SHIP (State Housing Initiatives Partnership) Down-Payment Assistance Application(Osceola County, Kissimmee, Saint Cloud, Poinciana and other communities) period will begin on October 6, 2008 and will end on October 31, 2008.
See Footnote below if you are a Realtor or Consumer that is interested in this opportunity.
In order to obtain an application for assistance, the following requirements must be met:
Applications can be obtained in person at the Osceola County Human Services Division, located at 108 Park Place Blvd., Kissimmee, FL 34741 or on-line when available. Applications must be hand-delivered to the office with the attached requirements. Have questions? Contact us at 407-742-8400. I can also provide the application and information.
The Osceola County housing assistance program is designed to make affordable housing available to citizens with an income that is classified as moderate or lower. The number of moderate funding is limited to funding restrictions.
The State Housing Initiatives Partnership (S.H.I.P.) program provides funding to local governmentsto assist citizens to become homeowners. Eligible first-time homebuyers will receive financial assistance to help with the costs of buying a home. For more information on this program, please click here.
S.H.I.P. partners in Osceola County include lending institutions, housing developers, community based housing, service organizations and affordable housing professionals.
Applications are processed on a first-come, first ready, first served basis.
Maximum financial assistance is:
S.H.I.P. Loan Terms
Footnote: The application period is a very short window of opportunity. From experience, getting scheduled into the required homebuyer education class can be a somewhat difficult task due to limited seating, demand and volume of calls into the housing office. If you are a Realtor or potential homebuyer that want to maximize the opportunity for enrollment, please call or email me. Visit me at: www.RonWithers.com
Additionally,if you are an ActiveRain member, particularly a Real Estate or Mortgage Professional, and want to expand your knowledge and expertise in DPA programs and opportunities I cordially invite you to join a new ActiveRain Group: http://activerain.com/groups/DownPaymentAssistance
Disclaimer: Program information and terms are subject to change without notice.
Recent legislation signed by President Bush has abolished Seller Funded DPA programs(i.e., Nehemiah, AmeriDream, Etc.) effective October 1, 2008. Actions to abolish seller funded programs has been an ongoing effort for many years. Obviously, it took a significant effort in housing and lending reforms to finally accomplish this. Many lenders have already dropped seller funded programs and others have set deadlines prior to the October date.
If you are a first-time home-buyer (not owned a home in the past 3 years) you still may have options available to you for obtaining down payment assistance. Here in Florida, Town & Country Mortgage Services and Ron Withers partner with Florida Housing (Mortgage Revenue Bond) (MRB) and several City and County Housing agencies under the State Housing Initiatives Partnership (S.H.I.P) to make financial resources available to first-time home-buyers.
For you readers that are located in other areas of the United States there may be similar assistance programs available to you. If you are interested in researching the availability of these programs I would recommend that you "google"down payment assistance, mortgage revenue bond or State Housing Initiatives Partnership.
The Florida Housing MRB program provides borrowers (subject to eligibility and availability of funds) with DPA funds up to $10,000 or a 3% grant. Currently the 3% grant is only available to those borrowers receiving a FHA/VA or USDA Rural Housing loan. While Florida Housing has been committed to continuous funding it would be my opinion that the loss of seller funded programs will create additional demand for assistance and that future budget constraints may create a shortfall of funds. As such, if you do look at these possibilities then sooner rather than later would be my recommendation.
The City and County SHIP programs in Florida are funded by documentary stamp fees collected in every mortgage loan settlement. The eligibility for these SHIP programs are very similar from one municipality to the next but overall guidelines may vary slightly as well as the amount of DPA funds in very low, low and moderate income categories. Again, it is my opinion, that the loss of seller funded DPA and budget constraints will make it increasingly difficult to obtain these funds.
As a rule these programs do require that first-time home-buyers complete a home-buyer education course and receive a completion certificate. Availability of funds is also subject to "first-come, first-served" basis. Even if there is a temporary non-availability of funds and you set your sights on obtaining this assistance then prepare!
