OHFA Basic Training

1. OHFA Basic Training What Lenders Should Know

2. Introduction • “We Open the doors to an affordable place to call home” • First-time Homebuyer Programs • Early 1980’s • Creation of several loan products • 143,000 Ohioians

3. Agenda • OHFA Programs – Know Thy OHFA Programs • Down Payment Assistance • Homebuyer Education • Program Fees • OHFA Lender Portal • Compliance Process

4. OHFA Programs • First-time Homebuyer Program • Target area loan • Ohio Heroes Program • New Home Sweet Home Program • Grants for Grads-Plus Program • Down payment Assistance Grant • Mortgage Credit Certificate Program

5. First-time Homebuyer A person that has: • Have never owned real estate; • Have not owned or had an ownership interest in your principal residence in the last three years; • Unless they are a qualified military veteran; • Purchase a home in a target area. • Minimum credit scores 640 • Meet income and sales price limits • Qualify for the loan being requested

6. Target Area • A target area is an economically distressed area designated by the U.S. Department of Housing and Urban Development (HUD). • http://www.ohiohome.org/homebuyer/publications.aspx#target (OHFA download center) • http://www.ffiec.gov/Geocode/default.aspx

7. Loan Program Features • All loans are 30 year fixed rate mortgages • Acceptable loan types: • FHA (including 203k and streamline) • VA • USDA-RD, • Fannie Mae/FreddieMac • 2 – 1 buy downs are permitted • Interest rates • www.ohiohome.org

9. Qualifying properties • Existing homes: single-family dwellings, conforming condominiums, duplexes, and up to four-unit properties • Newly built spec/nearly completed homes: one-unit single-family dwellings • Modular/manufactured (mobile-style) homes: one-unit single-family dwellings, permanently affixed to a foundation (government loan) Follow underwriting guidelines for specific products

10. Qualifying properties cont… • Properties must meet purchase price limits by county • 2 acres – within municipal corporations • 5 acres – outside municipal corporations • Exceptions permitted if required by local health or safety code

11. New Home Sweet Home Product • All the benefits of our First-Time Homebuyer Program • New Construction Homes • One unit single family dwelling • Extended period of time • At a .25% higher interest rate

12. Ohio Heroes Product • All the benefits of our First-Time Homebuyer Program • At a .25% lower interest rate • Program is available to the following full-time employees who are:

13. Ohio Heroes Product • Active Military and Veterans • Personnel, Armed services & Reserve forces • 90 days Active Duty for Reserve Forces (excluding boot camp) • Veterans must have honorable discharge • Proper documentation required

14. Ohio Heroes Product cont… • Firefighters, EMT or Paramedics • Full-time employees (1,200 hours) • Certification card • Letter from payroll • OHFA Form • Proper documentation required

16. Ohio Heroes Product cont… • Health Care Workers • Certified, accredited, or licensed • Employed full-time • Medical office, urgent care, nursing home, assisted living hospital, etc. • Proper documentation required

17. Ohio Heroes Program cont… • Police Officers • Commissioned as law enforcement officer • Employed full-time • General power of arrest • Proper documentation required

18. Ohio Heroes Product cont… • Teachers • Certified teacher, guidance counselor, administrator/principal or college level instructor • Employed full-time • Minimum of 12 credit hours • Proper documentation required

19. Grants for Grads (G4G) Product • Be a first-time homebuyer • Meet specific income guidelines • Be an Ohio resident • Graduated from high school or have a GED • Earned an associate's, bachelor's, master's, doctorate or other postgraduate degree • Within 24 months of application • One unit dwelling

20. Grants for Grads cont… • Benefits equals 2.5% of purchase price • Issued as a second mortgage with a 0% interest rate with payments deferred • The loan is forgiven after five years

21. Down Payment Assistance (DAG) • April 15, 2013 • First-time Homebuyer Program, New Home Sweet Home, or Ohio Heroes Program • .50% above the FTHB unassisted rate • Benefits equals 2.5% of purchase price • Issued as a second mortgage with a 0% interest rate with payments deferred • The loan is forgiven after five years

22. Grants for Grads / Down payment Assistance • However, a prorated repayment of the remaining balance is due if the home is sold within five years.

23. DPA Funding Authorization Form • Advanced Notice • 3 Business Days • $50 Wiring Fee • Can be charged to borrower • Title Co. forward check to OHFA • Form needs to be completed by Title Co. • 3 Sections to be completed • Transaction, Payee, and Banking information • Email requests to DPAfunding@ohiohome.org

24. Homebuyer Education • Any OHFA assisted loans • Grants for Grads • Down Payment Assistance Grant • Conventional unassisted • Require Homebuyer Education counseling

25. Homebuyer Education • Courses offered through HUD-approved housing counseling agencies in each Ohio county -OR- • OHFA Streamlined education program

26. Homebuyer Education • OHFA interactive area on website • Website contains Interactive maps where borrower can click and email completed documents directly to the counseling agency. • Borrower reservation will be confirmed electronically before granting access to site.

27. OHFA Streamline Homebuyer Education • Borrower will need to: • Review Homebuyer Guide • Complete 25 question test • Fill out budget worksheet • Homebuyer documents available: • From lender • On OHFA website: www.ohiohome.org

31. Homebuyer Education • Fax homebuyer information • 614.995.0487 • Expect 7 to 10 day process

32. Homebuyer Education • Test and budget to the appropriate agency. • Counselor will review answers and schedule a one hour telephone counseling session with buyer.

33. Homebuyer Education • Borrower will close on their loan. • The $75 OHFA Administrative Fee, shown on the HUD-1 for the first mortgage, should be made payable to OHFA. • The $75 fee must be included with the closing package.

34. Loan Fees • 1% Origination fee or Zero Origination • $200 Funding fee (US Bank fee) • $85 Tax service fee (US Bank fee) • Not to exceed $90 • $75 Admin fee • OHFA’s Streamline Homebuyer Education (if applicable) • $50 Wire funding fee • .25% Adverse market fee (Fannie Mae fee) • Conventional loans only

35. Are there any OHFA requirements? • Borrower(s) must meet household income and purchase price limits • Credit score limits • Reservation good for 60 days • Spouse releasing dower and Co-signers • Income of spouse releasing dower is part of household income • Co-signer not considered co-borrower for OHFA purposes • Both are prohibited from being on the title and deed

36. Are there any OHFA requirements? cont. • The Federal Recapture Tax provision applies to: • First-time Homebuyer Program • Ohio Heroes Program • Grants for Grads • New Home Sweet Home • OHFA will reimburse recapture tax.

37. How to register an applicant? • Lender Portal • Username and password • Main contact person • www.ohiohome.org • Add to favorites

45. Compliance Process • US Bank Purchase Mortgage • Process Loan • Send Mortgage file to US Bank • Submit Commitment Package • Submit OHFA Purchase Package • Wait for OHFA Approval • Close Loan • Submit DPA Funding Request

46. Who should I call with my questions? • OHFA Representative • US Bank MRBP helpdesk 800.562.5165 mrbp.helpdesk@usbank.com