PDF TDHCA LENDER GUIDE

TDHCA LENDER GUIDE

My First Texas Home My Choice Texas Home Texas Mortgage Credit Certificate

October 2018

REVISIONS TABLE

UPDATED _______

Section Page

Revision

Date

THE TDHCA PARTNERSHIP TEAM ....................................................................................... 6 Contacts: ................................................................................................................................. 8

Section 1 - Program Summary.................................................................................................9

Section 2 ? Mortgagor Eligibility...............................................................................................9 2.1 First Time Homebuyer Requirement............................................................................ 9 2.2 Maximum Income (Family Income) ............................................................................ 10 2.3 Cosigners and Guarantors......................................................................................... 10 2.4 Homebuyer Education ................................................................................................ 10 2.5 Recapture Tax ............................................................................................................. 11

Section 3 - Eligible Properties ................................................................................................ 11 3.1 Location.......................................................................................................................11 3.2 Type ............................................................................................................................. 11 3.3 Ineligible properties....................................................................................................11 3.4 Principal Residence Requirement ............................................................................. 11 3.5 Residency Requirement ............................................................................................. 11 3.6 Usage of Residence in a Trade or Business ............................................................. 11 3.7 Acquisition Cost ......................................................................................................... 12 3.8 Targeted Areas............................................................................................................12

Section 4 ? Loan Eligibility and Underwriting ......................................................................... 12 4.1 Loan types...................................................................................................................12 4.2 FICO and DTI requirements........................................................................................ 12 4.3 Mortgage Loan Payments and Terms........................................................................ 13 4.4 Down Payment Assistance Loan ............................................................................... 13 4.5 2nd loan Disclosure Requirements............................................................................. 13 4.6 New Mortgage ............................................................................................................. 13 4.7 Desktop Underwriting................................................................................................13 4.8 Buydowns ..................................................................................................................14 4.9 Assumptions .............................................................................................................. 14 4.10 Refinances .................................................................................................................. 14 4.11 Prepayment ................................................................................................................. 14

Section 5 - The Texas Mortgage Credit Certificates Program (MCC) ..................................... 14 5.1 What is a Texas Mortgage Credit Certificate? ......................................................... 14 5.2 Texas MCC Tax Credit Rate................................................... ......................15 5.3 The Difference Between a "Tax Credit" and a "Tax Deduction"............................. 14 5.4 MCCs and the Federal Income Tax Mortgage Interest Deduction ......................... 15 5.5 How an MCC Holder Uses the MCC ......................................................................... 16 5.5 When the MCC Credit Exceeds the Tax Liability ..................................................... 16

5.6 Recapture of MCC Tax Credit.................................................................................... 16

Section 6 ? Available Options ................................................................................................ 16 6.1 My First Texas Home ................................................................................................. 16 6.2 My Choice Texas Home ............................................................................................. 16 6.3 Texas Mortgage Credit Certificate (Stand-alone)..................................................... 17

Section 7 - Available Funds and Rates .................................................................................. 17 7.1 Rates / Offerings ........................................................................................................ 17

Section 8 ? Program Fees and Charges ................................................................................ 17 8.1 Program Fees.............................................................................................................17 8.2 Lender Compensation ................................................................................................ 18 8.3 Loan Origination / Discount Points / Closing Cost................................................... 18 8.4 Fees and Charges on the Closing Disclosure .......................................................... 18 8.4 Extension Cost............................................................................................................18

Section 9 ? How to Become a Participating Lender ............................................................... 19 9.1 Correspondent Lenders ............................................................................................. 19 9.2 Texas MCC Lenders....................................................................................................19

Section 10 ? eHousing EHPortal / Loan Reservation ............................................................. 19 10.1 TDHCA page on eHousingPlus .................................................................................. 19 10.2 EHPortal ...................................................................................................................... 20 10.3 Lender Training...........................................................................................................20 10.4 EHPortal User Credentials ......................................................................................... 21 10.5 Qualify ......................................................................................................................... 21 10.6 Disclose.......................................................................................................................21

Section 11 ? Reservation, Compliance and Closing Steps..................................................... 22 11.1 Reserving Funds.........................................................................................................22 11.2 Underwriter ................................................................................................................. 22 11.3 Closing and Funding of Down Payment Assistance ................................................ 22 11.4 Post-Closing................................................................................................................ 23

Section 12 ? Modifications to Loan / MCC Reservation ......................................................... 24 12.1 Changes in Applicant Name(s) .................................................................................. 24 12.2 Changes in Current Income ....................................................................................... 24 12.3 Changes in Purchase Price........................................................................................ 24 12.4 Changes in Loan Amount........................................................................................... 24 12.5 Changes in Property Address.................................................................................... 25

Section 13 ? Additional Provisions ......................................................................................... 25 13.1 Cancellation and Loan Reservation Expirations ...................................................... 25 13.2 Penalties for Applicant Misrepresentation................................................................ 25 13.3 Revocations of MCC ................................................................................................... 25 13.4 Reissued MCCs...........................................................................................................25 13.5 Replacement MCCs .................................................................................................... 26

Section 14 ? MCC Record Keeping and Federal Report Filing .............................................. 26 14.1 Lender Reports ........................................................................................................... 26 14.2 TDHCA Reports...........................................................................................................26

Section 15 ? Additional Income Guidance ............................................................................. 27 15.1 My First Texas Home / Texas Mortgage Credit Certificate Income Eligibility ......... 27 15.2 My Choice Texas Home Income Eligibility ................................................................ 27

Section 16 ? Forms and Affidavits ......................................................................................... 27 16.1 Program Forms and Affidavits................................................................................... 27

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