GEORGIA FHA DOWN PAYMENT ASSISTANCE MORTGAGE LENDERS EXPLAINED-The GEORGIA Down Payment Assistance Mortgage Lenders (DAP) is a competitively priced government loan program that does not require a minimum down payment from the home buyer(s), exclusively offered from GEORGIA Down Payment Assistance Mortgage Lenders . GEORGIA Down Payment Assistance Mortgage Lenders provides you) with a choice of a 3%, 4%, 5%, or 6% DAP.
100% NO MONEY DOWN KEY POINTS FOR GEORGIA HOME BUYERS
- No requirement to be a first time home buyer.
- Must have a minimum 640 credit score.
- Must have Max Debt to income of 45%.
- Must meet Income Limits (up to 140% AMI)
- First lien is a 30-year fixed term with full amortization
- 203(b) in accordance with FHA guidelines
- Primary residence 1-4 units single family is allowed.
- DAP funds available, 3% to 6% of the first mortgage loan amount.
- What if I live rent free? Yes (If Borrower does not have current housing history, then 3
months reserves (PITIA) are required)
GEORGIA DOWN PAYMENT ASSISTANCE PROGRAM EXPLAINED- The program is designed to increase GEORGIA homeowner ship opportunities families. GEORGIA down payment assistance funds available, 3% up to 6% of the first mortgage loan amount. This home loan program is a purchase money first lien mortgage with Down Payment Assistance is in the form of a soft second lien with a 5-year term, forgiven at month 61, as a 0% interest second lien. GEORGIA down payment assistance mortgage applicants(s) must remain current on their first GEORGIA mortgage for the second mortgage to be forgiven.
• Must meet Income Limits (up to 140% AMI) listed below.
• First lien is a 30-year fixed term with full amortization
• 203(b) in accordance with FHA DOWN PAYMENT ASSISTANCE guidelines
• 1-4 units allowed
• Primary residence only.
• Cooperative housing (co-op) not eligible
• Manufactured housing eligible under the GEORGIA Down Payment Assistance Mortgage Lenders FHA DOWN PAYMENT ASSISTANCE MH program TRID Disclosures are not applicable for the second lien.
• 1 Partial Exemption Disclosure required at initial disclosure.
• Program eligible All GEORGIA..
FHA DOWN PAYMENT ASSISTANCE DOWN PAYMENT ASSISTANCE MORTGAGE LENDERS LOAN TYPES AND TERMS
Loan Types:
• FHA DOWN PAYMENT ASSISTANCE; in accordance with FHA DOWN PAYMENT ASSISTANCE guidelines. Loan Term:
• 30-year fixed term with full amortization. Loan Amount:
• Conforming FHA DOWN PAYMENT ASSISTANCE loan limits apply as applicable to geographic location. Max LTV/CLTV:
• Follow FHA DOWN PAYMENT ASSISTANCE agency guidelines. No Buy-downs are allowed PAR priced program, no premium or discounts allowed Interest rates on the 1st mortgage loan vary based on the assistance selected. This home loan program is a purchase money first lien mortgage with down payment assistance in the form of a subordinate soft second lien with a 0.00% interest rate, as a 5-year term, forgiven at the end of the 5-year* term. GEORGIA down payment assistance mortgage applicants(s) must remain current on their first mortgage for the second mortgage to be forgiven.
GEORGIA FHA DOWN PAYMENT ASSISTANCE Down Payment Assistance– Up to 4% of the loan amount in the form of an
interest free second lien, forgiven over a 3 year period
1. All mortgages on the property collectively may not exceed the FHA DOWN PAYMENT ASSISTANCE Nationwide Mortgage Limit for the area in which the
property is located in.
2. Unlimited CLTV is applicable to Governmental Entities or
HUD-Approved Nonprofits.
GEORGIA FHA DOWN PAYMENT ASSISTANCE MORTGAGE LENDERS DOWN PAYMENT AND CLOSING COST ASSISTANCE
DAP aka Down payment assistance in the amount of 3% up to 6% depending on FICO score and AMI income qualification. Based on total First Mortgage Loan amount (rounded up always to the nearest dollar). DAP funds may be used for down payment and/or closing costs.
