Polk County SHIP - eprmg.net

1 Page | 1 Assistance Program: polk County ship Program Code: DFLPOLKCY HOMEOWNERSHIP ASSISTANCE PROGRAM SUMMARY Product Description Second mortgage loan program to be used in conjunction with: FHA Fixed Rate Allowable Origination Channel Retail Program Name ship Program Program Approval Expiration Subject to Availability approval expires: 7/27/2018 Housing Authority polk County Housing Agency (Authority) 1290 Golfview Ave., Suite 167 Bartow, FL 33830 Phone: 863-534-5240 Website: Keystone Challenge Fund, Inc. (Administrator) 4200 S. Florida Ave. Lakeland, FL 33813 Phone: 863-682-1025 ext.

2 2 Contact: Leisha Thompson Website: Housing Authority EIN 59-6000809 DPA Provider Classification Government Entity Secondary Financing Programs First Mortgage Maximum LTV FHA: Refer to Product Profile First Mortgage Maximum CLTV FHA: Refer to Product Profile Maximum Second Mortgage loan Amount $20,000 - Very Low income $12,000 - Low income $7,000 - Moderate income Second Mortgage loan Interest Rate 0% Minimum Borrower Down Payment FHA: Refer to Product Profile NOTE: If first mortgage guidelines are higher than the Agency s for borrower s minimum investment, the first mortgage guidelines prevail.

3 Second Mortgage Purpose Down payment Closing costs Second Mortgage loan Repayment Terms This second mortgage loan is a no interest no monthly payment 10-year forgivable loan . As long the property remains the borrower s primary residence then the assistance will be forgiven at the end of the loan term. Repayment is due in full upon sale, transfer, lease, refinancing, change of ownership or home no longer is occupied as primary residence. loan proceeds may not be used to pay off other loans, advances or consumer debts. However, if any of the following repayment triggering events occur, the principal balance and any accrued interest shall be due and payable in full: Evidence of the act of fraud committed to falsely obtain assistance funds The property is sold Page | 2 Assistance Program: polk County ship Program Code.

4 DFLPOLKCY Transferred title Refinancing with cash out A default on the first mortgage The borrower(s) ceases to occupy the property as their principal place of residence Upon the death of the last surviving applicant The filing of any bankruptcy by the applicants Upon divorce, unless one of the applicants continues residing in the property by the decree of divorce loan may be pre-paid in full at anytime loan is NOT assumable Types of Financing Purchase Money Mortgage o Fully amortizing fixed interest first mortgage not to exceed 40 years (No ARM, balloon payment or prepayment penalty)

5 Occupancy Owner occupied primary residence only All co-borrowers must occupy Borrower(s) may not have an ownership interest in any other residential dwelling at the time of loan closing Geographic Location Property must be located within polk County , Florida Eligible Properties Acquisition Limit: Existing & New $258,691 Properties shall be sited on a permanent foundation, with a permanent utility hook-up, and may include: Single family - detached, attached (Fixed Rate) Condominiums or Townhomes or Planned Urban Development -detached, attached Must be currently occupied by the owner, vacant or occupied by the homebuyer.

6 A Home Inspection will be required on all existing homes. Existing units must meet Section 8 Housing Quality Standards (HQS) as established by HUD. ALL repairs called for by inspections MUST be completed prior to closing. Refer to product profile for additional property eligibility requirements, not all property types are allowed on all products. Underwriting Lender to pre-approve all borrowers for the first mortgage product. Standard FHA except as described herein: The loan Officer is required to reserve funds for your borrower by completing the ship Registration Form available on the Administrator s website: Email completed registration form to Confirmed registrations are held for up to 60 days, and are subject to cancellation after that time.

7 The loan Officer will assist the borrower in submitting a completed loan application package to Keystone Challenge Fund, 4200 S. Florida Ave., Lakeland, FL 33813. Faxed or emailed packages are NOT acceptable. Keystone will review the submitted packages for eligibility and contact the borrower for any additional paperwork. Keystone will be responsible for ensuring that all requirements are met to obtain funds from polk County . loan Officer is required to sub mit your file to Keystone Challenge 21 - 120 days before the loan closing date. Funds are provided on a first come, first ready basis due to completeness of the file.

8 Do not send your file prior to 120 days to the closing date. Page | 3 Assistance Program: polk County ship Program Code: DFLPOLKCY Checks are made payable to the loan closing agent. Your closings should be scheduled to allow sufficient time for delivery of the check, second mortgage, note and other closing documents to the closing agent. Upon approval, a copy of DPA Approval Letter MUST be in each file. Eligible Borrowers Borrower(s) must qualify for the first mortgage selected. First Time Home Buyers (FTHB) only Borrowers may not currently own a house and may not have owned a house during the last three years prior to making application.

9 Must be a Citizen, lawful permanent resident alien or other qualified alien. Ratios cannot exceed 33%/45%. Assets Borrower must have required amount of their own funds in the transaction for type of first mortgage financing selected. Liquid assets (savings, checking, CD s, treasury bonds, money market, savings bonds, etc.) cannot exceed $20, Income Limits Effective March 31, 2016 Household size Very Low Income Low Income Moderate Income 1 $18,400 $29,400 $44,160 2 $21,000 $33,600 $50,400 3 $23,650 $37,800 $56,760 4 $26,250 $42,000 $63,000 5 $28,350 $45,400 $68,040 6 $30,450 $48,750 $73,080 7 $32,550 $52,100 $78,120 8 $34,650 $55,450 $83,160 NOTE: If first mortgage guidelines are more restrictive than the Agency s for borrower s income limit, the first mortgage guidelines prevail.

10 MI Coverage FHA: Standard UFMIP and monthly if applicable Special Provisions Homeownership Counseling: Refer to product profile for specific product requirements Borrowers must successfully complete a homebuyer education course provided by an approved homebuyer education counseling agency. Homebuyer Education classes are provided by Keystone on a regular basis. Borrower may register on-line for classes. View the available class schedule at or contact Keystone directly for details. Borrower s Certification of Completion of Homeownership Counseling is required All.