TABLE OF CONTENTS CHAPTERS EXHIBITS http://www.tdhca.state ...

CHAPTERS

Chapter 1

Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6

EXHIBITS

Exhibit 1 Exhibit 2

Exhibit 3

Exhibit 4

Exhibit 5

Exhibit 6 Exhibit 7 Exhibit 8 Exhibit 9 Exhibit 10 Exhibit 11 Exhibit 12 Exhibit 13 Exhibit 14 Exhibit 15 Exhibit 16

FORMS

Form 3 Form 4 Form 5 Form 6 Form 7 Form 8 Form 9 Form 10 Form 12 Form 14 Form 17 Form 18

TEXAS DEPARTMENT OF HOUSING & COMMUNITY AFFAIRS TEXAS BOOTSTRAP LOAN PROGRAM MANUAL

TABLE OF CONTENTS

Colonia Self-Help Centers & Nonprofit Owner-Builder Housing Provider Procedures, Roles and Responsibilities Program Eligibility Guidelines Underwriting and Document Guidelines Property Guidelines and Related Issues Application Process, Requirements and Submission Communication



Program Legislation, subchapter FF, Chapter 2306, Texas Government Code Texas Bootstrap Loan Program Rule, Title 10, Part 1, Chapter 24, Texas Administrative Code Texas Housing Trust Fund Rule, Title 10, Part 1, Chapter 26, Texas Administrative Code Single Family Programs Umbrella Rule, Title 10, Part 1, Chapter 20, Texas Administrative Code Minimum Energy Efficiency Requirements for Single Family Construction Activities, Title 10, Part 1, Chapter 21, Texas Administrative Code Income Limits (website) Construction Requirements for Single Family Affordable Housing Owner-Builder Education Requirements Application/Compliance Package Checklist Ineligible Improvements SAMPLE Applicant Eligibility Letter SAMPLE Applicant Suspense Letter SAMPLE Applicant Deemed Ineligible Letter MITAS Internet Loan Reservation System User Guide Single Family File Transfer System User Guide Texas Minimum Construction Standards (TMCS)



TDHCA Loan Submission Form Fannie Mae (1003) Uniform Residential Loan Application Affidavit of Owner-Builder Applicant Information Disclosure Authorization Income Tax Affidavit Request for Verification of Employment Request for Verification of Rent or Mortgage Property Inspection (Rehabilitation only) Plan Review and Inspection Form SAMPLE Self-Help Agreement Breakdown of Construction Development SAMPLE Homebuyer Education Certification

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Form 20 Form 21 Form 22 Form 23 Form 24 Form 25 Form 26 Form 27 Form 28 Form 29 Form 30

TEXAS DEPARTMENT OF HOUSING & COMMUNITY AFFAIRS TEXAS BOOTSTRAP LOAN PROGRAM MANUAL

Interim Construction Funding Checklist Residential Construction Funding Checklist Purchase Money Funding Checklist Funding Request Form Interim/Residential Construction Worksheet Sweat Equity Affidavit SAMPLE Sweat Equity Timesheet Income Calculation Worksheet Applicant Identification Documentation Form TDHCA Privacy Notice (new) Purchase of Mortgage Loans Funding Checklist

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TEXAS DEPARTMENT OF HOUSING & COMMUNITY AFFAIRS TEXAS BOOTSTRAP LOAN PROGRAM MANUAL

THIS MANUAL SUPERSEDES ANY PREVIOUS MANUALS. COLONIA SELF-HELP CENTERS AND NONPROFIT OWNER-BUILDER HOUSING PROVIDER PARTICIPATING IN THE TEXAS BOOTSTRAP LOAN PROGRAM SHALL

ADHERETO ALL UPDATED POLICIES AND GUIDELINES.

This Program Manual guides Colonia Self-Help Centers and Nonprofit Owner-Builder Provides to implement the Program in accordance with Title 10, Part 1 of the Texas Administrative Code which includes but not limited the Single Family Umbrella Rule, the Texas Bootstrap Loan Program Rule, the Texas Housing Trust Fund Rule, the Minimum Energy Efficiency Requirements for Single Family Construction Activities Rule and other programmatic and compliance requirements. This Program Manual is subject to change from time to time. TDHCA shall notify participating Colonia Self-Help Centers (CSHCs) and Nonprofit Owner-Builder Housing Providers (NOHPs) of Program Manual changes in writing (via e-mail and/or letters). TDHCA will provide a written notice of Program Manual changes at least ten (10) days prior to the effective date of any change. However, changes will be effective on the date set forth in the notice, regardless of length of prior notice. TDHCA invites all questions, comments and suggestions regarding this manual. Please refer to Chapter 6, Communication, for contact information

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TEXAS DEPARTMENT OF HOUSING & COMMUNITY AFFAIRS TEXAS BOOTSTRAP LOAN PROGRAM MANUAL

CHAPTER 1 COLONIA SELF-HELP CENTERS (CSHCs) & NONPROFIT OWNER-BUILDER HOUSING PROVIDER (NOHPs) PROCEDURES, ROLES AND RESPONSIBILITIES

At no time may the CSHC or NOHP (or its agent) represent that it is acting as an agent or on behalf of TDHCA or the State of Texas.

