Stewart Brown Jr – Mortgage Loan Originator – Purchase or Refinance
Empowered DPA Program
Empowered DPA Program
Program Summary
Program Summary
• Completely forgivable grant, equals 2% or 3.5% of purchase price
• May be combined with up to 6% seller concession for closing costs
• No resale restrictions
• Completely forgivable grant, equals 2% or 3.5% of purchase price
• May be combined with up to 6% seller concession for closing costs
• No resale restrictions
PARAMETERS
> FICO:
620 Minimum Qualifying Credit Score
> UNDERWRITING METHOD
• TOTAL Scorecard
• Desktop Underwriter (DU)
> AUS RECOMMENDATIONS
• Approve/Eligible – DU
• ***Note: Refer recommendations and
Manual underwrites NOT permitted
> FICO:
620 Minimum Qualifying Credit Score
> UNDERWRITING METHOD
• TOTAL Scorecard
• Desktop Underwriter (DU)
> AUS RECOMMENDATIONS
• Approve/Eligible – DU
• ***Note: Refer recommendations and
Manual underwrites NOT permitted
PROGRAM SPECIFICATIONS
PARAMETERS
PROPERTY TYPES (ELIGIBLE COLLATERAL)
ELIGIBLE TERMS
• 30 year fixed
TRANSACTION TYPES
• Purchase only
LTV/CLTV/HCLTV
• The maximum limit is
96.50%
DTI
• The maximum DTI limit is
48.99%
AUS RECOMMENDATIONS
• Approve/Eligible – DU
• Manufactured Housing:
• Singlewide,
• Multiwide,
• MH Condo Projects
• FHA HRAP Approved Condos
• PUDs
*Not eligible in Washington State
PARAMETERS
ELIGIBLE TERMS
• 30 year fixed
TRANSACTION TYPES
• Purchase only
LTV/CLTV/HCLTV
• The maximum limit is
96.50%
DTI
• The maximum DTI limit is
48.99%
AUS RECOMMENDATIONS
• Approve/Eligible – DU
PROPERTY TYPES (ELIGIBLE COLLATERAL)
• Manufactured Housing:
• Singlewide,
• Multiwide,
• MH Condo Projects
• FHA HRAP Approved Condos
• PUDs
*Not eligible in Washington State
ELIGIBLE PROGRAMS
INELIGIBLE PROGRAMS
• FHA 203(b)
• FHA 203(k) Limited
• FHA 203(k) Standard
• FHA Repair Escrow
Program cannot be used in
conjunction with:
• Non-FHA Loan Types
• Any other DPA Program
• High Balance Loans
• TBD
ELIGIBLE PROGRAMS
• FHA 203(b)
• FHA 203(k) Limited
• FHA 203(k) Standard
• FHA Repair Escrow
INELIGIBLE PROGRAMS
Program cannot be used in
conjunction with:
• Non-FHA Loan Types
• Any other DPA Program
• High Balance Loans
• TBD
BORROWER ELIGIBILITY
To be eligible for the program, the Borrower(s) must meet only ONE of the four following categories outlined:
First-Time Home Buyer
Current / Retired Employment or Volunteer / Non-Paid Member
Income
Underserved Census Tract
First-Time Home Buyer
Any Borrower on the loan application is a First -Time Home Buyer who meets the following criteria:
Is purchasing the Subject Property
Will reside in the Subject Property as their principal residence
Has had no ownership interest (sole or joint) in a residential property during the three -year period preceding the date of the application
Or is an individual who is a homemaker or single parent that has no ownership interest in a principal residence (other than a joint ownership interest with a (former) spouse) during the three -year period preceding the date of the application.
Current / Retired Employment or Volunteer / Non-Paid Member
Any Borrower on the loan application is a current, retired, volunteer or non -paid:
Military personnel
First responder (police officer, firefighter, public safety officer, paramedic, emergency medical technician (EMT) or similar
Educator (Sunday school teacher, tutor, day care provider)
Medical personnel (nurse, doctor, X-Ray technician, hospital administrator, or similar)
Civil servant in a Federal, state or local municipality
Income
The Borrower’s income (or, in the event of multiple Borrowers on a loan application, their income collectively) is equal to or less than 140% of the state or county median income regardless of family size based upon the state or county where the Security Property is located.
The Borrower’s income (or, in the event of multiple Borrowers on a loan application, their income collectively) is equal to or less than 140% of the state or county median income regardless of family size based upon the state or county where the Security Property is located.
Underserved Census Tract
If the subject property is in an Underserved Census Tract, the borrower would be eligible to use the program. Underserved Census Tract Look up:
If the subject property is in an Underserved Census Tract, the borrower would be eligible to use the program. Underserved Census Tract Look up:
HOMEOWNERSHIP EDUCATION OPTIONS
FRAMEWORK HOMEOWNERSHIP and HOMEOWNERSHIP COUNSELING LIST offer HUD approved Homebuyer
Counseling disclosure courses. This disclosure lists the 10 closest Housing Counselors near the subject
property zip code OR you can visit HUD.GOV . For this program, you will need to ensure the course
completed is either the “Pre -purchase Homebuyer Education Workshop” or the “Pre -purchase Counseling”.
FRAMEWORK HOMEOWNERSHIP and HOMEOWNERSHIP COUNSELING LIST offer HUD approved Homebuyer
Counseling disclosure courses. This disclosure lists the 10 closest Housing Counselors near the subject
property zip code OR you can visit HUD.GOV . For this program, you will need to ensure the course
completed is either the “Pre -purchase Homebuyer Education Workshop” or the “Pre -purchase Counseling”.
DETERMINING ELIGIBILITY BASED ON INCOME
Step 2 Select “OK” 1
Income Limit will populate.
• Borrower’s income (or, in the event of multiple Borrowers on a loan application, their income collectively)
must be equal to or less than 140% of the state or county median income regardless of family size based
upon the state or county where the Security Property is located to be eligible based on income.
FREQUENTLY ASKED QUESTIONS
Q: If I previously completed a Homebuyer Counseling course, will it be accepted?
A: If you have completed the course prior to our application date, it will be accepted if it is a HUD
approved course, and the expiration of the course is prior to the Note Date.
Q: Do all Borrowers need to take the home counseling or just one?
A: Only one Borrower is required to complete the course.
Q: Can I contribute more than 3.5% for their down payment?
A: Yes, you are permitted to contribute more than the minimum required investment of 3.5%.
Q: Are additional disclosures required?
A: Yes, there are 3 additional disclosures required for the Empowered DPA program. The first disclosure will be provided when the loan is setup and the other two disclosures will be provided after underwriter approval and must be printed out and wet signed.
Q: Does the program allow for a non-occupant co-Borrower?
A: Yes, the program will allow for a non-occupant co-Borrower.
Q: Do all borrowers on the loan need to meet 1 of the 4 eligibility requirements? (First time
homebuyer, Income, Underserved or Employment?)
A: Only one Borrower is required to meet 1 of the 4 areas to be eligible.
Q: Is TBD permitted?
A: TBD is not permitted because it must be an Approve/Eligible, which requires complete property
information.
Q: Are we going to take the AMI and multiply it by 140% to determine our income limit for this
program regardless of the areas being underserved? Are underserved areas exempt from the
income limits?
A: No, use 140% of the AMI in all areas.
Q: Do we need confirmation of wire Instructions prior to DPA funds disbursement?
A: Yes, the lender will confirm the settlement agents / Title companies wire instructions prior to the DPA funds
being requested