ANDP Homes… The NSP Advantage! Visit Us Online at ANDPHomes

ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.orgANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org

ANDP Neighborhood ANDP Neighborhood Stabilization Program (NSP)Stabilization Program (NSP)

Program TrainingProgram TrainingFor Realtor ProfessionalsFor Realtor Professionals

Implemented by Implemented by Atlanta Neighborhood Development PartnershipAtlanta Neighborhood Development Partnership

Presented by Clyde AndersonPresented by Clyde Anderson


The ANDP NSP Program is an initiative The ANDP NSP Program is an initiative to help qualified buyers purchase a to help qualified buyers purchase a previously foreclosed home in previously foreclosed home in designated areas within the Atlanta designated areas within the Atlanta Metro. The program provides financial Metro. The program provides financial assistance to help lower the cost of assistance to help lower the cost of these homes. these homes.

The InitiativeThe Initiative


• The TeamThe Team

• NSP Advantage: OverviewNSP Advantage: Overview

• NSP Second Mortgage Program NSP Second Mortgage Program

• Available Counties & JurisdictionsAvailable Counties & Jurisdictions

• Program StructureProgram Structure

• Homebuyer RequirementsHomebuyer Requirements

• Property RequirementsProperty Requirements

• Realtors RoleRealtors Role

• ANDP’s RoleANDP’s Role

• To-Do or Not-To-DoTo-Do or Not-To-Do

Today’s AgendaToday’s Agenda


NSP NSP Advantage Advantage TeamTeam


• Christie CadeChristie Cade– Sr. Manager of Housing DevelopmentSr. Manager of Housing Development

• Clyde AndersonClyde Anderson– Housing ConsultantHousing Consultant

• Karyl BentleyKaryl Bentley– Housing CoordinatorHousing Coordinator

• George BurganGeorge Burgan– Sr. Manager Marketing & Comm.Sr. Manager Marketing & Comm.

NSP Advantage: The TeamNSP Advantage: The Team


• Total household income must not exceed Total household income must not exceed 120% of Area Median Income.120% of Area Median Income.

NSP Advantage: OverviewNSP Advantage: Overview

Family Size 50% AMI 80% AMI 120% AMI

1 $25,150 $40,250 $60,300

2 $28,750 $46,000 $68,950

3 $32,350 $51,750 $77,550

4 $35,900 $57,450 $86,150

5 $38,800 $62,050 $93,050

6 $41,650 $66,650 $99,950


• Second mortgages must be coupled with 30 year Second mortgages must be coupled with 30 year fixed rate first mortgages only (FHA, VA, fixed rate first mortgages only (FHA, VA, Conventional)Conventional)

• Recapture/affordability for period with all NSP Recapture/affordability for period with all NSP Second Mortgage loans (5-15 years)Second Mortgage loans (5-15 years)

• Homebuyer must move into the home 60 days Homebuyer must move into the home 60 days after closing subject to construction issuesafter closing subject to construction issues

• Homebuyers must contribute at least 1% of their Homebuyers must contribute at least 1% of their own funds towards the purchase of the home (i.e. own funds towards the purchase of the home (i.e. earnest money, application fee, appraisal, etc.)earnest money, application fee, appraisal, etc.)



• The home purchased must be the primary The home purchased must be the primary residence for the Homebuyerresidence for the Homebuyer

• No first time buyer requirementNo first time buyer requirement

• Loan qualification and credit underwriting is Loan qualification and credit underwriting is completed by participating lenderscompleted by participating lenders

• Homebuyer education and housing Homebuyer education and housing counseling is required from HUD approved counseling is required from HUD approved housing counselors (8 hours)housing counselors (8 hours)



• All other NSP regulations and guidelines All other NSP regulations and guidelines are applicableare applicable

• Program may be used with other down Program may be used with other down payment assistance programs (some payment assistance programs (some exceptions may apply)exceptions may apply)



NSP NSP Second Second Mortgage Mortgage FactsFacts


NSP NSP Second Second Mortgage Mortgage GuidelinesGuidelines

Jurisdiction

Max. Assistance to qualified buyers.