Do your homework..... enroll and complete the home-buyer education course as the certificate is generally good for 1 year and work with a loan officer that routinely participates in these programs to complete your pre-qualification or pre-approval and having it sitting on the shelf and ready to go whenever funds become available. For more information visit me at www.ronwithers.com
Downpayment image courtesy of michigan.gov
Copyright 2008, Ron Withers, All Rights Reserved.
Home buyers it's easy to be daunted in your search for that perfect "dream home". Right price, location, size, amenities and whatever else is important to you. Quite often your search identifies some homes that are"almost nearly but not quite plum" what you are looking for; They may lack those features or amenites, that if present, most certainly you would say this is it....here's my offer!
Well guess what.....FHA will now allow you to have your cake and.....Eat it too! What's more is that there are up to 35,000 flavors of icing for you to choose from.....all green in color! :)
So...you have searched and searched some more and finally there is a home in your general price range, right neighborhood, right school district, proximity to shopping and employment. Well honey, I love it but wouldn't it be just great if....................!
Now lets look at serving up FHA's cake, hot and fresh out of the oven. But now let's choose our icing.......remember...up to 35,000 flavors can be available!
Ron Withers and Town & Country Mortgage Services is very pleased to announce the availability of our FHA 203(k) Streamline Program. HUD has developed an FHA insured mortgage called the "Streamline (k)"Limited Repair Program that permits home buyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this product, home buyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser. All standard FHA underwriting guides apply as they do for regular FHA loans in regards to credit, income & asset documentation.
Some quick program highlights include:
So Ron...you have sparked an interest! What do we do now? Well let's start with your homework. After starting your formal process here are so Do's and Do'nts that will help the process to flow more smoothly. Then....
Copyright 2008, Ron Withers, All Rights Reserved
Cake Photo Courtesy of: pinkcakebox.com
Cake Server Photo Courtesy of: engravingshop.com
Are you one of the millions of homeowner's who purchased or refinanced a home in the past couple of years with an Adjustable Rate Mortgage (ARM)? This is a Consumer Call to Action. Don't wait to become a Foreclosure Statistic!
For manywho obtained one of the many types of ARM's there may be a "day of reckoning" on their horizon. Their payment adjustment notice may visit them like a thief in the night with a monthly payment increase that may be in the hundreds of dollars.
Don't wait....start doing your "home work" right now. I encourage you to pull out your paperwork and review the terms of your Adjustable Rate Mortgage. Determine what, how much and when your present loan terms may change. You could be in for a "rude awakening". Presently, there is a housing glut in many areas of Florida. If so, this probably represents a buyer's market with declining values. Don't allow a reduced property value to impact on your ability to refinance or the quality of terms that you can obtain. Call your mortgage professional of 40 years for a free no cost, no obligation pre-qualification right now.
If you are a homeowner that is experiencing difficulty in meeting your monthly mortgage obligation for this or any other unexpected reason don't ignore the problem.....it will not go away! Firstly, call your mortgage lender/holder and explain your circumstances and ask for their assistance. You will find most of them more willing to cooperate if you initiate the dialogue. If you believe that you are at a point of no return....work on the sale of your home. A foreclosure will haunt you and your credit for several years. Call your Realtor and start the process of getting your home on the market. Time is of the essence! If you owe more than what you can sell your home for then look for a Realtor that is very experienced in "Short Sales".
Visit me at Ron Withers.com or Town & Country Mortgage or call me at 407-709-8059.
This post is for consumers/homebuyers, Real Estate Professionals and Mortgage Professionals that may not have a good working knowledge of the features and benefits of the US Department of Agriculture's Guaranteed Rural Housing program. Over the years I have done a number of these loans and have come to believe that it is one of the most under-utilized mortgage loan programs in the United States. It has many flexible features not found in Conventional and FHA loans.
