presented by renee duval nmls#96967 carol jordan nmls#98985 certified mortgage professionals nh...
TRANSCRIPT
Presented by
Renee Duval NMLS#96967
Carol Jordan NMLS#98985 Certified Mortgage Professionals
NH Mortgage Bankers & Brokers Association
Licensed by the New Hampshire Banking DepartmentMerrimack Mortgage Company - NMLS ID #2561
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
The ABC’sof Mortgage Lending
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Disclaimer
• The views expressed in this presentation are those of the presenters, Renee Duval and Carol Jordan and do not reflect those of our employer, colleagues or its clients.
• The information provided by us is for
informational purposes only and is not intended as legal or tax advice.
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Brief Recent History
• 2008 Housing Bubble Burst• Poor Lending Practices contributed to the burst
• Rising Home Prices• Inflated Appraisals• Wall Street Greed• No Income Verification Loans• Negative Amortization• Option ARMs• Undisciplined Loan Officers
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Federal Regulations
• 2008 & 2009 brought these updates: • HVCC (Home Valuation Code of Conduct)• Mortgage Licensing Act • Mortgage Disclosure Improvement Act • TILA – the Truth in Lending Act• Homeownership and Equity Protection Act (HOEPA)
• RESPA (1974) Real Estate Settlement & Procedure Act
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Compliance is Crucial…
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
NMLS National Mortgage Licensing System
http://www.nmlsconsumeraccess.org/
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
NMLS National Mortgage Licensing System
http://www.nmlsconsumeraccess.org/
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
NMLS National Mortgage Licensing System
http://www.nmlsconsumeraccess.org/
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
NMLS National Mortgage Licensing System
http://www.nmlsconsumeraccess.org/
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Federal Regulations • Dodd Frank - Consumer Protection Act July 21, 2010
CFPB (Consumer Finance Protection Bureau) created
www.consumerfinance.gov
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Federal Regulations • Dodd Frank - Consumer Protection Act July 21, 2010
CFPB (Consumer Finance Protection Bureau) created
www.consumerfinance.gov
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Federal Regulations • Dodd Frank - Consumer Protection Act July 21, 2010
CFPB (Consumer Finance Protection Bureau) created
www.consumerfinance.gov Rules and regulations are
designed to protect consumers
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Updates
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Federal Regulations
In 2014 mortgage lenders implemented new rules
• Qualified Mortgages• Protect Homebuyers• Protect Lenders
• Ability to Repay• Follow guidelines already established• May restrict debt ratio to 43% in some cases
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Back to the ABC’s
Government LoansVA –(Veterans Administration)RD (USDA Rural Housing)FHA (Federal Housing Administration)NHHFA (New Hampshire Housing Finance Authority)
Conventional/ ConformingFannie Mae & Freddie MacMy Community & Home Possible
JUMBOPortfolio or Bank Product
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
The ABC’s come down to three C’s
•Cash
•Credit including capacity to repay
•Collateral This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Cash needed to purchase a home CostsDown payment+Closing Costs+Prepaids Total neededLess Seller ConcessionsLess Lender CreditsLess Cash Assistance= Total from Buyer*
Cash FlowDeposit+ Home Inspection costs+ Appraisal+ Home Insurance+ Cash Due at closing= Total from Buyer*
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
*other items not disclosed by lender including additional inspection fees, fuel proration, homeowner association fees or buyer broker fees may also be due
Cash needed to purchase a home
Closing Costs• Credit Report • Appraisal• Transfer Tax• Origination Fee & Points• Flood Cert• Recording Fees• Title & Title Insurance• Other misc fees
• Condo docs• Employment verification• Final Inspection fees• other
Prepaid Items• Interest
• At closing, buyer pays interest from day of closing thru the end of the month
• Taxes• Proration per P&S• Escrow for lender
• Insurances• Homeowners insurance• Flood insurance• Mortgage insurance
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Closing Costs & Prepaids$300,000 sales price – 20% down
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Closing Costs & Prepaids equal about 3.6% of Sales Price – APR = 5.132%
Closing Costs & Prepaids$150,000 sales price – 20% down
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Prog
ram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Closing Costs & Prepaids equal about 5.3% of Sales Price – APR = 5.223
Lender Credits lower buyers’ costs• The rate / cost theory
• The lower the rate, the higher the cost• The higher the rate, the lower the cost
• Pricing example to demonstrate lender credit• Assume current rate is 4.5% with zero points• If borrower takes rate of 4.75% they might get a 1% lender credit• If borrower takes rate of 5% they might get 2% lender credit
• Actual #s based on $300,000 sales price / $240,000 loan
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Rate 4.5% 4.75% 5%APR 4.724 4.986 5.24Total closing costs $5,802 $5,802 $5,802 Less lender credit 0 -2400 -4800Net closing costs after lender credit $5,802 $3,402 $1,002
Cash Requirements for owner Occupied Single Family Home Purchases
• VA & RD – no down payment required & Seller Can pay all Closing Costs & Prepaids
• NH Housing Flex with Cash Assistance- 3.5% down / ½ % net down payment after cash assistance
• FHA- Buyer must pay 3.5% of the sales price + home inspection (if seller pays all other closing costs & prepaids)
• NH Housing Home Preferred – 3% down & Seller can pay 3%
• Conventional – 5% down & Seller can pay 3% 10% down & Seller can pay up to 6%
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Comparison Cash to close –assuming $300K Sales Price
max seller concession zero point rate
program VA RD FHA Grant FHA NHH-HP
down payment
closing costs/prepaids
seller concession
cash from borrower
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Note: lender credits could be used, with higher corresponding rates, to reduce the closing costs on VA, RD and FHA scenarios above
$0 $0 $1,500 $10,500 $9,000
$10,775 $10,775 $10,775 $10,775 $10,775
$10,775 $10,775 $9,275 $10,375 $9,000$0 $0 $3,000 $10,900 $10,775
This
is n
ot a
n off
er to
ext
end
cred
it o
r int
ende
d to
be
dist
ribut
ed to
co
nsum
ers.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
an
d un
derw
riting
app
rova
l.
