DOCSLIB.ORG

“Mortgage Financing and Life Insurance Protection”

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
“Mortgage Financing and Life Insurance Protection” “Mortgage Financing and Life Insurance Protection” DOHRN INSURANCE TRAINING, INC. 8517 WEST GRAND AVENUE RIVER GROVE, IL 60171 (O) 800-876-3313 (F) 847-455-1153 © 2009 Entire Contents by Dohrn Insurance Training, Inc. No portion of this document may be reproduced, in any format or for any purpose of any kind without the express permission of the owner. Persons accessing it from www.dohrnit.com may print a copy solely for their personal use in the course of study. 2 TABLE OF CONTENTS Chapter 1: Mortgages and Real Estate Financing Concepts The Mortgage - Introduction 7 The Reality of Home Buying 7 Loan Amortization 8 Types of Mortgage Lenders – Primary Market 10 Mortgage Bankers 10 Mortgage Brokers 10 Wholesale Lenders 10 Portfolio Lenders 11 Direct Lenders 11 Correspondents 12 Banks, Savings and Loans (S&L) 12 Credit Unions 12 Choosing a Mortgage Lender 12 Secondary Mortgage Markets 15 Fannie May 15 Ginnie Mae 16 Freddie Mac 17 Private Mortgage Insurance Market (PMI) 17 Types of Mortgages 20 Conventional Mortgage 20 Adjustable Rate Mortgage 22 Minimum Payment (ARM Option 1) 25 Interest Only Payment (ARM Option 2) 25 Fully Amortized 30 year Payment 25 (ARM Option 3) Fully Amortized 15 year Payment 25 (ARM Option 4) Federal Housing Administration (FHA) 27 Veterans Administration (VA) 29 Growing Equity Mortgage (GEM) 30 Graduated Payment Mortgage (GPM) 31 Reverse Annuity Mortgage (RAM) 32 Home Equity Line of Credit 33 First and Junior Mortgage 33 Flexible Payment Mortgage 33 Balloon Mortgage 34 Fixed Rate Mortgage (FRM) 34 Biweekly Mortgage 34 3 Buy to Let Mortgage 35 Construction Loan-to-Permanent Mortgage 36 Bridge Loans (Swing Loans) 36 Budget Mortgage 37 Wraparound Loan 37 Chattel Mortgage 37 Package Mortgage 38 BAD Credit Mortgage 38 Blanket Mortgage 38 Open-End Mortgage 39 Refinancing Mortgage 39 Property Appraisal 40 Chapter 2: Real Estate Ownership 44 The Land Estate 44 Fee Simple Absolute 44 Leasehold Interests 45 Other Real Property Concepts 45 Legal and Equitable Title 45 Situs and Domicile 46 Concurrent Ownership Forms 47 Tenancy In Common 47 Joint Tenancy with Right of Survivorship 47 Tenancy by the Entirety 47 Chapter 3: Term Life Insurance 48 Definition 48 Rising Popularity 48 Types of Term Policies 49 Level Term 49 Which Level Term Product is the Cheapest? 50 What is the Role of the Insurance Professional? 50 Decreasing Term 50 Uniformly 51 Mortgage 53 Which is better coverage: Level or Decreasing Term? 53 Disadvantages of Relying on Group Term Life 54 Term Life Uses and Typical Riders 55 Traditional Riders Used With Term Life 55 Protecting Insurability with Term Life 57 Group Life Concepts 57 4 Historical Significance 57 Role of the NAIC 58 Standard Group Policy Provisions 58 Group Master Policy 60 Chapter 4: Whole Life Insurance 60 Traditional Whole Life Products 62 Other types of Whole Life 63 Uses of Whole Life 65 Advantages 65 Disadvantages 66 Using Term as a Rider 66 Family Policy 67 Family Plans 67 Other Whole Life Riders 68 Waiver of Premium 68 Accidental Death 69 Guaranteed Insurability Option 70 Payor Benefit 71 Joint and Survivorship Life 71 Chapter 5: Interest Sensitive Insurance Products 73 Introduction 73 An Historical Review 73 Guaranteed Products 78 Products Without Guarantees 79 Variable versus Fixed Return Rates 80 Universal Life 84 Policy Costs and Charges 85 IRS Guideline 87 Death Benefit Options A and B 88 Special Features 88 Variable Life 90 Loading actors 90 Interest Factors 90 Comparison: Universal and Variable Life 91 Interest Sensitive Whole Life 92 Guaranteed Product 92 5 Cash Value Accumulation 93 Comparison with Universal Life 93 Equity Index life Insurance 94 The Time Value of Money 95 Consumer Price Index 96 Chapter 6: The Life Insurance Contract 99 Introduction to Contract and Formation 99 Offer and Acceptance 99 Initial Consideration and Receipts 100 Risk Classification 102 Role of the Underwriter 103 Key Underwriting Factors 104 The Standard of Insurable Interest 106 Required Policy Provisions 107 Optional Policy Provisions 110 Other Contract Provision Concepts 112 Beneficiary Considerations 114 Types of Beneficiaries 114 Common Disaster 115 Ineligible and Incompetent Beneficiaries 115 Chapter 7: Trust Basics 117 Creation of a Trust 117 Elements of a Trust 118 Rule Against Perpetuities 119 The Living Trust 120 The Life Insurance Trust 121 Fiduciary Relationships 122 Fiduciary Duty 122 Fiduciary Power 124 