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Single-Family SS Memo 17-04

Date: April 27, 2017

SELLING GUIDE REVISIONS: CONTACT UNDERWRITING

Tax-Exempt Program Acquisition Cost Limits

Acquisition Cost Limits have been revised and are posted. These limits will go into effect immediately and must be used for any commitment issued on or after May 16, 2017.

Escrow Requirements for Renovation Financing
(Sections 1003.02.D, 7003.05.I, 7010.06 and 9001.06.C)

AHFC is pleased to announce it is increasing the maximum allowed escrows for the completion of renovations, at the time of purchase by AHFC, to $75,000 plus a 10% contingency. All health and/or safety issues must be completed prior to AHFC purchasing the mortgage. Any AHFC loan funds remaining in the escrow account at completion of the project must be applied to reduce the principal balance of the loan. The term of the escrow generally may not exceed 180 days. These changes are effective with the date of this memo.

Maximum Loan Amount for Second Mortgages
(Sections 5008.04.A and 7010.11.C)

In January 2017, AHFC announced the maximum single-family loan amount increased to $699,765. With this increase, the maximum loan amount for second mortgages has increased to $318,075 with a new appraisal. The maximum loan amount with an alternate valuation remains $100,000. This change is effective with the date of this memo.

Credit Guidelines
(Section 4000.01)

AHFC may decline loans from borrowers that have previously defaulted on an AHFC loan. Lenders are encouraged to submit such cases for preliminary determination so the issue can be addressed early in the process.


FORM/GUIDE REVISIONS: CONTACT UNDERWRITING

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