Single Family Housing Programs

Joyce AllenDeputy Administrator for Single Family Housing

September 26, 2015

Single Family Housing Guaranteed Loans

• No down-payment required • 30 year fixed interest rates• Guaranteed Underwriting System• Paperless Electronic Case Files• Mostly purchase transactions, 1-2% refinance• 85% first time homebuyers• 10% new construction• Low and moderate income households• Rural areas = up to 90% of the USA

• Single Close Construction to Permanent Loan Financing

– Great deal for rural borrowers because newly built homes require less maintenance

• Won’t need new roof for 20 years• Won’t need new furnace for up to 7 years• New appliances in kitchen and laundry• Everything is brand new• Less maintenance means better cash flow for Native American

borrowers

Single Family Housing Guaranteed Loans

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• Single Close Construction to Permanent Loan Financing

– Lender gets loan guarantee before construction begins– Interest payments during the construction period can

come from an interest reserve account, or from the borrower

– Promotes new construction to replace aging rural housing infrastructure

– Upcoming Handbook change will include manufactured homes as eligible

Single Family Housing Guaranteed Loans

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Expanded Lender Eligibility

• Effective December 1, 2014• Small community banks under federal supervision will now be

eligible to participate. In the past, many did not qualify because they were not approved by FHA, VA, Fannie Mae or Freddie Mac.

• Credit unions supervised by the NCUA will become eligible under the new regulation.

• These small lenders will enable the agency to reach more rural areas.

• In the case of credit unions, the agency will be able to reach special groups, for example, teacher credit unions, which benefit rural areas.

Single Family Housing Guaranteed Loans

Single Family Housing Guaranteed Loans

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Qualified Mortgage

• Proposed Rule published March 5, 2015

• Adopts CFPB points and fees limitations• Comments were to exempt HFA’s from QM

requirements• Final rule will be published within the next 60 days

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Streamlined Refinance

• Proposed rule published March 5, 2015

• Rural Refinance Pilot to become permanent program feature

• No appraisal• no credit report• no debt ratio calculations• Borrower must have paid their first mortgage on time

over the past 12 months

Single Family Housing Guaranteed Loans

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Streamlined Refinance

• Proposed rule published March 5, 2015

• Rural Refinance Pilot to become permanent program feature

• No appraisal• no credit report• no debt ratio calculations• Borrower must have paid their first mortgage on time

over the past 12 months

Single Family Housing Guaranteed Loans

Questions