99 5 Presentation


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This is an 99.5% loan that is getting a lot of attention.

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99 5 Presentation

  1. 1. ACCESS” What “CHF ACCESS” offers 1st Loan 2nd Loan Home Ownership 15-Year Fully Amortized 2nd LITTLE TO FHA up to Up to 3% of NO MONEY 96.50% LTV Sales Price OUT OF POCKET CLTV up to 99.50%
  2. 2. CHF ACCESS PROGRAMS Eligible 1st Mortgage Program Down Payment & Closing Cost Assistance Sample Calculations Income Limit Calculation
  3. 3. CHF Access 1st & 2nd
  4. 4. CHF ACCESS Program Topic Program Description State Restriction Available throughout the WHOLE STATE OF CALIFORNIA ONLY! Program Types FHA 30 Year Fixed Max LTV 96.50% Max CLTV 99.50% – Follow FHA guidelines Maximum Loan Conforming: Up to $417,000 Amount Jumbo: > $417,000 to $729,750 based on county where property is located FHA Loan Limits Loan Purpose Purchase Occupancy Owner Occupied Down Payment CHF ACCESS 2nd: Assistance • CAN be used to fulfill the borrower’s equity contribution required on FHA 1st Mortgage
  5. 5. CHF ACCESS 2nd Program Topic Program Description Program Types CHF ACCESS 2nd Fixed Term 15-yrs Fixed-Rate Fully Amortizing Maximum Loan Amount Sized up to 3% of the Sales Price Interest Rate 8.25% Max CLTV 99.50% or higher – Follow FHA guidelines Use of Funds Proceeds may be used for: DOWN PAYMENT CLOSING COSTS Price Adjustments Up Front or Single Premium MI No cash back to the borrower from the 2nd loan proceeds • Any overage over POCs must be used to reduce principal balance • Any overage over $500 results in redraw of loan documents
  6. 6. Sample Scenario: (Purchase Price: $325,000) Sample 1: Borrower has little or NO money Down - Seller contributing for costs… CHF ACCESS 1st: 96.50% ($325,000 x 96.50%) $313,625.00 + CHF ACCESS 2nd (Down Payment): 3% ($325,000 x 3%) $9,750.00 + Total Financing 1st & 2nd: 99.5% of Sales Price $323,375.00 = Borrower Required Down Payment: .5% ($325,000 x .5%) $1,625.00 Borrower Contribution: .50% ($1,625) for DP (Seller pay for Closing Costs) Sample 2: Borrower HAS Down Payment but NO money for Closing Costs... CHF ACCESS 1st: 96.50% ($325,000 x 96.50%) $313,625.00 + Borrower Funds (Down Payment): 3.5% ($325,000 x 3.5%) $11,375.00 + CHF ACCESS 2nd (Closing Costs): 3% ($325,000 x 3%) $9,750.00 Total Financing 1st & 2nd: 99.50% of Sales Price $325,000.00 = Borrower Contribution: 3.5% ($11,375) for DP
  7. 7. Sample Scenario: (Purchase Price: $325,000) Sample 3: Borrower has NO money for D/P OR C/C - Receiving Gift Funds of 5%... CHF ACCESS 1st: 96.50% ($325,000 x 96.50%) $313,625.00 + CHF ACCESS 2nd (Down Payment): 3% ($325,000 x 3%) $9,750.00 Total Financing 1st & 2nd: 99.50% of Sales Price $323,375.00 = Gift Funds Received 5% ($325,000 x 5%) $16,250.00 .5% given for DP 0.5% ($325,000 x .5%) $1,625.00 4.5% towards CC 4.5% ($325,000 x 4.5%) $14,625.00 Borrower Contribution: ZERO ($0)
  8. 8. Program Income Limits Topic Guidelines Income Limit Based on Qualifying Income Only (not Household Income) Calculation Only the income used for Qualifying is considered in order to meet the Program Income Limits Income Limit = 120% of HUD AMI Income Limits To calculate the Program Income Limit by County, refer to: http://www.huduser.org/datasets/il.html Tip: Use the Income Limit spreadsheet CHF ACCESS Income Limit
  9. 9. ADDITIONAL GUIDELINES Eligibility Guidelines General Underwriting Guidelines Pricing, Costs and Fees
  10. 10. Eligibility Guidelines Topic Guidelines Borrower Eligibility Purchase of Owner-Occupied Primary Residences Only NO 1st Time Homebuyer Requirement MAY OWN OTHER PROPERTIES – must meet FHA requirements Property Eligibility Single Family Residences PUD’s FHA Approved Condos Manufactured Homes – Must meet FHA requirements Income Limits 120% of HUD Area Median Income (AMI) Sales Price Limits Not Applicable First Time Homebuyer Not Required Non Occupying Co- NOT ALLOWED Borrowers/Co-Signers Homebuyer Education Required Minimum Homebuyer NONE required Contribution
  11. 11. Underwriting Guidelines Topic Guidelines Underwriting UW Method: DU / LP allowed – Must be risk scored by FHA Scorecard Approve/Eligible, Accept or Accept Plus recommendations Manual UW allowed **Unless specifically specified, Follow Standard FHA guidelines PLUS First Mortgage FHA overlays** Minimum Credit NO MINIMUM FICO SCORES required Scores Follow 4155 guidelines PLUS FMC overlays Price Adjustments apply – See First Mortgage rate sheet Max Debt Ratio 43% - Ficos < 620 45% - Ficos 620- 659 47% - Ficos 660+ Minimum of two(2) strong compensating factors required from HUD 4155 Reserves NONE required Mortgage Insurance Follow standard FHA MIP Buy-Downs NOT ALLOWED
  12. 12. UW Guidelines cont’d… Topic Guidelines Seller Contributions Allowed up to 6% Gift Funds Allowed from family members Other Sources of Gift Funds Assistance 401k loans Grants Prepayment Penalty No Prepayment Penalty Assumability Allowed per FHA guidelines
  13. 13. ACCESS Fees & Charges Topic Guidelines Interest Rates Interest Rates available on the FMC Rate Sheet on your AE’s website, OR Contact Integr8tive Lending, INC 949-340-2696 Contact your FMC Account Executive Origination Fees Up to 1.00% on 1st Mortgage only (BROKER RETAINED) Discount Fees Buyer or Seller Discounts allowed subject to consumer laws • Discount Points allowed only for loan level price adjustments. Cannot be used for additional compensation. Rebate/Discount See FMC rate sheet Pricing Contact Integr8tive Lending, INC 949-340-2696 FMC Fees See doc order form or contact your Branch Manager for lender fees Allowable Fees Must be reasonable and customary and fully disclosed to the borrower in accordance with all agencies, federal, state and local laws Follow FMC rules on limitation of fees for FHA loans