dallas homebuyer assistance...

Dallas Homebuyer Assistance Program

Funded by:

U.S. Department of Housing and Urban Development

(HUD)

Tammi Southall

Sr. Contract Compliance Administrator

Housing/Neighborhood Revitalization

City of Dallas

Program Website: www.dallasmap.org

Presentation Overview

• Background/History

• Purpose

• Community Impact

• Program Overview

• Important Note – Notice of Funding Availability

• Next Steps

2

Background/History

• Provided homeownership opportunities for low to

moderate income families since 1991.

• Assisted nearly 7,900 families to become

homeowners within the City of Dallas.

3

Purpose

• Continue to increase homeownership opportunities,

especially for low-income families;

• Preserve existing owner-occupied and rental

housing stock;

• Increase availability of affordable housing

opportunities; and,

• Support neighborhood and community-based

preservation and revitalization efforts.

4

Community Impact – 2016 -2017

5

• Families Served 120• African American 34%• Anglo 08%• Hispanic 57%• Other Ethnic Background 01%

• Area Median Income• 51% - 80% 82%• 50% and below 18%

• Average Family Income $39,914

• Average Sales Price $122,485

• Average Subsidy Received $15,733

• Total Subsidies Provided $1,887,937

• Private Mortgage Financing Leveraged $13,422,608

Community Impact - 2016-2017

6

Construction Type

Existing Properties 64 Units

New Construction - General 21 Units

New Construction - CHDO 27 Units

New Construction – Land Bank 8 Units

Community Impact - 2016-2017

7

Total Loans Closed 7,852

Public Subsidy $81,601,141

Cumulative Loan Production

From Oct. 1, 1991 – Sep. 30, 2017

Program Overview – Key Changes

• Homebuyers to be prequalified for assistance by DHAP

• Homebuyer assistance will be determined based on need

• Changes to housing expense/total debt to income ratios

• Homebuyer assistance is due in full upon sale, lease,

transfer or disposition of property

• MHS Repair Reimbursement Program discontinued

• Homebuyers to sign a City of Dallas Homebuyer Written

Agreement prior to closing

• Affordability period expirations for HOME Investment

Funding

8

Program Overview – Existing and New

Construction Homebuyer Assistance

9

• Homebuyers may be eligible to obtain a deferred loan for the purchase of

their Primary Residence. Actual assistance amount will be need

based.

• Borrowers must contact DHAP for an in-office appointment for

applicant pre-qualification of income eligibility.

• Purchase Property must be within the City of Dallas

• The funds have a 5, 10 or 15 year affordability restriction. Affordability

restriction is based on the amount of HOME Investment funds received.

• No payment, no interest

• Due in full upon sale, lease, lease with option to purchase, transfer or

other disposition (including contract for deed) of the property within the

deed restriction period. These loans are secured by a lien on the property

Program Overview – Existing and New

Construction Homebuyer Assistance

(continued)

10

• Conventional, FHA, Portfolio or VA Loans. Lenders must establish

Escrow Accounts

• FHA 203K loans are not eligible for DHAP funding.

• Not allowed: High Cost or Sub-Prime Loans, Adjustable Rate

Mortgages (ARM), Interest only loans, Discount Points paid by

Borrower, and Cash Back at Closing

• Home sales price cannot exceed $195,000-Existing Homes / $224,000-

New Homes.

• Properties occupied by a tenant other than seller/borrower must be

vacated for a period of 60 days prior to execution of the sales contract.

Program Overview – Eligible Borrower

Requirements

11

• Homebuyer incomes must be between 40% and 80% of the Area Median Income for household size.

• Homebuyer must be a U.S. citizen or permanent resident, with a valid Social Security Card. Permanent residents must provide a copy of their unexpired immigration documents.

• Homebuyers must owner-occupy the property as their homestead.

• Homebuyers requesting assistance must conform to IRS filing requirements.

• Homebuyer must have continuous, satisfactory employment history for the past six months.

• Homebuyer must contribute at least $1,000 toward down payment and closing costs.

