Who is New Hampshire Housing

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Who is New Hampshire Housing?

• New Hampshire Housing is a non-profit public
  benefit corporation established by the state
  legislature. The Authority operates a broad
  range of programs designed to assist low and
  moderate income persons and families obtain safe
  decent and affordable housing.

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What goes on in Homeownership.

• Education
• First time homebuyer seminars
• Publications
• Continuing education and support for lenders
• Realtor training
• Purchase mortgages / underwrite
• Origination (specialty programs)

3
What New Hampshire Housing looks for in a
borrower

• 1st time home buyer or buying in a targeted
  area
• Never owned a home they can buy anywhere in the
  state
• Owned a home in the past 3 years they need to
  purchase in a targeted area
• Verifiable income that does not exceed our Income
  limits and at the same time makes sense! (all
  household income)
• Purchase price on home that does not exceed our
  limits

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The Steps.

• Check all household income..
• This is really important make sure to count
  everyone
• Income must be verified
• Do they have at least 1 of their own money.
• Another important issue we need to see the 1 on
  the HUD and a bank statement
• Borrowers affidavit needs to be explained and
  completed
• Please do not send in incomplete

5
More steps.

• Your underwriter needs to review the file
• Loans need to be insured - we accept FHA/ VA/
  RD/ MI
• If a borrower has 20 to put down only Pool
  Insurance will be required. (We can prior
  approve these to guarantee purchase)
• Most recent 3 years tax returns SIGNED
• 4506 at closing is fine however you are
  responsible for submitting those returns

6
How about ratios, credit scores, etc.

• Credit Scores
• We have no score requirements but someone might
• Any derogatory credit issues should be explained
• Get real with your borrower
• it is time that a credit score is higher than an
  IQ!
• No Asset Limitation
• Ratios good luck!

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NEW, NEW, NEW

• 25 minimum ratio for housing.
• All appraisals need interior and exterior
  pictures.
• Any properties that are bank owned need a home
  inspection and addressing repairs needed (not a
  hold harmless!).
• Hazard insurance for single wide mobiles must be
  enough to replace.
• Once we purchase loans we will be looking for
  proof of payment on the one time PMI.

8
Lets talk about going Back to the Future..

• Underwriter should really read the appraisal
• Say goodbye to crazy ratios!!!
• Underwrite for long time investment
• Collections..
• 250 per item max 1,000
• Medical, case by case

9
Property stuff..

• We dont really have any property requirements
• Must meet basic living requirements
• 1-4 family owner occupied homes
• Be careful 75 of rental must be added to
  income, make sure to watch the income limits

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More about property

• 600 sq. ft. minimum
• If you want an exception to this rule an
  appraisal will need to be ordered to be reviewed
• Manufactured housing either on its own land or
  in a New Hampshire Housing approved cooperative.
• No seal no deal

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Now theres a limit..

• Post and piers on stick built homes are not
  considered permanent foundations
• Wells and septics that are shared and not on the
  property be financed
• Mobile homes built prior to 1976
• Private roads that do not have a recorded
  maintenance agreement

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Still More

• Studio condos
• Homes without heating systems
• Excess acreage

13
Current Loan Products..

• 0-point
• 1-point
• .

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Cash Assistance Option

• 0-point up to 4 grant (grant amount determined
  off base loan amount)
• Money can be used for down payment and or closing
  costs
• Money can not be used to buy down the rate
• 1 down payment (borrowers own money)
• Rider added to mortgage for repayment of grant
• Money is repaid all or nothing

15
Purchase Rehab

• Up to 40,000 for repairs, renovations and
  improvements designed to address obsolescence,
  improve energy efficiency, improve safety and
  extend the useful life of the property.
• Appraisal must be made as is and as complete
• Added on to the loan just one loan
• You close the loan send rehab money with closed
  package- your work is done!

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• If you have any doubts if a property is good for
  a purchase rehab we will be glad to make that
  decision for you.

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Loans originated by New Hampshire Housing
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EHRL (emergency home repair loan)

• Loan must be current
• Property must be owner occupied
• For major repairs that homeowners insurance does
  not cover
• Up to 15,000
• Loans with a pre-existing problem do not qualify.

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Philip S. Rader Divorced Borrower Initiative

• Must be refinancing due to divorce agreement
• Have at least 1 dependant child
• Stay within our purchase price and income limits

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Recapture Tax

• In order for Recapture Tax to apply these items
  need to take place
• Under 9 years
• Profit on sale
• Over income limit
• RECAPTURE

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Whats so bad about Recapture Tax?
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Reminders.

• Income be careful! (you must look at all
  household income)
• 3 years tax returns, signed
• Borrowers who currently reside in a mobile home
  park would have to purchase in a targeted area
• Please follow the correct stacking list
• All forms available on the WEB

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More..

• RD loans we will finance on purchase price or
  appraised value which ever is less
• Seller concession same as secondary market 3 6
• We DO NOT participate in MERS
• FHA MICS have to be assigned over to us

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Concerns

• Mortgage Insurance
• Property types
• Etc., etc. etc

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Important Numbers, Etc.

• www.nhhfa.org
• Funding people
• Patty Lazott
• 310-9254
• Connie Cote
• 310-9246
• Reservation, condos, etc
• Mim Suanet
• 310-9243

• Lending Analysts (underwriters)
• Denise Beaurivage
• 310-9248
• Brenda Wade
• 310-9322
• Carolyn Boland
• 310-9276
• Mortgage Coordinator
• Christine Hager
• 310-9244

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And saving you green.
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