First Home Program Updates

Affordable Housing Conference

October 30, 2013

Agenda

Welcome & Introductions

Brief presentations on MaineHousing, VA, RD and FHA

Questions & Answers

MaineHousing

Who are we?

In state investor.

Contract with approved lenders.

Work with real estate professionals.

Work with VA, RD & FHA..

Help first-time homebuyers!

MaineHousing

Why use our program?

Reduced rate.

Help with downpayment & closing costs.

Finance improvements into one loan.

Purchasing a mobile home.

Payment protection for unemployment.

Eligibility Basics

Income & purchase price limits. Credit score 640+ Total debt to income ratio ≤ 41% First-time homebuyer

Operation New Home

Owned a home they lived in within the last 3 years, but do not own one now or are selling their home.

Can be combined with VA, FHA or

RD, PPI, MHSI, and Uninsured.

MaineHousing Mortgages for Honorably Discharged Veterans and Active Duty Military

who are non first-time homebuyers

Program Options

Advantage

Purchase Plus Improvement

Mobile Home Self-Insured

Advantage

Provides a credit of $2,000 at closing.

Applicant must contribute 1% of loan amount.

Homebuyer Education required.

Slightly higher rate.

Purchase Plus Improvement

Allows needed repairs to be financed in one MaineHousing loan.

One interest rate, one note, one mortgage, one payment.

Min $500, Materials $1,000, Contractual labor up to $35,000.

Basic livability improvements & energy star appliances.

Mobile Home Self Insured

For single-wide and double-wide mobile homes on own land or in a park that don’t qualify for mortgage insurance.

Purchase price limited to $150,000.

Rate is 1 point higher than First Home.

5% downpayment (3% own $).

640 score, 29/41 ratios.

IRS Recapture tax

Applies only to borrowers who SELL their home at a GAIN within 9 YEARS - AND – whose HOUSEHOLD INCOME EXCEEDS the IRS limits provided in the last page of their Borrower Affidavit they received at closing.

How much?

The lesser of either half of the gain or a percentage of the original loan amount.

When/how is it paid?

If the borrower owes any recapture tax at all, it is paid to the IRS when the borrower files their income tax return, using form 8828.

Recapture Tax Reimbursement!

For loans closed on or after January 1, 2013

Sellers who owed & paid recapture tax

can request reimbursement from MaineHousing

for the amount of recapture tax they paid!

Maine HOPE Home Ownership Protection for

unEmployment

Payment protection for existing and new MaineHousing borrowers who become involuntarily unemployed

Maine HOPE

One-time assistance of 4 months PITI.

0%, deferred, subordinate loan; no monthly payments, no closing costs.

Repaid when sold, transferred,

refinanced, or no longer principal residence.

Contact MaineHousing for more info.

Primary Goal is to replace pre-1976 mobile homes with new Energy Star certified manufactured homes.

The initiative provides a first low rate mortgage through MaineHousing and a 5 year deferred due on sale second mortgage for $30,000.

Mobile Home Replacement Initiative

Eligible Applicants

Must own & occupy a pre-76 mobile home. Household income at or below 80% of

MaineHousing’s First Home income limits Must qualify for the uninsured option (80%

LTV) under First Home or Operation New Home.

MaineHousing Resources

MaineHousing Web Site

www.mainehousing.org

Homebuyer Education Class Schedule

www.mainehomeworks.org

Home buying Information www.mainehousing.org/

homeloan

Questions?

Comments?

MaineHousing