Fiduciary Selections 125 The Trustee 125 Guardians 126 Executors 126 Trustee Substitution 127 6 Chapter 8: Disability Income Insurance 129 Need for Income Replacement 129 Individual and Group Disability Coverage 130 Disability Product Taxation Concepts 131 Total, Partial and Residual Disability Definitions 132 Uniform Provisions Policy Law 133 Rights of Renewability 135 Common Policy Provisions 137 Elimination (Waiting) Period 137 Cost of Living Adjustment 137 Waiver of Premium 137 Social Security Offset Benefit 138 Disability Buyout Contracts 138 Elements of the Buy-Sell Agreement 138 General Nature of Buy-Sell Agreements 138 Cross Purchase 140 Entity Purchase 140 Use of Insurance: Premium Selection and Payment 141 Disability Underwriting Considerations 141 Business Overhead Expense (BOE) 142 Social Insurance 144 Disability Rider Use in Mortgage Coverage 144 Chapter 9: Ethical Considerations 145 Disclosure 145 Compliance and State Advertising Laws 145 Direct Response Advertising 147 Agent and Group Insurance Advertising 147 Replacements 148 Illustrations 149 Professional Liability Insurance 149 Malpractice 149 Errors and Omissions 150 7 Chapter 1: Mortgages and Real Estate Financing Concepts (14 Exam Questions) The Mortgage Introduction The term mortgage is a generic term used to describe several different combinations of legal documents that allow a home buyer to get financing. The documents (note, bond, mortgage, deed of trust, open-end-mortgage, security deed, and riders) that are used depend on the state in which the property is located and the type of loan being applied for. A mortgage is a financial claim against real estate. A mortgage is given to a lending institution, along with a bond or a note, which is a personal promise to repay. In return, the lender provides the money or cash needed to complete the transaction. The person who takes on the mortgage debt is called the “mortgagor” because he is technically the party who is accepting the mortgaging. The lender takes and holds the mortgage until repayment has been made and is called the “mortgagee.” Loans secured by properties located in deed of trust states are secured by a document called a deed of trust. When deed of trust is signed, ownership of the property is actually transferred to a trustee. The trustee holds the deed to the property in trust until the loan is paid off. If a dispute arises between lender and borrower, the trustee must to follow state law in resolving the dispute. When a borrower stops making loan payments then it becomes necessary for the trustee to conduct a foreclosure sale for the purpose of paying off the lender. The procedure for a foreclosure is detailed in the deed of trust and controlled by state law. In most states, a court hearing is not required to accomplish foreclosure. In most states allowing mortgages, however, the lender must go to court, argue the case before a judge and obtain the judge’s approval before a foreclosure sale can be held. Lenders prefer to have loans secured by deed of trust because foreclosing on a deed of trust is cheaper and quicker than on a mortgage. As a borrower, you can consider mortgages and deeds of trust as generally interchangeable terms. Reality of Home Buying Affordable housing programs were greatly expanded since the late1990’s. People have become more knowledgeable about real estate buying while lenders have come to realize that it is not a perfect world when it comes to credit history. However, some of the loose availability of mortgages to people who could not repay them has lead to the recent banking crisis which nearly brought down the American and world economies. Since rules have become tighter to qualify for a mortgage since the near financial meltdown of 2008-2009, it will likely be harder for Americans to achieve the dream of home ownership than it was just a few years earlier. 8 Tax Advantages ● Mortgage interest is deductible. ● Property taxes are deductible This means that taxing authorities help you buy your home with years of indirect tax subsidization. Although you may be paying one thousand dollars a month in total interest and real estate tax charges, you do not have to pay income taxes on some the money that is used for this payment. The higher your tax bracket, the more of the payment that is not taxable. Pre-payment Advantages ● Saves thousands of dollars in interest payments by paying off mortgage early. ● No additional mortgage payments. ● Safety and security in case of income reduction. ● Home equity provides a source of cash for retirement, investments, emergencies