Program Overview – Eligible Borrower

Requirements (continued)

12

• Homebuyer with liquid assets in excess of $10,000 must invest excess assets

into the purchase of the property. Funds in IRS-recognized retirement accounts

excluded.

• Homebuyer must have two months reserves in liquid assets after closing.

• Homebuyer must receive homebuyer education by a DHAP and HUD approved agency.

Online courses are not eligible.

• Homebuyer must be pre-qualified for a 30 year fixed rate mortgage loan by a DHAP

approved mortgage lender.

• Homebuyer’s Housing Expense to Income ratio may not exceed 30%, while the

Homebuyer’s Total Debt to Income ratio may not exceed 43%. Housing Expense

to Income ratio’s below 20% are not eligible for the homebuyer assistance.

• Homebuyers must requalify for assistance if closing does not occur within 3

months of initial prequalification.

• Co-Signers are not eligible.

Program Overview – Income Calculation –

Family Household Income

13

• All sources of income for the household must be documented and will

be used to determine the Annual Family Household Income.

• Income eligibility will be determined by using the IRS Form 1040

Adjusted Gross Income Method. This will require the Tax Return for

the last tax period, the DHAP Verification of Employment (VOE)

Form and two months most recent paystubs. Documentation of all

other sourced income must be provided.

• The greater of the income calculation will be used to determine DHAP

eligibility.

• Self-employed homebuyers must provide the two (2) most recent tax

returns and a current profit and loss statement [Must be Self-

Employed for past two (2) years]


Family Household Size

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• Dependents:

• Individuals under 18 years of age, or is a person with

a disability, or is a full-time student and reside in the

household with the borrower. Full time student(s)

must provide current school records, such as

paid fee statements that show a sufficient

number of credits to be considered a full-time

student by the educational institution attended.

• Supporting documentation for dependents must

include legal documents such as:

• Birth Certificate

• Social Security Card

• Marriage Certificate

• Custodial Agreement


Family Household Size

15

• Dependents not counted:

• Foster Children

• Live-in aides and children of live-in aides

• Unborn children

• Children being pursued for legal custody or

adoption

Program Overview – Property

Requirements

16

• City Limits of Dallas (http://maps.dallascityhall.com)

• The sales price must not exceed the appraised value of the property

• Types of properties:

• Single Family

• Condominium

• Town home

• 1-4 unit development

• Properties must be occupied by the owner or borrower

• If occupied by a tenant other than the borrower, must be vacated for a

period of 60 days prior to execution of sales contract

• Properties must meet Minimum Housing Standards (MHS) including lead-

based paint regulations

• HUD Foreclosures built after January 1, 1978 are eligible

• HUD Homes must meet all DHAP guidelines.

• All MHS required repairs must be completed prior to submission of

DHAP loan file.

• FHA 203k loans not eligible

Program Overview – MHS Property Review

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• MHS reviews must be completed by an authorized representative of the City of Dallas (at no cost to the homebuyer).

• The MHS review is to ensure the property meets standards for the program. It is not for the benefit of the homebuyer.

• Should be requested and performed during option period of purchase contract

• All MHS required repairs must be completed prior to closing

• Homebuyers are not allowed to make MHS required repairs to the purchased property.

Program Overview – MHS Property Review

Process

18

Initial MHS Review

Once purchase contract is executed, lender is allowed to register homebuyer with DHAP

Once the homebuyer is registered, the MHS Review may be requested

Once submitted, within 48 hours, a representative from the City of Dallas will contact the requesting party to confirm the date and time of the review.

Final MHS Review

Once required repairs are completed, same MHS Review request process should be followed

Final inspection is performed once all MHS required repairs are completed

TREC Inspection

Is HIGHLY recommended

Not required for DHAP

Forms are available at www.dallasmap.org/ MHS Inspection Process

http://www.dallasmap.org/

Program Overview – Lead-Based Paint

Hazard Reduction

19

• Homes built before 1978 may have lead in the paint.

• No deteriorated paint (chipping, peeling, cracking, flaking,

chalking).

