Transcript Adamsville Place

ANDP Neighborhood
Stabilization Program (NSP)
Program Training
For Realtor Professionals
Implemented by
Atlanta Neighborhood Development Partnership
Presented by Clyde Anderson
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
The Initiative
The ANDP NSP Program is an
initiative to help qualified buyers
purchase a previously foreclosed
home in designated areas within the
Atlanta Metro. The program provides
financial assistance to help lower the
cost of these homes.
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
Today’s Agenda
•
The Team
•
NSP Advantage: Overview
•
NSP Second Mortgage Program
•
Available Counties & Jurisdictions
•
Program Structure
•
Homebuyer Requirements
•
Property Requirements
•
Realtors Role
•
ANDP’s Role
•
To-Do or Not-To-Do
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
NSP
Advantage
Team
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
NSP Advantage: The Team
• Christie Cade
– Sr. Manager of Housing Development
• Clyde Anderson
– Housing Consultant
• Karyl Bentley
– Housing Coordinator
• George Burgan
– Sr. Manager Marketing & Comm.
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
NSP Advantage: Overview
• Total household income must not exceed
120% of Area Median Income.
Family Size
50% AMI
80% AMI
120% AMI
1
$25,150
$40,250
$60,300
2
$28,750
$46,000
$68,950
3
$32,350
$51,750
$77,550
4
$35,900
$57,450
$86,150
5
$38,800
$62,050
$93,050
6
$41,650
$66,650
$99,950
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
NSP Advantage: Overview
• Second mortgages must be coupled with 30 year
fixed rate first mortgages only (FHA, VA,
Conventional)
• Recapture/affordability for period with all NSP
Second Mortgage loans (5-15 years)
• Homebuyer must move into the home 60 days
after closing subject to construction issues
• Homebuyers must contribute at least 1% of their
own funds towards the purchase of the home (i.e.
earnest money, application fee, appraisal, etc.)
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
NSP Advantage: Overview
• The home purchased must be the primary
residence for the Homebuyer
• No first time buyer requirement
• Loan qualification and credit underwriting is
completed by participating lenders
• Homebuyer education and housing
counseling is required from HUD approved
housing counselors (8 hours)
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
NSP Advantage: Overview
• All other NSP regulations and guidelines
are applicable
• Program may be used with other down
payment assistance programs (some
exceptions may apply)
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
NSP
Second
Mortgage
Facts
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
Max. Assistance
to qualified buyers.
Borrower
Required
Funds
Repayment
Terms
Special Stipulations
Jurisdiction
(Assistance comes in form of 2nd
Mortgage)
Interest
Rate
Loan
Terms
Atlanta
Up to
$20,000
0%
10
years
1% of the
purchase
price
Prorated,
Reduces
10%/yr
Files sent directly to
ANDP from participating
lender
0%
10
years
1% of the
purchase
price
Prorated,
Reduces
10%/yr
Files sent directly to
ANDP from participating
lender
0%
10
years
0%
15
years
0%
5-10
years
NSP
Second
Mortgage
Guidelines
DeKalb
22% of purchase price up to
$25,000, includes $4,000
closing costs
Douglas
20% of purchase price up to
$25,000, includes $4,000
closing costs
40% available
Fulton
Rockdale
120%AMI: 10%SP, Max
$10k, 5 years
80%AMI: 15%SP, Max $15k,
10 years,
50%AMI: 25%SP, Max $25k,
10 years
In addition 5% of SP in CC
up to $7,500
1% of the
purchase
price
1% of the
purchase
price
Prorated,
Reduces
10%/yr
Files sent directly to
ANDP from participating
lender
15 yr
Prorated,
Reduces
10%/yr
Files sent directly to
ANDP from participating
lender
Rockdale County preapproval required for
Prorated,
$14,500 plus 5% of sales
$500NSP Assistance. Down
0%
5
Reduces
price toward closing costs
$1,000
payment assistance
20%/yr
amount based on
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
income
NSP
Second
Mortgage
Process
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
NSP Advantage: Process
• Borrower receives approved contract
from ANDP
• Email “Loan Reservation” to the
following
• [email protected]
[email protected],
[email protected]
• ANDP will provide Reservation
Confirmation within 48 hours
• Lenders will process and Underwrite
loan file completely
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
NSP Advantage: Process
• Overnight you approved loan to ANDP’s
office: 235 Peachtree Street Suite 2000
2oth Floor, Atlanta, GA 30303 ATTN:
Christie Cade
• Upon receipt ANDP will provide a
“Deficiency Letter” within 48 hours of
receiving file (if applicable)
• The file will not be fully reviewed until
outstanding conditions are met
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
NSP Advantage: Process
• ANDP will begin “Compliance Review”
– Compliance Review consist of...
