2. Franklin County and Ohio Housing Trust Funds
Down Payment Assistance Programs.
Guidelines and Underwriting
Presenter:
Isabel Giles
Loan Program Coordinator

3. Agenda 1. Introduction / Objective 2. Franklin County / OHTF DAPs
3 Guidelines & underwriting
4. Questions

4. Objective
The purpose of this seminar is to equip participants with the knowledge and understanding of the Franklin County and Ohio Housing Trust Funds down payment assistance programs

5. Grants Objective
Offer to low and low-medium income families and individuals who would otherwise not qualify, an opportunity to purchase their own home through the use of these Funds
Prospective homebuyers must comply with the guidelines established for the programs.

6. For Both Grants Funds are provided on:
First come first serve bases and are subject to availability.

7. Eligibility Criteria Guidelines Property/Loan Limit
Franklin County DAP
& OHTF DAP
Income
Limit
500$
Contribution n
Guidelines
Location
Illness
Ratios
31/43
Loan
Vs.
Value

8. Franklin County DAP OHTF DAP
Grants Guidelines I
Franklin County DAP OHTF DAP
Location :Franklin Co. outside tax district 010
Principal Residency. Fist Time H-B or 3 yrs.
Income: Up to 80% HUD-MSA
Loan amounts can’t exceed the FHA amount for CMSA
Location: Franklin County.
Principal Residency. First Time H-B or 3 yrs.
Income: Up to 65% HUD-MSA
Loan amounts can’t exceed the FHA amount for CMSA

9. Franklin County DAP OHTF DAP
Grants Guidelines I
Franklin County DAP OHTF DAP
Amount: Up to $4K DP& $2K CC
Household Income is used to calculate income eligibility.
Borrower contribution: $500
Borrower can’t have more than $3K in liquid assets
Amount: 3% purchase price up to $3K. The lesser.
Household Income is used to calculate income eligibility.
Borrower contribution: $500
Borrower can’t have more than $5K in liquid assets

10. Franklin County DAP OHTF DAP
Grants Guidelines I
Franklin County DAP OHTF DAP
0% interest. No payments
6 yrs. Lien
Can NOT be combine with any other program.
Property must meet local housing codes (DS&S) / Certificate of occupancy
0% interest. No payments
5 yrs. Lien
Works with ADDI, EDCI. Not with any form of OHFA’s DAP
Property must meet local housing codes (DS&S) / Certificate of occupancy

11. Franklin County DAP OHTF DAP
Grants Guidelines
Franklin County DAP OHTF DAP
Home inspection w/all utilities running.
Lead-Base Paint Hazard test for 1978 or older buildings. Must be included with the application package.
Home inspection w/all utilities running.
Lead- Base Paint hazard test for 1978 or older buildings. Must be included with the application package.

12. Franklin County DAP OHTF DAP
Grants Guidelines I
Franklin County DAP OHTF DAP
Eligible use of funds. (*)
Loan assistance is not assumable.
Underwriting ratios: 31/43
The Loan assistance becomes immediately due and payable in the event of Fraud or 1st Lien assumption.
Eligible use of funds. (*)
Loan assistance is not assumable.
Underwriting ratios: 31/43
The Loan assistance becomes immediately due and payable in the event of Fraud or 1st Lien assumption.

13. Franklin County DAP OHTF DAP
Grants Guidelines I
Franklin County DAP OHTF DAP
LTV (1st+2nd) must not exceed the estimated property value.
Lender will send applicant to Homeport to fill out application
Lender must obtain all verifications & documentation necessary to establish the borrower’s eligibility for DAP
LTV(1st +2nd) must not exceed the estimated property value.
Lender will send applicant to Homeport to fill out application
Lender must obtain all verifications & documentation necessary to establish the borrower’s eligibility for DAP

