Leading the Future of Home
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
3/7/2022
Leading the Future of Home
The Affordable Ecosystem
Local Loan Real estate Builders &
It takes many hands to governments officers professionals developers
make home possible.
Partnership and
collaboration across the Mortgage &
Housing
banking
counselors
affordable ecosystem are executives
critical to drive both
business opportunities and
State
making the dream of home Appraisers
governments Housing
Non-profit
a reality for families. finance
organizations
agencies
2
1
3/7/2022
Challenges to Homeownership
Access to a down payment
for a mortgage remains one
of the most common hurdles
for today’s borrower.
13% 26% 24% 40% 42%
of All Buyers of Millennials of Millennials Don’t know down payment Don’t know of low down With housing prices rising,
28 and younger 29 to 38 requirements and… payment programs
incomes remaining stagnant
Saving for down payment most difficult Borrowers lack general down and limited housing stock, it
step in home buying process2 payment knowledge1 creates a highly competitive
market for very-low and low-
income borrowers who
Top Expenses that Delayed Saving for Down Payment2 increasingly struggle to save
for their initial down
50% 50% 37% 17% 13% 17%
payment.
Student Loans Credit Card Car Loan Child Care Health Care Other
Source: 1 2017 Urban Institute Report Barriers to Accessing Homeownership: Down Payment, Credit and Affordability
2 2019 National Association of Realtors Home Buyer and Seller Generational Trends Report
3
HFA Value Proposition
Housing Finance Agencies are easier to work with than ever before!
Competitive Production/Processing
Market Rates in average market
timing
(in most cases)
Down Payment
Assistance
4
2
3/7/2022
HFAs: An Opportunity for 1st Time Homebuyers
• Ideal for borrowers with limited funds for down payment and closing costs and those needing
extra flexibilities on credit and income sources
• Reach more potential homeowners through HFA programs that:
– Provide low down payment options
– Offer preferential pricing
• HFAs offers affordable downpayment and closing cost loans
• An alternative to FHA financing
5
Overview of HFA Advantage®
Mortgage
3
3/7/2022
HFA Advantage® Mortgage
One-unit primary residence High loan- to-value (LTV) Income limits established by the HFA
conventional offering
that’s an excellent
Purchase alternative to FHA Available to first-time homebuyers,
repeat buyers
lending requirements and
Maximum 97% LTV and 105% mortgage premiums.
total loan-to-value (TLTV ratios) Flexible funding options for down
Adopts the requirements payment and closing costs
Loan Product Advisor® of Home Possible® but
with added flexibilities for
HFAs. Flexible MI options available
No reserves required
7
HFA Advantage® Mortgage –
Mortgage Insurance
HFA Advantage Mortgage Standard Mortgage
LTV Ratio Insurance Coverage Insurance Coverage
(Fixed rate only) (Fixed rate, term >20 years)
Greater than 80% up to 85% 6% 12%
Greater than 85% up to 90% 12% 25%
Greater than 90% up to 95% 16% 30%
Greater than 95% up to 97% 18% 35%
8
4
3/7/2022
Why Choose HFA Advantage ® Mortgage
over FHA?
HFA Advantage® FHA
MI ends when LTV < 80% OR MI stays for the life of the loan
Conventional MI: monthly premium OR FHA: Upfront AND monthly premiums
MI only required if the LTV is 80% or higher OR MI required regardless of the LTV
No upfront MIP OR Upfront MIP added to principal AND amortized
WHAT THIS With more funds applied toward the principal up front, an HFA
MEANS: Advantage mortgage with PMI lets the borrower build equity faster
Mortgage Insurance (MI)
9
Freddie Mac Loan Product AdvisorSM
5
3/7/2022
Loan Product Advisor
Select HFA Advantage in the
“Offering Identifier” field within
the “Mortgage Type and Loan
Terms” section of Loan Product
Advisor.
If using a Loan Origination
Software (LOS) system, please
contact them to verify what
field and value to enter. Some
LOS systems may have you
enter “251”.
11
Loan Product Advisor Feedback
Certificate
Verify the loan was
submitted correctly by
ensuring the value entered
in the “Offering Identifier”
field is showing HFA
Advantage. This is found
in the “Mortgage
Information” section of the
Loan Product Advisor
feedback.
12
6
3/7/2022
Down Payment Assistance:
Non-Amortizing Subordinate Financing
13
Down Payment Assistance:
Amortizing Subordinate Financing
14
7
3/7/2022
Mortgage Details
15
Purchase eligibility and AUS Risk Class
16
8
3/7/2022
Purchase Restriction Messaging
• Purchase eligibility must be
“Eligible”.
• Ineligible reason messages
will be clearly displayed on
the feedback certificate
17
Caution Related Feedback Messaging
18
9
3/7/2022
Qualifying Ratios
19
Loan Product Advisor- Mortgage Details
20
103/7/2022
Loan Product Advisor Feedback
Certificate
21
Message Summary
22
113/7/2022
MI Specific Messaging
23
800-FREDDIE
Specialists trained in HFA Advantage
Review individual loan scenarios
Assist with LPA Feedback
24
123/7/2022
YOU Are the Critical Link
• YOU are the critical link to helping well • Homebuyer dream realized—and more
qualified homebuyers achieve their business for you—if you know your market
homeownership objectives: and where to find those affordability gap
– Provide access to credit; originate loans to the full solutions
extent of Freddie Mac’s credit box
– Utilize your mortgage finance expertise
– Explain the process and dispel the 20% down
payment myth
– Identify and match available financial resources in
your area (government, nonprofit, private
sources) with a sustainable mortgage solution
– Take advantage of Freddie Mac training and
resources for yourself and your borrower Freddie Mac is here to help!
25
13You can also read