PLEASE CHECK GEORGIA INCOME LIMITATIONS BEFORE PROCEEDING = 2ND ROW = 140% INCOME LIMITS
OVERVIEW GEORGIA DOWN PAYMENT ASSISTANCE LHFS
The GEORGIA FHA Down Payment Assistance Program (DAP) is a competitively priced government loan program that does not require a minimum down payment from the home buyer(s), exclusively offered GEORGIA FHA Down Payment Assistance Program. GEORGIA FHA Down Payment Assistance Program provides you with a choice of a 3%, 4%, 5%, or 6% DAP. This home loan program is a purchase money first lien mortgage with down payment assistance in the form of a subordinate soft second lien with a 0.00% interest rate, as a 5-year term, forgiven at month 61. Borrower(s) must remain current on their mortgage for the second mortgage to be forgiven. The DAP should be ran through AUS as a second mortgage without a required payment. This product is designed for the borrower that has achieved financial stability as demonstrated by the file documenting that they have met the responsibilities associated with taking the next step to home ownership such as stability of employment and income, managing their finances and savings to a budget that exhibits responsible repayment patterns and a satisfactory credit history. The down payment assistance program is intended to help these families or individual that have been unable to save a sufficient amount for a down payment and do not have any other resources available for down payment assistance. Due to the nature of the layered risk in the product offering GEORGIA FHA Down Payment Assistance Program will require an evaluation of the borrower’s current housing payment history. The borrower must maintain a bank account which will be reviewed to ensure the borrower is able to meet their monthly obligations based on their current income level in a timely manner. GEORGIA down payment assistance mortgage lenders will require two months bank statements as part of the underwriting evaluation. While the program will allow the down payment and closing costs to be covered by the DAP or other eligible borrower funds/gifts along with seller contributions used for closing costs only, bank statements are required as a necessary part of the credit evaluation. In order to ensure the borrower will be able to manage a new mortgage payment, the evaluation will include housing payment history. We consider payments made after the due date to be late, inconsistent payment amounts throughout the month and full 30-day lates in making a decision on both the borrower’s ability and willingness to repay. We also generally see payment shock on the housing payment to the new required mortgage, so it is especially important to review the GEORGIA down payment assistance mortgage applicants monthly budgeting and financial stability. New homeowners face increased costs when transitioning from a rental property into home ownership where they are responsible for covering all utilities, incidentals, and maintenance of the home. As part of this review, borrower’s that are unable to manage month to month and exhibit NSF (Non-Sufficient Funds) outside of an isolated incident are reviewed very carefully as this is an indication of excessive obligations or inability to manage current budget. Layered with limited assets, payment shock or other credit concerns, these factors may result in a loan denial for this program due to layered risk. It is our intention to help families achieve successful home ownership, not create a financial hardship
PLEASE CHECK GEORGIA QUALIFYING LIMITATIONS BEFORE PROCEEDING
1. NSF/Overdrafts – Please carefully review the GEORGIA down payment assistance mortgage applicants’s most recent two months bank statements taking particular note of any YEAR TO DATE charges as well as current balance history. GEORGIA down payment assistance mortgage applicants with overdrawn accounts (negative balance at any time), excessive NSF’s and/or overdraft charges will not be eligible. o One (1) NSF is acceptable.
2. Paying off debt to qualify is not allowed.
3. Non-occupant co-GEORGIA down payment assistance mortgage applicants are not allowed.
4. Payment plans for collections and/or IRS tax liabilities are not allowed.
5. Collections with aggregate total over $2500 must be paid in full.
6. GEORGIA down payment assistance mortgage applicants may not have ownership interest in any other real estate at the time of closing. This includes any ownership interest held by a non-borrowing spouse (an exception can be considered for a GEORGIA down payment assistance mortgage applicants who owns property in another state with a 12 month history of rental). Multiple rental properties are not acceptable (regardless of location).
7. Max ratio: o FICO 640-659 eligible for 3% up to 5% DAP. ▪ Max DTI: 45% o FICO 660+ eligible for 3% up to 6% DAP. ▪ Max DTI per AUS approval.
