Wells Fargo Home Mortgage, Inc



Facts You Need to Understand Before You Participate in Montgomery County’s MPDU Purchase Program The purpose of the MPDU program is to make homeownership in Montgomery County available to households with moderate incomes. Owners must live in the MPDU as their primary residence as long as they own the MPDU. To purchase an MPDU, you must be a first-time homebuyer or not have owned a home or been on the deed to a home anywhere within the past five years. On average, around 150 new and 50 resale MPDUs are available to purchase each year in the County. A computerized random selection system is used to determine who may purchase these MPDUs. A for-sale MPDU has a legally enforceable control period of 30 years from the date of settlement. The owner of an MPDU cannot buy a second home anywhere while owning their MPDU. Before buying a new home, the MPDU owner must sell their MPDU. During the 30-year control period, owners may only sell their MPDU through the MPDU program at a price determined by the MPDU office. Receipts are required for credit for improvements. MPDUs can be refinanced during the 30-year control period but the owner must contact the MPDU office before contacting a lender. If the same owner lives in an MPDU for the full 30-year period, the control period will expire. After it expires, the owner may rent out the unit or sell it on the open market for a fair market price. When the unit is sold for the first time after the control period expires, the owner must pay one-half of the excess profit to the County. Montgomery County does not provide any financing or assistance to help a household purchase a MPDU; a household must be able to qualify for a mortgage and pay a monthly mortgage payment. The County will take legal action against an MPDU owner who violates any of the rules. Households must have a minimum income of at least $40,000 to apply for an MPDU certificate. Maximum income limits are: Effective April 14, 2020 Household Size Sales Maximum Income 1 $61,500 2 $70,500 3 $79,500 4 $88,000 5 $95,500 6 $102,500 Documents/MPDU/MPDU Training/Orientation Seminar/Orientation folder content/Facts You Need to Understand Before Purchase of an MPDU_August 2020.docx Next Steps to Apply to the MPDU Purchase Program (after taking the Orientation Seminar) Have you taken the First-Time Homebuyer Class within the last two years? □ No: Register for the First-Time Homebuyer Class here. □ Yes: Proceed to the next step. You must contact a mortgage lender from the HOC participating lender list to request an appointment and provide all financial documents to obtain a mortgage pre-qualification letter (see attached Form for Prequalification Letter and Instructions). Gather the following documents: First-Time Homebuyer (FTHB) Class certificate (issued within the past two years). Lender Pre-Qualification Letter from an HOC approved participating mortgage lender. Your loan pre-qualification amount must be at least $150,000.00. Federal Tax returns (most recent for all adult wage earners in the household). Form 1040 with all pages. (Self-prepared taxes are not acceptable. You must get an IRS transcript.) Forms W-2 and/or 1099 (most recent for all adult wage earners in the household). Verification of Non-Filing for a parent or other adult relative who appears on your taxes as a dependent. Obtain this form and all other tax-related transcripts at no cost from the Internal Revenue Service (IRS) at HYPERLINK "" \h or call 800-908-9946. Pay stubs for all adult wage earners (two most recent if paid bi-weekly, or four if paid weekly). If you are self- employed, a notarized Year-to-Date statement of income and expenses. Any other income statements such as Social Security, SSI, Child Support, Alimony, etc. School Transcripts for any adult who is currently enrolled in school full time (current year). CREATE AN ACCOUNT AND TAKE THE Ready ONLINE APPLICATION TUTORIAL 523258-5039313First, you will need to create a user account at Montgomery County’s web portal, AccessMCG Extranet. You will need the Orientation ID # you received when you registered for the MPDU Orientation Seminar. (The web portal will be ready in October. The MPDU Office will email instructions for creating the user account to you in late September.) After you create your user account, you will be able to take the Application Tutorial (formerly the Application Session), fill out an online Application form (a sample Application form is attached), and submit your application documents. The Application Tutorial is a selfadministered class that is taken online. To submit your application documents, you will need to upload them as pdfs from an electronic device. Please have all the required documents ready for you and your household. Documents/MPDU/MPDU Training/Orientation Seminar/Orientation folder