SS Single-Family Memo 13-01
Date: April 4, 2013
SELLING GUIDE REVISIONS: Contact Underwriting
Closing Cost Assistance Program (CCAP)
AHFC is pleased to announce the Closing Cost Assistance Program (CCAP). AHFC will facilitate the making of mortgages by providing a 30-year fixed interest rate that includes funds for closing cost assistance in the amount of 3% of the loan amount. The closing cost assistance funds can be used for the transaction as follows: closing costs, minimum cash investment, and principal reduction. The funds must be applied to those transactional costs, in the order listed above, until the funds are exhausted. Cash back is strictly prohibited.
CCAP can be used for FHA, VA, and USDA-RHS loans. Borrowers must be Alaska residents. The minimum credit score is 640. The maximum total debt to income ratio is 45%. The property must be a one-unit single family dwelling that is an owner-occupied primary residence. The transaction must be a purchase money transaction. Refinance transactions are not permitted. Full details can be found in the attached AHFC guidelines Section 5013 and guidelines available at the Servicer’s site https://www.usbank.com/home-loans/mortgage/mortgage-process.aspx.
To participate in the program, a lender must be approved by the Servicer, enter the CCAP contract with AHFC, and attend the lender training provided by U.S. Bank and AHFC.
Once approved, a lender can access CCAP for reservations through AHFC’s lender portal. Use of the lender portal is mandatory for this program and any lender approved to participate may begin making reservations effective with the date of this memorandum.
Forms Guide revisions: Contact Underwriting
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