(Assistance comes in form of 2nd Mortgage)

Interest Rate

Loan Terms

Borrower Required

FundsRepayment

Terms Special Stipulations

AtlantaUp to

$20,0000%

10 years

1% of the purchase

price

Prorated, Reduces 10%/yr

Files sent directly to ANDP from participating

lender

DeKalb22% of purchase price up to $25,000, includes $4,000

closing costs0%

10 years

1% of the purchase

price

Prorated,Reduces 10%/yr


lender

Douglas

20% of purchase price up to $25,000, includes $4,000

closing costs40% available

0%

0%

10 years

15 years

1% of the purchase

price


15 yr


lender

Fulton

120%AMI: 10%SP, Max $10k, 5 years

80%AMI: 15%SP, Max $15k, 10 years,

50%AMI: 25%SP, Max $25k, 10 years

In addition 5% of SP in CC up to $7,500

0%5-10 years

1% of the purchase

price



lender

Rockdale$14,500 plus 5% of sales price toward closing costs

0% 5$500-$1,000


Rockdale County pre-approval required for

NSP Assistance. Down payment assistance amount based on

income


NSP NSP Second Second Mortgage Mortgage ProcessProcess


• Borrower receives approved contract Borrower receives approved contract from ANDPfrom ANDP

• Email “Loan Reservation” to the Email “Loan Reservation” to the following following

• [email protected]@andpi.org [email protected]@gmail.com, , [email protected]@andpi.org

• ANDP will provide Reservation ANDP will provide Reservation Confirmation within 48 hours Confirmation within 48 hours

• Lenders will process and Underwrite loan Lenders will process and Underwrite loan file completely file completely

NSP Advantage: ProcessNSP Advantage: Process


• Overnight you approved loan to ANDP’s Overnight you approved loan to ANDP’s office: 235 Peachtree Street Suite 2000 office: 235 Peachtree Street Suite 2000 2oth Floor, Atlanta, GA 30303 ATTN: 2oth Floor, Atlanta, GA 30303 ATTN: Christie CadeChristie Cade

• Upon receipt ANDP will provide a Upon receipt ANDP will provide a “Deficiency Letter” within 48 hours of “Deficiency Letter” within 48 hours of receiving file (if applicable)receiving file (if applicable)

• The file will not be fully reviewed until The file will not be fully reviewed until outstanding conditions are metoutstanding conditions are met



• ANDP will begin “Compliance Review”ANDP will begin “Compliance Review”– Compliance Review consist of...Compliance Review consist of...

•Confirming that all documents have Confirming that all documents have been signed and filled out been signed and filled out completely completely

•Confirming household sizeConfirming household size• Verifying Verifying incomeincome is correct is correct•Review AppraisalReview Appraisal•Reviewing tax returnsReviewing tax returns•Reviewing bank statementsReviewing bank statements

• Forward info to Jurisdiction for review if Forward info to Jurisdiction for review if applicableapplicable



• Email Lender Approval/Declination LetterEmail Lender Approval/Declination Letter

• Allow 48 hours to confirm and set up Allow 48 hours to confirm and set up closingclosing

• ANDP will prepare Note, Deed, TIL and ANDP will prepare Note, Deed, TIL and other documents for closingother documents for closing

• ANDP will provide all documentation for ANDP will provide all documentation for NSP 2nd Mortgage to AttorneyNSP 2nd Mortgage to Attorney



• After ANDP reviews the HUD to ensure:After ANDP reviews the HUD to ensure:

– Borrower has at least 1% invest into Borrower has at least 1% invest into the transaction (Earnest deposit, the transaction (Earnest deposit, application fee, inspections etc.)application fee, inspections etc.)

– No excessive fee’s were charged (Max No excessive fee’s were charged (Max 2 discount points)2 discount points)

– Second Mortgage proceeds and Second Mortgage proceeds and

closing cost were applied correctly closing cost were applied correctly



• ANDP is the Seller of the properties and ANDP is the Seller of the properties and will provide homebuyers warranty and will provide homebuyers warranty and sign all seller docs at closing.sign all seller docs at closing.