• Confirming that all documents
have been signed and filled out
completely
• Confirming household size
• Verifying income is correct
• Review Appraisal
• Reviewing tax returns
• Reviewing bank statements
• Forward info to Jurisdiction for review
if applicable
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
NSP Advantage: Process
• Email Lender Approval/Declination
Letter
• Allow 48 hours to confirm and set up
closing
• ANDP will prepare Note, Deed, TIL and
other documents for closing
• ANDP will provide all documentation
for NSP 2nd Mortgage to Attorney
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
NSP Advantage: Process
• After ANDP reviews the HUD to ensure:
– Borrower has at least 1% invest into
the transaction (Earnest deposit,
application fee, inspections etc.)
– No excessive fee’s were charged (Max
2 discount points)
– Second Mortgage proceeds and
closing cost were applied correctly
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
NSP Advantage: Process
• ANDP is the Seller of the properties and
will provide homebuyers warranty and
sign all seller docs at closing.
• ANDP will follow up on Post Closing
items
– Fully Executed 1003
– Loan Application Form
– Final GFE
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
Homebuyer
Requirements
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
Homebuyer Requirements
Getting Started! The Loan Process
•
Homebuyer will contact a NSP Participating Lender for
loan application and pre-qualification.
•
Homebuyer will contact a HUD approved Housing
Counseling agency, complete the required (8 hr)
homebuyer education and housing counseling and
obtain a certificate of completion prior to submittal of
underwriting package to ANDP.
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
Homebuyer Requirements
Getting Started! The Loan Process
•
Homebuyer qualifies for a conventional, FHA or VA
mortgage
•
Homebuyer will work with Real Estate Professional to
locate an ANDP property in one of the designated
Counties - Area of greatest need and present an offer
contingent upon approval
•
Homebuyer completes the loan application process
with the NSP Participating Lender, completes all NSP
forms, obtains loan approval from lender, and closes
on home.
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
Property
Requirements
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
Property Requirements
• Must be an ANDP owned property listed
on MLS and FMLS
• Must be located within the designated
program area in order to receive the
benefits for that jurisdiction
• Under renovation, unless otherwise
noted
• Properties online at
www.ANDPHomes.org
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
Role of the
Lender
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
Role of the Lender
•
Prepare the required NSP Program closing
documents
•
Deliver documents for the first mortgage loan, table
fund 1st mortgage, ANDP will fund 2nd mortgage
loan
•
Deliver final inspections and required funding
documents to ANDP
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
Role of the Lender
The Lender will:
•
Originate, process and underwrite the first and mortgage
in accordance with FHA, VA or Conventional loan
requirements and credit guidelines
•
Lenders will be responsible for originating, underwriting
and closing the NSP first mortgage Loans and for all
communications with borrower about their NSP Second
Mortgage Loans
•
Review all documentation to verify that discounts meet
the NSP requirements
•
Review income documentation to verify that Applicants
household meets the NSP income requirements of less
than 120% AMI and complete the Household Income
Worksheet
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
Role of the Realtor
•
Become familiar with the ANDP property inventory
•
Share information with potential homebuyers
•
Inform homebuyers of the housing counseling
requirements
•
Assist homebuyers with the process of obtaining
pre-qualification/loan approval from one of our
participating Lenders
•
Assist homebuyer with presenting offer on ANDP
properties
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
Role of the Realtor
•
Identify Property from the www.andphomes.org
website
•
Contact the assigned Listing Agent
•
Show property
•
Get appropriate documents for contract to make
offer from Listing Agent
•
Submit your offer to ANDP (Seller) via Listing
Agents
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
Role of
ANDP
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
ANDP Role & The Closing Process
ANDP will:
•
Reserve NSP funds as requested by lenders
•
Complete a compliance underwriting review of
documentation presented by the lender
•
Approve/deny NSP funding for submitted
applications
•
Prepare NSP second mortgage loan closing
documents
•
Fund the NSP loan at closing
•
Secure NSP Second Mortgage Loan documents and
service loan until payoff.
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
How to Make it Work!
ANDP’s Do's and Don'ts for Loan Submissions
Do
Don't
Prepare for a 45 to 60 day process
Write contract for 30 days
Make sure borrower has attended homebuyer course
Wait until the last minute to take it
Be prepared to invest at least 1% of the purchase price
in the transaction
Receive a gift to cover the minimum investment
Allow enough time for process to be completed
Submit rush loans
Make sure application is filled out completely and
witnessed in appropriate places
Leave blank section
Review checklist to make sure all required
documentation has been submitted
Submit incomplete application missing
documentation
Understand that all ANDP’s NSP products are soft
second loans with no payment and no interest
charges
Assume it is a grant
Wait for ANDP's approval before confirming closing
date
Guarantee clients loan is closing on a specific day
until loan approval is received from ANDP
Be prepared to provide pay stubs for each pay period
until loan closes
Stop submitting pay stubs once loan is submitted
Allow 7-10 days for approval once ANDP confirms
receipt of a complete loan package
Start counting days from the date initial package is
received by ANDP
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
What we need
from the Lender
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
Questions?
For additional information visit
www.ANDPHomes.org
Or
Clyde Anderson
[email protected]
678-500-9519
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org