Description: The United Housing FIRST Mortgage Loan Program is a first mortgage loan program designed to assist low to moderate borrowers achieve home ownership. Not limited to First Time Homebuyers. Available on NSP funded properties only.
Eligible Applicants: This program is designed to serve income levels up to 120% of Area Median Income. Income is calculated per NSP guidelines.
Maximum Household Conforms to income guidelines, not more than 120 AMI. Interest Rate: 5.375% fixed rate, subject to change (rate based on THDA
Great Start prevailing rate) see THDA Great Start Program rates @ www.thda.org/singlefamily/dpchoices.html
Loan Term/ Type: 30 year Conventional (first mortgage). Loan amount will be limited by debt-to-income ratios 31/45% of qualifying borrower(s) not to exceed 45%. Late Charge Fee: 5%. Pre-Payment Penalty No pre-payment penalty.
Subject to Recapture: Yes
Required Reserves: As required by loan type.
Down Payment 1% of the Sales Price. (Must be from the borrowers
Minimum Investment: own funds). Minimum investment based on 1% Sales Price Maximum Loan Amount: When subordinate financing is used, the combined Loan
To-value may not exceed 105%. Buydowns not allowed. Homebuyer Education: Required.
Closing Costs: Maximum 1% Origination Fee, $150.00 Underwriting Fee, Fees $150.00 Processing Fee, $12.50 Credit Report Fee; $24.00
Property Type: United Housing NSP Single Family Properties only. Primary residence only. Non-occupied borrowers/ co-borrowers are not acceptable. Approved for Memphis and Shelby County residents only. Eligible homes located in Shelby County.
Credit Credit underwriting focused on past 24 months. Guidelines: No more than 3 x 30 within the past 24 months.
• revised 12/02/2010
Car Payment and Installment loans: No more than 1x30 days in the past 12 months.
Revolving Accounts: You should not have any payments 60 days late. No more than 1x 30 days late in the past 12 months.
Collections, Judgments, Liens: Not acceptable in past 12 months. Judgments must be paid in full.
Repossessions: same as Foreclosures, except that it cannot have a deficiency balance
Medical Collections: Not considered.
Bankruptcies: ALLOWED: Chapter 13/ Chapter 7/ Foreclosures/ Foreclosure Prevention ALLOWED; requires at least two years since dismissed or discharged date; however, no more than two Chapter 13 or Chapter 7 filings within the past
seven years allowed. Detailed credit explanation needed along with satisfactory re-established credit. Subject to additional credit underwriting guidelines and approval.
Active Chapter 13: ALLOWED: MUST obtain approval from court. Subject to Credit guidelines listed above and 12 satisfactory payments paid through wage earner plan required. Chapter 13 Discharged: ALLOWED; must be at least 4 non-traditional lines of
credit verified for past 12 months with satisfactory credit payment history. Only 2 additional lines if 12 months of housing or rental history is verified. Subject to Credit Guidelines listed above.
Chapter 13 Dismissed: ALLOWED: Must be 12 months past dismissal date. Subject to Credit guidelines listed above.
Student Loans: Deferred at least six (6) months.
Foreclosure/ ALLOWED: Two years must have past since Foreclosure. Deed n Lieu Must pertain to primary residence only and caused by
circumstances out of your control, such as; death of the primary wages earner, layoff, or long term serious illness. Credit explanation letter and documentation required. Mortgage history must reflect 0x30 days in past 24 months prior to financial documented mortgage hardship. Current rental history must be 0x30 days since hardship resolution. Subject to Credit guidelines above.
Predatory Loans/ ALLOWED: Must be documented, i.e.; Note, Deed and ARMS / Short Sales HUD I; subject to Credit guidelines above and loan
committee approval.
Six Month Lease: Not applicable if customer is mortgage ready and 620 credit score which is determined by the UHI underwriting guidelines.
Non-Traditional and Allowed; must be at least 4 non-traditional lines of credit and Alternative Credit: verified for past 12 months, only 2 additional lines if 12
months of housing history is verified. Credit Score 575 (subject to credit guidelines)
Escrow accounts: Required for Property Taxes and Homeowners Insurance. Reserves: 2 months required for City taxes, County taxes and Home
Assumptions: Not permitted.
Subordinate Financing: Soft second mortgages are allowed as long as the borrower meets the minimum cash contribution (if applicable) and the combined loans are still within the allowable debt ratios and the cumulative maximum loan-to-value. When
subordinate financing is used the combined LTV may not exceed 105%.
Appraisals: Per NSP guidelines.
Servicing: FAHE: Tina Cain: Email: [email protected]
Phone 859-986-2321 ext 114 Toll free 888-969-1399 Fax 859-986-5836
P O Box 908, Berea, KY 40403 Website: www.fahe.org Income: The maximum household income shall not exceed 1the
maximum household limits for NSP. Two full years of employment must be verified. School or military is considered employment. Gaps in employment up to 60 days in the last 2 years are permitted. Receipt of public or private assistance will not be a disqualifying factor. Part-time jobs require 12 month history Past two years tax returns are required if self-employed. Non-taxable income can be grossed up 25%.
Contacts: United Housing, Inc.
Dorothy A. Williams- Lending Coordinator 51 North Cooper Street
Memphis, TN. 38104
Phone: 901-728-6933 Fax: 901-272-1181 Email: [email protected]
Lease-Purchase: The lease-‐purchase option will be utilized by CDCs and Local nonprofit housing providers to expand
homeownership opportunities. NSP housing providers will have the option to offer properties under a lease purchase arrangement. In this scenario, the participant will underwrite a homebuyer’s credit situation, and if there
created. During the lease-‐purchase period the homebuyer will work
toward resolution of financial issues with support of counseling and training from the NSP partner. In order to maximize the lease-‐purchase option, NSP partners will establish an escrow account for each prospective buyer. Funds in this account will be used for down payment and closing costs when securing a mortgage. NOTE: See NSP/ Down Payment Assistance Guidelines and HOPE
