1 Cal-Home Owner Occupied Rehabilitation Program Guidelines

Transcription

1 1 Cal-Home Owner Occupied Rehabilitation Program Guidelines Funds for this program are provided through the State of California's Housing and Community Development Department Introduction: Cal Home is a program designed to provide qualified applicants with second trust deed loans to be used toward primary residence home rehabilitation and improvements. Preference is given to Health and Safety, Energy Efficient or Water Efficient upgrades, in the City of Vista Redevelopment Agency. Eligible Borrowers: Owner occupied properties, as defined by Cal Home Regulations with households whose income is 80 percent or less than the San Diego County area median income (AMI), as adjusted for household size (as per HUD). Gross income will be calculated based on the program guidelines stated below. To establish program eligibility, income of all household members 18 years and older must be taken into account. The borrower is required to provide all pertinent information requested by the City or it s contractor. If there is no income for any household member over 18, that can be verified, a certification must be signed by household member and all other borrowers to certify that is true and correct before or any time prior to funding if necessary. Borrowers must be current home owners who hold a real property interest in a primary residence. Custodial parent or guardian must have child a minimum 51 % of the time if joint custody as outlined in custody agreement) to include minor children. There are no FICO or credit scoring requirements but a borrower must be able to show a good credit history, so a traditional credit report is required or at least 3 tradelines of 12 months positive non-traditional credit must supplied. Eligible Properties: A single family residence, including condominiums, planned urban developments (PUDs), manufactured housing (as long as it is considered real property and on a permanent foundation) located within the City of Vista, Redevelopment area (see attached map). Loan Terms: 30 years deferred payment 3% simple interest 1 st Mortgage Allowable Loan Types: Fully amortizing conventional or government loans Fixed rate only- Must supply all mortgage statements (priority liens) and HOA statements if applicable Maximum Loan Amount: Adjusted according to funding availability, up to $56,400. Maximum After Rehabilitation Value: The maximum after rehabilitation value that will be permitted will be no more than 100% of the current median sales price of a single family home in San Diego County per SDAR. To be reviewed annually. As of January 2015 that is $500,000.

2 2 Lien Position: CalHome loans can be placed in 2nd or 3 rd * subordinate position to the priority mortgages on the property but cannot be used behind a current Cal-Home 2 nd lien. * Note: to go in 3 rd position the 2 nd lien would have to be either Home or other federal/state funded subordinate lien. Maximum LTV/CLTV: 100/105% Maximum Ratios: Debt-to-income ratios not to exceed 50% on the total or back end ratio (exceptions can be made to DTI ratios with prior underwriting approval and with compensating factors) submitted by underwriter and signed City or designated contractor. Owner Occupancy: Borrowers must owner occupy the property as their primary residence for the entire period that the Cal- Home lien is on the property and is subject to all other lender conditions on the Note and Deed Prepayment Penalty: Cal Home loans do not have a prepayment penalty Assumption: CalHome loans are not assumable and if assumed it will be cause for Loan Acceleration The Deed of Trust contains an acceleration clause, which will call the entire loan due and payable upon certain events, including the following: In the event of a default under the Promissory Note(s) or the priority Deed(s) of Trust; Discovery of willful misrepresentation or fraud in connection with any aspect of the Rehabilitation Mortgage Cal-Home Program In the event the Borrower ceases to occupy the property as their principal place of residence; or in the event of any sale, transfer, lease, or encumbrance of the property without the prior written consent of the City of Vista. Refinancing: If the borrower decides to refinance with cash-out, all City of Vista liens must be paid off, rate and term refinances of the first mortgage will be allowed (a full loan package will be required) upon submission and approval of complete loan package Other Terms: All applications are on a first come first served basis, application must be a complete credit package submitted for approval prior to going under contract (exceptions on a case by case basis by underwriter). Initial property inspection report by City or City Contractor; work write-up, cost estimate; bid package; executed construction contract; verification of selected general contractor and subcontractor licensing status with the Contractors State License Board; evidence of Workers Compensation and Employer Liability Insurance; onsite inspection records and progress inspection reports for payment issuance, including a final inspection report and final line item budget of costs incurred. Appraisal or valuation of before- and after-rehabilitation value of the property; Preliminary title report; Copy of updated insurance binder, listing the City of Vista as additional Loss Payee; A Note and Deed of Trust will be signed and recorded against subject property; this will evidence the agreement between the City of Vista and homeowner.