For those real estate and mortgage professionals that have been around for a while, this program is not to be confused with their 502 program (direct or subsidized). See Postscript #3 below. When I speak with Real Estate professionals, quite often they have the impression that this program is a so-called "red tape" program. Not the case! Particularly with an experienced or seasoned loan officer. As you read the following information on the advantages of using the USDA Guaranteed Rural Housing program and some of its' salient features I am certain that you would see some great opportunity in directing some of your clients toward this mortgage program. Some of the information below does pertain to these loans in the State of Florida and is provided for information/illustration and information is available on the USDA website for your geographic location. Likewise these loans are subject to the property being located in an eligible area. A link is provided to determine if a specific property address may be eligible for USDA-GRH financing.
Advantages:
• No down payment required.
• No Mortgage Insurance.
• No cash reserves required.
• No seller contribution limit.
• No Prepayment Penalty
• Loan up to 102%* of appraised value allowed...not the lesser of Sale Price or Appraisal
• Loan amount can include closing costs and prepaids up to appraised value.
• No stated maximum loan amount; maximum loan based on repayment ability
•No First Time Homebuyer Requirement
• New and existing homes OK
• Fully amortized 30-year fixed rate loan
• No minimum credit score required...common sense underwriting allowed.
• No minimum cash contribution required from borrower.
• No limit on CLTV when soft second financing such as SHIP or HOME is used for closing costs and prepaids.
• No limitation on source of funds for closing costs. No seasoning requirement.
• 100% gifted closing cost or down payment assistance is permitted.
• Non-traditional credit may substitute for lack of traditional credit history.
• No derogatory credit explanations required when credit score is 620 or above.
•Rent is not verified with FICO of 620 or more.
• Qualifying ratios of 29%/41%...29% PITI to Income and 41% Total Debt to Income, however standard ratios may be exceeded with documented compensating factors.
• Automatic ratios waiver of 31%/43% for homes built after January 1, 2000.
• Conventional type loan packaging with only 1 extra form required.
• Competitive rates (set by underwriting lenders)
*Appraisal may be exceeded by amount of Guarantee Fee
Determining if property is in a Rural Development designated rural area:
http://eligibility.sc.egov.usda.gov/
Determining if applicant(s) have an acceptable credit history:
• Credit history must indicate a reasonable willingness to meet obligations when due.
• Streamlined credit approval when primary applicant has a middle credit score at 620 or above.
• No minimum credit scores.
• Lack of credit is not derogatory. Alternative credit verifications are allowed, typically 3 lines.
• Lenders make the credit decision.
Income eligibility:
Project the cumulative gross income of all adults in the household.
THE GROSS INCOME LIMITS CAN BE MUCH HIGHER THAN THE ADJUSTED INCOME LIMITS SHOWN IN THIS TABLE
If the projected dependable income exceeds the limits, certain adjustments can be made, such as childcare expenses for children age 12 or younger and paid to someone outside the family. You also can deduct one $480 annual deduction for anyone under 18 or a student who is not one of the applicants. Other deductions may be available (see FL/VI Handbook or RD Instruction 1980-D, www.rurdev.usda.gov/regs
Example: Clay County 4-person family (2 adults, 2 children) has a gross income of $80,310. Child care for the two children age 12 or less is $10,000 annually. Is the threshold income at or below the limit? YES. $80,310 less $10,000 child care less $480 for each child = $69,350.
|
Counties |
1-person |
2-person |
3-person |
4-person |
5-person |
6-person |
7-person |
8-person |
|
All Florida & Virgin Island Counties EXCEPT those listed below. |
48,000 |
54,850 |
61,700 |
68,550 |
74,050 |
79,000 |
85,000 |
90,500 |
|
Clay, Duval, Nassau, St. Johns |
48,550 |
55,500 |
62,400 |
69,350 |
74,900 |
80,450 |
86,000 |
91,550 |
|
Collier |
56,200 |
64,250 |
72,250 |
80,300 |
86,700 |
93,150 |
99,950 |
106,000 |
|
Palm Beach |
51,850 |
59,250 |
66,650 |
74,050 |
79,950 |
85,900 |
91,800 |
97,750 |
|
Broward, Pinellas, Monroe are NOT eligible |
||||||||
See the easy to use calculator at: http://eligibility.sc.egov.usda.gov/eligibility Click on "Single Family Housing" under "Income Eligibility"
Applicant(s) repayment ability:
Ratio limits are 29 front (housing, PITI), 41 back (total debt, MOTI). Rural Development generally allows expanded repayment ratios if recommended by the lender's underwriter. 31%/43% automatic for dwelling built after 1/1/2000.
