SS Single-Family Memo 14-02
Date: May 12, 2014
SELLING GUIDE REVISIONS: CONTACT UNDERWRITING
Minimum Down Payment, Reserves, and Gift Funds
(Section 4006.01, Section 4006.02, and Section 4006.06)
AHFC would like to clarify the requirements for minimum down payment when using gift funds. The following guidelines are retroactive to loans originated on or after November 1, 2013:
For a single-family primary residence, gift funds may be used to satisfy the minimum 5% contribution from the borrower’s own funds.
For a duplex primary residence, the total down payment is 10%, of which 5% is the required minimum contribution from the borrower’s own funds. Gift funds may be used to satisfy the minimum 5% contribution if the gift is from a relative or domestic partner who has lived with the borrower for the last 12 months, or from a fiancé or fiancée, as long as the borrower and donor will use the home being purchased as their primary residence.
Gift funds may not be used for the minimum contribution on a triplex or fourplex. Effective with the date of this memorandum, homebuyer education is required when a gift is used to satisfy a minimum contribution. However, this requirement is waived when gift funds and/or any other down payment is equal to or greater than 20%.
Please note Section 4006.06 has been revised to address expanded documentation requirements for gift funds and Section 4006.02 has been revised to clarify reserve requirements.
Economic Analysis for Rural Non-Owner Occupied Loans
(AHFC Form UND-203)
The Economic Analysis for Rural Non-Owner Occupied Loans has been revised to fix a typographical error and to include a place for calculation of the Breakeven Point. This form may be used effective the date of this memo.
SERVICING GUIDE REVISIONS: CONTACT SERVICING
Remittance of Complete Presale and Deed-in-Lieu of Foreclosure Packages
(Section 13000.11.B and Section 13001.05)
Effective immediately, all complete Presale and Deed-in-Lieu of Foreclosure packages with recommendations are to be submitted simultaneously to AHFC’s Servicing Department and the Mortgage Insurer/Guarantor within 5 days of receipt by the Servicer.
FORMS GUIDE REVISIONS: CONTACT UNDERWRITING/SERVICING
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