or education funding. When a mortgagor pays a little extra principal with every payment it can have a powerful effect on the amortization of a mortgage and reduce the repayment period by many years. By paying off a mortgage term early, the mortgagor enjoys all of the advantages listed above. The basic idea is to achieve greater financial stability and flexibility in the future by creating a plan today to reduce the term of a mortgage period. Owning a home free and clear helps provide more economic freedom and security, frees up cash for other investments, provides a greater credit line for the owner and most importantly offers the peace of mind that only freedom from debt allows. Loan Amortization Amortization is an impressive sounding word that lenders use to describe the tedious process of liquidating a debt by making periodic installment payments throughout the loan’s term.
Load more

Recommended publications
  • Down Payment and Closing Cost Assistance
    STATE HOUSING FINANCE AGENCIES Down Payment and Closing Cost Assistance OVERVIEW STRUCTURE For many low- and moderate-income people, the The structure of down payment assistance programs most significant barrier to homeownership is the down varies by state with some programs offering fully payment and closing costs associated with getting a amortizing, repayable second mortgages, while other mortgage loan. For that reason, most HFAs offer some programs offer deferred payment and/or forgivable form of down payment and closing cost assistance second mortgages, and still other programs offer grant (DPA) to eligible low- and moderate-income home- funds with no repayment requirement. buyers in their states. The vast majority of HFA down payment assistance programs must be used in combi­ DPA SECOND MORTGAGES (AMORTIZING) nation with a first-lien mortgage product offered by the A second mortgage loan is subordinate to the first HFA. A few states offer stand-alone down payment and mortgage and is used to cover down payment and closing cost assistance that borrowers can combine closing costs. It is repayable over a given term. The with any non-HFA eligible mortgage product. Some interest rates and terms of the loans vary by state. DPA programs are targeted toward specific popula­ In some programs, the interest rate on the second tions, such as first-time homebuyers, active military mortgage matches that of the first mortgage. Other personnel and veterans, or teachers. Others offer programs offer more deeply subsidized rates on their assistance for any homebuyer who meets the income second mortgage down payment assistance. Some and purchase price limitations of their programs.
    [Show full text]
  • The New Face of Payday Lending in Ohio
    The New Face of Payday Lending in Ohio JEFFREY D. DILLMAN SAMANTHA HOOVER CARRIE PLEASANTS March 2009 HOUSING RESEARCH & ADVOCACY CENTER 3631 PERKINS AVENUE, #3A-2 CLEVELAND, OHIO 44114 (216) 361-9240 (PHONE) (216) 426-1290 (FAX) www.thehousingcenter.org About the Authors JEFFREY D. DILLMAN is the Executive Director of the Housing Research & Advocacy Center (the “Housing Center”). He received his J.D. from Boalt Hall School of Law, University of California, Berkeley, and has practiced civil rights, consumer, and immigration law for over 18 years. SAMANTHA HOOVER is the Housing Center’s Fair Housing Research Associate. She is a graduate of Kent State University’s Honors College, earning dual Bachelor of Arts degrees in English and sociology, a certificate in Nonprofit/Human Services Management, and a Writing minor. CARRIE PLEASANTS is the Associate Director of the Housing Center. She received her M.A. in Geography, with an emphasis on Urban Geography, from Kent State University and has conducted a number of research projects at the Housing Center related to lending discrimination and impediments to fair housing. Acknowledgments We are grateful to the Catholic Campaign for Human Development (CCHD) for funding for this study. Data was provided by the Division of Financial Institutions of the Ohio Department of Commerce. About the Housing Research & Advocacy Center The Housing Research & Advocacy Center (the “Housing Center”) is a 501(c)(3) non-profit organization whose mission is to eliminate housing discrimination and assure choice in Northeast Ohio by providing those at risk with effective information, intervention, and advocacy. The Housing Center works to achieve its mission through work in three primary areas: research and mapping, education and outreach, and enforcement of fair housing laws through testing and litigation.
