Welcome to the TSAHC Lender Training

Transcription

1 Welcome to the TSAHC Lender Training

2 About Us TSAHC is a 501(c)3 nonprofit organization. Our mission is to serve the housing needs of low income Texans and other underserved populations. We fulfill our mission through our concept of:

3 Homeownership Opportunities TSAHC s homeownership programs were created by the Texas Legislature, acknowledging specific professionals commitment to the safety and welfare of all Texans. Two types of assistance are made available to homebuyers: A low interest loans with down payment assistance for: First lien purchase or Rate/term refinance loans Mortgage Credit Certificate If the borrower is a first time homebuyer, the two types of assistance can be used together.

4 Homeownership Opportunities Low interest rates loan with down payment assistance Provides a 30 year fixed interest rate mortgage loan, plus Down payment and closing cost assistance DPA is provided as a grant and never has to be repaid. You no longer need to be a first time homebuyer to qualify. Available for purchase or refinance mortgage loans Streamlined or cash out refinances not allowed. Available Funds and Rates Available funds: $Unlimited Rates: Standard Rate Option. Purchase or rate/term refinance transaction with a grant equal to 5.0% of the loan amount. Lower Rate Option. Purchase or rate/term refinance transaction with a lower interest rate and a grant equal to 3.0% of the loan amount. *Interest rates are based on current market conditions and may change daily. Rates will be posted by 9:00 a.m. (CST) and can be found at or on the Lender Portal at online.org.

5 Homeownership Opportunities Mortgage Credit Certificate Gives the homebuyer the ability to take an annual tax credit of up to $2,000 as long as they occupy the home as their principal residence. TSAHC provides an MCC credit rate of 40%. The MCC has the potential of saving the homebuyer thousands of dollars over the life of the loan. This program is only available with first lien purchase loans. Borrowers refinancing their current mortgages are not eligible for this program. Available Funds and Rates Available funds: $Unlimited Current rate: Unlike our DPA Program, the Lender qualifies the homebuyer and provides the interest rate.

6 Homeownership Opportunities Mortgage Credit Certificate Example 40% MCC Rate Loan Amount $120, Interest Rate X 4.75% Interest 1 st Year = $5,700 MCC Rate X 40% Amount = $2,280 MCC Tax Credit (max) = $2,000 The homeowner is able to take the maximum special tax credit of $2,000. The homeowner will still be able take a mortgage deduction of $3,700 ($5,700 $2,000 credit) when they file their taxes that year.

7 How does a individual qualify? 1. Profession or Income Level Homes for Texas Heroes: Classroom Teacher, Teacher Aide, School Librarian, School Nurse, School Counselor, or Nursing and Allied Health Faculty, Veteran, Firefighter, EMS Personnel, Peace Officer, Corrections Officer (TDCJ or TJJD), County Jailer, or Public Security Officer. If you do not see the profession listed above, they don t qualify as a Texas Hero. However, they may still qualify under the Home Sweet Texas program and receive the same benefits. Home Sweet Texas Loan: Any individual or family at or below 80% Area Median Family Income (AMFI) 2. Underwriting/Credit Requirements Must meet standard mortgage underwriting requirements as determined by the lender. However, a minimum FICO score of 640 has been established for the DPA program only.

8 How does a individual qualify? 3. Borrower cannot exceed Income and Purchase Price Limits Based on County of residence and household size

9 How does a individual qualify? 4. Purchase loan borrowers need to complete a homebuyer education course prior to closing on the home loan A homeowner is 33% less likely to fall behind on their mortgage if they ve taken a homebuyer education course. Homebuyer education can help: Consumers understand, establish or rebuild credit; Consumers determine readiness, understand mortgage loans, locate assistance programs and avoid pitfalls; You spend less time educating potential buyers; and You work with better prepared clients Met by attending a one on one session through TSAHC s network of housing counseling agencies, an online course, or a HUD, Fannie Mae or Freddie Mac approved counseling program. Visit to find a course near your borrower.

10 How does a individual qualify? 5. Work with an approved participating lender 6. MCC Requirement ONLY: Must be a first time homebuyer No ownership interest in any principal residence in the past 3 years, purchasing a home in a Targeted Area, or be a Qualified Veteran Homebuyers using the MCC Program could potentially be subject to Recapture Tax if ALL three of the following occur: 1. Sell the home within 9 years, 2. Make a net profit on the sale, and 3. Income increases 5% every year borrower lived in the home.

11 Take the Eligibility Quiz Unsure if a client qualifies? Take the Eligibility Quiz under the Homeownership section of our site at

12 Program Comparison

13 Program Comparison

14 Property & Loan Types A borrower may purchase any of the following types of homes: New or existing single family residences Duplexes or fourplexes (one unit must be owner occupied) Condominiums and townhomes Planned Unit Developments Manufactured home (FHA approved) Not allowed: Rental homes, co ops, investment properties, vacation and/or second homes. A borrower may use the following loan types: FHA USDA/RHS VA Conventional (eligible only for MCC assistance)

15 Frequently Asked Questions Loan Interest Rate Loan with Down Payment Assistance Program Homebuyer does not need to be a first time buyer. No need to stay in the property for any number of years. Borrower can purchase anywhere in Texas. No second lien. Never needs to be repaid. It is a TRUE GRANT. Can be combined with other down payment assistance (i.e. community second programs) and MCC Programs, as long the homebuyer meets all of the program qualifications. Borrowers can refinance their loans without any penalty or recapture of DPA funds. There is no minimum time on the job required prior to or after participation for either program. There are no restrictions in regards to seller contributions for either program.

