Mortgage Loans

National Home Buyers Golden State California
Down Payment Grant for FHA or Conventional

Mountain tops

Some grants are second liens some others are outright gifts.

This is a second lien which is forgiven after time.
Read below for the ins and outs.
You no longer can refinance in six months to reduce the rate.
You must wait 36 months to refinance or sell without penalty
The interest rate is higher than standard market pricing.
No exceptions on FICO score or pricing
Interest rates are higher than the market and don't change as rapidly as market mortgage rates

There is one price per product, no rebate pricing allowed

• Borrowers qualifying under this program utilize the down payment assistance associated with this program.

• Grant Funds available from GSFA: • Credit scores 640-659 receive a non-repayable grant of up to 3.5%

• Credit scores of 660+ receive a non-repayable grant of up to 4%

• Proceeds may be used for down payment and/or closing costs;

• No cash back to the borrower from the Grant Fund proceeds;

• GSFA’s EIN is 68-0322272. Lenders are required to reflect GSFA’s EIN on HUD’s FHA Loan Underwriting and Transmittal Summary in conjunction with secondary financing assistance, grants or gifts to the borrower when the borrower is receiving an FHA First Mortgage.

• Lenders upfront the grant at closing to be reimbursed by the Servicer, on behalf of GSFA, upon purchase of the Platinum First Mortgage.

Assistance consists of a 0.00% forgivable second mortgage of up to 3.00% or 4.00% of the total first mortgage loan amount that is forgiven after 3 years. There are no monthly payments

• Proceeds may be used for down payment and/or closing costs;

• There must be no cash back to the borrower from the Second Mortgage proceeds;

• Second Mortgage is forgiven after 3 years;

• The outstanding principal amount of the Second Mortgage is reduced by one-third (1/3rd) of the original principal amount on each one-year anniversary date.

• Upon sale or refinance prior to the end of the 3 years, the total loan forgiveness will be calculated pro rated on a monthly basis with x/36 of the original principal amount being deducted from the original principal amount, x being equal to the total number of whole months completed since the date hereof.

• No subordination allowed.

• Lender must conform to federal RESPA and Truth-in-lending laws in disclosing the terms of the Second Mortgage.

• Lender upfronts the DPA amount at closing to be reimbursed by the Servicer, on behalf of GSFA, upon purchase of the Platinum First Mortgage Loan

• Borrower must have one of the following occupations in California: • Peace Officers, Sheriff, Border Patrol Agents, Correctional Officers and others serving in a Law Enforcement capacity; • Firefighters, CalFire, paramedic, and Emergency Medical Technicians (EMTs), including administrative staff that supports firefighters; or • Current members of the California State Teachers Retirement System (CalSTRS) or University of California Retirement Plan (UCRP), employees of a California accredited Private, Charter or Public School District or California State University, Junior College or Private College, including school administration and staff.

• Lenders are required to upload documented evidence of a borrower’s eligible occupation within five (5) business days of submitting a loan reservation online. DOWN PAYMENT ASSISTANCE ON CLOSING DISCLOSURE

• All down payment assistance proceeds must be disclosed on the Closing Disclosure, Section L -Paid Already by or on Behalf of the Borrower at Closing. The down payment assistance proceeds must be labeled accurately. For example: "Second loan" is not appropriate if the assistance is a grant or gift. Multi-purpose labels such as Second/Grant/Gift will not be accepted, it must be specific to the transaction. If the borrower is receiving down payment assistance from multiple sources, all assistance sources must be itemized on the Closing Disclosure. Unless the CFPB comes out with guidance restricting it, it is acceptable to place assistance proceeds as "Other Credits" if necessary due to space limitations.

• Grant funds must be designated as “GSFA Grant”

http://www.nhfloan.org/programs/index.shtml

• US BANK "PLATINUM" Recorded Training — Closed Loan, Delivery and Funding Training (For GSFA Platinum Serviced by US Bank) Click the links below to view US Bank recorded online trainings.