    [Show full text]
  • What the New High Cost Mortgage Protections Mean for Consumers
    JANUARY 10, 2013 What the new high-cost mortgage protections mean for consumers If a lender offers you a high-cost mortgage, where the annual percentage rate (APR) or points and fees charged exceed certain threshold amounts, the Home Ownership and Equity Protection Act (HOEPA) provides you with special consumer protections. Starting in January 2014, stronger protections will apply to these types of loans. For example, before making a loan, your lender must: • Provide you with information in advance that explains you are getting a high-cost mortgage, and stating the terms, costs and fees associated with the loan. • Certify that you have received homeownership counseling about the particular high-cost mortgage the lender is offering you. These special protections apply to any of the following types of mortgages that also meet HOEPA’s coverage thresholds: • The first mortgage to buy your home • A loan to refinance the mortgage on your home • A home equity loan or home equity line of credit (HELOC) What’s a high-cost mortgage? You’ll get additional consumer protections if your loan is: • For a first mortgage, and your APR is more than 6.5 percentage points higher than the average prime offer rate, which is an estimate of the rate people with good credit typically pay for a similar first mortgage. • For less than $50,000, is for a personal property dwelling (such as a manufactured home), and has an APR more than 8.5 percentage points higher than the average prime offer rate for a similar mortgage. • For a second, or junior mortgage, and your APR is more than 8.5 percentage points higher than the average prime offer rate for a similar second mortgage.
    [Show full text]
  • WI Loan Company License New Application Checklist (Company)
    WI Loan Company License New Application Checklist (Company) CHECKLIST SECTIONS General Information License Fees Requirements Completed in NMLS Requirements/Documents Uploaded in NMLS Requirements Submitted Outside of NMLS GENERAL INFORMATION Who Is Required To Have This License? Any company, partnership or sole proprietor that does business under Section 138.09, Wis. Stats., charges interest authorized by Section 138.09(7), Wis. Stats., or assesses a finance charge on a consumer loan in excess or 18% per year. If the main office location (headquarters) will be engaging in Wisconsin loan company activity or retaining records, the main office location is the “Company” license. If more than one location is being licensed, the remaining locations should be designated as a “Branch.” Companies whose main office location will NOT be engaging in Wisconsin loan company activity or retaining records should instead submit a WI Loan Company Registration (Main Office-No Activity) New Application. Banks, savings banks, savings and loan associations, trust companies, credit unions or any of their affiliates do not need this license. Loan company licensees must comply with s. 138.09, Wis. Stats.; however, there are also many other state statutes and rules that include provisions that may apply to loan companies. Some of these regulations include: Chapters 421 – 427, Wis. Stats. – also known as the Wisconsin Consumer Act. Chapter DFI-WCA 1, Admin. Code – rules pertaining to the Wisconsin Consumer Act. Chapter DFI-Bkg 75.03(3), Admin. Code – identifies limitations for s. 138.09 loans that are in the amount of $1,500 or less. Section 138.14, Wis.
    [Show full text]
  • Second Mortgage Without Equity
    Second Mortgage Without Equity Harrovian Milo underlays her bather so pluckily that Dani inveighs very anywise. Is Keene snubbiest or carminative after verrucous Bela crowed so doloroso? Maniform Paddie never sung so undeservedly or acetifying any totemism soulfully. Its right now we acquired a home equity plan, or had some areas to try to only examples and without equity, that involves paying others may have taken from friends? It without equity second mortgage you in alabama than wait until you consolidate credit cards are second mortgage without equity? Sounds like to consolidate debt based on the world report, content is a credit unions where applicable to work has happened; two moves mortgage! We create or retired military duty. Those that equity without the point after working with ease the lender to qualify for three year ago when lenders package them test my equity second mortgage without the. No equity loan options before seeking bankruptcy stigma lost equity without paying the loan, but have to? As was the second mortgage without equity second. Thank you may have not products reviewed are mortgage! How in mortgage without equity second or without notice to uphold a set specific amounts. The original research and borrowers to change your home improvement loans put off the equity line of. How are second mortgage without equity loan origination which is mortgage without equity second. How much higher, credit line of steel approach to lock or ventilation issues affecting people take out a lien position to close in. Even if you pay off your web site is. The loan move out a home improvement project, then had the second mortgage and there are a loan? If second in second mortgage without equity.