content/Next Steps to Apply_August 2020.docx TO BE COMPLETED BY HOC PARTICIPATING LENDER ONLY! [FORM FOR PRE-QUALIFICATION LETTER] [PUT ON COMPANY LETTERHEAD] MODERATELY PRICED DWELLING UNIT (MPDU) PROGRAM PRE-QUALIFICATION LETTER ________________________________________________ (Name of Lending Institution) ________________________________________________ (Name of Applicants) [Name of Lending Institution] has pre-qualified [applicant(s) name] for a mortgage loan with the following parameters: Loan Purpose: Purchase Loan Type: HOC 1ST Mortgage Program Maximum Loan Amount: $_____________ (must be at least $150,000) Interest Rate: ______________ Term: 30 Years Estimated Closing Costs: $___________ Applicant’s Verified Household Income: $_________ Applicant’s Available Assets: $__________ Applicant’s Credit Scores: _________ _________ _________ Cash Available for Downpayment: $_____________ Household Size: _________ ________________________________________ Date_____________________ (Signature of Loan Officer) ________________________________________ (Name of Loan Officer) Conditional Financial Approval Disclaimer [MUST BE INCLUDED ON YOUR PREQUAL LETTER] This pre-qualification letter is considered accurate and true for the purpose of approval of the applicant for the MPDU Program and does not constitute a loan commitment. This lending institution acknowledges that this qualifying interest rate is not a guaranteed rate nor is it a guarantee that such a rate or loan terms will be available at any time in the future. The pre-qualification is based on the credit status, income and asset information provided by the applicant(s). It is valid for one year from the date of this letter and will be used solely for acceptance to the MPDU Program. After this date, the applicant(s) will need to obtain a new pre-qualification letter from this lending institution or from another HOC participating lender. Instructions to Lender: -Scanned color pdf to Applicant (protected from editing) -Copy for your files MODERATELY PRICED DWELLING UNIT (MPDU) APPLICATION: INSTRUCTIONS FOR OBTAINING LENDER PRE-QUALIFICATION LETTER Applicants to the MPDU program are required to meet with an HOC Participating Lender to get a pre-qualification letter for a mortgage loan. This letter is used solely for acceptance to the MPDU program. You must schedule the meeting with the lender yourself. You must submit this pre-qualification letter along with your other application materials to DHCA’s secure online portal, as instructed by the MPDU Office. (The MPDU Office no longer accepts paper applications.) The pre-qualification letter must be a color pdf signed in blue ink on the letterhead of the lending institution. The letter must show the mortgage loan amount that you pre-qualify for, which must be at least $150,000 (the minimum needed to afford the least expensive MPDUs). The letter is NOT a commitment by the lender to provide financing and does not guarantee that the same rate or loan terms will be available when you are ready to apply for a mortgage loan. A list of HOC Participating Lenders is enclosed, and is also available here. Choose a lender from the list. YOU MUST CALL to make an appointment. Ask to speak to one of the HOC loan officers whose names appear on the list, and explain that you need a pre-qualification letter for the MPDU program. Provide the following documents (if applicable), which should be up-to-date within the past 90 days, as well as any other documents the lender requests: Two of your most recent pay stubs if you are paid biweekly, or your four most recent pay stubs if you are paid weekly. Include year to date (YTD) from your present employer(s) and/or documentation of any other forms of income. These are also needed for any other adult who will reside in your home. Documentation of Social Security benefits. One year documentation of child support payments. Bank statements for all accounts from the last three months. W-2s and complete income tax returns for the last three years. Names, addresses, account numbers and balances of all checking and savings accounts. Driver’s license and Social Security card. Names, addresses, account numbers, balances and monthly payments on all installment debts. Include credit cards, car loans, student loans, childcare expenses and child support payments. Names and address of landlords for last three years. Bankruptcy papers. Consumer Credit Counseling (CCC) papers (if in CCC provide a copy of payment record confirming what debts are included and the payment history). Any other documentation that would be helpful in reviewing your application. Documents/MPDU/MPDU Training/Orientation Seminar/Orientation folder content/MPDU-Sample Lender Letter and Instructions_August 2020.docx Mortgage Purchase Program 2020 HOC PARTICIPATING MORTGAGE COMPANIES Applicants to the MPDU programs are required to get pre-qualified for a mortgage loan through a HOC Participating Lender, to be used solely for acceptance to the MPDU program. Please call the lenders below who are knowledgable about the MPDU process to make an appointment to get pre-qualified. Please allow at least 1-2 weeks to complete this process. Visit our website for more information and a full list of participating lenders. Any questions or concerns as it relates to the HOC lenders, please contact HOC (240) 627-9798. 