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Kentucky Housing Corporation

Kentucky Housing Corporation. MBA of the Bluegrass Educational Roundtable 2012. Overview for Today. New Income Limits GNMA Secondary Market MRB Down Payment Assistance KHC Homebuyer Tax Credit (MCC) Certified Realtors / Marketing Unemployment Bridge Program (UBP)

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Kentucky Housing Corporation

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  1. Kentucky Housing Corporation MBA of the Bluegrass Educational Roundtable 2012

  2. Overview for Today • New Income Limits • GNMA Secondary Market • MRB • Down Payment Assistance • KHC Homebuyer Tax Credit (MCC) • Certified Realtors / Marketing • Unemployment Bridge Program (UBP) • Latest Mortgagee Letters • Things to Come • Q & A

  3. Expanded Income Limits

  4. MRB & GNMA Interest RatesSign up for EGRAM rate push outs sent every morning at 10:00!!!

  5. GNMA Secondary Market Program

  6. Benefits of GNMA Secondary Market • Repeat Homebuyers Statewide • FHA, VA and RHS Purchases • 2 FHA Refinance Products • 30 Year Amortization • Competitive Interest Rates • Higher Income Limits • All lenders now have access. Third Party Originators recently added!!!

  7. Benefits of GNMA Secondary Market • Repeat homebuyers now has access to Down payment assistance (DAP) statewide • Income Limits • Based on county of property • Applicants Income Only!!! • Income Range: ($92,750 - $124,775)

  8. Advantage GNMA VS. MRB • Acreage Waivers not required • 30% rule • Borrower may own other real estate property the day of closing as long as GNMA is owner occupied. • Less documentation • KHC’s homebuyer tax credit can be used with GNMA Secondary Market Program • Some restrictions apply

  9. GNMA Secondary Market • Interest Rates will change with market • Push out EGRAMS every morning at 10:00 • 45 day lock • .25% cancellation fee for fallout • No free extensions • Zero point rates priced with and without DAP

  10. GNMA Secondary Marketcredit standards • FHA, VA and RHS • Minimum 640 credit score • All KHC DAPs may be used • Maximum ratios 40/45% • AUS approval required for FHA / VA • RHS manual underwriting, will accept GUS

  11. GNMA Secondary Market FHA Refinance Programs • Credit Qualifying Streamline with appraisal -CLTV 125% -FHA Loans only • Rate term Refinance -CLTV 97% -All loan types • Cash back on both not to exceed $500.00

  12. Mortgage Revenue Bond Program

  13. MRB Benefits • Purchases only with 60 day lock-in for no additional fee. • Periodic Special Pricing • 20% down Conventional Product still available • No Cancellation Fee if loan falls out. • Special Funding Lottery & Section 8 to Homeownership voucher programs only available through MRB funding source.

  14. MRB Extension Policy • 5 days Free • 6-15 days for $150.00 • 16-30 days for a total of $250.00 • After 30 days must go to market rate • Contact KHC prior to the reservation expiring

  15. Lottery for Special FundingSingle Parents, Disabled, and Elderly Households

  16. Lottery Program Single Parent, Disabled, or Elderly Households • Available annually on a lottery basis (July 2012) • Existingor new construction property with a purchase price limit of $115,000 • Interest rate set at 3.00% fixed for 30 years • Based on minimum ratios 29/41 • If borrower qualifies at current MRB or GNMA interest rate then must go with the higher rate. • Zero point rate no origination charges to the borrower • Must follow MRB guidelines

  17. Lottery Program Single Parent, Disabled, or Elderly Households • Must be a first time homebuyer • Unless property is located in a targeted county. • Regular and HOME DAP available • Household Income Limits: • $28,000 for 1-2 person households • $33,000 for 3 or more persons • Must have 640 minimum credit score and AUS Approval • Only FHA, VA and RHS

  18. KHC Downpayment Assistance Programs Only home buyers obtaining a MRB or GNMA Secondary Market government first mortgage are eligible for a KHC second mortgage product. All DAPs take a lien position.

  19. Regular DAP • Down Payment Assistance up to $6,000 • First Mortgage Funding Source (MRB or GNMA) Income Limits apply • New & existing properties • Must go maximum on first mortgage amount • True repayable second mortgage • Amortized over 10 years at a 6% interest rate. • Borrowers must qualify with the payment • $66.61 maximum Regular DAP monthly payment

  20. HOME DAP • HOME DAPincome limits apply for both MRB & GNMA First Mortgage Funding Source • Second mortgage loan up to $4,500 • Must go maximum on first mortgage amount • Forgiven over 5 years • no monthly repayment required • Borrower must use all liquid assets prior to accessing the HOME Funds less 2 months PITI. • Existing property up to a purchase price of $195,700 • Will require a HQS inspection • Seller responsible for all repairs

