2479 South Lake Park Blvd. West Valley City, UT 84120 801-902-8200 801-902-8327 - fax www.utahhousingcorp.org

MORTGAGE BANKING STAFF Deon Spilker – Mortgage Banking Director (801-902-8256) dspilker@uthc.org Pamela Shinsel – Compliance, Education, MPA, Purchases (801-902-8253) pshinsel@uthc.org Carol Evans– Compliance/Emails, Purchases (801-902-8257) cevans@uthc.org Jennifer Stroud– Underwriter (801-902-8369) jstroud@uthc.org Irene Woods– Underwriter (801-902-8255) iwoods@uthc.org Shelby Walker– Compliance, Post Purchase follow-up (801-902-8358) shelbywalker@uthc.org Paige Lanzi – Compliance Auditor (801-902-8254) planzi@uthc.org

-INFORMATION-

Recent updates Income Limits Acquisition Limits Forms (with revision

dates) Underwriter,

Processor, Closer checklists

Participation Agreement

Selling Supplement Enter a Reservation Extend a reservation Expiration dates Status of a purchase Status of follow-up

What you can find on UHC’s Web-site: www.utahhousingcorp.org

UHC BASICS

Loans are underwritten by a UHC approved Participating Lender according to FHA or VA guidelines with a few additional UHC requirements FHA or VA, 30 year, fixed rate loans only Single Family, Owner occupied loans Down payment and closing cost assistance program

*Seller can pay all or part of borrowers closing costs (follow FHA or VA guidelines) *CAN COMBINE WITH CITY AND GOVERNMENT GRANTS*

UTAH HOUSING PROGRAMS

FIRSTHOME LOAN First time Homebuyer-lower

income limit

HOMEAGAIN LOAN Standard FHA/VA

Underwrite

SCORE LOAN Credit Score between

620-659

FIRSTHOME LOAN •ACQUISITION COST - $250,000.00 FHA/VA max loan amount guidelines apply •CLOSING COSTS - FHA/VA guidelines, 1% Origination charge, $79.00 tax service fee, ½% warehouse fee showing paid to the lender •CREDIT SCORE – Minimum 660 credit score. 3 scores-one can be below 660, 2 scores-both must be above, 1 score-must be above. No score for borrower or co-borrower, not eligible for the mortgage •FIRST TIME HOMEBUYER - All persons on title must be first time homebuyers within the past 3 years (someone who has not owned and occupied their principle residence). Exceptions for Single Parent program and Veteran program •INCOME – Salt Lake, Weber, Davis, Morgan, Wasatch, and Summit counties: 1-2 household member $71,300, 3 plus household members $81,000. All other counties: 1-2 household members $67,500, 3 plus household members $77,500.

FIRSTHOME LOAN •NON OCCUPANT CO-SIGNER – Not allowed to be on title, debt ratio including the new house payment not to exceed 41%, credit score minimum of 660, cannot be spouse of the borrower. Non-occupant co-borrower is not allowed. •UNDERWRITING RATIOS – Manual or Automated allowed, follow FHA/VA guidelines

HOMEAGAIN LOAN •ACQUISITION COST - $320,000.00 – FHA/VA max loan amount guidelines apply •CLOSING COSTS – FHA/VA guidelines. $79.00 tax service fee, ½% warehouse fee showing paid to the lender •CREDIT SCORE – Minimum 660 credit score. 3 scores-one can be below 660, 2 scores-both must be above, 1 score-must be above. No score for borrower or co-borrower, not eligible for the mortgage •FIRST TIME HOMEBUYER – Homebuyers who have previously owned a home as well as first-time homebuyers who do not qualify for the FirstHome program •INCOME - $81,000 •NON OCCUPANT COSIGNER – Not allowed with this program •UNDERWRITING RATIOS – Manual or Automated allowed, follow FHA/VA guidelines

