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If the applicant has owned a mobile home in the past regardless of how it was titled, ... To educate borrowers about the home buying process and provide additional educational ...

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ohfa mission statement
OHFA Mission Statement

“We open the doors to

an affordable place to call home.”

ohio housing finance agency
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

loan programs
LOAN PROGRAMS

Program details:

  • Home purchase options:
    • Existing ( including condominiums)
    • Modular
    • Manufactured
    • Spec homes
    • New Construction
first time homebuyer program
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
slide6

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loan programs19
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
loan programs20
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
loan programs21
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:

loan programs22
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)
loan programs23
LOAN PROGRAMS

Conventional loandetails

  • Homebuyer education required
  • Fannie Mae
    • Adverse Market Fee equal to .25% of loan amount
    • 1% LLPA
    • Higher credit scores required
loan programs24
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

ohfa assistance grant
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
ohio housing finance agency grants for grads second mortgage program
Ohio Housing Finance Agency

Grants for Grads

Second Mortgage

Program

grants for grads second mortgage
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.

grants for grads second mortgage28

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%

grants for grads second mortgage29
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

homebuyer qualifications
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

homebuyer qualifications31
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

grants for grads second mortgage32

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.

grants for grads second mortgage33

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.

grants for grads second mortgage34

Grants for Grads Second Mortgage

Loan Program Benefits:

Zero Interest

Deferred payment

2nd mortgage is forgiven over five years

grants for grads second mortgage repayment
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.

ohio housing finance agency36

Ohio Housing Finance Agency

Mortgage Credit Certificate (MCC) Program

current guidelines
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.

current guidelines38
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

mcc example
MCC Example

$6,467.09

Annual Interest x % = yearly credit

20%

25%

30%

$1293.42

$1,616.77

$1940.13

current guidelines40
Current Guidelines

Applicants Must:

  • Use an OHFA participating lender
  • Qualify under the current First-Time Homebuyer Program guidelines
current guidelines41
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
current guidelines42
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
current guidelines43
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.

current guidelines44
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
current guidelines45
Current Guidelines

Rate cannot be 100 basis points or

more above the current Freddie Mac

Primary Mortgage Market Survey

(PMMS)

reservation commitment timeline
Reservation & CommitmentTimeline

Type: Reservation Commitment

Existing 60 days 30 days

New 90 days 60 days

REO 120 days 90 days

ohio housing finance agency homebuyer education program
Ohio Housing Finance Agency

Homebuyer Education Program

ohfa homebuyer education
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.

ohfa homebuyer education49
OHFA Homebuyer Education

Who is required to use Homebuyer education?

OHFA borrowers requesting additional financial assistance from OHFA.

ohfa homebuyer education50
OHFA Homebuyer Education

Two options:

Courses offered through HUD-approved housing counseling agencies

-OR-

OHFA Streamlined education program

ohfa homebuyer education51
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

ohfa homebuyer education52
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

ohfa events
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)