• https://hfa.usbank.com/closed_loan_delivery_and_funding_training.html

LOAN DELIVERY AND PURCHASE • Participating Lender should refer to Servicer Website for loan delivery and purchase guidelines as well as customer contact information at: https://www.allregs.com/tpl/viewform.aspx?source=TOC&formtype=toc&formid=0 a08c633-5c05-4d2c-9c6c-10f0f85c7c59

• The Reservation Confirmation from GSFA must be submitted with the mortgage loan file. Servicer shall not purchase a Mortgage Loan without the Reservation Confirmation.

• A fee of up to 6% of the loan amount will be charged to lenders for closed loans with grants that are not delivered to the Servicer for purchase, or are not eligible for purchase by the Servicer. GSFA will reimburse the lender for the full grant amount with an invoice for this non-delivery fee. Lenders with excessive non-deliveries will be prohibited from participating in the GSFA Platinum Program. AGENCY LINKS

• For additional reference, see Administrators Guidelines at: http://www.gsfahome.org/programs/dpa/guide.shtml • In addition to any Product Profile requirements, you must always meet the published HUD guidelines and master servicer, U.S. Bank, lending criteria. If GSFA Platinum FHA Product Profile 4 of 35 05/31/2019 Guidelines Subject to Change published HUD guidelines or U.S. Bank are more restrictive then what is allowed in the Product Profile, you must always defer to HUD Guidelines.

• For additional information regarding U.S. Bank requirements https://hfa.usbank.com/HFA_Division.html then click on U.S. Bank Lending Manuals • All PRMG staff can access all end Agency guidelines though AllRegs Online at http://allregs.elliemae.com. Instructions on how PRMG staff can access the AllRegs service is available in the Resource Center. • Use the following link to access the HUD Housing Handbooks site, and from there, obtain access to the 4000.1 Handbook: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudcli ps/handbooks/hsgh

• Access the All Regs version of the Handbook at: • https://www.allregs.com/tpl/public/fha_freesite.aspx/

MINIMUM LOAN AMOUNT • No Minimum Loan Amount MAX. LOAN AMOUNT

• With cases assigned prior to 1/1/2019, max loan amount is lesser of $453,100 or the particular county’s maximum HUD loan limit. HUD Loan Limits can be found here: https://entp.hud.gov/idapp/html/hicostlook.cfm

• With cases assigned on or after 1/1/2019, max loan amount is lesser of $484,350 or the particular county’s maximum HUD loan limit. HUD Loan Limits can be found here: https://entp.hud.gov/idapp/html/hicostlook.cfm GEOGRAPHIC RESTRICTIONS • GSFA – California only • Please refer to PRMG’s “Eligible States” list, which can be found at this link: http://www.eprmg.net/guidelines/Eligible%20States.pdf • Verify eligibility, by ensuring the state appears in the following list: http://www.gsfahome.org/programs/dpa/overview.shtml • Additionally, must be PRMG eligible state (see eligible states list in Resource Center) MORTGAGE TYPES • 203(b) Home Mortgage Insurance • 234(c) Mortgage Insurance for Condominiums FEES AND POINTS • Servicer Website at: https://www.allregs.com/tpl/Viewform.aspx?formid=00049604&f GSFA Platinum FHA Product Profile 5 of 35 05/31/2019 Guidelines Subject to Change family members). If multiple borrowers are qualifying on the loan, but the tax returns are not filed jointly, and one borrower requires full returns, but the other borrowers are qualified exclusively on W2 and/or fixed income then no transcripts are required for the W2/fixed income borrower and 1040 transcripts are required for the self-employed borrower/borrower requiring full returns. When using this option, there can also be no tax returns included in the loan file (including if tax returns are required to be reviewed by the PRMG underwriter for MCC Approval or other purpose). If the borrower earns other income that is used to qualify that would be able to be validated with 1040 transcripts (i.e., rental income from tax returns, etc.) then 1040 transcripts are required to validate that income. A completed and executable (signed) 4506T must be submitted with the loan file. For the borrowers where transcripts are not required, be sure to select the W2/1099 option only when completing the 4506-T. Do not mark the 1040 or Record of Account option. • When tax returns are required for a borrower or when borrower’s qualifying income is not made up of W2 or fixed income reported on a 1099, validated 1040 tax transcripts are required if borrower’s income is utilized as a source of repayment. If multiple borrowers are qualifying but the tax returns are not filed jointly (when one borrower requires full returns), then it is acceptable to provide no transcripts for the salaried/fixed income borrower and 1040 transcripts for the self-employed borrower/borrower requiring the tax returns. • Full 1040 tax transcripts are required to support income used to qualify. When transcripts indicate “Due to limitations, the IRS is unable to process this request" one of the following must be documented in the file: 1. For salaried borrowers, when available, utilize The Work Number’s Instant Access Database. This will show employment and income records provided by the employer’s payroll system, OR, Lender may order W-2 or 1099 transcripts when the only income used to qualify is salaried/W-2 or 1099 reported income. 2. Request the most recent 1040s from the borrower(s), and proof of filing (cancelled check for tax payment, or bank statement showing deposit of refund). 3. Request that the borrower obtain the transcripts from the IRS.