Other eligibility criteria:
• Do not own a suitable dwelling.
• Insufficient resources to secure conventional 80% loan without the guarantee.
• U.S. citizen or permanent resident or qualified alien.
• Financed dwelling will be primary residence.
Loan-To-Value (LTV) and Loan Limit:
• 102% LTV for the guaranteed first mortgage loan when including the guarantee fee, 100% LTV without the fee included.
• Loan amount can exceed appraised value by the amount of the guarantee fee.
• There is no loan limit
P.S. #1
This post script has been added to this blog as I received a very nice "thank you" email from an USDA Rural Housing official in Florida thanking me for posting this blog regarding their USDA GRH program. I thought it was very nice of them to take the time to express their appreciation. They did provide a comment about a correction in the program information which I have done. It's great that information posted here on ActiveRain does get noticed or picked up by consumers/officials and they provide feedback accordingly. The text of this email is as follows:
Hi Ron
THANKS so much for your blog on the web. One of employees in Ohio saw it and pointed it out to me. You may know, but I work out of our Gainesville headquarters. I write the materials about the guaranteed residential loan product.
I'm sorry I had a typo on the Quick Guide. I gave info on streamlined documentation with FICO of 620 or above. BUT then forgot to change the section "Determining if applicant(s) have an acceptable credit history" in reference to "660" that should have said "620".
We trying to make this product more lender friendly and family friendly. I've been a part of writing a number of significant changes over the past 16 years, since the program inception.
You've probably already done this but you may want to consider inviting our local staff to assist with any seminars you present to your realtors, builders, or applicants.
You are correct that this product is the best one for families meeting four simple guidelines: Do they have less than 20% down payment; is the property in an eligible area; is their adjusted household income within the limits; and do they have a reasonable credit history.
Again, thanks so much. We appreciate it.
P.S. #2 6/21/2008
I have been modestly surprised by the amount of interest that this post has generated. In addition to the comments posted here I have received calls and emails from consumers, realtors and loan officers from all over the United States.
Given the current climate of the real estate market as well as the mortgage marketplace this is the only competitive and true 100% financing program left in the mortgage industry....and guess what? It's still Under-utilized!
P.S. #3 -- 6/26/2008
Since my original posting date numerous people have inquired/commented about the 502 Direct Program that is briefly mentioned above. Below is more specific information for USDA's Direct program so a contrast may be drawn in respect to the Guaranteed Rural Housing Program.
Unlike, USDA Guraranteed Rural Housing loans originated by most of us, Rural Housing Direct Loans are loans that are directly funded by the Government. These loans are available for low- and very low-income households to obtain homeownership. Applicants may obtain 100% financing to purchase an existing dwelling, purchase a site and construct a dwelling, or purchase newly constructed dwellings located in rural areas. Mortgage payments are based on the household's adjusted income. These loans are commonly referred to as Section 502 Direct Loans.
Purpose: Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.
Eligibility: Applicants for direct loans from HCFP must have very low or low incomes. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to review area income limits for this program. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance, which are typically within 22 to 26 percent of an applicant's income. However, payment subsidy is available to applicants to enhance repayment ability. Applicants must be unable to obtain credit elsewhere, yet have reasonable credit histories. .
Terms: Loans are for up to 33 years (38 for those with incomes below 60 percent of AMI and who cannot afford 33-year terms). The term is 30 years for manufactured homes. The promissory note interest rate is set by HCFP based on the Government's cost of money. However, that interest rate is modified by payment assistance subsidy.
Standards: Under the Section 502 program, housing must be modest in size, design, and cost. Modest housing is property that is considered modest for the area, does not have market value in excess of the applicable area loan limit, and does not have certain prohibited features. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards.
Approval: Rural Development officials should make a decision within 30 days of the Rural Development office's receipt of the application.
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