• Visual inspection of all painted surfaces (interior, exterior,

garage, detached buildings, fences).

• Deteriorated paint should be addressed before the

inspector arrives.

Program Overview – Loan Processing

Procedures

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• All DHAP loans will be registered online

• Homebuyers must contact DHAP to schedule an appointment for application intake and prequalification

• Loan Officers will receive a User ID and Password to access the loan registration system

• Once loan is registered, lender will:• Save registration confirmation (includes assigned DHAP loan number)• Submit loan package in pdf form via email to

[email protected]• Within 30 days for existing properties• Within 120 for all new construction properties

• If complete loan package is not received within 30/120 day timeframe, DHAP registration will expire and be deemed null and void

• INCOMPLETE LOAN PACKAGES WILL NOT BE ACCEPTED

• Estimated 10 business day turn-around

Program Overview – Closing and Funding

21

• Homebuyer(s) to sign City of Dallas Homebuyer

Written Agreement prior to setup of closing

• Closing and Table Funding only at DHAP participating title

offices registered as a Vendor with the City of Dallas

• DHAP lenders and City of Dallas set closing date, order

documents and wire funds for closing

• City of Dallas authorizes funding only after the title office

has provided the required documents

• Second-lien associated charges disclosed by Lender

22

Program Overview – Flow of ProcessHomebuyer Process

Homebuyer Education

Mortgage Prequalification

Contact DHAP for Interview

DHAP underwrites for program

eligibility/prequalification

Yes No

Sales Contract

RegisterBorrower

MHS Review

1st Lien Loan Package

Submission

DHAP underwrites for final loan approval

Yes No

Homebuyer Written

Agreement

Request for closing

instructions

End of Process

Fund End of Process

SuspendedDenied

Order Closing

Documents

Notice of Funding Limitations

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Subsidies are subject to fund availability on a first-come,

first-served basis. Acceptance of an application for

DHAP in no way constitutes a commitment or obligation

on the part of the City of Dallas. No commitment is

made or implied until City of Dallas has approved

funding for each application. Due to funding limitations,

no applicant should assume any commitment even when

an applicant must expend personal funds to meet

application requirements.

Next Steps

24

Lender Partner Program Approval Process

Partner application available at www.dallasmap.org/Lender

Resources.

Original, executed application package must be sent to our office:

Attention: Pamela Beck

City of Dallas Housing/Neighborhood Revitalization

1500 Marilla St, Suite 6BN

Dallas, Texas 75201

Processing time is 24 hours for determination of approval

http://dallascityhall.com/departments/housingcommunityservices/dallasmap/DCH Documents/DHAP 2016-17 Lender Membership Application rev 3-2017.pdf

Next Steps

25

Title Company Partner Program Approval Process

Partner application available at www.dallasmap.org/ Title

Companies.





Dallas, Texas 75201



Next Steps

26

Homebuyer Education Partner Program Approval Process

Partner application available at www.dallasmap.org/ Education

Providers





Dallas, Texas 75201



Program Staff

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Dallas Homebuyer Assistance Program Team

David Silva, Sr. Housing Assistance Specialist

Tammi Southall, Sr. Contract Compliance Administrator

Melissa Hale, Loan Services Representative

Kimberly Hubbard, Loan Services Representative

Pamela Beck, Administrative Assistant

Office Management

Jacqueline Rodarte-Valle, Assistant Director

Rick Robin, Development Manager


Funded by:


(HUD)

Tammi Southall

Sr. Contract Compliance Administrator

Housing/Neighborhood Revitalization

City of Dallas

Program Website: www.dallasmap.org


Funded by:


(HUD)

David Silva

Sr. Housing Assistance

Specialist

Housing/Neighborhood

Revitalization

City of Dallas

Program Website:

www.dallasmap.org

Presentation Overview

• Lender Required Forms

• DHAP Underwriting Guidelines

• Final Homebuyer Underwriting

Assessment

• City of Dallas Homebuyer Agreements

• Recapture Policy

2

Questions

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