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Ohio Housing Finance Agency

2010 Homeownership Programs


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OHFA Mission Statement

“We open the doors to

an affordable place to call home.”


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Ohio Housing Finance Agency

Closed Loans to Ohio homebuyers:

  • 2005 over $ 550 Million

  • 2006 over $ 1.1 Billion

  • 2007 over $ 811 Million

  • 2008 over $ 711 Million

  • 2009 over $ 265 Million

    Over $9 billion in mortgages and over 140,000 Ohio households funded through OHFA


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LOAN PROGRAMS

Program details:

  • Home purchase options:

    • Existing ( including condominiums)

    • Modular

    • Manufactured

    • Spec homes

    • New Construction


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First-Time Homebuyer Program

Expanded eligibility

  • 1. Actual first-time homebuyers

  • Buyers who have not had an ownership interest in

  • a principle residence within the last 3 years

  • 3. Anyone including previous homeowners buying in a “Target Area”

  • 4. Veterans


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56

21

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LOAN PROGRAMS

  • Mortgage Revenue Bond (MRB)

    • Government Loans (FHA, 203K, VA, USDA-RD)

    • Conventional Loans

  • Financial Assistance Options

    • 2.5% Down payment assistance Grant

    • Grants for Grads Second Mortgage


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LOAN PROGRAMS

Ohio Heroes program

.25% Rate Reduction on current rate for:

  • Active Military

  • Veterans

  • Law Enforcement

  • Public Safety

  • Teachers

  • Healthcare

  • Full Time employment*

  • State license or Certification


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    LOAN PROGRAMS

    • 30-year fixed rate loans*

    • Owner occupied, primary residence

    • Multifamily dwellings

      • 1 to 4 unit

    • Non-traditional credit permitted

    • Acreage limits

      • 2 acre limit within a municipal corporation

      • 5 acre limit outside a municipal corporation

        (Documented exceptions considered)

    Program details:


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    LOAN PROGRAMS

    Government loandetails

    • 203 K & Streamline loans available

      • Loan draws held by loan servicer

      • 50% first draw approved (Up To)

    • Housing Choice Vouchers accepted as income (aka: Sec 8)


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    LOAN PROGRAMS

    Conventional loandetails

    • Homebuyer education required

    • Fannie Mae

      • Adverse Market Fee equal to .25% of loan amount

      • 1% LLPA

      • Higher credit scores required


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    LOAN PROGRAMS

    OHFA Credit Score Requirements:

    600 without OHFA financial assistance

    620 with OHFA financial assistance

    Credit Scores:

    2006-07 average = 690

    2009 average = 650

    2010 first quarter average = 670


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    OHFA Assistance Grant

    • Interest rate is .5% higher than unassisted mortgage rate.

    • Can be used for down payment or closing costs.

    • No requirement for repayment if home is sold.

    • Homebuyer Education required


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    Ohio Housing Finance Agency

    Grants for Grads

    Second Mortgage

    Program


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    Grants for Grads Second Mortgage

    Purpose of Program:

    Offer financial incentive to recent college graduates toward the purchase of a home in Ohio.

    Encourage our home grown talent to stay in Ohio.


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    Grants for Grads Second Mortgage

    The Grants For Grads Program provides down

    payment assistance equal to 2.5% of the home

    purchase price in the form of a forgivable second

    mortgage.

    CURRENT MORTGAGE RATE:  5.0%


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    Grants for Grads Second Mortgage

    Homebuyer Qualifications:

    First time homebuyer

    – no ownership interest in primary residence in

    prior three years

    Single family home purchases only

    Borrower to occupy home in 60 days of closing and use as a primary residence


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    Homebuyer Qualifications

    Ohio Resident at time of High School Graduation

    Graduate from an Ohio High School, or

    Proof of parent’s residency at time of high school graduation

    GED not eligible at this time

    Graduate from any accredited college or university


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    Homebuyer Qualifications

    College Graduation:

    Receive one of the following degrees within the 18 months from a college or university:

    - associate

    - bachelors

    - masters

    - doctoral

    Proof of graduation

    - Diploma from high school and college/university


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    Grants for Grads Second Mortgage

    What about a degree from a “Technical College”?