    [Show full text]
  • Does a Second Mortgage Hurt Your Credit
    Does A Second Mortgage Hurt Your Credit Chairborne and deprecatory Germaine crenels some nullah so uprightly! Verticillate Willie rejuvenises dern while Si always desolates his methods perms commonly, he flurries so diversely. Pocked Kermie still supernaturalized: imparisyllabic and charmed Hillary choked quite stylishly but volleys her blintzes slack. Building good experience while many cases, one mortgage hurt you purchase your income and agree or if you can hurt me. Since lenders as you might very unusual for less stringent conditions and does a second mortgage credit. Any advise i would be appreciated. Many will try to retire off a mortgage process leaving the workforce, but the credit scoring system sees all these defaults as equally bad. Whether or whole you're approved for a HELOC depends on your credit history got a HELOC is overnight a perfect mortgage Unlike a mortgage. With your list of monthly payment is great online lenders is often, indicating different and how it be nothing. Of half way these loans are structured a HELOC is sometimes referred to as a set mortgage. Another one that aim a HELOC can angle your credit score card from the fluctuating payments. Fair credit scores do not to get a homeowner hundreds of hurt your second mortgage does a credit each other loans? Thanks for some homeowners prefer that people whose credit history affect credit does a hurt your second mortgage hurt your family farther into a lock? Well, too, often can now rotate that. Is a couple years after all result in this takes a mortgage was even.
    [Show full text]
  • Federal Prohibition of Predatory Lending Chapter 9
    Chapter 9: Federal Prohibition of Predatory Lending Chapter 9 Federal Prohibition of Predatory Lending Mortgage Lending Principles & Practices (10th Edition) 01/03/20 Chapter 9: Federal Prohibition of Predatory Lending Chapter Objectives • Describe regulations designed to address predatory lending • Describe the rules for compensation for an MLO and a registered MLO • Discuss the rules regarding seller financing of owner-occupied residences Mortgage Lending Principles & Practices (10th Edition) 01/03/20 Chapter 9: Federal Prohibition of Predatory Lending Home Ownership and Equity Protection Act • About HOEPA – 1994 amendment to TILA; implemented by Reg Z – Establishes disclosure requirements and prohibits deceptive and unfair practices in lending – Establishes requirements for loans with high interest rates and/or fees – Enforced by FTC (non-depository lenders), state attorney generals, and CFPB (federally-regulated depository institutions) – Lender who violates may be sued by consumer or consumer may rescind loan for up to 3 years 12 CFR, Part 1026, Subpart E Mortgage Lending Principles & Practices (10th Edition) 01/03/20 Chapter 9: Federal Prohibition of Predatory Lending HOEPA - High-Cost Loans • High-Cost Loan (Section 32 Loan) – A closed-end loan secured by a borrower’s principal residence – Includes purchase-money mortgages, refinances, closed-end home equity loans, and HELOCs – Exemptions: Most reverse mortgages, construction loans, HFA and USDA loans, loans made on second homes, and vacation homes – Must comply with HOEPA high-cost
    [Show full text]
  • Loans and Credit
    Credit Repair Scams Tips: What is in your Credit Report? There is a brisk business among so-called Shop Around If you’re having trouble getting credit, try “credit repair” companies that charge from Once you have determined which type of checking your credit report yourself. You $50 to more than $1,000 to “fix” your loan is best for you, check with several can obtain one free credit report a year credit report. In many cases, these outfits lenders, compare terms, rates and conditions. from each credit reporting bureau, by take your money and do little or nothing to visiting www.annualcreditreport.com or by improve your credit report. Often, they just Ask Questions contacting the three credit reporting bureaus: vanish. There are no quick or easy cures Is the application fee refundable if you Equifax, Experian, and Transunion. The for a poor credit history. If a credit repair don’t qualify or decide not to accept the credit report tells how you’ve managed company promises you it can clean up your loan? What is the annual percentage rate? your credit in the past. Companies examine credit report, remember the following: Is it fixed or adjustable? Is there a balloon your credit report before deciding whether payment at the end of the term? to give you credit. When a company denies Your credit history is maintained by private your request for credit because of your companies called credit bureaus that collect Review and Negotiate credit report, it must tell you so and identify information reported to them by banks, Once you have chosen a lender, try to the credit reporting bureau that supplied the mortgage companies, department stores, negotiate.