Any such representation by the CSHC or NOHP (or its agent) may result in revocation of its approved NOHP Certification.

The CSHC or NOHP will be referred as Participants in the Program Manual.

LOAN ORIGINATION & RESERVATION SYSTEM ACCESS AGREEMENT

TDHCA must first approve and certify any Participant that wishes to originate loans under the Texas Bootstrap Loan Program. The Participant must read, execute and return a Loan Origination & Reservation System Access Agreement (Loan Origination Agreement) to TDHCA ? Single Family Operations and Services (TDHCA) for final execution. TDHCA will provide a copy of the executed Loan Origination Agreement to the Participant and provide instructions on reservation system access.

PARTICPANTS OVERALL RESPONSIBILITIES

The Participants shall identify and qualify potential Owner-Builder Applicants for loans under the Program. Participants must be available to Owner-Builder Applicants to answer their questions regarding the loan application; collection of back up documentation; timely delivery of required documents to TDHCA; and any other matters related to the origination, processing, closing and funding of a Bootstrap loan. Activities performed by Participants include, but are not limited to:

? Marketing the Program, Participants must comply with Chapter 20.9 under the Single Family Program Umbrella Rule regarding Fair Housing, Affirmative Marketing & Reasonable Accommodations;

? Performing application intake; ? Reviewing the initial loan application to determine if it is complete and accurate; ? Pre-qualifying the Owner-Builder Applicant; ? Pre-approving all aspects of the loan; ? Providing the Loan Estimate to Owner-Builder Applicant; ? Assisting with the collection and completion of loan processing documents; and ? Providing homeownership education to Owner-Builder Applicants prior to the closing of the

loan.

SUBMITTING APPLICANT INFORMATION

TDHCA must receive all the documents listed on the Application/Compliance Package Checklist (Exhibit 9) within ten (10) business days of the date the reservation was submitted into the reservation system, or within one (1) business day of the Participant receiving the following six pieces of information via TDHCA's Serv-U Management Console (secure file transfer system ), whichever is sooner:

1. Consumer/Applicant name 2. Consumer/Applicant income 3. Consumer/Applicant Social Security Number to obtain a credit report

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TEXAS DEPARTMENT OF HOUSING & COMMUNITY AFFAIRS TEXAS BOOTSTRAP LOAN PROGRAM MANUAL

4. Property address 5. The mortgage loan amount sought, and 6. An estimate of the value of the property (sales price)

Once all the information on the Application/Compliance Package Checklist has been uploaded to TDHCA's secure file transfer system, Participants must notify the appropriate TDHCA staff via email that the information has been submitted.

If TDHCA has approved your organization to disclose the Loan Estimate to the applicant on behalf of TDHCA, you must issue the Loan Estimate to the applicant, along with the Acknowledgment of Loan Estimate and Intent to Proceed, Service Provider's List and "Your Home Loan Toolkit" booklet for TDHCA's loan, within three (3) business days of receiving the six pieces of information referenced above.

Ensure that a copy of the Loan Estimate is included in the Application/Compliance Package to be submitted to TDHCA. The Loan Estimate and the Intent to Proceed forms must be signed and returned to TDHCA within seven days of the Owner-Builder Applicant executing both forms.

All Application/Compliance Packages (Exhibit 9) will be reviewed on a first-come, first-serve basis based on the date/time the Reservation is accepted into the Reservation system. There will be no expedited applications except for an Owner-Builder Applicant with an annual income of less than $17,500 and Reservations to Owner-Builders who will reside in counties and municipalities that agree in writing to waive the capital recovery fees, building permit fee or other fees related to the building of the houses to be built with the loan proceeds.

TDHCA will review the Application/Compliance Package to ensure that the Owner-Builder Applicant meets all Program Rules and guidelines. Within ten (10) business days from the date the Application/Compliance Package was fully received, the Participant will be notified in writing of TDHCA's determination.

If the Owner-Builder Applicant has been deemed eligible, the funds will be reserved for one year from the date of issuance of an Applicant Eligibility Letter (Exhibit 11). TDHCA will notify Financial Administration Staff in writing of all Owner-Builder Applicants that have been deemed eligible so funds may be designated and set-aside for the Owner-Builder Applicant. If the Owner-Builder fails to close on the loan on or before the expiration date stated on the Applicant Eligibility Letter, the Owner-Builder Applicant will be required to re-qualify for the Program. All updated documents must be submitted to TDHCA prior to the expiration date on the Applicant Eligibility Letter.

If TDHCA staff is unable to deem the Owner-Builder Applicant eligible, TDHCA will notify the Participant in writing within ten (10) business days from the date the Application/Compliance Package was received.

Incomplete Application/Compliance Packages will not be accepted. All incomplete Application/Compliance Packages will be returned to the Participant and the Reservation will be cancelled.

If funds are available, the Participant may resubmit a new Reservation and the Application/Compliance Package to TDHCA in order to be reconsidered for funding.

The Participants must provide TDHCA with a Preliminary Closing Disclosure or ALTA Settlement Statement at the time the application is submitted.

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