14. Franklin County DAP OHTF DAP
Grants Guidelines I
Franklin County DAP OHTF DAP
Homeport reviews applications within 20 business days of receiving a completed pack.
If loan assistance is approved, Homeport will notify borrower and lender in writing by sending a Commitment Letter
Homeport will request a schedule for closing
Homeport reviews applications within 20 business days of receiving a completed pack.
If loan assistance is approved, Homeport will notify borrower and lender in writing by sending a Commitment Letter 
Homeport will request a schedule for closing

15. Franklin County DAP OHTF DAP
Grants Guidelines I
Franklin County DAP OHTF DAP
Lender or Title Co. submit the Final HUD1 48 hrs. prior to the scheduled date for closing.
Funds Distribution: Homeport will wire funds to the Title company after the review and approval of the final HUD 1 settlement statement.
Lender or Title Co.: submit the Final HUD1 48 hrs. prior to the scheduled date for closing.
Funds Distribution: Homeport will wire funds to the Title company after the review and approval of the final HUD 1 settlement statement.

16. Franklin County DAP OHTF DAP
Grants Guidelines I
Franklin County DAP OHTF DAP
Cash Back to the borrower is not allow.
Any unused proceeds that remain at closing must be returned to Homeport.
Lender and Title Co. must notify Homeport if for any reason loan couldn’t close the scheduled day   
Cash Back to the borrower is not allow.
Any unused proceeds that remain at closing must be returned to Homeport.
Lender and Title Co. must notify Homeport if for any reason loan couldn’t close the scheduled day

17. Grants Guidelines I Franklin County DAP OHTF DAP
If the closing does not occur within a 30 day period after receipt approval of Funds, the loan approval for the Funds must be reviewed to make sure no changes have occurred.   
If the closing does not occur within a 30 day period after receipt approval of Funds, the loan approval for the Funds must be reviewed to make sure no changes have occurred.

18. Franklin County DAP OHTF DAP
Grants Guidelines I
Franklin County DAP OHTF DAP
Homeport prepare and sends the 2nd Mortgage doc. to the Title Company for its execution and recording at the Recorders office.
The promissory Note will be closed at Homeport.
The Title Company execute the first and second mortgage. .   
Homeport prepare and sends the 2nd Mortgage doc. to the Title Company for its execution and recording at the Recorders office.
The promissory Note will be closed at Homeport.
The Title Company closes the first mortgage.

19. Franklin County DAP OHTF DAP
Grants Guidelines I
Franklin County DAP OHTF DAP
Title Company must record the executed 2nd mortgage and mail it back to Homeport after recorded, within 10 days after the closing.
Title Co. must submit to Homeport copy of the 1st Lien, Prom. Note and HUD1 w/all attachments already executed within 10 business days after closing .   
Title Company must record the executed 2nd mortgage and mail it back to Homeport after recorded, within 10 days after the closing.
Title Co. must submit to Homeport copy of the 1st Lien, Prom. Note and HUD1 w/all attachments already executed within 10 business days after closing

20. Franklin County DAP OHTF DAP
Grants Guidelines I
Franklin County DAP OHTF DAP
The 2nd mortgage loan, as evidenced by a promissory note is closed in the name of Franklin County Board of Commissioners.
The 2nd mortgage loan, as evidenced by a promissory note is closed in the name of Homeport

21. Eligible Use of Funds
- Down Payment - Origination Fees - Appraisal Costs - Credit Report Fees - Title Binder and Title Policy - Survey - Property Inspection - Closing Fees - Recording Fees - MIP that must be prepaid - e.p.a. endorsement

22. 2012 HUD Income Guidelines FAMILY SIZE 60% KNOX 65% 80% 100% 115% 140%
ONE
YEARLY
28,350
26,250
30,700
37,800
47,250
46,400
54,350
66,150
TWO
32,400
29,950
35,100
43,200
54,000
53,000
62,100
75,600
THREE
36,450
33,700
39,500
48,600
60,750
59,600
69,900
85,050
FOUR
40,500
37,450
43,900
67,500
66,250
77,650
94,500
FIVE
43,750
40,450
47,400
58,350
72,900
71,550
83,850
102,100
SIX
46,980
43,450
50,900
62,650
78,300
76,850
90,050
109,600
SEVEN
50,200
46,450
54,400
67,000
83,700
82,150
96,250
117,200
EIGHT
53,460
49,400
57,900
71,300
89,100
87,450
102,500
124,750