Credit Scores
• Range is 300 – 850
• Each of the 3 major bureaus gives a score
• Lenders use the middle score
• Actual formulas used are not public
This
is n
ot a
n off
er to
ext
end
cred
it o
r int
ende
d to
be
dist
ribut
ed to
co
nsum
ers.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
an
d un
derw
riting
app
rova
l.
Credit Scores
Credit Scores• RD – (Rural Development)
• MMC requires 640 - NH Housing Requires 620
• NH Housing -620 Minimum score
• FHA - 500 Minimum Score• MMC requires 600 Score• NH Housing requires 620• Many lenders require 640
• VA – No Minimum Score• MMC requires 640 - NH Housing Requires 620
• Conventional – 620
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Credit – it’s more than the score The ideal credit report
• 3 or more open lines of credit with no late payments in the past 24 months
• Balances on credit cards below 50% of limit
• No unpaid collection debt
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Credit – it’s more than the score Other considerations
• Rental history
• payment shock
• Checking & Savings history
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Credit – it’s more than the score
Automated underwriting
LP – loan prospectorDU – desktop underwriterDO – desktop originatorFHA score cardGUS – Guaranteed Underwriting System
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
This
is n
ot a
n off
er to
ext
end
cred
it o
r int
ende
d to
be
dist
ribut
ed to
co
nsum
ers.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
an
d un
derw
riting
app
rova
l.
Credit – there’s a lot to look at..
• Are there any accounts that do not belong to the borrower?• • Are there any duplicate accounts?• • Are any of the account references outdated?• • Are any of the account histories inaccurate?• • Are any monthly payments shown incorrectly?• • Are there any inquiries within the last six months?• • Are there any new accounts within the last 60 days?• • Is the current mortgage reference up to date?
Fair Credit Act
• Errors on the credit report may lower the credit score
• Borrowers have the right to dispute information
• Removing errors / updating info may result in an increase in the score
• Rapid Rescoring available to correctlegitimate errors in the report
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Credit
Prequalification
• Loan Officer speaks with borrower about their income, assets & debt
• Credit report may be pulled• Automated underwriting may
occur• Paystubs, W2s & tax returns
may be reviewed• Bank statements may be
reviewed• Prequal Letter written• Loan Officer’s opinion
Preapproval
• Borrower signs an application
• Credit report is obtained• automated underwriting
is completed• Paystubs, W2s & tax
returns in the file• Bank statements in the file• Underwriter reviews• Commitment from lender
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
This
is n
ot a
n off
er to
ext
end
cred
it o
r int
ende
d to
be
dist
ribut
ed to
co
nsum
ers.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
an
d un
derw
riting
app
rova
l.
Collateral -
• Collateral is the subject property being financed
• The appraisal is the lender’s eyes
• Loan officers cannot communicate with the appraiser
• Appraisers are chosen on random basis
This
is n
ot a
n off
er to
ext
end
cred
it o
r int
ende
d to
be
dist
ribut
ed to
co
nsum
ers.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
an
d un
derw
riting
app
rova
l.
