Oklahoma Housing Finance Agency

Lee Ann Smith Director, Single Family Program September 2017

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OHFA Description

• OHFA Advantage program provides first mortgage financing and down payment assistance to eligible mortgagors. OHFA’s mission is to provide housing opportunities for moderate income individuals and families within the State of Oklahoma.

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Issuer and Review Agent

• Oklahoma Housing Finance Agency 100 NW 63rd, Suite 200 Oklahoma City, Oklahoma 73116

OR P.O. Box 26720 Oklahoma City, Oklahoma 73126-0720 www.ohfa.org ohfasinglefamily@ohfa.org ohfaratelock@ohfa.org

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Master Servicer

• US Bank Home Mortgage MRBP Division 17500 Rockside Road Bedford, Ohio 44146-2099

• Help Desk: (800) 562-5165 option 2 • hfa.programs@usbank.com

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• FNMA –Federal National Mortgage Assoc. • DU – Desktop Underwriting ( Fannie Mae) • LPA – Loan Product Advisor ( Freddie Mac) • GNMA –Guaranteed National Mortgage Assoc. • DPA – Down payment assistance • HFA – Housing Finance Agency • USB – US Bank Home Mortgage • HBE – Home Buyer Education • FTB – First-Time Homebuyers • DTI – Debt to Income • LTV – Loan to Value • PITI – Principal, interest, taxes, insurance

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Glossary of Abbreviations

OHFA DREAM Product

• Provide 30 year fixed interest rate mortgage loan • DPA and closing cost assistance – Gift/Grant 3.50% or 5.00% • No repayment of gift required • First Lien Purchases • Home purchases – New and Existing • One (1) Single Unit • First time homebuyers is not a requirement • No Prepayment Penalty

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Funds and Interest Rates

• Funds are Continuous • Interest rates are based on current market conditions

• OHFA currently posts interest rates on www.ohfa.org • Any rate change(s) notification is sent via email to lenders prior to

change. Effective notice of rate change is at 10 am of that day • OHFA can lock your loan: ohfaratelock@ohfa.org Email OHFA 1003, disclose rate and credit score

• DREAM: 1% origination allowed- lenders’ option

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Borrower Qualification - Anyone • Resides in the State of Oklahoma • No First time homebuyer requirement • Meet Qualifying Income per the product-1008/Loan

Transmittal Income for mortgagor(s) will be considered. The income from non purchasing spouse/joint occupant will not however OHFA will need LOE as to why not using income.

• Must occupy the property with 60 day of closing • Multiply OHFA loans are not allowed • Must apply thru a OHFA Participating Lender • Residency requirements – Follow GSE guidelines

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Income and Purchase Price Limits

• DREAM FNMA –Purchase Price - $417,000 Income Limit: 1-2 Persons: $113,580 3 or more: $123,045 • DREAM GNMA Purchase Price - $276,665 Income Limit: 1-2 Persons: $78,000 3 or more: $91,000

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DREAM FNMA HFA Preferred – DPA DREAM GNMA - DPA

• 3.50% Down Payment Assistance (DPA) • 5.00% Down Payment Assistance (DPA) • DPA – Gift/Grant • DPA calculated on Total Loan Amount/Note • No repayment of down payment assistance • No additional filing and/or lien on property

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Application of Down Payment All Products • First – Down payment • Second – Closing Cost, pre-paid, fees, etc. • Third – Principal Reduction

Borrower is allowed to be repaid at closing: • Earnest money • Credit Report fee • Appraisal fee

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DREAM FNMA – Loan Type HFA Preferred • Loan to Value Maximum - 97% • Condominiums - >97% (Condo must be on US Bank

approved list)

• Amortization Term: 30 Years • Fixed Rate

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DREAM GNMA – Loan Types • FHA – 203(b) and 234(c) • VA • Rural Development – Rural Housing Guaranteed Loan • Condominiums – FHA • Amortization Term: 30 Years • Fixed Rate

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Property Eligibility • Must be located in Oklahoma • New and Existing Single Family homes • Condominiums FNMA - />97% LTV ( with exceptions see US Bank Condo approved list) GNMA - FHA only

• Not allowed – rental or vacation homes, co-ops or

investment homes and manufactured homes

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DREAM FNMA - Underwriting

• Automated Underwriting System: DU: HFA Preferred – Fannie Mae • HBE at least one, when all borrowers are FTB Regardless of LTV • Manual Underwrite /<95%- Fannie Mae Eligibility Matrix details

LTV, credit score and reserves requirements

• Minimum credit score of 640

• DTI 50% maximum

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DREAM GNMA - Underwriting

• Automated Underwriting: DU and LPA • Rural Development: GUS • Minimum credit score of 640 • DTI 45% maximum

• Manual underwrite - 36% (must have 2 months reserves PITI)

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Additional OHFA Guides • 10 Acre Limit • No additional lien filing • Co-Signer allowed follow product guides • MCC not allowed with OHFA Products • POA’s not allowed however can be approved on case

by case basis • No additional DPA or grant assistance allowed

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DREAM FNMA HFA Preferred

• Charter Minimum • 18% - 95.01% - 97% LTV • 16% - 90.01% - 95% LTV • 12% - 95.01% - 90% LTV • 6% - 80.01% - 85% LTV • Single Premium • Split Premium • Borrow Paid – monthly with annual renewal **Base loan plus MI cannot exceed 97% LTV

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Mortgage Insurance • MGIC • ARCH • ESSENT • GENWORTH • NATIONAL • RADIAN • UNITED GUARANTY

• Lenders’ option for selection

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DREAM Loan Review

• All review documents can be emailed to ohfasinglefamily@ohfa.org

• Subject line: OHFA Loan number/review • OHFA Documents Loan Confirmation 1008/Loan Transmittal Form 1003 – Loan Application Purchase Contract Loan Estimate LOE – if omitting spouse or joint occupant from contract/purchase DREAM GNMA and DREAM FNMA only.

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Loan Approval • OHFA issue approval letter

• OHFA Gift Letter • OHFA Mortgagor and Income Certification • All documents sent/emailed to lender of record

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Lender Loan Closing • Fund OHFA DPA with your first mortgage

• Executed OHFA Gift Letter by customer(s) • Deliver OHFA Mortgagor and Income Certificate to

customer at closing

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Post Closing • Copy of executed Closing Disclosure • Copy of executed OHFA Gift Letter

• Sent to OHFA with in 5 days of closing

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Fees – All Products

• $58 Tax Monitoring fee • $400 Investor Funding Fee • No review fee

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OHFA Web Site

• www.ohfa.org • Password protected • US Bank – Guides • OHFA - Guides • Lenders – Lenders Resources • Rates • Census Tract

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Thank you

• We appreciate your business and partnership

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