SS Single-Family Memo 13-07

Date:  November 1, 2013

SELLING GUIDE REVISIONS:  CONTACT UNDERWRITING

AHFC is pleased to announce that the Selling Guide has been updated to amend the following:

Minimum Down Payment
(REVISED Section 4006.01)

For conventional loans, AHFC requires the borrower to invest 5% of their own funds into the transaction. AHFC will consider some gift funds the same as the borrower’s own funds. Please review Section 4006.01 for a full understanding of the guideline changes. This change is effective with the date of this memo.

Refinance Loans – Reserves
(Revised Sections 7003 and 7004)

The calculation of the maximum loan amount for refinance loans has been amended to include financing of the new reserve account. In addition, regardless of how the reserve account on the existing loan is dispensed at payoff, AHFC does not consider a refund of an existing reserve account as “cash back” under any circumstances. Please review Sections 7003 and 7004 for a full understanding of the guideline changes. This change is effective with the date of this memo.

As-Built Surveys
(REVISED SectionS 9001.07.C and 9001.07.D)

AHFC will no longer require an as-built survey. To satisfy AHFC’s requirements, however, the ALTA title policy may not be issued with any survey exception(s) and must include the ALTA 9-06 endorsement. Please review Sections 9001.07.C and 9001.07.D for a full understanding of the guideline changes. This change is effective with the date of this memo.
 ________________________________________

FORMS GUIDE REVISIONS: CONTACT UNDERWRITING/SERVICING (Only available in PDF - Adobe Acrobat or Adobe Reader is required to read/print PDF files)

ATTACHMENTS

• Section 4006.01
• Section 7003
• Section 7004
• Sections 9001.07.C and D