Collateral -
• If the appraised value is less than the sales price• Buyer Options
• Accept value and put more down • Accept value and loan amount is ok
• If large down payment• Get mortgage insurance • Pay higher mortgage insurance
• Price can be renegotiated • seller comes down to appraised value• Seller comes down some and buyer pays the difference
Collateral
Requirements for Owner Occupied
• Water Test required for VA, RD and NH Housing
• Minimum property standards apply for all loan types
• Safety • Livability• Marketability
“Sound, Safe & Sanitary”
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Prog
ram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
The 3 C’s & Loan Types
VARD
FHAConventional
Other Loan Types
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Prog
ram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
VA – Veteran’s Administration
• VA home loan product for eligible Veterans and active duty servicemen and women
• Certificate of Eligibility is required
• Insured by the VA but originated by banks & mortgage companies
• Cleveland, Ohio, is our regional VA offer for mortgage loans
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
VA Mortgages- Cash
• Low up front cost• 100% Financing – No Down Payment required• Seller can pay all closing costs• VA Funding fee financed in to loan
• Veterans who receive disability pay are exempt
• Low monthly cost• No monthly Mortgage Insurance• Interest rates tend to be lower than on conventional mortgages
• No income limits unless combining with NHHFA
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
VA Mortgages- Credit
• No monthly Mortgage insurance means no second underwriting required
• No foreclosures of short sales in the past 3 years *• No bankruptcies in the past 2 years*• Automated and Manual underwriting available• Debt ratios up to 50% often approved• Residual income analyzed• 2-4 unit purchases may allow use of rental income Th
is is
not
an
offer
to e
xten
d cr
edit
or in
tend
ed to
be
dist
ribut
ed to
con
sum
ers.
P
rogr
am, r
ates
, and
term
s ar
e su
bjec
t to
chan
ge a
nd u
nder
writi
ng a
ppro
val.
VA Mortgages- Collateral
• No geographic restrictions
• Water Quality test Required
• Termite reports required• Can not be paid for by the Veteran
• 1-4 Family dwellings allowed
• VA approved condos
• Appraisal must be completed by a VA Appraiser
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
VA Mortgages- Collateral
Existing Housing - Appraisal
• Potential Property issues• Running water, heat and electricity
must be verified by the appraiser• Safety- Livability- Marketability
• Appraisal required repairs • Completed prior to closing• Completed after closing with escrow account at 150% of cost to
complete – estimates must be written• No rehab option available
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Rural Development
What’s the Big Deal?Lower cash outlay
Lower payment
Is it a Deal Maker or Breaker?RD underwriting can be more lenientRD underwriting can be more strict
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
RD – Rural Housing
Guaranteed
• Obtained thru a mortgage banker/broker
• Has upfront & monthly mortgage insurance
• Income Limits apply• Buyer must pay for
appraisal upfront
Direct
• Obtained directly through RD’s office in Concord
• No monthly mortg ins• Lower Income Limits• RD does their own home
inspection & appraisal• Subsidized rate = lower
payment & higher price
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
RD Mortgages - Cash• Low up front cost
• 100% Financing – No Down Payment required• Seller can pay all closing costs• Rd Funding Fee financed in to loan• Closing costs can be rolled into the loan
• Low monthly cost• Low monthly Mortgage Insurance
• Calculated: Loan Amount X .5% /12 months• On a $100K loan, the monthly fee would be $41.67
• Interest rates tend to be lower than on Conventional mortgages
• Income limits apply
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
RD vs FHAComparison Based on $300K sales price; $6000 taxes
Rural Development
Down Payment $ 0Est Closing Costs $ 5800Est Prepaid Items $ 5200Total Cash Needed $11,000
At a Rate of 4.5% - APR 5.143
P&I = $1551.08T&I = $ 575MI = $ 125.01PITI = $2251.09
FHA
Down Payment $10,500Est Closing Costs $ 5800Est Prepaid Items $ 5200Total Cash Needed $21,500
At a Rate of 4.5% - APR 6.064
P&I = $1492.52T&I = $ 575MI = $ 331.39PITI = $2398.91
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
RD – Credit - Income Limits• Nashua MSA
• Amherst, Brookline, Greenville, Hollis, Litchfield, Mason, Milford, Mont Vernon, New Ipswich, Pelham and Wilton
• 1-4 person household – max income $93,450/year• 5-8 person household – max income $123,350/year
• Manchester MSA• Bedford Goffstown & Weare
• 1-4 person household – max income $88,550/year• 5-8 person household – max income $116,886/year
• Hillsborough County – non MSA towns• Antrim, Bennington, Deering, Francistown, Greenfield,
Hancock, Hillsboro, Lyndeboro, New Boston, Peterborough, Sharon, Temple and Windsor
• 1-4 person household – max income $91,800/year• 5-8 person household – max income $121,176/year
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
RD – Credit - income limits• Belknap, Carroll, Cheshire, Coos, Grafton & Sullivan Counties
• 1-4 person household – max income $86,700/year• 5-8 person household – max income $114,444/year
• Merrimack County• 1-4 person household – max income $91,450/year• 5-8 person household – max income $120,714/year
• Western Rockingham County & Portsmouth-Rochester MSA
• 1-4 person household – max income $100,900/year• 5-8 person household – max income $133,188/year