• ANDP will follow up on Post Closing itemsANDP will follow up on Post Closing items– Fully Executed 1003Fully Executed 1003– Loan Application FormLoan Application Form– Final GFEFinal GFE



HomebuyerHomebuyerRequirementsRequirements


• Homebuyer will contact a NSP Participating Lender for Homebuyer will contact a NSP Participating Lender for loan application and pre-qualification.loan application and pre-qualification.

• Homebuyer will contact a HUD approved Housing Homebuyer will contact a HUD approved Housing Counseling agency, complete the required (8 hr) Counseling agency, complete the required (8 hr) homebuyer education and housing counseling and homebuyer education and housing counseling and obtain a certificate of completion prior to submittal of obtain a certificate of completion prior to submittal of underwriting package to ANDP. underwriting package to ANDP.

Getting Started! The Loan ProcessGetting Started! The Loan Process

Homebuyer RequirementsHomebuyer Requirements


• Homebuyer qualifies for a conventional, FHA or VA Homebuyer qualifies for a conventional, FHA or VA mortgagemortgage

• Homebuyer will work with Real Estate Professional to Homebuyer will work with Real Estate Professional to locate an ANDP property in one of the designated locate an ANDP property in one of the designated Counties - Area of greatest need and present an offer Counties - Area of greatest need and present an offer contingent upon approvalcontingent upon approval

• Homebuyer completes the loan application process with Homebuyer completes the loan application process with the NSP Participating Lender, completes all NSP forms, the NSP Participating Lender, completes all NSP forms, obtains loan approval from lender, and closes on home.obtains loan approval from lender, and closes on home.

Getting Started! The Loan ProcessGetting Started! The Loan Process

Homebuyer RequirementsHomebuyer Requirements


PropertyPropertyRequirementsRequirements


• Must be an ANDP owned property listed Must be an ANDP owned property listed on MLS and FMLSon MLS and FMLS

• Must be located within the designated Must be located within the designated program area in order to receive the program area in order to receive the benefits for that jurisdictionbenefits for that jurisdiction

• Under renovation, unless otherwise notedUnder renovation, unless otherwise noted

• Properties online at Properties online at www.ANDPHomes.orgwww.ANDPHomes.org

Property RequirementsProperty Requirements


Role of theRole of theLenderLender


• Prepare the required NSP Program closing documentsPrepare the required NSP Program closing documents

• Deliver documents for the first mortgage loan, table Deliver documents for the first mortgage loan, table fund 1st mortgage, ANDP will fund 2nd mortgage loan fund 1st mortgage, ANDP will fund 2nd mortgage loan

• Deliver final inspections and required funding Deliver final inspections and required funding documents to ANDP documents to ANDP

Role of the LenderRole of the Lender


The Lender will:The Lender will:

• Originate, process and underwrite the first and mortgage in Originate, process and underwrite the first and mortgage in accordance with FHA, VA or Conventional loan accordance with FHA, VA or Conventional loan requirements and credit guidelinesrequirements and credit guidelines

• Lenders will be responsible for originating, underwriting Lenders will be responsible for originating, underwriting and closing the NSP first mortgage Loans and for all and closing the NSP first mortgage Loans and for all communications with borrower about their NSP Second communications with borrower about their NSP Second Mortgage LoansMortgage Loans

• Review all documentation to verify that discounts meet the Review all documentation to verify that discounts meet the NSP requirementsNSP requirements

• Review income documentation to verify that Applicants Review income documentation to verify that Applicants household meets the NSP income requirements of less than household meets the NSP income requirements of less than 120% AMI and complete the Household Income Worksheet120% AMI and complete the Household Income Worksheet

Role of the LenderRole of the Lender


• Become familiar with the ANDP property inventoryBecome familiar with the ANDP property inventory

• Share information with potential homebuyers Share information with potential homebuyers

• Inform homebuyers of the housing counseling Inform homebuyers of the housing counseling requirementsrequirements