• Tax transcripts must be provided for the number of years of income documentation required to be in the loan file, in accordance with the AUS findings and/or Agency requirements • Tax transcripts must come to lender directly from the IRS or through a third party vendor ordered/obtained by lender • When business tax returns are required by AUS, business income is used to qualify or business income is used to offset a loss on personal tax returns or is included in the loan file, a separate IRS Form 4506-T must be executed (but not processed and must allow enough time to be executed post-closing after delivery to investor) for each business for the required number of years of income documented, for each self-employed borrower on the loan transaction. Allowable signatures (per IRS): 1120/1120S: Borrower must sign name with title and only the following titles are acceptable: President, Vice President, CEO, CFO, Owner, 1065: Borrower must sign name with title and only the following titles are acceptable: General Partner, Limited Partner, Partner, Managing Member, Member • Letter of explanation is required for borrowers who are self-employed or have non-W2 income/loss if there is a variance of 10% or more between the total income on the tax transcripts and the tax returns.

• Three years IRS 1040 Transcripts are required on all loans when the borrower is employed by a relative or closely held family business.

• Manual underwrite not allowed for reservations on or after 12/1/15, For manual GSFA Platinum FHA Product Profile 6 of 35 05/31/2019 Guidelines Subject to Change underwrites (including manual downgrades), a business credit report for a self employed borrower who owns a corporation or s-corp is required (not required with AUS Approval).

Debt does not need to be added to the transaction, but should be reviewed to ensure business is credit worthy, not heavily loaded with debt, etc.

•

http://www.cmgfi.com/agents/caroline--gerardo-barbeau

When a Veteran applies for a cash out refinance, and right now
is a marvelous time to take the lower interest rate, the Veterans
Administration protects the Vet by making certain they are
getting an excellent deal with the following conditions:

Net Tangible Benefit (NTB). NTB standards apply to all cash-out refinancing loans.
It consists of the NTB test, Loan Comparison, and Home Equity Disclosure

Here are the ins and outs for the NTB test

(1) NTB Test. All cash-out refinancing loans must past pass the NTB test. This requirement is met if the refinancing loan satisfies at least one of the following: (a) The new loan eliminates monthly mortgage insurance; or (b) Loan term of the new loan is less than the loan term of the loan being refinanced; or (c) Interest rate of the new loan is less than the interest rate of the loan being refinanced. (Note: If the loan being refinanced had an adjustable interest rate or was modified, the current interest rate must be used when determining if this requirement has been met.); or (d) The monthly (principal and interest) payment of the new loan is less than the monthly (principal and interest) payment of the loan being refinanced; or (e) The Veteran’s monthly residual income is higher as a result of the new loan. (residual income, including refinancing monthly PITI (principal, interest, taxes, and insurance) payment vs. current residual income, including monthly PITI payment of the loan being refinanced.) In cases where TI amounts are changing between the application date and the closing date of the refinance transaction, the new TI amount will be used in determining residual income for both the current and refinanced loan); or (f) The new loan is used to payoff the Veteran’s interim construction loan; or (g) The new loan LTV is equal to or less than 90 percent of the reasonable value of the home, i.e. LTV ≤ 90%; or (h) Refinance of an adjustable-rate mortgage to a fixed-rate mortgage.

Even though mortgage rates are SUPER Low
In order to cash out refinance we need to ft the rule

Let's talk about how we can save you money!

Interest Rate Reduction Refinancing Loan (IRRRL) is a mortgage loan made to refinance an existing VA-guaranteed home loan at a lower interest rate.

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