16 Step by Step Procedures

17 Step by Step Procedures

18 Accessing the Lender Portal Participating lenders will reserve loans and submit compliance packages through TSAHC s new Lender Portal at online.org. One person from each Lender s organization will be designated the Administrator of the TSAHC Lender Portal for purposes of granting access to company personnel. It will then be the administrator s responsibility to determine who within their company will have access and determine the level of access each employee will have.

19 TSAHC Lender Portal at

20 1. Login to the TSAHC Lender Portal at online.org. 2. Click on Program Documents Home Page

21 Important Documents Download and print the Step by Step Origination Procedures document to help you determine our timeline and the required documents for each program.

22 New Reservation 1. Select the New Reservation tab in the upper left corner. 2. Select the appropriate Program from the list and complete the reservation form.

23 New Reservation 3. Fill out all appropriate fields using the completed Required fields are designated with a red asterisk.

24 New Reservation 5. Once the Mortgage Loan is reserved, you will have the option to view or print your reservation confirmation.

25 Loan Stages You can always check the stage of your loan by clicking on the Loan Status tab. For definitions of each stage, click on the Program Documents tab and download the Loan Stages in Lender Portal document.

26 Loan Stages

27 Loan Stages

28 TSAHC Program Documents The Lender Portal allows Lenders to complete and submit electronic documents. All documents must be uploaded electronically. No paper documents are required. Click on the PDF Docs button to access the electronic documents.

29 TSAHC Program Documents Select/generate the desired document and ensure all required fields are completed. If the applicable form requires no signature, it will have an Upload Package button at the bottom. This will automatically upload the forms to the edocs module of the Lender Portal. If the applicable form requires a signature, the form must be completed, printed, scanned and saved as a PDF. To upload, click on the edocs function associated with your loan.

30 Uploading Program Documents 1. Go back to the Loan Status button. NEVER use the back arrows or it will log you out of the system. 2. Simply click the edocs button and follow the instructions to upload the required documents. 3. Click the Add New button to upload a form.

31 Uploading Program Documents 4. Click the Click Here button to access your computer files and select the document you wish to upload.

32 Uploading Program Documents 5. The next step is to name the document you are uploading. Choose an option from the drop down list under Select a document from the predefined list. The drop down will list all of the required documents for the applicable package. If you don t see your document on the list, use the Enter a customized document name field to name the document you are uploading. 6. Then you MUST click SAVE!

33 Uploading Program Documents 7. Once all of the required documents have been uploaded to the Lender Portal, click on the Submit button associated with the each section and TSAHC will be notified that your package has been delivered. 8. If you do not hit the Submit button, we will NOT know that you have uploaded any documents!

34 Frequently Asked Questions Lenders Responsibility. Lenders are responsible for managing their pipelines. Check the Lender Portal regularly to determine the status of the loans in your pipeline and take the appropriate action (cancel loans that fall out, clear conditions, upload required packages, etc.). Underwriter s Certification. The Underwriter s Certification (DPA and combined DPA/MCC Programs only) must be uploaded through the Lender Portal within 15 calendar days of loan reservation. Loans that do not meet this requirement will be cancelled on day 16 after loan reservation. Pre and Post Closing Compliance Packages. Both the pre and post closing compliance packages must be uploaded within the published timeframes: Pre closing package 10 calendar days prior to loan closing. Post closing package within 10 calendar days following loan closing.

35 Frequently Asked Questions Middle Names. During the reservation process, the Lender Portal will only accept a borrower s middle initial not the full middle name. Borrower names on our forms and affidavits don t necessarily have to match your legal/credit documents. Program Documents. The Program Documents tab in the Lender Portal contains all of the guidelines, procedures and other documents to assist you in originating loans under our programs including a Step By Step Origination Procedures matrix that details the reservation and delivery procedures in a concise two page summary.

36 Origination/Funding Flowchart Lender pre qualifies Borrower per Program Guidelines. Borrower has executed sales contract. Lender submits the Funding Request Form and HUD 1 to [email protected] at least 2 days prior to closing. Lender completes Mortgage Loan reservation on the Lender Portal at online.org. Lender closes/funds Mortgage Loan. Lender delivers Pre Closing Compliance Package to TSAHC on the Lender Portal at online.org at least 10 days prior to loan Closing. Lender submits Post Closing Compliance Package to TSAHC on the Lender Portal at online.org within 10 days following the loan Closing Date. Pre Closing Compliance Package approved and Compliance Commitment Letter is issued. Loan Approved by Program Administrator. Servicer notified of compliance approval and loan purchased by Servicer.

37 Visit to find: Links to the Guidelines, forms and training information. Access the TSAHC Lender Portal ( online.org) to make loan reservations. Borrowers have access to YOU through our Lenders List. Marketing materials and training available at no cost to you. Visit an online resource that connects consumers with entities in Texas who provide both financial & homebuyer education, homeownership programs, or assist homeowners facing foreclosure.

38 Homeownership Hotline: (877) Program Staff Paige Omohundro (512) Sarah Ellinor (512) Compliance Staff Tim Almquist (512) Delia Davila (512)