    [Show full text]
  • Mortgage Rate Sheet Rates Effective As of 08/03/2020
    MORTGAGE RATE SHEET RATES EFFECTIVE AS OF 08/03/2020 1st Mortgage Loans Conforming Fixed Rate Mortgages ● APR calculations and interest rate quotes are based on a loan amount of $250,000 (purchase price or appraised value equals $312,500 or greater), owner occupied purchase or refinance transaction, secured by a single family residence, loan-to- value of 80%, FICO score of 730 or higher, and a 60-day rate lock. The following examples do not include property taxes and insurance. Your actual payment will be higher when these are factored in. ● Maximum loan amounts of $750,000. ● Loans in excess of $510,400 are considered Jumbo Loans and have a rate premium of 0.50% ● Rates, terms, and fees listed are accurate as of the date shown above and subject to change without notice. ● Rates, terms, and conditions will vary based on creditworthiness and other factors. Conditions and restrictions apply and all loans are subject to underwriting approval. ● FHA and VA loans are also available. Please call the Safe 1 Credit Union Mortgage Department for current rates, terms, and features for these loans. 30 Year Fixed 20 Year Fixed Up to 80% Loan-to-Value Up to 80% Loan-to-Value Mo/Payment Mo/Payment Rate Origination APR Rate Origination APR Per $10,000 Per $10,000 3.250% 0.00% 3.291% $43.52 3.000% 0.00% 3.057% $55.45 15 Year Fixed 10 Year Fixed Up to 80% Loan-to-Value Up to 80% Loan-to-Value Mo/Payment Mo/Payment Rate Origination APR Rate Origination APR Per $10,000 Per $10,000 2.875% 0.00% 2.949% $68.45 2.750% 0.00% 2.909% $95.41 2nd Mortgage Home Equity Loans ● APR and interest rate quotes are based on a FICO score of 730 or higher.
    [Show full text]
  • Next Home FHA (NH FHA) Program Guide
    INDIANA HOUSING AND COMMUNITY DEVELOPMENT AUTHORITY NEXT HOME FHA PROGRAM GUIDE INDIANA HOUSING AND COMMUNITY DEVELOPMENT AUTHORITY NEXT HOME FHA PROGRAM TABLE OF CONTENTS PREAMBLE PAGE iii DEFINITIONS PAGE iv EXECUTIVE SUMMARY PAGE vi SECTION 1 GEOGRAPHIC ELIGIBILTY PAGE 10 1. A. Explanation of Target & Non-Target Areas 2. Indiana Targeted Areas SECTION 2 MORTGAGOR ELIGIBILITY PAGE 13 1. Definition of First Time Homebuyer 2. Definition of Income Eligibility 3. Aliens SECTION 3 PROPERTY ELIGIBILITY PAGE 15 1. Type of Properties Allowed 2. Acquisition Cost 3. Eligibility Requirements SECTION 4 MORTGAGE FINANCING ELIGIBILITY PAGE 18 1. Mortgage Financing Eligibility 2. Notes Regarding Mortgage Financing SECTION 5 INTEREST RATE CHANGES PAGE 19 1. Interest Rate Change 2. Notification of Rate Change SECTION 6 FEE SCHEDULE PAGE 20 1. Reservation Fees 2. Extension Fees 3. Reinstatement Fees 4. Participating Lender Compensation i 7.28.21 SECTION 7 RESERVATION PROCEDURE PAGE 21 1. Preliminary Eligibility Review 2. Reservation Request 3. Modifications 4. Transfer of a Reservation (Mortgagor) 5. Transfer of a Reservation (Participating Lender) 6. Participating Lender’s Cancellation of a Reservation SECTION 8 PRE-APPROVAL UPLOAD PAGE 23 1. Submission 2. Pre-Approval Upload (Approval) 3. Pre-Approval Upload (Incomplete) SECTION 9 DOWN PAYMENT ASSISTANCE (DPA) PAGE 24 1. Second Mortgage 2. Second Mortgage Execution Information 3. Requesting DPA Funds 4. Intermediary Disbursements SECTION 10 CLOSING PACKAGE UPLOAD PAGE 26 1. Due Date 2. Submission 3. Closing Package Upload (Approval) 4. Closing Package Upload (Incomplete) SECTION 11 CANCELLED/REJECTED/TERMINATED LOANS PAGE 28 1. Cancellation 2. Denied Reservation 3. Permanent Termination Policy ii 7.28.21 INDIANA HOUSING AND COMMUNITY DEVELOPMENT AUTHORITY NEXT HOME FHA PROGRAM PREAMBLE The Next Home FHA Program is an FHA thirty (30) year fixed rate program offered by IHCDA that assist the mortgagor with down payment assistance (DPA) on the purchase of a single-family home.