SCORE LOAN •ACQUISITION COST - $250,000.00 – FHA/VA max loan amount guidelines apply •CLOSING COSTS - FHA/VA guidelines. $79.00 tax service fee, ½% warehouse fee showing paid to the lender, 1% discount point (UHC Score Loan fee) – this fee will be netted from the purchase, follow Lender guidelines and HUD/RESPA for disclosing •CREDIT SCORE – Minimum 620 credit score. 3 scores-one can be below 620, 2 scores-both must be above, 1 score-must be above. No score for borrower or co-borrower, not eligible for the mortgage •FIRST TIME HOMEBUYER – Homebuyers who have previously owned a home as well as first-time homebuyers who do not qualify for the FirstHome program •INCOME - $81,000 •NON OCCUPANT COSIGNER – Not allowed with this program •UNDERWRITING RATIOS – Manual or Automated allowed, follow FHA/VA guidelines. OVERLAY – debt ratio cannot exceed 45%

ALLOWS HOME BUYERS TO BORROWER MOST OF THE FUNDS THEY NEED FOR DOWNPAYMENT AND CLOSING

COSTS

Subordinate mortgage, 30 year fixed, Interest rate is 2% above the First Mortgage rate

Both first and second are serviced by UHC which is located in Utah

Can borrow up to 6% of the total loan amount of the first mortgage promissory note to be used for down payment and closing costs for FirstHome and HomeAgain. Score loan can borrow up to 4% of the total loan amount

One application, one underwrite, one close

Utah Housing will not subordinate this loan in the event of a refinance

All restrictions regarding previous home ownership have been eliminated for Veterans Can only be used with the FirstHome Loan Can use a FHA or VA loan (can do a veteran FHA when a veteran may not have enough eligibility, etc.) Underwriting still must comply with FHA or VA and Utah Housing See VA website to verify definition of a veteran

SINGLE PARENT SET-ASIDE

All restrictions regarding previous home ownership is eliminated Only allowed with FirstHome Loan Single Parent must be:

Head of Household Have legal custody of at least one minor child no less than 50% of the time Be the sole household member receiving income Be the sole adult in the household *except one who is incapacitated* Meet all other FirstHome requirements

FIRSTHOME LOAN HOMEAGAIN & SCORE LOANS

Total Household income as of the date of application, projected forward 12 months, not to exceed: Salt Lake, Weber, Davis, Morgan, Wasatch & Summit Counties 1-2 household members $71,300, 3 plus $81,000. All other counties 1-2 household member $67,500, 3 plus $77,500

SEE ADDITIONAL INCOME

SLIDES

Qualifying income as determined by FHA guidelines not to exceed $81,000. Amount taken from the 92900-LT, VA Loan Analysis and Automated findings, multiplied by 12.

HOUSEHOLD INCOME FOR FIRSTHOME LOAN

--------------------------------------------------------------------------- “All persons expected to use the Residence as their Principal Residence during the Current Year, excluding children expected to be born following Closing.” Spouse who is not on the loan but occupying the property and earning income must provide verification of employment date and 2 paystubs. If spouse is not employed, a borrower signed statement is needed. “In a case when a child is the subject of a joint custody order of a court, the child may be considered a member of the Household provided that 50% or more of the child’s time will be spent as a member of the Household.” If Applicant is married but separated, (as evidenced by a fully signed separation agreement signed by both spouses) gross Income does not need to include the income of the separated spouse who will not be a member of the Household.

FIRSTHOME LOAN INCOME

All household members 18 and over *Dependents over 18 unless they are a full time student Self Employment *Year to date signed P&L statement *Previous year 1040 Legally awarded Child Support *Must be included unless borrower can document they are not receiving it

Two separate incomes will be calculated for a FirstHome Loan: a. FHA/VA qualifying income b. UHC Household income

Income is calculated as of the date of application (or at time of closing if application is dated 120 days prior to closing)

a. Current Paystub (two) (must show at least one full month of income) b. VOE or FHA alt doc

Current income is projected forward 12 months including CURRENT overtime, commission and bonus. **UHC DOES NOT AVERAGE**

Irregular Gifts Reimbursed Medical Expense Inheritances Insurance payments Settlement for personal or property losses Educational Scholarships (but only to the extent used

for such purpose) Foster care payments

ADDITIONAL GUIDELINES ACREAGE LIMITATION – 1 acre limit or 5 acre limit for

properties in Highly Rural areas APPROVED CONDOS AND PUD’S – Follow FHA/VA

guidelines. Supplemental policy may be required in addition to the HOA policy if deductable exceeds UHC allowable $1000. max. See Section 3.16 of the UHC Selling Supplement

ESCROW & 203K LOANS – Weather related escrows acceptable. Streamline 203K acceptable. Repairs must be complete within 90 days of closing. Escrow agreement showing 90 day time frame is needed before purchase. Completion certificate needed when work is complete along with receipts to match with original escrow agreement. Excess funds must be sent to UHC to be applied as a principal reduction to the 2nd mortgage. Lender is responsible for monitoring funds and disbursements

ADDITIONAL GUIDELINES FORCLOSURE AND SHORT SALES – Follow FHA/VA

guidelines. If a borrower has had a previous forclosure or short sale which was a Utah Housing loan with a subordinate 2nd mortgage they are not eligible for another Utah Housing loan.

