Please Note: The changes will go into effect for any loans that have FHA case numbers pulled on or after September 1st. For conventional loans, these changes will go into effect for any loans originated on or after September 1st.
Please Plan to Attend
CBC Mortgage Agency invites you to attend a free webinar to learn about CBCMA’s upcoming program changes which go into effect 9/1/19. The webinar will provide attendees with an opportunity to ask questions and learn more about the Chenoa Fund Down Payment Assistance Program.
The webinar takes place 8/23/28 @ 11:00 a.m. Mountain Time – Registration is Required.
We appreciate your sharing this invitation with your colleagues!
Chenoa Fund Down Payment Assistance September 1, 2019 Program Changes
CHANGE 1: All applications must contain a ‘present’ housing payment unless the borrower is currently not making a housing payment. This field may not be left blank. If the borrower is not making a housing payment then $0.00 should be entered into the ‘present’ housing payment field on the loan application and the file must contain the following A structured Letter of Explanation from the borrower, or alternatively, CBC Mortgage Agency’s “Housing Expense Acknowledgement” form to specifically address the following:
1. Why they do not presently have a current housing payment.
a. why they have not been able to save the funds to be able to make their own minimum required down payment (or)
b. why, if they have saved the money for the minimum required down payment, they are opting not to use those funds towards the down payment.
3. How they feel that they will be able to pay their new housing expense on time along with their other currently existing obligations with the new housing payment.
4. Their forethought and preparation regarding how they intend to handle unforeseen financial expenses after the purchase of their home; such as home maintenance and repairs.
CHANGE 2: Borrowers with credit scores between 640 and 659 who have a present housing payment MUST provide a 12-month history regardless of AUS findings. Borrowers within this FICO Band cannot exceed a maximum debt to income ratio of 50%.
CHANGE 3: Borrowers with credit scores between 620 and 639
· cannot exceed a maximum debt to income ratio of 45%
· must have a present housing payment and
· provide 12-month housing payment history.
· The new housing payment must not create a payment shock exceeding 25%. (Example: If a borrower is currently paying $1,000.00 a month in rent, the new mortgage payment cannot exceed $1,250.00 a month.)
NOTE: Borrowers with credit scores between 620-639 must take a homebuyer education course prior to closing.
· CBCMA no longer requires that the borrower complete the course through Hope Loan Port, but the course must be taken through a HUD approved Housing Counseling agency
· CBCMA will continue to pay the course fee for those borrowers choosing to take the Hope Loan Port course.
Exceptions for the payment history or debt to income requirements will only be considered for borrowers whose:
• Housing ratio does not exceed 30% and who have 3 months liquid reserves (3 months of proposed mortgage payments in savings) at the time of closing OR
• Additional exceptions may be considered by our credit committee who meets once a week on Fridays.