3 3 Eligibility Standards (Credit Package) City Credit Application and other forms (see attached): Co-Signers / Co-Borrowers: Co-signers who will not/ do not owner occupy the property are prohibited. Documentation: If married: spouse must sign City of Vista forms, disclosures and promissory note; regardless of vesting. If unmarried: need copy of final divorce decree and judgment from the court Death certificate for deceased spouse. Non-US Citizen: copy of permanent alien registration card (green card) Copy of driver's license or other official photo ID for all borrowers and SSI card Income Standards: Alimony and Child Support: Copy of divorce decree and/or court ordered child support agreement, with proof of payment. Disability Income: Copy of award letter from payer and proof of receipt (auto deposit) Social Security Income: Copy of award letter from payer and proof of receipt (auto deposit) Retirement or Pension Income: Copy of award letter or W-2 from payer or automatic payment proof. Workers Compensation Benefits: Copy of award letter from payer Unemployment Compensation: Copy of award letter from payer Financial Aid (student loans, etc.): Copy of award letter from payer. Student loans must be included in ratios with verification of payment if not deferred in writing for three or more years, if no payment is noted underwriter may take 2% of balance of loan to be used for determining eligibility. Trust, Interest or Dividend Income: Three years 1040s, copies of current statements verifying buyer's assets. In the case of using trust income a copy of the trust is required as well as the assets that are funding the trust must be supplied and must be sufficient to cover at least a period of at least three years of ongoing income for the borrower that will utilize the trust, be exclusive to that borrower and must not be revocable Tax Returns: Two years most recent income (Fed 1040 s) tax returns, signed by all borrowers Salaried Borrowers: Most recent pay stubs covering minimum of one month's income. If paid monthly provide 2 months paystubs. If there are multiple employers, all pay stubs showing year to date earnings. Or Verification of Employment form Part-Time Employment: Recent pay stub, Verification of Employment from employer and letter stating likelihood of continuation. Bonus and Overtime: Income must be documented on pay stub and Verification of Employment form can be used if there is a two-year history and likelihood of continuation. Self-Employed: Signed current YTD profit and loss statement. Commission Only: Must be verified by employer and documented on tax returns for at least two continuous years prior.

4 4 Assets Standards: Checking and Savings Accounts: Two months most recent bank statements. Stocks and Bonds: Must be verified by brokerage firm or similar company and statement of account. Saving Bonds: Copy of bond. 401K or Retirement Accounts: Copy of account statement for the most recent quarter Borrower cannot have over $15,000. of liquid assets at the time of application (does not include retirement accounts) Liabilities Standards: Alimony/Child Support: Include as debt if over six months remaining to pay. Need copy of divorce decree. Installment Loans: May not include in debt ratio if less then 10 months remaining. UIW to include in ratios if installment account is a substantial payment regardless of months remaining. Revolving Accounts: Use payment stated on credit report or monthly statement. If payment cannot be verified 2% of the outstanding balance owing may be used. Student Loans: If loan can be verified that it will be deferred for at least 3 years or more, do not include as a monthly obligation. If less than a three year deferment or borrower making payments, include as a debt. Credit History Standards: Credit Reports Must be a "three repository merged" credit report. Credit report cannot be dated more than 60 days from underwriting. Collections: All unpaid collections over $ must be paid prior to funding. Judgments, Garnishments and Involuntary Liens: No outstanding judgments, garnishments or involuntary liens are allowed. Property Documentation Requirements: Appraisal/Valuation: Appraisal or valuation of before- and after-rehabilitation value of the property; Title Verification: Preliminary title report with all property liens showing and copy of all priority lien statements with a final policy of title report at final disbursement. Insurance and HOA: Must provide copy of current property insurance dec page and HOA statements, City of Vista to be included as an additional loss payee on insurance policy. Escrow: An escrow may be opened and those expenses may be included in scope of work if required: From the escrow/title company: executed Promissory note; recorded Deed of Trust; Title Insurance Policy for the CalHome loan naming The City of Vista as the insured; Hazard Insurance, including flood insurance when applicable, naming the Recipient as Additional Loss Payee; copy of recorded Request for Copy of Notice of Default or Sale, copy of recorded Notice of Completion (if applicable). Correspondence: (including relevant s) or notes of meetings or phone calls between the Recipient and the homeowner, other lenders, title or escrow companies or other parties contacted in relation to the homeowners loan