    The Ohio Board of Regents has determined that a degree from an approved Technical College is equal to an associates degree.


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    Grants for Grads Second Mortgage

    Program details:

    Interest rate is same as OHFA unassisted Rate (currently 5.0%)

    Homebuyer Education required

    Income limit is 140% of area median income

    Program cannot be combined with other OHFA down payment programs or Ohio Heroes.


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    Grants for Grads Second Mortgage

    Loan Program Benefits:

    Zero Interest

    Deferred payment

    2nd mortgage is forgiven over five years


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    Grants for Grads Second Mortgage Repayment

    Repayment required if borrower moves out of Ohio within first five years.

    Repayment not required if borrower moves out of the house but stays in Ohio.

    Repayment not required if borrower sells the house but stays in Ohio.


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    Ohio Housing Finance Agency

    Mortgage Credit Certificate (MCC) Program


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    Current Guidelines

    • $2000 Maximum mortgage interest credit per year

    • Borrower must owe taxes to the IRS at

      the end of each year after deductions have been taken.


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    Current Guidelines

    Annual tax credit rates:

    (20%) Credit for non-target areas

    (25%) Credit for target areas

    (30%) Real estate owned (REO)

    Credit is valid for each year of homeownership


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    MCC Example

    $6,467.09

    Annual Interest x % = yearly credit

    20%

    25%

    30%

    $1293.42

    $1,616.77

    $1940.13


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    Current Guidelines

    Applicants Must:

    • Use an OHFA participating lender

    • Qualify under the current First-Time Homebuyer Program guidelines


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    Current Guidelines

    MCC Program Guidelines follow same guidelines as First

    Time Homebuyer Program

    Guidelines:

    • Ownership status of borrower

    • Purchase price of home

    • Total household income

    • Acreage


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    Current Guidelines

    MCC Program Exceptions

    Ownership status of borrower*

    • If the applicant has owned a mobile home in the past regardless of how it was titled, (BMV or as real property) the applicant is considered to be a homeowner and is not eligible for the MCC program unless purchasing in a Target area.

    • One-unit single family home purchases


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    Current Guidelines

    Two options for credit:

    • End of the year tax credit

      • Review IRS Publication 530

      • Complete IRS Form 8396

    • Adjusting W-4 withholding

      • See IRS publication 919

        Buyers are strongly encouraged to consult a tax professional for advice on claiming the credit.


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    Current Guidelines

    Lenders:

    • Must be able to originate, underwrite, close & fund loans

    • Will combine with their own loan product

    • Must use a “fixed rate” loan product

    • May permit borrower to buy-down the interest rate


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    Current Guidelines

    Rate cannot be 100 basis points or

    more above the current Freddie Mac

    Primary Mortgage Market Survey

    (PMMS)


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    Reservation & CommitmentTimeline

    Type: Reservation Commitment

    Existing 60 days 30 days

    New 90 days 60 days

    REO 120 days 90 days


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    Ohio Housing Finance Agency

    Homebuyer Education Program


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    OHFA Homebuyer Education

    Purpose:

    To educate borrowers about the home buying process and provide additional educational resources to improve their chances of success as a homeowner.


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    OHFA Homebuyer Education

    Who is required to use Homebuyer education?

    OHFA borrowers requesting additional financial assistance from OHFA.


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    OHFA Homebuyer Education

    Two options:

    Courses offered through HUD-approved housing counseling agencies

    -OR-

    OHFA Streamlined education program


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    OHFA Homebuyer Education

    HUD approvedCounseling Agencies:

    Available for all 88 counties

    Counselor will complete counseling and send certificate to OHFA

    OHFA will upload the certificate and notify lender


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    OHFA Homebuyer Education

    Benefits of Homebuyer Education?

    Increase knowledge of responsibilities of Homeownership

    Better financial management of homeowner’s resources

    Prepare homeowner for potential financial emergencies

    Avoid financial crises regarding monthly expenses



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    OHFA Events

    Ohio Housing Conference

    November 30- December 2, 2010

    Columbus Convention Center

    Sponsored by:

    The Ohio Housing Finance Agency (OHFA)

    &

    The Ohio Capital Corporation for Housing (OCCH)


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