• Assist homebuyers with the process of obtaining pre-Assist homebuyers with the process of obtaining pre-qualification/loan approval from one of our qualification/loan approval from one of our participating Lendersparticipating Lenders

• Assist homebuyer with presenting offer on ANDP Assist homebuyer with presenting offer on ANDP propertiesproperties

Role of the RealtorRole of the Realtor


• Identify Property from the Identify Property from the www.andphomes.orgwww.andphomes.org websitewebsite

• Contact the assigned Listing Agent Contact the assigned Listing Agent

• Show propertyShow property

• Get appropriate documents for contract to make Get appropriate documents for contract to make offer from Listing Agentoffer from Listing Agent

• Submit your offer to ANDP (Seller) via Listing AgentsSubmit your offer to ANDP (Seller) via Listing Agents

Role of the RealtorRole of the Realtor


Role of Role of ANDPANDP


ANDP will:ANDP will:

• Reserve NSP funds as requested by lendersReserve NSP funds as requested by lenders

• Complete a compliance underwriting review of Complete a compliance underwriting review of documentation presented by the lenderdocumentation presented by the lender

• Approve/deny NSP funding for submitted applicationsApprove/deny NSP funding for submitted applications

• Prepare NSP second mortgage loan closing Prepare NSP second mortgage loan closing documentsdocuments

• Fund the NSP loan at closing Fund the NSP loan at closing

• Secure NSP Second Mortgage Loan documents and Secure NSP Second Mortgage Loan documents and service loan until payoff. service loan until payoff.

ANDP Role & The Closing ProcessANDP Role & The Closing Process


DoDo Don'tDon'tPrepare for a 45 to 60 day process Prepare for a 45 to 60 day process Write contract for 30 daysWrite contract for 30 days

Make sure borrower has attended homebuyer course Make sure borrower has attended homebuyer course Wait until the last minute to take itWait until the last minute to take it

Be prepared to invest at least 1% of the purchase Be prepared to invest at least 1% of the purchase price in the transaction price in the transaction Receive a gift to cover the minimum investmentReceive a gift to cover the minimum investment

Allow enough time for process to be completedAllow enough time for process to be completed Submit rush loansSubmit rush loans

Make sure application is filled out completely andMake sure application is filled out completely andwitnessed in appropriate placeswitnessed in appropriate places Leave blank sectionLeave blank section

Review checklist to make sure all requiredReview checklist to make sure all requireddocumentation has been submitteddocumentation has been submitted

Submit incomplete application missing Submit incomplete application missing documentationdocumentation

Understand that all ANDP’s NSP products are soft Understand that all ANDP’s NSP products are soft second loans with no payment and no interest second loans with no payment and no interest

chargescharges Assume it is a grantAssume it is a grant

Wait for ANDP's approval before confirming closing Wait for ANDP's approval before confirming closing datedate

Guarantee clients loan is closing on a specific day Guarantee clients loan is closing on a specific day until loan approval is received from ANDPuntil loan approval is received from ANDP

Be prepared to provide pay stubs for each pay periodBe prepared to provide pay stubs for each pay perioduntil loan closesuntil loan closes Stop submitting pay stubs once loan is submittedStop submitting pay stubs once loan is submitted

Allow 7-10 days for approval once ANDP confirms Allow 7-10 days for approval once ANDP confirms receipt of a complete loan packagereceipt of a complete loan package

Start counting days from the date initial package Start counting days from the date initial package is received by ANDPis received by ANDP

How to Make it Work!How to Make it Work!ANDP’s Do's and Don'ts for Loan SubmissionsANDP’s Do's and Don'ts for Loan Submissions


What we need What we need from the Lenderfrom the Lender


Questions?Questions?For additional information visit For additional information visit

www.ANDPHomes.orgwww.ANDPHomes.org

OrOr

Clyde AndersonClyde [email protected]@gmail.com678-500-9519678-500-9519

ANDP Homes… The NSP Advantage! Visit Us Online at ANDPHomes

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