5 5 Borrower Information: Cal-Home Owner Occupied Rehabilitation Program Application First Name MI Last Name # Street Name Apt/Unit# City State Zip Code Home: ( ) - Work: ( ) - ext: Mobile/Cell: ( ) - Fax: ( ) - 1. Date of Birth / / 2. Gender Female Male 3. Social Security Number: 4. Race (check only one) White/Non Hispanic Black / African American American Indian / Alaska Native Asian Native Hawaiian / Other Pacific Islander Hispanic 5. Family/Household size 6. List the age of each adult and child in household 7. Household Type (please check one) Married Separated Unmarried (include single, divorced, widowed, domestic partners) 8. Do you owner occupy your property? (please check one) No Yes 9. Monthly mortgage payment: 10. Number of Years of Education: 11. Are you currently working? Yes - Full time Yes - Part time No Not receiving unemployment No Receiving unemployment 12. How long have you owned your home? Yrs 13. Insurance Company Name: Monthly Premium Paid: 14: Name of HOA: Monthly Amt Paid: 15: Names and amounts of any other liens on property: 16. Other: 5

6 6 PRIMARY APPLICANT EMPLOYMENT- Provide us with the last two (2) years of employment history. Employer (current) Title Hire Date Street City State Zip Code Phone: ( ) Status: Part-Time Full-Time Annual Gross Income (before taxes): Provide a two Year History: Previous Employer Title Hire Date End Date Street City State Zip Code Phone: ( ) Status: Part-Time Full-Time Annual Gross Income (before taxes): If necessary, attach additional pages to complete your 2 year work history. CO-APPLICANT Name Last First MI Street City State Zip Code Home: ( ) Work: ( ) ext. 1. Date of Birth / / 2. Gender Female Male 3. Social Security Number: 4. Household Type (please check one) Married Separated Unmarried (include single, divorced, widowed, domestic partners) 5. Relationship to Spouse/Partner Child Sibling Parent Other Relative Relative by Marriage 6. Race (check only one) White/Non Hispanic Black / African American American Indian / Alaska Native Asian Native Hawaiian / Other Pacific Islander Hispanic

7 7 CO-APPLICANT EMPLOYMENT- Please provide us with the last two (2) years of employment. Employer (current) Title Hire Date Street City State Zip Code Phone: ( ) Status: Part-Time Full-Time Annual Gross Income (before taxes): Previous Employer Title Hire Date End Date Street City State Zip Code Phone: ( ) Status: Part-Time Full-Time Annual Gross Income (before taxes): If necessary, attach additional pages to complete your 2 year work history. LIQUID FUNDS/SAVINGS/INVESTMENTS Check if applicable and indicate the approximate value for each of the following: Please Print Clearly Account Type Value of Account Name on Account Bank/Company Checking Savings Cash Retirement CDs Securities (stocks, bonds, etc.) Other Liquid Funds TOTAL DEBT Co- Co- Co- Co- Co- Co- Co- Please Print Clearly Check if applicable and indicate the approximate value for each of the following: Type of Debt Minimum Monthly Payment Unpaid Balance Auto Loan #1 Auto Loan #2 Child Support/Alimony