8. Full IRS transcripts are required (2 years). W2 only not allowed. 9. VOR is required, must be supported by 12 months cancelled checks or withdraws from bank statement and landlord confirmation of receipt. If GEORGIA down payment assistance mortgage applicants does not have current housing history, then 3 months reserves (PITIA) are required.
FHA DOWN PAYMENT ASSISTANCE Down payment Assistance Mortgage Lenders Credit Guidelines:
• Paying off debt to qualify is not allowed.
• GEORGIA Down Payment Assistance Mortgage Lenders does not allow audited P&L’s to be used for income calculation purposes.
• No outstanding judgments, including repayment plan. All outstanding judgments must be paid in full.
• Foreclosure, Deed-in-Lieu, and Short-Sale History: 3 years
• Chapter 7: 2 years from discharge date
• Chapter 13: Bankruptcies must be fully discharged before eligible for financing
• VOR supported by 12 months cancelled checks or withdraws from bank account.
• If GEORGIA down payment assistance mortgage applicants does not have current housing history, then 3 months reserves (PITIA) are required.
• IRS payment plans:
• IRS repayment plans initiated in the current year are not allowed.
• IRS repayment plans initiated for multiple consecutive years are not allowed. (pattern of inability to manage finances)
• For consideration of an exception request an explanation as to why the GEORGIA down payment assistance mortgage applicants owes unpaid taxes, what steps have been taken and put into place to correct the underpayment from occurring in the future, a copy of the IRS agreement, IRS record of account transcripts to confirm date of payment arrangement request and evidence of 3 consecutive timely payments will be required.
• Due to the nature of the layered risk in the product offering GEORGIA Down Payment Assistance Mortgage Lenders will require an evaluation of the GEORGIA down payment assistance mortgage applicants’s current housing payment history and the GEORGIA down payment assistance mortgage applicants must maintain a bank account which will be reviewed to insure the GEORGIA down payment assistance mortgage applicants is able to meet their monthly obligations based on their current income level in a timely manner. GEORGIA Down Payment Assistance Mortgage Lenders will require two months bank statements as part of the underwriting evaluation. While we will allow the down payment to be covered by the DAP and closing costs to be covered by eligible gifts or seller credits, bank statements will still be required as part of the credit evaluation.
• Evaluation will include housing payment history. We consider payments made after the due date to be late, inconsistent payment amounts throughout the month and full 30-day lates in making a decision on both the GEORGIA down payment assistance mortgage applicants’s ability and willingness to repay. We also generally see payment shock on the housing payment to the new required mortgage, so it is especially important to review the GEORGIA down payment assistance mortgage applicants monthly budgeting and financial stability. New homeowners face increased costs when transitioning from a rental property into home ownership where they are responsible for covering all utilities, incidentals, and maintenance of the home.
Cash To Close Required By Georgia Down payment Assistance Mortgage Lenders
• Gift donors cannot be on title or purchase contract as they do not meet the definition of “Gift” per agency definition.
• VOD’s are not acceptable for asset documentation alone.
• 2 months of bank statements for checking accounts are required on primary GEORGIA down payment assistance mortgage applicants regardless of cash to close requirements and AUS findings.
• GEORGIA down payment assistance mortgage applicants with overdrawn accounts (negative balance at any time), excessive NSF’s and/or overdraft charges will not be eligible o One (1) NSF is acceptable. EMPLOYMENT / INCOME • Income limit is 140% of Area Median Income (AMI) or maximum allowable by FHA DOWN PAYMENT ASSISTANCE. Limit is based on qualifying income used for the transaction, not household income. For AMI refer to: • Income Limits.
• GEORGIA down payment assistance mortgage applicants who have new employment in the prior two years with increased earnings will require recent educational related experience to support the career and/or income change.• Positions with variable income or varying hours will require a minimum of twelve months to effectively calculate the stable monthly qualifying income. • Rental income received from a relative requires a documented 12-month payment history of rents.
• Paystubs and W-2’s may not be substituted with a written verification of employment.
• Amended tax returns are only acceptable for documented errors or omissions.
• 4506T: Full 1040 transcripts required on all GEORGIA Down Payment Assistance Mortgage Lenders loans, W2 Only transcripts not allowed.