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
RD Mortgages- Credit
• For Qualified buyers who own no other real estate
• Ok to Buy and Sell on the same day
• Final underwriting required with RD
• No foreclosures of short sales in the past 3 years *
• No bankruptcies in the past 3 years*
• Automated and Manual underwriting available
• Debt ratios up to 49% often approved
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
RD Mortgages – CreditAssumes Borrower has $72,000 annual income and $700/month debt
620 scoreGUS Refer
• $6000 monthly incomeX 41% $2460 max housing & debt- 700 debt$1760 max housing
$225,000 Sales Price
680 scoreGUS Accept
• $6000 monthly incomeX 49% $2940 max housing & debt- 700 debt$2140 max housing
$275,000 Sales Price
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
RD Mortgages- Collateral
• Lot requirements• Can not be sub-dividable• Generally 5 acres or less• Can not exceed 30% of total value• In ground pools can not add value• Well and Septic must be adequately spaced• No underground oil tanks • No post and piers• Barns can not add excess value
• Appraiser must state property meets HUD minimum standard
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
RD Mortgages- Collateral
• Available in eligible communities• Water Quality test required
• Nitrates, Nitrites, Lead, Total Coliform and E-Coli• Dug well acceptable with well flow test• Well and septic must be 100’ apart*
• Qualified properties• Single family homes• No in-law apartments (no 2-4 unit properties)• Prior approved Condos• Must have a refrigerator
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Prog
ram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
RD – Collateral
• Eligible Communities
• Most towns in NH are eligible for RD
• 10 towns/cities are ineligible• 2 towns/cities are partially ineligible
• 11 more will become ineligible in the future
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Prog
ram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
RD – Collateral
Ineligible Communities
• Parts of Goffstown & Hooksett• Manchester• Nashua, Hudson• Concord (including Penacook)• Derry, Londonderry• Dover, Portsmouth• Merrimack• Salem
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
RD – Collateral
Communities targeted to become ineligible in the future
• Amherst, Milford• Bedford, Goffstown, Hooksett • Durham, Exeter, Hampton,
Raymond, Somersworth• Keene• Windham & Pelham
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Prog
ram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
RD Mortgages- RD required repairs
• Potential Property issues• Running water, heat and electricity must be on
at time of appraisal (or a final inspection is required)Safety- Livability- Marketability
• Appraisal required repairs • Completed prior to closing• Completed after closing with escrow account at 150% of cost to
complete – estimates must be written• Rehab option available in combination with NHHFA Th
is is
not
an
offer
to e
xten
d cr
edit
or in
tend
ed to
be
dist
ribut
ed to
con
sum
ers.
Pr
ogra
m, r
ates
, and
term
s ar
e su
bjec
t to
chan
ge a
nd u
nder
writi
ng a
ppro
val.
RD Collateral- Rehab
• RD does not have a rehab option• NH Housing has an RD rehab option• RD allows escrow for repairs *• RD allows for repairs to be rolled into
the loan if supported by appraisal *
*Up to $10,000 total which includes 50% contingency reserve (max repair = approx $6650)
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
FHA Mortgages - Cash• Low up front cost
• 3.5% Down Payment required• Seller can pay up to 6% of sales price to help pay closing costs• FHA upfront MIP (mortgage insurance premium)
can be financed into loan
• Monthly cost• Monthly Mortgage Insurance is 1.35% of loan/12• On a $100,000 loan, Mortgage Insurance is $125 per month• Interest rates tend to be lower than on Conventional mortgages
• No Income limits apply unless combining with NHHFA
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
FHA Mortgages- Credit
• Not limited to 1st time home buyers• Owner occupied purchasers only• No foreclosures/short sales in the past 3 yrs*• No bankruptcies in the past 2 yrs*• Automated and Manual underwriting • Debt ratios up to 55% often approved
*FHA back to work provisions may shorten the length of time between a BK, foreclosure or short sale and the time a borrower can purchase another home
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Prog
ram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
FHA Mortgages- Collateral
• No Geographic Restrictions• Loan Limits Apply (by county)• Water Quality test not required• Well and septic must be 100’ apart*• 1-4 Family dwellings allowed• Prior approved Condos • Mobile homes on their own lot
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
FHA Mortgages- Collateral
• Loan Limits Apply (by county)
• Hillsborough County $295,950• Belknap, Cheshire, Grafton, Sullivan &
Merrimack County $271,050 • Rockingham/Strafford $470,350 *
* Loans over $417,000 are JUMBO and additional guidelines apply
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
FHA Mortgages- FHA required repairs
• Potential Property issues• Running water heat and electricity must be on
at time of appraisal (or a final inspection is required)• Safety – Livability - Marketability
• Appraisal required repairs • Completed prior to closing• Completed after closing with escrow account at 150%
of cost to complete – estimates must be written• FHA 203K and 203Ks rehab options are available• Rehab option available in combination with NHHFA
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
FHA Mortgages- FHA required repairs