8 8 Credit Card #1 Credit Card #2 Student Loan Stock Pledges Other Other DECLARATIONS APPLICANT CO- APPLICANT 1. Are there any outstanding judgments against you? Yes No Yes No 2. Have you been declared bankrupt with in the past 7 years? Yes No Yes No 3. Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years? Yes No Yes No 4. Are you a party to a lawsuit? Yes No Yes No 5. Have you directly or indirectly been obligated on any loan which resulted in foreclosure, transfer of title in lieu of foreclosure or judgment? (This would include such loans as home mortgage loans, SBA loans, home improvement loans, educational loans, manufactured (mobile) home loans, any mortgage, financial obligation, bond or loan guarantee. If Yes, provide details, including date, name, and address of Lender, FHA or VA case number, if any, and reasons for the action.) 6. Are you presently delinquent or in default on any Federal debt or any other loan, mortgage, financial obligation, bond, or loan guarantee? If Yes, give details as described in the preceding question. Yes No Yes No Yes No Yes No 7. Are you obligated to pay alimony, child support, or separate maintenance? Yes No Yes No 8. Is any part of the down payment borrowed? Yes No Yes No 9. Are you a co-maker or endorser on a note? Yes No Yes No Are you a U.S. citizen? Yes No Yes No Are you a permanent resident alien? Yes No Yes No 12. Do you intend to occupy the property as your primary residence? If Yes, complete the questions below. Yes No Yes No 13. Have you had an ownership interest in a property in the last 3 years? Yes No Yes No (a) What type of property did you own-principal residence (PR), second home (SH), or investment property (IP)? (b) How did you hold title to the home-solely by yourself (S), jointly with our spouse (SP), or jointly with another person (O)?

9 9 PRIVACY NOTICE AND CONSENT We collect and maintain client information in a private and secure computer system. People who work for this organization will use this information to help provide and track services for you. This information may be shared with auditors or others who have legal rights to review the work of this organization, including private and public funders. All employees using the computer system must sign an agreement to protect your privacy before seeing any client information. Your private identifying information will never appear in reports. I understand that information about services provided to me may be used to conduct research and reporting, related to service needs, income supports, education and employment, and program effectiveness. The use of this information for research and reporting may last beyond the actual delivery of current services. My name, social security number or other information that would identify me personally will never appear on research or a report. I also understand that my phone number, or address may be used by The City of Vista or designation contractor to contact me about upcoming classes or regarding my progress toward my goals. The City of Vista will always provide a method to opt out of calls or s. My signature shows that I permit you to enter my personal information into Calyx Point and receive periodic contact from The City of Vista or their designated contractor via phone or , with the option to opt out. Signature Date Signature Date AUTHORIZATION I authorize The City of Vista or designated contractor to: (a) pull my/our credit report to review my/our credit file for pre-credit approval in connection with my pursuit on a loan to obtain funds for owner occupied rehabilitation; (b) pull my/our credit report and review my/our credit file for informational inquiry purposes; and (c) obtain a copy of the HUD-1 Settlement Statement, Appraisal, and Real Estate Note(s) when I request funds to improved my home, from the lender who made me/us a loan and/or the title company that closed the loan. I/We understand that any intentional or negligent representation(s) of the information contained on this form may result in civil liability and/or criminal liability under the provisions of Title 18, United States Code, Section Co- Date Date Referral Source (please check one) City Website Flyer / Brochure Loan Modification Scam Alert CHW Staff Friend / Family North County Lifeline Radio Facebook /Twitter San Diego Housing Commission Newspaper Bank Other