MORTGAGE FINANCING IN A NEW AGE

Financing Options with VHFA

Why Choose VHFA?

√ Low VHFA rate using Conventional or Government underwriting criteria

√ Set pricing/fees for Conventional Loans – no add on fees for property, credit score, occupancy, etc.

√ $625 savings on VT Property Transfer Tax – exempt on the first $110,000

√ Lower PMI Rates

√ Local Lenders

Program Compliance

First Time Home Buyer

Federal Act Income

Income and Purchase Price Limits

Principal Residence

New Mortgage

No Other Real Estate Owned

Appurtenant Land

First Time Home Buyer

No ownership interest in a principal residence within last 3 years

First time home buyer counties – Addison, Bennington, Chittenden*, Grand Isle & Windsor

*except Census Tract 4

Federal Act Income

Purpose To determine program eligibility

Income included All income of the borrower(s)All income of a borrower’s spouse or civil union partner (even if they are not liable for the debt) or other co-owner

Controlling agency Internal Revenue Code regulating MRB’s

Income & Purchase Price Limits

Income Limits differ by county & family size

Duplex - One Statewide Purchase Price Limit

Refer to VHFA’s website at www.vhfa.org

Principal Residence

Borrowers must occupy the property as their full-time, year round principal residence within 60 days after the closing

No investment properties, recreational homes or if more than 15% of the property is used for trade or business

New Mortgage

VHFA funds restricted to new purchases, not to replace an existing mortgage

Exception – replacement of first construction loan or bridge loan or other temporary financing (must have an original term of 24 months or less)

No other Real Estate Owned

Borrower can not hold a present ownership interest in any other real estate

Exceptions – vacant land, real estate that is commercial or industrial in character, a vacation property unsuitable for year-round occupancy or a single-wide mobile home in a park not permanently affixed to land

Appurtenant Land

The amount of land must only be the amount necessary to reasonably maintain the basic livability of the residence and cannot provide a source of income

Maximum = 15 acres

Federal Recapture Tax

? Why do we have it?

? What has to happen for this to apply?

? Who tells the borrowers?

? When and Where do they pay it?

? How does it get calculated ?

Max is 6.25% of Loan amount

? How do borrowers get reimbursed?

SendSend them to our website…

Programs

MOVE Program (MBS) Conventional

Fannie Mae My Community Mortgage (MCM) Freddie Mac Home Possible (HP)

Government Rural Development FHA VA

Direct Loan Program

MOVE Program

Conventional Loans – must meet requirements of Fannie Mae MCM or Freddie Mac HP

Government Loans – must meet requirements of RD, FHA or VA

Conventional or Government underwriting w/VHFA rates

Reduced pricing for Conventional MCM or HP program

Variances to “normal” MCM/HP guidelines

VHFA Property Transfer Tax Exemption

Eligible MOVE Loans Advantages

MOVE Program

Loans originated by local lenders Allows Participating Lenders to use

Fannie or Freddie automated underwriting systems

All servicing is done by US Bank Home Mortgage – Mortgage Revenue Bond Division

MOVE Program – Eligible Properties

Single family detached New or existing

Duplexes Existing units only Must have been occupied as a

residence for at least five years prior to date of Mortgage Loan

Condominiums Fannie Mae, FHA, VA or RD

approved

Condominiums & Eligible Mobile Home Parks

For the MOVE program, VHFA will not keep a list of condominium projects that are Fannie, Freddie, FHA, VA or RD approved.

For the Direct Loan Program VHFA will review the documentation and determine if a project is eligible. Condominium projects must meet all Fannie guidelines, with the exception of the pre-sale requirement.

Need more information...

Visit www.vhfa.org Contact Bonnie Black at VHFA

bblack@vhfa.org 802.652.3427