2-2020 Following list are loan officers that are experienced with the MPDU process and listed in the order of their HOC mortgage program experience and number of loans originated by the lenders. Participating Offices Contact # TOWNEBANK MORTGAGE - FitzGerald Financial Group Donna Hubbard Rockville (301) 219-7793 Jeri Benner Frederick (301) 471-0024 Kevin Davis Rockville (240) 403-1864 (Spanish Available) Jovan Davis Rockville FIRST HOME MORTGAGE (240) 403-1859 Jeff Stempler Rockville (301) 674-3975 Katty Inga Chevy Chase (240) 213-8678 (Bilingual – Spanish) Alex Jaffe (240) 479-7658 Scott Story (240) 479-7656 Bruce Meyers Bethesda APEX MORTGAGE (240) 479-2307 Trish Broderick Rockville (240) 268-3051 Matt Lieberman (240) 238-2409 Peter Brock WEICHERT FINANCIAL/MORTGAGE ACCESS (301) 379-4116 Christopher Caponiti Aspen Hill/Leisure World (240) 223-8608 FAIRWAY MORTGAGE Maryellen Little Frederick (301) 437-2741 NFM dba Main Street Home Loans Hillary Cochin Silver Spring (917) 685-5437 PRIME LENDING Ron Schwartz (240) 505-4766 MOVEMENT MORTGAGE Michelle Mathews-Kalinock Rockville (443) 223-6593 Kimberly Smrek Ellicott City (443) 794-6070 MODERATELY PRICE DWELLING UNIT (MPDU) SALES PROGRAM - SAMPLE APPLICATION [Sample only – not for submittal to the MPDU Office. The application will need to be completed online. See Next Steps to Apply to the MPDU Purchase Program handout for further information.] Primary Applicant Information Address of Employment State City of Employment Zip Code $ Base Salary Amount (Annual salary before taxes) Documents/MPDU/MPDU Training/Orientation Seminar/Orientation folder content/MPDU Application-SAMPLE_August 2020.docx Other Income Source(s) (Select from SSI, Child Support, Alimony and Other) $ Other Income Amount Co-Applicant/Dependent #2 First Name MI Last Name DOB SS# Employer’s Name Employer’s Phone Number Address of Employment City of Employment State Zip Code Base Salary Amount (Annual salary before taxes) Other Source(s) of Income (Select from SSI, Child Support, Alimony and Other) Other Income Amount Please note that Co-Applicant/Dependent fields will repeat for as many people as you have in your household. ACKNOWLEDGMENT Head of Household or Primary Applicant, Co-Applicant(s) and all adult Household Members must read the information below and acknowledge their agreement by typing their names in the box at the end of the statement: □ I/We certify that no one on this application currently owns or has owned residential property within the last five (5) years. □ I/We agree to allow the County and/or a non-profit housing advocacy group to review my/our application and supporting documents (including the credit histories of the applicant and co-applicant) to determine my/our present and continuing eligibility. 96025-3822322□ I/We certify that the information provided on this application is true and complete to the best of my/our knowledge. I/We are aware that any misrepresentation will result in the forfeiture of my/our right to be eligible for the Moderately Priced Dwelling Unit (MPDU) Program; that the County may make inquiries to verify this information; and that the County may take legal action against persons who benefit from the MPDU program under false pretenses. □ I/We certify that I/we have read, understand, and will comply with the MPDU program rules. □ I/We understand it is my/our responsibility to renew my/our certificate when it expires, and that no renewal notice will be sent by the MPDU office. It is also my/our responsibility to notify the MPDU office of any changes in employment, address, household members, etc. □ I/We authorize the Program to obtain credit information for the purpose of evaluating this application and disclose this same information to local agencies participating in the Program and/or a private lending institution providing a loan to purchase an MPDU. □ I/We understand that the MPDU Office will reject incomplete applications and I/we will be required to re-submit missing documentation. (Any incomplete applications will extend the reviewing process by 30 days from the date that the last missing document is submitted). Documents/MPDU/MPDU Training/Orientation Seminar/Orientation folder content/MPDU Application-SAMPLE_August 2020.docx ................
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