23. Lender Loan Processing
Loan Application:
Lender sends applicant to Homeport to complete application and disclosure statement.
Lender provides to Homeport all the information listed on the Submission Checklist .
Eligibility Verification:
Lender obtains all verifications and documentation necessary to establish the borrower’s eligibility for the Grant assistance.

24. Lender Loan Processing
Underwriting:
Lender will calculate the expected down payment assistance and make recommendation to Homeport.
Commitment Submission Package
Homeport will attempt to approve package within 20 business days.
Commitment Approval
Homeport send to lender/borrower a commitment letter.
Loan must be closed within 30 days of approval.

25. Closing Instructions
Fax final HUD-1 to Isabel Giles at hours before closing. Notify ext. 160 if figures change.
The Title Co. must return the following documents to Homeport within 10 days after closing:
Copy of 1st Mortgage already executed and recorded
Copy of executed Promissory Note for 1st Lien
Original 2nd Mortgage already executed and recorded
Final HUD 1 already executed
Original Signed Sellers Uniform Relocation Act Disclosure Form Provided by Homeport, if applies

26. Homeport Closing Process
Borrower will meet with a Homeport Housing Advisor for one on one appointment to review applicant’s budget, which must show a balanced budget.
Counselor will handle and disclose to the borrower the covenants of the Grants, the Ohio Homebuyers’ Protection Act Informational Document
Counselor verifies the borrower receives clarifications and understanding of all clauses in the Notes it and signs all required documents.

27. Required Documentation From Lenders Submission Checklist Submit the following documents in one package. Application will not be underwritten until the package is complete. Allow 20 business days from receipt of a completed package for review and funding approval. e submit The following documents in one package. The loan will not be underwritten until the application package is complete. Borrower must meet with a Homeport’s Housing advisor to complete additional Forms. Please allow 20 business days from receipt of a completed package for review and funding approval
Loan Funding Request
Lender approval letter
Homebuyer Education Certificate (from certified HUD agency)
- Final 1003 signed by M.L.O and applicant.

28. Required Documentation From Lenders Submission Checklist Cont…
Required Documentation From Lenders Submission Checklist Cont…. Please submit the following documents in one package. Application will not be underwritten until the package is complete. Please allow 20 business days from receipt of a completed package for review and funding approval. e submit The following documents in one package. The loan will not be underwritten until the application package is complete. Borrower must meet with a Homeport’s Housing advisor to complete additional Forms. Please allow 20 business days from receipt of a completed package for review and funding approval
Three most recent bank statements
Sixty days of most recent paystubs
Proof of additional income: SSI, child support, alimony, etc.
Most recent W2 from all employers
    -

29. Required Documentation From Lenders Submission Checklist Cont…… Please submit the following documents in one package. Application will not be underwritten until the package is complete. Please allow 20 business days from receipt of a completed package for review and funding approval. e submit The following documents in one package. The loan will not be underwritten until the application package is complete. Borrower must meet with a Homeport’s Housing advisor to complete additional Forms. Please allow 20 business days from receipt of a completed package for review and funding approval
Most recent three yrs. of Tax returns.
For all self-employed: YTD of P&L statement signed and dated.
Signed purchase contract with all modifications attached. Copy of appraisal with all sheets.
Home inspection report from a independent 3rd party professional, conducted with all utilities running.

