On May 24th the Texas Department of Housing and Community Affairs – TDHCA released its new Single Family Mortgage Revenue Bond Program Series 77. Selected lenders lenders may register and close loans under this program effective immediately!
***Interest Rate is set in “LOTS”. Each lot is good for 90 days. Based on date of sale, borrower must be reserved or must wait for next Lot Released.
Lot 1 Details
•Loan must close by 8/15/2010 – Best to have house under contract 30 to 45 days before this
•Commitment Amount $50 Million out of $500 Million
•Bond Loans are reserved not locked
•First Come First Serve– Reservations cannot be made without a complete application and signed contract
•Buyer must provide 3 years tax returns (2007,2008,and 2009)
•FHA loans only
•Owner occupied only
•Interest Rate – interest rates on this program will change every 90 days –“ Lot 1 “ expires on 8/16/2010 – all loans on this program must close by 8/16/2010. Loans that will close after that date will be reserved under “ Lot 2 “ – rates for that program will be released when available. this program offers EITHER a low interest rate OR a higher rate with DPA. You must chose one or the other – you cannot have both.
◦4.99% fixed rate, 30 year– no assistance OR
◦5.74% fixed rate, 30 year– 5%Down Payment Assistance – DPA, DPA is due on sale, Refinance or no longer occupies the primary residence (In other words, the assistance that you receive you must pay back when you sell or refinance the home)
•Income caps:
◦100% Applicable Median Family Income – AMFI for 1 or 2 person families-115% AMFI for 3 or more person families
◦Rita Go Zone areas waive First Time Home buyer requirements and allow 120% AMFI And 140% AMFI income limits
◦Income of all parties occupying the home AND signing the deed of trust counts towards bond limits
•Non-Purchasing spouse must sign bond docs
•Fees:
◦1% participation fee
◦1% origination fee
◦$325 bond application fee payable to TDHCA
◦appraisal fee; credit report fee; mortgage insurance premium; survey fee; title insurance premium; and other closing costs as permitted by FHA. Must be fully disclosed on the HUD-1.
•ALL borrowers must complete an approved Home buyer Education class – Online ok
•Income tax recapture provisions apply
•No cash back at closing
•Income of all parties occupying the home AND signing the deed of trust counts towards bond limits
•Minimum Additional closing time required Allow at minimum an additional 7 business days broken out as follows. 48 hrs. for lender’s review of bond package and an additional 72 hours for bond approval. PLUS an additional 48 hours for bond funds to be wired to title company
•Additional Documentation is required.
Comments
Jonathan
on June 5, 2010, 9:03 pm
With the federal tax credit for first-time homebuyers having expired in April, Realtors and mortgage lenders in Texas hoping to maintain the pace of home sales are looking for help from a new agent of sorts — Bond 77.
That’s the name of a new program, launched this month by the Texas Department of Housing and Community Affairs, under which the department is making $500 million available to eligible homebuyers for mortgage loan assistance — either through down payment assistance or by facilitating a lower interest rate. The Bond 77 program is part of the state’s ongoing first-time homebuyer program.
“It’s the single-largest financing initiative for state homebuyer funds in the 27-year history of the program and serves as the state’s response to the recent expiration of the federal homebuyer tax credit,” said Gordon Anderson, a spokesman for the Department of Housing and Community Affairs.
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