the sapphire grant product 3/28/2014 1. sapphire product do not need to be a first time homebuyer...
DESCRIPTION
Sapphire Grant Product 3% or 5% can be used for down payment, closing costs or origination fee The Grant is forgiven; no repayment required ½% down can be gift (5% all grant) Borrower Paid Origination Only Max broker comp: 1 ½% (can be paid by buyer, seller, 3 rd party, or with grant funds), PLUS reasonable processing fee. Be sure this in included in box 1 of GFE. SFR’s, PUD’s, or FHA approved condos; FLIPS YES, 203k NO Minimum Fico: 620 Maximum Loan: $417,000 including UFMIP or VA funding fee Ratios: Must receive a DU Accept. Owner Occupied Non occupant co-signors allowed (co signors income not considered in limitations Non occupant co borrowers not allowed. 115% of Medium Income Limitations; pp_Income_Limits.aspx Income calculated per HUD or VA guidelines- not by family size Customary and reasonable closing cost fees allowed Manual lock at (must be in Ready for Docs 3030NHF – FHA 30yr fixed 3% 30305NHF – FHA 30yr fixed 5% 3030VNHF – VA 30yr fixed 3% 30305VNHF – VA 30yr fixed 5% 3/28/2014 3TRANSCRIPT
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The Sapphire Grant Product
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Sapphire Product
Do not need to be a first time homebuyer
Can be used with an FHA, VA, or USDA 1st trust deed
Can be combined with a CalHFA MCC to reduce ratios.
The rate is different depending on the amount of the grant chosen.
NOTE: The grant of 3% or 5%, whichever
you choose, is based on the total loan amount, including MIP, not on sales price or appraised value.
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Sapphire Grant Product
3% or 5% can be used for down payment, closing costs or origination fee
The Grant is forgiven; no repayment required
½% down can be gift (5% all grant) Borrower Paid Origination Only Max broker comp: 1 ½% (can be paid
by buyer, seller, 3rd party, or with grant funds), PLUS reasonable processing fee. Be sure this in included in box 1 of GFE.
SFR’s, PUD’s, or FHA approved condos; FLIPS YES, 203k NO
Minimum Fico: 620 Maximum Loan: $417,000 including
UFMIP or VA funding fee Ratios: Must receive a DU Accept.
Owner Occupied Non occupant co-signors allowed (co
signors income not considered in limitations
Non occupant co borrowers not allowed. 115% of Medium Income Limitations;
http://www.nhfloan.org/Programs/NHF_Sapp_Income_Limits.aspx
Income calculated per HUD or VA guidelines- not by family size
Customary and reasonable closing cost fees allowed
Manual lock at [email protected] (must be in Ready for Docs Status)
3030NHF – FHA 30yr fixed 3% 30305NHF – FHA 30yr fixed 5% 3030VNHF – VA 30yr fixed 3% 30305VNHF – VA 30yr fixed 5%
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IMPORTANT! – How to enter on the 1003
The Sapphire Grant is NOT a lender credit nor an “other asset”. There are 2 places on the 1003 which the grant funds need to be entered correctly in
order for the DU to run properly. The below are screen prints of how to enter in DO/DU. We want your approval to be accurate. AVOID incorrect approvals – due to incorrect input. These are screen prints from POINT.
Important factors in getting a positive approval would be lower ratios and good credit . How to enter on Page 1 of the 1003 under source of down payment:
List as FHA Gift Source Nonprofit/Religious/Community-Non-Seller Funder
How to enter on Page 2 of the 1003 under the asset screen: Gift
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Sapphire Income Limits 2014
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Sapphine 2014 Income Limits
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Can I have an MCC Tax Credit with the Sapphire Product? Yes!
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Combine your Sapphire with an MCC Credit – however remember MCC requires you to be a 1st time h/b, Sapphire does not.
• An MCC Credit can help you reduce your ratios.
• When using a MCC Credit, use the CalHFA income/sales limits, whichever is lower.
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