• FHA 203Ks (streamline)• Up to $35,000 rehab account can be created• No structural changes permitted• Must use contractor(s)
• Written, signed estimates required• 203Ks paperwork from contractor• Contractor references verified• Must be licensed & insured• Must be lead paint certified for
properties built before 1978
• Can combine with NH Housing for 203Ks option
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Prog
ram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
FHA Mortgages- renovation program
• FHA 203K (also known as full 203K)• No max rehab account (loan limits apply)• Structural changes permitted• Must use contractor(s)
• Written, signed estimates required• 203Ks paperwork from contractor• Contractor references verified• Must be licensed when applicable• Must be insured• Must be lead paint certified for properties
built before 1978
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
NH Housing• Flex Programs
• 2 rates available• Combines with either
VA, RD or FHA• 3% grant comes with
higher rate• Water test required• Income Limits apply• MCC Available
• Home Preferred• 2 rates available • Mortgage Insurance Options
• Lower coverage required• Financed options
• No MI program• Rate published daily• Water test required • Income Limits apply• MCC available
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
NH Housing – rehab options
FHA 203Ks• 3.5% down• 3% grant possible• Seller pays closing• Up to $35K rehab• Available throughout
the state• Higher monthly m.i.• FHA rules apply
RD rehab• 0% down• 3% grant possible• Seller pays closing• Up to $35K rehab• Geographical
limitations• Lower monthly pmt• RD rules apply
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Prog
ram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
NH Housing – MCC’s
Mortgage Credit Certificates
• Lower income limits apply for MCC • Sales price limits apply for MCC• Credit is added to borrowers income in qualifying• Can be used with flex & home preferred programs• Borrowers do need to be 1st time buyers
(except when purchasing in a targeted community) This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Prog
ram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
NH Housing – MCC’s
Income Limits
$ 79,700 for 1-2 person households$ 91,600 for 3+ person households
Higher limits apply in targeted communities:Laconia Concord ClaremontBerlin Pittsfield SomersworthLancaster New Market RochesterWhitefield Portsmouth ManchesterGoffstown Dover
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
NH Housing – MCC’s
Income Limits$ 95,600 for 1-2 person households$ 111,500 for families of 3+ in targeted communities:
Laconia Concord ClaremontBerlin Pittsfield ManchesterLancaster New Market RochesterWhitefield PortsmouthSomersworthGoffstown Dover
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
NH Housing – MCC’s
Mortgage Credit Certificates• Purchased at time of closing for an additional fee• Tax Credit is equal to the lower of
• 35% of total interest paid • or $2000/year
• paid out for each year the borrower qualifies
• $200,000 loan X 5% = approx $10,000 interest paid• $10,000 X 35% = $3500• MCC would be for $2000
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Conventional Mortgages defined
• Conventional Mortgage also known as…• Fannie Mae • Freddie Mac• Conforming
• Conventional Terms…• Fixed Rate or Adjustable• 30, 25, 20, 15 or 10 year loans
• Conventional also encompasses….• Homepath financing• My Community• Home Possible
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Prog
ram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Conventional Mortgages • Low up front cost
• 5% Down Payment on regular conventional financing• Seller can pay up to 3- 6% of sales price depending on down pmt• Mortgage Insurance required with less than 20% down
• Mortgage Insurance• Mortgage Insurance varies by program, term & down payment• Monthly mortgage insurance available• Borrower can opt for one-time insurance (no monthly payment)• Borrower can opt for lender-paid insurance (no monthly payment)
• Income Limits apply to Home Possible & My Community
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Conventional
My Community & Home Possible
• Lower Mortgage Insurance
• County Income Limits ApplyHillsborough 84,700
Merrimack 79,700Grafton 69,400
Rockingham, Strafford 91,200 Belknap, Carroll, Cheshire, Coos & Sullivan = $69,100
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Prog
ram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Conventional My Community & Home Possible
No Income Limits in these tracts…• Belknap9659.00• Carroll9551.00, 9553.00, 9558.00, 9559.00• Cheshire9716.00, 9717.00• Coos9501.00, 9504.00, 9505.00, 9506.00, 9508.00• Grafton9601.00, 9605.00, 9606.00, 9611.00, 9612.00• Hillsborough0002.04, 0003.00, 0006.00, 0008.00, 0009.01, 0012.00, 0013.00, 0014.00,0015
.00, 0016.00, 0017.00, 0018.00, 0019.00, 0020.00, 0021.00, 0024.00,0105.00, 0106.00, 0107.00, 0108.00, 0109.00, 0111.01, 0115.00, 0185.01,2004.00
• Merrimack0322.00, 0323.00, 0326.00, 0329.00, 0350.00, 0430.02, 0440.00, 0441.00,0443.00
• Rockingham0035.00, 0550.01, 0570.00, 0630.01, 0630.02, 0650.08, 0675.02, 1003.02,1062.00, 1071.00
• Strafford0813.00, 0814.00, 0815.00, 0830.01, 0830.02, 0842.00, 0843.00, 0844.00,0870.00, 0880.00
• Sullivan9758.00, 9759.01, 9759.02
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Conventional
My Community & Home PossibleIs your listing eligible forThis great opportunity?
http://www.ffiec.gov/Geocode/default.aspx
Go to this site and enter property addressIf property is eligible, you have a bigger market! Th
is is
not
an
offer
to e
xten
d cr
edit
or in
tend
ed to
be
dist
ribut
ed to
con
sum
ers.
