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Homeownership with the HEART Loan
ProgramBrought to you by
The HEART of San Mateo CountyMeriwest Mortgage
Today’s Agenda
• HEART – Housing Endowment and Regional Trust of San Mateo County– Paula Stinson
• The Financing Process– John Souza – Meriwest Mortgage
• The HEART Down payment Assistance – John Souza – Meriwest Mortgage
Fannie Mae Underwriting Guidelines
• DEBT TO INCOME RATIO– What is a debt to income ratio?– What ratio is acceptable under Fannie guidelines?
• CREDIT SCORE – What is a credit score?
– What scores do you need to get approved for a loan?– How does your credit score affect the cost of your loan?
• LOAN TO VALUE– What does loan to value mean?– How does down payment affect loan to value?– How much down payment is required to get a loan?
• RESERVES– What is reserves? PITI = principle, interest, tax and insurance– How much reserves do you need to qualify?
Loan Preparation• Preparing to purchase a home – Importance of a pre-
approval letter• 4 key parts of the Equation
– Income from all sources (W2s, tax returns if self-employed)
– Debt:Credit cards, student loans, car payments, etc.
Anything that comes from your credit report plus legal obligations
Not all debt is treated the same way– Assets: Bank Accounts, CDs, Retirement Accounts,
401Ks, Cash, Stocks, Investments Anything of Value– Credit History: Derived from your Credit Report
Key Mortgage Terms
• Points (Origination versus Discount)• Pre-payment Penalty• PMI (Private Mortgage Insurance)• Underwriting• ARM (Adjustable Rate Mortgage)• Loan Approval
Meriwest vs. Competition• Direct Lender – NO Broker Fees• Less Expensive Fees• Competitive Rates• Fast and Efficient Processing• Loan Servicing• No Pre-payment Penalties• Wide Variety of Mortgage Products• Relationship Advantage Rebates
• Fast Pre-approval
Underwriting Criteria & Guidelines:– Residence Status:
• US Citizen• Permanent Resident Aliens: Provides evidence of
Green Card.• Non-Permanent Resident Aliens: Provides
acceptable evidence of legal residency issued by the INS with legal permit to work in the U.S.
– Minimum down payment 5% required by Borrower.– Property Type: Single Family Residential Detached
and attached PUDS– HEART 2nd Lien interest rate will be based on Meriwest
Mortgage Company, LLC 30-year conforming fixed rate plus 150Bps.
Underwriting Criteria & Guidelines:(continued)
– Maximum purchase price: $781,000 (10% down payment required for loan amounts from $417,001 to $625,500.
– Maximum purchase price: $521,250 (5% down payment required for loan amounts from $50,000 to $417,000)
– Maximum debt to income percentage of 45%.– HEART 2nd Lien will have a 15-year term with a
balloon payment and amortized over 30-years.
– Impounds will be required for all transactions.
– Subordinate Financing is allowed but must be subordinate of 2nd lien.
– Underwriting guidelines will be based on Meriwest Mortgage Company, LLC guidelines.
Underwriting Criteria & Guidelines:(continued)
– Income limits of $150,000.– Minimum FICO score of 680.– Maximum CLTV of 95%.
Underwriting Criteria & Guidelines:(continued)
How do you apply?• Please go to the HEART of San Mateo
County Website: WWW.HeartofSMC.Org
• Click on “Homebuyer Loans” Link
• Choose the “Click Here to Apply” Link– That link will take you to a HEART and
Meriwest Mortgage co-hosted site for your application
Meriwest MortgageJohn Souza [email protected]
(408) 849-7115
HEART of San Mateo CountyPaula Stinson [email protected]
650-872-4444 ext #4
For more info, please contact