30. Required Documentation From Lenders Submission Checklist Cont…… Please submit the following documents in one package. Application will not be underwritten until the package is complete. Please allow 20 business days from receipt of a completed package for review and funding approval. e submit The following documents in one package. The loan will not be underwritten until the application package is complete. Borrower must meet with a Homeport’s Housing advisor to complete additional Forms. Please allow 20 business days from receipt of a completed package for review and funding approval
If property was built in 1978 or before, a Lead-Based paint Test must be conducted and a report showing the results must be submitted with the package.
Seller’s occupancy certification, if applies.
Original Signed Seller Uniform Relocation act, if applies.
The Good Faith estimate.

31. Loan Funding Request
BORROWER’S NAME(S) _______________________________________________________ PROPERTY ADDRESS _______________________________________________________ CITY, STATE, ZIP _______________________________________________________ CLOSING DATE _______________________________________________________ TITLE AGENT _______________________________________________________ ADDRESS _______________________________________________________ CITY, STATE, ZIP _______________________________________________________ PHONE _______________________________________________________ REQUESTED AMOUNT _______________________________________________________ CHECK/WIRE TO TITLE CO. AS FOLLOWS:_______________________________________ LENDER CONTACT _______________________________________________________ PHONE ___________________________FAX_________________________ PLEASE ALLOW 20 BUSINESS DAYS FROM RECEIPT OF A COMPLETED PACKET FOR FUNDING APPROVAL.

32. Grievance Letter
IF APPLICATION IS DENIED, YOU MAY APPEAL THE DECISION AS FOLLOWS: • REQUEST A REVIEW OF THE DECISION BY SUBMITTING A WRITTEN REQUEST TO THE HOUSING ADVISOR YOU HAVE WORKED WITH WITHIN TEN DAYS FROM THE DATE OF THE DENIAL. • THE HOUSING ADVISOR WILL NOTIFY YOU TO SET UP A MEETING, WHICH MEETING SHALL BE HELD WITHIN TWENTY DAYS OF RECEIPT OF YOUR REQUEST FOR REVIEW. • IF THE ISSUES ARE NOT RESOLVED AT THIS MEETING, YOU MAY REQUEST TO MEET WITH THE DIRECTOR OF HOUSING COUNSELING. SUCH REQUEST MUST BE MADE IN WRITING TO THE DIRECTOR OF HOUSING COUNSELING WITHIN FIVE DAYS OF YOUR MEETING WITH THE HOUSING COUNSELOR. THE DIRECTOR OF HOUSING COUNSELING, OR DESIGNEE, WILL HAVE TEN WORKING DAYS TO RESEARCH THE INFORMATION AND WILL SCHEDULE A MEETING WITH YOU, IF NECESSARY. THE DIRECTOR OF HOUSING COUNSELING WILL FORWARD THE DECISION TO YOU BY CERTIFIED MAIL NO LATER THAN FIVE WORKING DAYS AFTER THE DECISION HAS BEEN MADE. • IF THE DECISION IS NOT SATISFACTORY, YOU MAY APPEAL THE DECISION TO THE PRESIDENT OF COLUMBUS HOUSING PARTNERSHIP, OR DESIGNEE WITHIN FIVE WORKING DAYS OF RECEIPT OF THE DECISION MADE BY THE DIRECTOR OF HOUSING COUNSELING. SUCH REQUEST MUST BE MADE IN WRITING AND ADDRESSED TO THE PRESIDENT. THE PRESIDENT OR DESIGNEE, WILL REVIEW THE INFORMATION AND WILL MEET WITH PERSONS NECESSARY TO MAKE A DECISION. THE PRESIDENT WILL FORWARD THE FINAL DECISION TO YOU BY CERTIFIED MAIL, NO LATER THAN THIRTY DAYS AFTER RECEIPT OF YOUR LETTER

33. Affidavit of Income
HOMEPORT Housing Advisory Center Down Payment assistance Program Franklin County DAP I, __________________________, certify, under penalty of perjury, that I do not receive any form of income and have no indication that income will become available within the next 12 months. ____________________________________ _____________________ Signature Date Sworn to before me and subscribed in my presence this (Date) _____________________________________________ Notary Public, State of Ohio My Commission expires _________________________

34. Questions?