MANUFACTURED HOME – Must comply with Section 70D-1-20 of the Utah Code and FHA guidelines. UHC requires Mft. Home to be at least a double wide and a recorded Affidavit of Affixture is needed. Refer to Selling Supplement and Participation Agreement

POWER OF ATTORNEY – Acceptable, must be specific to transaction and recorded. POA for the borrower(s) is not allowed to sign UHC form 047, page 2 (Borrower Affidavit)

PROPERTY USE – Must be a SFR. No more that 15% of the square footage can be used for a business in the home. Cannot rent any portion of the home. Must be owner occupied for life of UHC mortgage

ADDITIONAL GUIDELINES SECOND KITCHEN – Property must be a SFR and have only

1 meter (appraiser to certify). Properties that are more than 1 unit and can be rented are not eligible

UHC MORTGAGE LOAN – Borrower cannot have two outstanding UHC loans, all previous UHC loans must be paid off

UNDERWRITING RATIOS – Manual or automated, follow FHA/VA guidelines. Score Loan, debt ratio cannot exceed 45%

WATER SEWAGE FACILITIES, WATER RIGHTS, WATER STOCK, WELLS, SPRINGS – Refer to UHC Selling Supplement 3.10 – specific guidelines and documents apply

CASH BACK – Cannot exceed amount initially invested

ALLOWABLE CLOSING COSTS FOR THE 2ND MORTGAGE

ALLOWABLE LENDER CHARGES

$250.00 PROCESSING FEE

INTERIM INTEREST

ACTUAL 3RD PARTY FEES

ALLOWABLE TITLE COMPANY FEES

$25.00 DOC PREP

ACTUAL COST TO RECORD THE SUBORDINATE DEED, NOT TO EXCEED $40.00

ACTUAL 3RD PARTY FEES

CANNOT CHARGE

ORIGINATION, DOC PREP, ETC

TITLE INSURANCE (UHC DOES NOT REQUIRE TITLE INSURANCE ON THE 2ND)

Enter loan on secure UHC site using your company specific lender login and password

After loan has been entered on UHC secure site, fax to UHC:

Signed Loan Application Disclosure (UHC form 045) Automated or signed underwriter credit approval

RESERVING FUNDS

MANDATORY DELIVERY!

Reservations are a Mandatory Delivery. There is a $400.00 penalty for non-delivery and buyer cannot receive another UHC loan for no less than 6 months

File must be received in UHC’s office within 30 days of reservation unless a request for an extension has been approved

In some instances circumstances beyond the buyers control may allow a borrower to switch properties and keep the existing commitment – contact Utah Housing

Reservation extensions are permitted – one 30 day at $400.00

AUDITS 100% of UHC loans are reviewed for UHC compliance prior to purchase

10% of all loans are audited, including new credit reports, possible re-verification of employment, signatures, REPC, ratios, accuracy of automated underwriting, appraisal review, etc.

Borrower & Lender may be asked to address any new loans showing up on audited credit (opened prior to closing) report’s (possible fraud or identity theft) and provide updated approval with new debt. Address credit inquiries

All early delinquent loans are reviewed for underwriting compliance and reported to HUD if not compliant, possible penalties and/or repurchase

Letters are sent to lenders auditing department to review any possible underwriting non-compliance on due diligence review and early delinquent loans

oNew lenders are required to do a post closing audit for the FIRST FIVE UHC loans

oAfter the first five UHC requires the lender to audit 10% of all UHC loans they have closed

oUHC will request findings of all audits in January of each year

UTAH HOUSING DOES 1 HOUR CE TRAINING FOR

REALTORS. CONTACT US IF YOU WOULD LIKE TO SPONSER THIS WITH

YOUR COMPANY