Transcript Document

The Sapphire Grant Product
1
3/28/2014
Sapphire Product
2
 Do not need to be a first
 NOTE: The grant of
time homebuyer
 Can be used with an FHA,
VA, or USDA 1st trust deed
 Can be combined with a
CalHFA MCC to reduce
ratios.
 The rate is different
depending on the amount
of the grant chosen.
3% or 5%, whichever
you choose, is based on
the total loan amount,
including MIP, not on
sales price or appraised
value.
3/28/2014
Sapphire Grant Product
3









3% or 5% can be used for down
payment, closing costs or origination
fee
The Grant is forgiven; no repayment
required
½% down can be gift
Borrower Paid Origination Only
Max broker comp: 1 ½% (can be paid
by buyer, seller, 3rd party, or with grant
funds)
SFR’s, PUD’s, or FHA approved
condos; no 203K’s.
Minimum Fico: 620
Maximum Loan: $417,000 including
UFMIP or VA funding fee
Ratios: not required, just need a DU
Accept











Owner Occupied
Non occupant co-signors allowed (co signors
income not considered in limitations
Non occupant co borrowers not allowed.
115% of Medium Income Limitations;
http://www.nhfloan.org/Programs/NHF_Sa
pp_Income_Limits.aspx
Income calculated per HUD or VA
guidelines- not by family size
Customary and reasonable closing cost fees
allowed
Manual lock at [email protected]
(must be in Ready for Docs Status)
3030NHF – FHA 30yr fixed 3%
30305NHF – FHA 30yr fixed 5%
3030VNHF – VA 30yr fixed 3%
30305VNHF – VA 30yr fixed 5%
3/28/2014
IMPORTANT! – How to enter on the 1003
4




The Sapphire Grant is NOT a lender credit nor an “other asset”.
There are 2 places on the 1003 which the grant funds need to be entered correctly in order for the DU
to run properly
How to enter on Page 1 of the 1003 under source of down payment:
 List as FHA Gift Source Nonprofit/Religious/Community-Non-Seller Funder
How to enter on Page 2 of the 1003 under the asset screen:

Gift not deposited. Name the bank as Sapphire.
3/28/2014
Sapphire Income Limits 2014
5
3/28/2014
Sapphine 2014 Income Limits
6
3/28/2014
Can I have an MCC Tax Credit with the
Sapphire Product? Yes!
7
3/28/2014
8
• An MCC
Credit can
help you
reduce your
ratios.
• When using a
MCC Credit,
use the
CalHFA
income/sales
limits,
whichever is
lower.
Combine your Sapphire with an MCC Credit –
however remember MCC requires you to be a 1st
time h/b, Sapphire does not.
3/28/2014