  21. KHC’s Homebuyer Tax Credit ProgramFormerly known as the Mortgage Credit Certificate (MCC) Program

  22. Life of the Loan Tax Credit Helps borrower to qualify for more house Reduced Fees with KHC GNMA Secondary Market Program Effectively reduces interest rate Homebuyer Tax Credit Benefits

  23. KHC’s Homebuyer Tax Credit • A homebuyer who obtains KHC’s Tax Credit is entitled to a Tax Credit equal to 25% of their mortgage interest paid in a year, not to exceed $2,000.  • The MCC is effective for the “Life of the Loan”. • Can carry forward any unused credit for 3 years. • Borrower is charged $500 at closing. • Fee reduced to $200 if First Mortgage is through KHC’s GNMA Secondary Market Program • Homebuyer claims the Tax Credit on yearly tax return.

  24. Eligibility Requirements • Must meet MRB Eligibility Requirements • Income, purchase price, and target/non-target counties • Cannot be used with KHC’s MRB first mortgage Programs. But, can be used with KHC’s GNMA Secondary Market Program. • Loan Options: • FHA, VA, RHS, FNMA & FMLC Conventional • All loan types must be 30 year fixed rate.

  25. Federal Recapture Tax • The Federal Recapture Tax does apply to the Homebuyer Tax Credit / MCC Program. • May apply if homebuyer sells their home within the first 9 years of homeownership and: • Homebuyer realizes a gain on the sale of their home and • Household income exceeds allowable income limits as adjusted for each year of homeownership. • KHC’s Recapture Tax Reimbursement Program DOES NOT apply to the MCC Program.

  26. Click here!

  27. List of MCC Approved Lenders

  28. KHC Certified Real Estate Agents

  29. Must attend one of KHC's real estate continuing education courses offered free of charge statewide through local associations.  This KHC Financing course is approved for 3 hours 1,151 real estate agents in 114 counties have become KHC-Certified. Tax Credit marketing campaign kicked off last month Each KHC-Certified Agent will receive a sign rider for the Tax Credit. KHC Certified Real Estate Agents

  30. Marketing Efforts • Homes.com & Zillow • MBA newsletters • KAR website • Advertorials for Nationwide Open House Campaign • Certified Real Estate Agent Classes • Sign riders and Posters

  31. Unemployment Bridge (Loan) Program

  32. Total Contacts 12,895 80% of homeowners don’t know their loan type 95% have a fixed rate loan Over 30% wait until they are 90 days behind to call for help UBP Closed Loans 2,337 Committed approximately 30 million in funds HPC Statistics 1/1/2011-3/31/2012

  33. Unemployment Bridge (Loan) Program Loan option for eligible homeowners to help with making their mortgage payments. The homeowner, must have: Experienced a job loss or reduction in income within the last 3 years due to changing economic conditions, through no fault of their own AND Demonstrate a need for assistance Maximum amount of assistance is $25,000 or 12 months, whichever occurs first. Of the $25,000, the maximum amount for reinstatement is $7,500.

  34. Unemployment Bridge (Loan) Program The borrower must meet the following guidelines and the mortgage must be with a participating lender. Maximum amount of liens on the property cannot exceed $275,000. Maximum of two liens permitted on the property. The PITI must exceed 31% of the gross monthly income OR The borrower must have experienced a 15% reduction in income. Maximum liquid reserves is 6 months PITI (excluding retirement funds). Borrower must sign a hardship affidavit UBP is only available to borrowers whose mortgage servicing company has enrolled as a participating servicer.

  35. Lexington Herald Leader

  36. FHA Mortgagee Letters

  37. ML 2012-4Annual & Upfront MI Changes • Case Numbers April 9, 2012 • Annual increases to 120 bps for LTV at or below 95% • Annual increases to 125 bps for LTV above 95% • Upfront increases from 1 to 1.75%

  38. ML 2012-4Cont’d • Streamline Refinances for loans endorsed on or before May 31, 2009 with case numbers assigned June 11, 2012 • Annual decreased to 55 bps from 1.25% • Upfront decreased from 1 to 0.01% of base loan amount

  39. FHA Refi Payment Comparison Loan endorsed before May 31, 2009. $100,000 Loan amount at 3.75%, case number… Assigned Today Assigned June 11, 2012 $100,000 Base loan + .01% Upfront MIP = $100,010 Total Loan Amount P&I $463.16 Tax $110.00 Ins $ 80.00 MIP .55 $ 45.83 PITI = $ 698.99 $100,000 Base loan + 1% Upfront MIP = $101,000 Total Loan Amount P&I $467.75 Tax $110.00 Ins $ 80.00 MIP 1.25 $ 104.17 PITI = $761.92

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