P
rogr
am, r
ates
, and
term
s ar
e su
bjec
t to
chan
ge a
nd u
nder
writi
ng a
ppro
val.
Open up more buyers for your listingsComparison Based on $300K sales price; $6000 taxes
My Community/Home Possible
5% down $15,000Est Closing Costs $ 5800Est Prepaid Items $ 5200Total Cash Needed $26,000
At a Rate of 5%P&I = $1529.94T&I = $ 575MI = $ 171PITI = $2275.94
Conventional
5% down $15,000Est Closing Costs $ 5800Est Prepaid Items $5200Total Cash Needed $26,000
At a Rate of 5%P&I = $1529.84T&I = $ 575MI = $223.25PITI = $2328.19
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Prog
ram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
MC/HP is $52.25 less /month & qualifying is more lenient
Same Payment – higher sales price!Comparison Based on 5% down loan
My Community/Home Possible
$300,000 sales price$6000 taxes*You can negotiate for up to 3% Seller Concession
At a Rate of 5% - APR 5.724
PITI = $2275.94
Conventional
$289,500 sales price$6000 taxes*You can negotiate for up to 3% Seller Concession
At a Rate of 5% - APR 5.724
PITI = $2275.84
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Prog
ram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Same Payment equates to different sales prices with different programs.This is a hypothetical example for demonstration purposes only.
FHA requires less upfront cashComparison Based on $300K sales price; $6000 taxes
My Community
Down Payment $15,000Est Closing Costs $ 5800Est Prepaid Items $ 5200Total Cash Needed $26,000- Max concession - $ 9000Min from Buyer = $17,000
At a Rate of 5%PITI = $2275.94
FHA
Down Payment $10,500Est Closing Costs $ 5800Est Prepaid Items $5200Total Cash Needed $21,500 - Max concession - $10,000Min from Buyer =$10,500
At a Rate of 4.5%PITI = $2398.91
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Difference is $122.97
FHA requires less cash…Comparison Based on $300K sales price; $6000 taxes
Conventional 5% down
Down Payment $15,000Est Closing Costs $ 5800Est Prepaid Items $ 5200Total Cash Needed $26,000- Max concession - $ 9000Min from Buyer = $17,000
At a Rate of 5%PITI = $2328.19
FHA
Down Payment $10,500Est Closing Costs $ 5800Est Prepaid Items $5200Total Cash Needed $21,500 - Max concession - $10,000Min from Buyer =$10,500
At a Rate of 4.5%PITI = $2398.91
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Prog
ram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Difference is $70.72
Conventional MortgagesComparison Based on $300K sales price; $6000 taxes
Conventional lender paid MI
5% down $15,000Est Closing Costs $ 5800Est Prepaid Items $ 5200Total Cash Needed $26,000
At a Rate of 5.75%P&I = $1663.18T&I = $ 575MI = $ 0PITI = $2238.13
Conventional with monthly MI
5% down $15,000Est Closing Costs $ 5800Est Prepaid Items $5200Total Cash Needed $26,000
At a Rate of 5.125%P&I = $1551.79T&I = $ 575MI = $223.25PITI = $2350.04
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Mortgage Insurance• Often required when borrower puts less than 20% down
• Insures the lender against losses if there is a short sale or foreclosure in the future
• Enables buyers to buy with less than 20% down
• VA, FHA, & RD have their own forms of mortgage insurance
• Conventional loans have PMI (private mortgage insurance)
• Several Major insurers exist; rates & guidelines can vary
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Mortgage Insurance Cancellation
Termination of private mortgage insurance on conventional loans
• Automatically occurs at the midpoint of the loan • if borrower is current• If property is a single unit or condo
• borrower can initiate MI cancellation - borrower submits written request - borrower has 22% equity based on either original value or current appraisal -borrower cannot have been 60 days late in past 24 months - cannot have been 30 days late in the past 12 months - no second liens can be in place
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Mortgage Insurance Options
upfront MI
Mortgage Insurance can be paid in a one-time fee
FinancedPaid by Lender (rolled into rate)
Upfront MI cannot be cancelled
Costs vary byDown PaymentProperty typeCredit ScoreRequired Coverage
monthly MI
Mortgage insurance can be paid monthly…
Monthly MI can be cancelled
Costs vary byDown PaymentProperty typeCredit ScoreRequired Coverage
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Conventional MortgagesComparison Based on $300K sales price; $6000 taxes
Conventional financed MI
10% down $30,000Est Closing Costs $ 5800Est Prepaid Items $ 5200Total Cash Needed $41,000
At a Rate of 5%P&I = $1515.84T&I = $ 575MI = $ 0PITI = $2090.84
Conventional with monthly MI
10% down $30,000Est Closing Costs $ 5800Est Prepaid Items $5200Total Cash Needed $41,000
At a Rate of 5%P&I = $1470.11T&I = $ 575MI = $189PITI = $2234.11
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Difference is $143.27
Impact of Credit Score on RateFor a Fixed Rate
