prior to the beginning of construction (no
construction has started/no footings poured).
• Under Construction: Building has started, but is not complete
at the time of appraisal.
• Existing Property Less Than 1 Year Old: Building is complete,
but the final completion date (date Cert of Occupancy issued)
is less than 1 year old. Still need Builder’s certification 92451
and 1-yr builder warranty from original builder (one year from
date of Cert of Occupancy).
Acceptable forms of documentation to obtain a high
ratio loan with regards to Inspection Options.
• Option 1 – available with High-Ratio Proposed Construction,
Under Construction, or Existing Construction less than 1 Year
Old:
- A copy of the Building Permit, and
- A Certificate of Occupancy showing clear, and
- A Final inspection or Appraisal Report – either of these would
need to show documentation that the property is 100% complete
- Not available for Condominiums or Manufactured Housing
Acceptable forms of documentation to obtain a high
ratio loan with regards to Inspection Options.
• Option 2 – available with High Ratio Proposed Construction,
Under Construction, or Existing Construction less that 1 Year
Old:
- HUD-Approved 10-Year Warranty
- Final inspection signed by a Fee Inspector and DE Underwriter or
Appraisal Report indicated 100% complete.
Acceptable forms of documentation to obtain a high
ratio loan with regards to Inspection Options.
• Option 3 – available with High Ratio Proposed Construction:
- Early start letter or conditional commitment from DE Underwriter
prior to footing being poured, and
- Three inspections from a Fee Inspector documenting that the property
is 100% complete, and
- Final inspection signed by DE Underwriter
VA
• What’s new ($417,000) with no down
• Funding fees
- Waived if receive VA disability
- Disability Grant Program for N/C
• New Construction Documents
- Builder Certification – HUD 92541
- Builder’s one year warranty – HUD 92544
- Termite statement – NPCA 99A & 99B (wood is
acceptable for a pre-treatment)
• VA Builder ID# Assigned
VA Website
www.va.gov
Benefits→Home Loans→Construction&Valuation→Builder Registration
Three forms required:
- Builder Information and certification: Click here to download
required format
- Form 26-421 (Equal Employment Opportunity Certification)
- VA Form 8791 (VA Affirmative Marketing Certification)
Builder ID# Already Assigned – 217 statewide now
http://condopudbuilder.vba.va.gov/2.2/frames.html
USDA RD
• Program Features
• 100% financing
• Non-metro only (cities < 20,000) excpt-Norfolk; Columbus
• No monthly MIP (funding fee of 2%)
• Low-to-moderate income qualifying
• First-time homeownership NOT required
• Closing cost/prepaids and funding fee can be financed if
appraisal value supports 100% of total cost
• Assumable—with credit qualifying
• New Construciton - Similar guidelines as FHA
USDA RD Income Chart
• http://www.rurdev.usda.gov/rhs/sfh/GSFH_Income_Li
mits/NE%20GRH.pdf
Proposed Change for 2009
1-4 Person
5-8 Person
70,750
93,400
Down Payment Assistance Programs
• Local
- Nebraska Housing Resources
- NIFA – HBA (when available)
- SENCAC / Blue Valley – others
• www.housingdevelopers.org
• “Reach Affiliates” for listing
LMI Owner-Occupied Impact
Exemption Refund
City of Lincoln Public Works & Utilities
Requirements
• Builder initially paid an Impact Fee on subject
property
• Purchase price of the home can not exceed
the FHA mortgage limit for Lincoln MSA.
Single-family $271,050
Requirements
• Homebuyer verified income must be at 60% or 80%
of median taxable income adjusted for household
size.
- Must have income verification
- Provide previous years 1040 tax return form
- Most recent 30 day pay stubs
- Both signed & dated
Requirements
• Homebuyer may only receive this reimbursement
once in a five year period.
• Application must be made no later than 10 days
following the execution of the Purchase Agreement.
For more information….
Visit: www.Lincoln.ne.gov – search for keyword “Impact Fee”
For more information & questions:
• Michaela Dugan
Assistant Public Works/Utilities Business Manager
Public Works and Utilities Department
555 South 10th Street, Suite 203
Lincoln, NE 68508-3994
(office) 402-441-7559
(fax) 402-441-8609
(cell) 402-429-2897
[email protected]
• Visit: www.Lincoln.ne.gov – search for keyword “Impact Fee