TIP SHEET NC Home Advantage and MCC NC Home …

[Pages:2]TIP SHEET ? NC Home Advantage and MCC

NC Home Advantage Program (No DPA, 3% DPA, 5% DPA Only)

? DPA is up to 5% of total loan amount

? Primary residence only

? 15 Year term, forgiven 20% a year 11-15

? Conv, FHA, VA, and USDA (USDA rate max)

? DTI ratio cannot exceed 43.0%

? DPA cannot be used toward extension fees

? LE required on 1st; separate LE on 2nd

? DU or LP Accept (Conventional - DU Only)

? $87,500 statewide income (1003 income)

? No sales price limit

? Loan amounts must meet industry guidelines ? Don't have to be a first-time home buyer!

? 60-day lock delivery/purchase timeframe

? SF, PUD, Duplex, Condo, New Manufactured

? MCC can be combined with the 3%/5% only ? Only eligible fees on 2nd (DPA) are:

? Minimum 2 credit scores with a 640+ (660 for manufactured homes)

application fee, recording fee, and housing counseling fee

Conventional Loan - NC Home Advantage (97% LTV or 3% DPA Only)

3% down payment funds (DPA) max on conventional product DPA is 0% interest; forgiven 20% a year in years 11-15 Minimum 2 credit scores with a 640+ score and maximum 43.0% DTI. LE required on 1st, separate LE required on 2nd (DPA) mortgage Pick "HFA Preferred" product from DU drop-down list (SFC 741 and 118). DU Approve/Eligible is required. No manual underwrites, no refers, and no LP findings allowed. DPA funds can be used toward down payment, MI, closings costs, or combination of either. Single family, townhomes & condo properties (no duplex or manufactured housing). No first-time home buyer restriction ? move up buyers okay (unless combined with MCC) All conventional loans must meet any MI company overlays; contact MI company directly. Charter level MI coverage ? 18% (vs. 35%) - Lower rates and MI factors for borrower! $87,500 income limit (1003 & AUS must match) 60-day locks; must lock loans via our OLS system. All loans must be approved by NCHFA before closing Loans with LTV below 97% and loans without DPA allowed Only eligible fees on 2nd (DPA) are: application fee, recording fee, and housing counseling fee

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$8,000 DPA Only Summary - NC 1st Home Advantage Program (Applies to Conventional, FHA, and VA)

? 0% interest rate on DPA; rate on 1st varies

? Minimum 2 credit scores with a 640+

? DPA 15-year term, forgiven 20% years 11-15 ? DTI ratio cannot exceed 43.0%

? $260,00 sales price limit; 5 acre lot limit

? LE required on 1st; separate LE on 2nd

? Must use total, gross household income.

? DU or LP Accept (Conventional = DU Only)

? Primary residence only (URAR Required)

? Income limits vary by county (see website)

? 60-day delivery/purchase timeframe

? SF, Condo, (No Duplex), See Guide for other

? Bond Forms: 013, 015, and 016 required

? First-time buyers only or non-active duty

? Loan must be approved by NCHFA before

veterans

closing

? CANNOT combine with MCC

? Use Form 405 & 406 for Note & Deed of Trust ? 5-acre lot/property size max

See NC Home Ad Program Guide for Complete Rules, Guidelines, and Documentation Requirements

Mortgage Credit Certificate (MCC) Program Only

Fees/Credit

NCHFA Forms & Documents

? $475 fee to NCHFA; lender can charge ? Signed NCHFA affidavits and forms are required

$300.

with loan submission package

? 30% tax credit existing homes; 50% new ? If seller represents a company, the Seller Affidavit

homes; max of $2,000 federal credit per

must show the person's title and company name

year

? MCC loan must be approved BEFORE closing,

Pay stubs/Employment/W-2

otherwise ineligible for MCC

? Gross, total household income CANNOT exceed county limits

? e-signatures allowed on Agency forms (subject to random verification)

? Need VOE for all current and past jobs held in the last 12 months

Property

? $260,000 maximum sales price

? 1003 & URAR ? all pages

Tax Returns/Transcripts

? IRS transcripts required (signed 1040/1040A tax return last year only)

? 5 acres max property size

? All occupants require transcripts

? No income producing activities allowed ? Appraisal/URAR Required

? Must request transcripts even if customer did not file, complete affidavit (018) for missing years

Closing Documents Required ? All Home AD Loan Types

At closing, provide customer with: (all documents available at ) NC Home Advantage (No DPA, 3%, 5%): $8,000 DPA NC 1st Home Advantage:

- Quality Control Notice - Note & Deed (Forms 405 and 406)

- Quality Control Notice

- Note & Deed (Forms 405 and 406) - Borrower/Lender Closing Affidavits

(Forms 101 & 102)

All closed loans must be uploaded to ServiSolutions no later than 10 days after closing.

Underwriters Cathy Hatcher, cshatcher@ (919) 877-5677

Outreach, Marketing and Training Bill Hobbs, wahobbs@ (919) 850-2779 (Lender Outreach)

Donna Pruitt, dmpruitt@ (919) 877-5692

Jane Cavanagh, jane@ (919) 877-5683 (Training Classes)

Justin Cuevas, jacuevas@ (919) 981-4473

Amber Smith, ansmith@ (919) 981-2660

Raj Patel-Howard, rphoward@ (919) 981-2688

Manager of Homeownership Lending Rob Rusczak, rob@ (919) 875-3777

MCC / Post-Closing / Final Docs Jan Ott, jlott@ (919) 877-5632

Lori Purser, lgpurser@ (919) 981-2608

General Questions, OLS Help, Marketing Brochures, Loan Locks/Extensions Margie Rivera, mbrivera@ (919) 877-5710

Notice: Subordinations of 2nd mortgage (DPA portion) not allowed.

See NC Home Ad Program Guide for Complete Rules, Guidelines, and Documentation Requirements

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