Score Points Paid to Get Rate 740 0 0 720 .25% $712.50700 .75% $2137.50680 1% $2850660 2.5% $7125640 3% $8577620 Score does not meet minimum program requirements
Based on a 5% down payment loan, $285,000 loan
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Impact of Credit Score on RateScore Rate APR
740 5% 5.25%
700-739 5.125% 5.375%
680-699 5.25% 5.5%
660-679 5.5% 5.75%
620-659 5.625% 5.875%
Based on a $300,000 sales price with 20% down payment $240,000 conventional loan with 30-year term. This is a hypothetical example for demonstrations purposes
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Prog
ram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Credit Score effects MI CostFor a Fixed Rate
Score MI Rate Monthly Mortg Ins Payment
720+ .65 $154.38680+ .89 $211.38660 1.13 $268.38640 1.22 $289.75620 Score does not meet minimum program requirements for a 5% down loan
Rates came from United Guarantee Mortgage Insurance CompanyBased on a $300,000 sales price & 5% down payment - $285,000 loan
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Conventional Mortgages
Fannie Mae HomePath
5% down paymentNo Mortgage Insurance
No Appraisal
For Fannie Mae owned properties onlyProgram being discontinued
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Nonconforming Mortgages
• Portfolio Loans• Credit Union Product• Bank Product
• JUMBO loans
• Land Loans
• Construction Loans
• HELOCs
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Condominiums• Conventional – limited review
• Investor Ratio• Single investor can’t own more than 10% of units• Condo fee delinquencies cannot exceed 15% of total• Reserves must equal at least 10% of total fees collected in year
• FHA & VA• Both FHA & VA have approved condo lists online • Approved condos still need to have updated info reviewed
• For condos not on the approved list• Lender or management company to submit packet for approval• Process for approval takes 4 weeks from time of receipt of all info
• RD• Accepts FHA & VA approved condos• Accepts condos meeting Fannie Mae/Freddie Mac limited review
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
This
is n
ot a
n off
er to
ext
end
cred
it o
r int
ende
d to
be
dist
ribut
ed to
co
nsum
ers.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
an
d un
derw
riting
app
rova
l.
Listing Condominiums• RIGHT TO INFORMATION: In
accordance with RSA 356-B:58, a party interested in purchasing a condominium unit has the right to obtain from the Condominium Unit Owner’s Association the following information:
• a copy of the condominium declaration, by-laws, any formal rules of the association
• a statement of monthly and annual fees and any special assessments made within the last 3 years.
This
is n
ot a
n off
er to
ext
end
cred
it o
r int
ende
d to
be
dist
ribut
ed to
co
nsum
ers.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
an
d un
derw
riting
app
rova
l.
Listing Condominiums1. Seller and Property Address:
2. Association Name (if applicable):
3. Property Manager/Agent: Phone:
4. GENERAL AND LEGAL• a. Are there any Association approvals required
for transfer of Ownership?
• b. Is there a time share operation? • c. Is there a vacation rental operation or
other organized rental program? • d. Number of allocated parking spaces
available: • e. Is there any pending or existing litigation?
If Yes, please explain: • f. Are the minutes of the Condominium
Association annual meeting available?
This
is n
ot a
n off
er to
ext
end
cred
it o
r int
ende
d to
be
dist
ribut
ed to
co
nsum
ers.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
an
d un
derw
riting
app
rova
l.
Listing Condominiums
MASTER INSURANCE POLICY
• a. Name of Company:
• b. Name of Agent Phone:
This
is n
ot a
n off
er to
ext
end
cred
it o
r int
ende
d to
be
dist
ribut
ed to
co
nsum
ers.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
an
d un
derw
riting
app
rova
l.
Listing Condominiums FINANCIAL• a. Monthly maintenance fee(s): $• b. What do the monthly fees include?• Air Conditioning • Hot Water • Road Maintenance• Cable TV Signal • Lot Rent • Sewer• Electricity • Real Property Tax • Snow Removal• Garage/Parking • Recreation/Community Association Dues • Trash Removal• Gas • Water• Other:________________
This
is n
ot a
n off
er to
ext
end
cred
it o
r int
ende
d to
be
dist
ribut
ed to
co
nsum
ers.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
an
d un
derw
riting
app
rova
l.
Listing Condominiums FINANCIAL• c. Are there any additional fees? • If so, please specify:
• d. Are you aware of any special assessments or loans in effect at this time? Yes No
• If Yes, explain: _______________________________________________________________________________________
• AdditionalComments:____________________________________________________________________________
This
is n
ot a
n off
er to
ext
end
cred
it o
r int
ende
d to
be
dist
ribut
ed to
co
nsum
ers.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
an
d un
derw
riting
app
rova
l.