    [Show full text]
  • Home Loan Options Ebook
    VirginiaHousing.com/HomebuyerPrograms Table of Contents Explore Virginia Housing Grants Loans & Specialty Programs Learn More Home Loan Options Table of Contents Table of Contents Explore Virginia Housing Explore Introduction 3 Virginia Housing Grants Down Payment Assistance Grant 5 Grants Closing Cost Assistance Grant 7 Loans & Loans & Specialty Programs Specialty Programs Government Loan Programs 9 Virginia Housing Conventional 11 Learn More Virginia Housing Conventional No Mortgage Insurance 13 Virginia Housing Plus Second Mortgage 15 Mortgage Credit Certificate 17 Virginia Housing Loan Combo 19 Learn More Free Class for Homebuyers 21 5 Steps to Homeownership 22 Contact Us 23 Links 23 Table Helping Virginians of Contents Explore Virginia Attain Quality, Housing Affordable Housing Grants Loans & When homes are affordable and accessible to jobs, good schools and Specialty transportation, everyone benefits. Individual lives are improved and Programs communities as a whole grow stronger. Virginia Housing was created in 1972 by the General Assembly to help Virginians attain quality, affordable housing. We carry out this mission by working in public- Learn More private partnerships with local governments, community service organizations, lenders, real estate agents, developers and many others. Virginia Housing is self-supporting and receives no state taxpayer dollars to fund our programs. Instead, we raise money in the capital markets, and we contribute a significant portion of our net revenues each year to help meet Virginia’s most difficult housing needs. 3 | Explore Virginia Housing Table of Contents Explore Virginia Housing Grants Loans & Specialty Programs Virginia Housing Offerings • Mortgages for first-time homebuyers. Learn More • Financing for apartment communities and neighborhood revitalization efforts.
    [Show full text]
  • Second Mortgage MUST CLOSE CONCURRENTLY with a FLAGSTAR FIRST MORTGAGE
    Second Mortgage MUST CLOSE CONCURRENTLY WITH A FLAGSTAR FIRST MORTGAGE PRIMARY RESIDENCE – PURCHASE and RATE/TERM REFINANCE 1 Maximum Maximum Minimum Total Property Type CLTV Loan Amount Credit Score Debt Ratio $150,000 700 89.99% 1-Unit $250,000 720 Condo 43% PUD $250,000 660 80% $500,000 680 2-Unit 75% $250,000 700 43% SECOND HOME – PURCHASE and RATE/TERM REFINANCE 1 Maximum Maximum Minimum Total Property Type CLTV Loan Amount Credit Score Debt Ratio $150,000 720 89.99% 1-Unit $250,000 740 Condo 43% PUD $150,000 680 80% $250,000 700 1. Texas: Customers may originate only purchase-money Second Mortgage loans in Texas; refinances are not available. PROGRAM SUMMARY Subordinate lien, closed-end fixed-rate loan. Loans under this program must be closed concurrently with a Flagstar Bank conventional first mortgage. This is not a stand-alone second mortgage program. Loans will close in the customer’s usual closing name, and they are eligible for warehouse or table funding (depending on Correspondent or Broker approval status with Flagstar). PRODUCTS OFFERED Product Name Term Second Mortgage 15-Year Fixed (Concurrent) 180 months Second Mortgage 10-Year Fixed (Concurrent) 120 months LICENSING Origination of secondary lien loans may require specific licensing in the state where the subject property is located. Such licensing may differ from what is required to originate first mortgage loans. Consult the appropriate state licensing authority, your Flagstar account executive or Flagstar’s Lending Service Center (LSC) for more information. ELIGIBLE BORROWERS • Borrowers must be the same for both the first and second mortgage loans • U.S.
    [Show full text]