Date post: | 07-Aug-2015 |
Category: |
Real Estate |
Upload: | bonnie-black |
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Why Choose VHFA?
√ Low VHFA rate using Conventional or Government underwriting criteria
√ Set pricing/fees for Conventional Loans – no add on fees for property, credit score, occupancy, etc.
√ $625 savings on VT Property Transfer Tax – exempt on the first $110,000
√ Lower PMI Rates
√ Local Lenders
Program Compliance
First Time Home Buyer
Federal Act Income
Income and Purchase Price Limits
Principal Residence
New Mortgage
No Other Real Estate Owned
Appurtenant Land
First Time Home Buyer
No ownership interest in a principal residence within last 3 years
First time home buyer counties – Addison, Bennington, Chittenden*, Grand Isle & Windsor
*except Census Tract 4
Federal Act Income
Purpose To determine program eligibility
Income included All income of the borrower(s)All income of a borrower’s spouse or civil union partner (even if they are not liable for the debt) or other co-owner
Controlling agency Internal Revenue Code regulating MRB’s
Income & Purchase Price Limits
Income Limits differ by county & family size
Duplex - One Statewide Purchase Price Limit
Refer to VHFA’s website at www.vhfa.org
Principal Residence
Borrowers must occupy the property as their full-time, year round principal residence within 60 days after the closing
No investment properties, recreational homes or if more than 15% of the property is used for trade or business
New Mortgage
VHFA funds restricted to new purchases, not to replace an existing mortgage
Exception – replacement of first construction loan or bridge loan or other temporary financing (must have an original term of 24 months or less)
No other Real Estate Owned
Borrower can not hold a present ownership interest in any other real estate
Exceptions – vacant land, real estate that is commercial or industrial in character, a vacation property unsuitable for year-round occupancy or a single-wide mobile home in a park not permanently affixed to land
Appurtenant Land
The amount of land must only be the amount necessary to reasonably maintain the basic livability of the residence and cannot provide a source of income
Maximum = 15 acres
Federal Recapture Tax
? Why do we have it?
? What has to happen for this to apply?
? Who tells the borrowers?
? When and Where do they pay it?
? How does it get calculated ?
Max is 6.25% of Loan amount
? How do borrowers get reimbursed?
Programs
MOVE Program (MBS) Conventional
Fannie Mae My Community Mortgage (MCM) Freddie Mac Home Possible (HP)
Government Rural Development FHA VA
Direct Loan Program
MOVE Program
Conventional Loans – must meet requirements of Fannie Mae MCM or Freddie Mac HP
Government Loans – must meet requirements of RD, FHA or VA
Conventional or Government underwriting w/VHFA rates
Reduced pricing for Conventional MCM or HP program
Variances to “normal” MCM/HP guidelines
VHFA Property Transfer Tax Exemption
Eligible MOVE Loans Advantages
MOVE Program
Loans originated by local lenders Allows Participating Lenders to use
Fannie or Freddie automated underwriting systems
All servicing is done by US Bank Home Mortgage – Mortgage Revenue Bond Division
MOVE Program – Eligible Properties
Single family detached New or existing
Duplexes Existing units only Must have been occupied as a
residence for at least five years prior to date of Mortgage Loan
Condominiums Fannie Mae, FHA, VA or RD
approved
Condominiums & Eligible Mobile Home Parks
For the MOVE program, VHFA will not keep a list of condominium projects that are Fannie, Freddie, FHA, VA or RD approved.
For the Direct Loan Program VHFA will review the documentation and determine if a project is eligible. Condominium projects must meet all Fannie guidelines, with the exception of the pre-sale requirement.
Need more information...
Visit www.vhfa.org Contact Bonnie Black at VHFA
[email protected] 802.652.3427