Listing Condominiums
ACKNOWLEDGEMENTS:SELLER ACKNOWLEDGES THAT HE/SHE HAS PROVIDED THE ABOVE INFORMATION AND THAT SUCH INFORMATION ISACCURATE, TRUE AND COMPLETE TO THE BEST OF HIS/HER KNOWLEDGE. SELLER AUTHORIZES THE LISTINGBROKER TO DISCLOSE THE INFORMATION CONTAINED HEREIN TO OTHER BROKERS AND PROSPECTIVE PURCHASERS.
This
is n
ot a
n off
er to
ext
end
cred
it o
r int
ende
d to
be
dist
ribut
ed to
co
nsum
ers.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
an
d un
derw
riting
app
rova
l.
Listing Condominiums
BUYER ACKNOWLEDGES RECEIPT OF THIS PROPERTY DISCLOSURE RIDER AND HEREBY UNDERSTANDS THEPRECEDING INFORMATION WAS PROVIDED BY SELLER AND IS NOT GUARANTEED BY BROKER/AGENT.
This
is n
ot a
n off
er to
ext
end
cred
it o
r int
ende
d to
be
dist
ribut
ed to
co
nsum
ers.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
an
d un
derw
riting
app
rova
l.
Listing Condominiums
THIS DISCLOSURE STATEMENT IS NOT A REPRESENTATION, WARRANTY OR GUARANTY AS TO THE CONDITION OF THEPROPERTY BY EITHER SELLER OR BROKER. BUYER IS ENCOURAGED TO UNDERTAKE HIS/HER OWN INSPECTIONS ANDINVESTIGATIONS VIA LEGAL COUNSEL, HOME, STRUCTURAL AND OTHER ADVISORS.
Listing Condominiums
• Complete the Condo Rider
• Obtain Condo docs
• Obtain Budget & Balance Sheet
• Obtain Minutes from last meeting This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Listing Condominiums 1/20/14 Surveyrandom sample of 32 condos listed on MLS
• only 18 of 32 had the condo rider completed• only 4 of 32 had the condo docs available online• None had the Budget or Balance Sheet• None had minutes from last meeting
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Prog
ram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Obtaining Condo Info
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Company Fee for Questionnaire Fee for Condo Docs
Harvard Mgmt $50 - $75 $50 + $5 to mailEvergreen Mgmt $125 $75Foxfire Mgmt $0 $0 (pdf)Cityside Mgmt $75 $40
Condo QuestionnairesWhat is management company or association’s policy on obtaining condo questionnaires? What is the cost? Will seller pay this expense upfront if requested?
Strategies For the Listing AgentsApplies to all property types…
• Address Property Issues Upfront- remove obstacles• Determine possible financing types and limitations• Discuss seller concessions upfront
• Seller can pay up to 6%• Most common Seller concession is 4% of the sales price
• Will seller approve a specific seller concession at full price?• Create a compliant advertisement with all the correct verbiage
required by state & federal regulations
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
For the Seller’s Agent
Advertising Requirements Under TILA and Regulation Z
• You cannot advertise terms (interest rates, down payments, etc) that are not available.
• Deceptive and misleading ads are prohibited.• Regulation Z requires full disclosure of terms whenever a
trigger term is used in an advertisement. • All terms must be equally prominent so that consumers
will not have to read the fine print to understand the terms being advertised.
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Pro
gram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
For the Seller’s Agent
Advertising Requirements Under TILA and Regulation Z
• If a rate is quoted, the APR “annual percentage rate”
must also be disclosed in a manner that is equally conspicuous as the rate quoted.
• If the rate is subject to an increase, that must also be clearly stated in the ad.
• If the payment does not include tax & insurance, that must be clearly identified
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
P
rogr
am, r
ates
, and
term
s ar
e su
bjec
t to
chan
ge a
nd u
nder
writi
ng
appr
oval
.
For the Seller’s Agent
Advertising Requirements Under TILA and Regulation Z
Things you cannot do when advertising mortgage terms…. • Advertise fixed rates when the rate or payment can really go up –unless there is
equally visible full disclosure of these terms.
• Advertise savings or other misleading comparisons to other terms that could be offered
• Make misrepresentations about government endorsements
• Use the term counselor when you are in it for profit• • Advertise favorable terms in English and then switch languages for the full
disclosure of the terms.
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Prog
ram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
For the Buyer’s Agent• Writing the offer
• Seller can pay some or all of buyer’s closing costs• Get specific – don’t leave cash on the table• Buyer should be communicating with lender re: needed concessions
• Commitment & Closing dates• Time frames may vary by loan type• Lender approval vs RD commitment• Commitment comes before appraisal is received
• Required Inspections• Water• Pest
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Prog
ram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.
Thank you for your timeand attention
This
is n
ot a
n off
er to
ext
end
cred
it or
inte
nded
to b
e di
strib
uted
to c
onsu
mer
s.
Prog
ram
, rat
es, a
nd te
rms
are
subj
ect t
o ch
ange
and
und
erw
riting
app
rova
l.