SS Single Family Memo 15-05
Date: December 1, 2015
SELLING GUIDE REVISIONS: CONTACT UNDERWRITING
Common Interest Community (Condo) Projects List VA Guaranteed Loans
AHFC is pleased to announce we are amending our selling guidelines to include an exception for purchasing VA loans secured by a property that does not appear as an accepted project on our published list. Like the exception for FHA/HUD loans, VA insured loans do not need to be on AHFCs list as long as the project is acceptable to VA and they will guaranty the loan. The borrower(s) should acknowledge they are aware the project is not currently accepted by AHFC.
Program Rider Matrix
The rider matrix has been updated as follows:
- With the exception of assumptions of existing loans, Riders associated with program options that are no longer available (e.g., RELP, HOF and HOAF) were deleted.
- Rider information associated with a Community Land Trust (CLT) loan was added.
Blended Interest Rate Worksheet
AHFC has developed a tool to assist with calculating a blended interest rate. This worksheet can be used to calculate the blended note rate for AHFC Rural programs, IRRLIB option, EEIRR option and/or any combination of these programs/options. It can be found on the AHFC website at https://www.ahfc.us/pros/lenders/.
This worksheet can be used with our most common rate blended program(s)/option(s) combinations. When using the State Veterans Mortgage Preference option, please use the worksheet on page 2 of AHFC Form UND-3 to blend a rate. Please be advised that the note rate is subject to calculation and issuance of the commitment confirmation by AHFC. If you have questions about how to use the worksheet, please contact John Bruns at 907-330-8440.
Closing Cost Assistance Program (CCAP)
Effective on or after December 1, 2015, the transaction assistance for FHA loans with credit scores at 640 through 659 or for loans that have been manually underwritten is 3%. FHA loans that have automatic underwriting approval with credit scores 660 and above will continue to receive 4% assistance. VA and USDA/RD loans are not affected by this change and will continue to receive 4% transaction assistance.
In addition, U.S. Bank Home Mortgage HFA division will no longer accept loans secured by Manufactured Housing (i.e., AHFC Type I Manufactured Housing) for any loan types including FHA, VA or USDA/RD effective with reservations on or after December 1, 2015.
SERVICING GUIDE REVISIONS: CONTACT SERVICING
Cancellation of Mortgage Insurance
Cancellation of mortgage insurance guidelines has been expanded to allow for cancellation based on increased value attributed to renovations done on the home. In addition, clarification for cancellation on AHFC renovation loans has been provided.
- Borrower-initiated termination of conventional mortgage insurance based on the increased value due to renovation/improvements to the home has been added.
- Renovation Option loans origination as completed appraisal is to be used to determine the loan to value percentage for MI cancellation purposes.
- A new timeline requirement that AHFC be notified within 30 calendar days of cancellation of mortgage insurance has also been added.
Forms Guide revisions: Contact Underwriting
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