Introducing Great Choice to Your Clients

Who is THDA?

How to Accomplish SuccessfulHomeBuyer Education ClassKENDRA LOVE

THDA HOUSING COUNSELOR COORDINATOR: WEST TN

BackgroundWorked in the Homebuyer Education Department nonprofit in Memphis, TN (West TN region)

Top 10 of THDA producers in urban and rural

Over 400 families annually for face to face Homebuyer Education Classes

E-Home America Clients

Why is Homebuyer Education Important?Studies have shown that homebuyers whom take the class are less likely in comparison to those who do not to default or go into foreclosure

Knowledge is power

The more you know the better you do

What is Taught?Realizing the American DreamAre you Ready to Buy A HomeManaging Your MoneyUnderstanding CreditObtaining a Mortgage LoanShopping for a HomeProtecting Your Investment

Pre-Purchase ClassOptions

Face to Face Education Classes• Minimum of 6 hours

2 or more Families• Four hours plus 1 hour counseling

session, 1 household

• Costs varies by organization, but no more than $99

Online Education• eHome America - $99• One hour counseling session required

Post Purchase Class OptionsRequired for Hardest Hit Funds DPA-HHF Can be completed in-person or online If Pre Purchase is completed in person, in-person Post Purchase with the same agency

OR online is required.

Required prior to ClosingCosts no more than $50 in-person ClasseHome America Online $50All approved HBE agencies are not HHF-DPA participants Please visit www.thda.org for current program providers

How to Conduct a Successful Class Organization

Speakers

Real Life Examples

Audience

Control

Class size

Comfort level

Remain up to date on Homeownership changes

Outreach

Relationships with Realtors, Lenders, Attorney’s, Insurance Agent

Media (Social, Radio, TV)

Referrals from previous clients

Expectations

What are your funders expectations?

What are your expectations?

What are your audiences expectations?

How Do I Get Started?Visit www.thda.orgAttend a Homebuyer Education courseContact an approved lenderFind an approved REALTOR

Questions?

Kendra Love Homebuyer Education Coordinator:

West TN901-356-2251

klove@thda.org

HOW TO GET A THDA LOAN SUBMITTED & COMMITTED IN THE

SAME DAY

*Make sure you are using the correct THDA forms*Double check all information provided on 1003*Review tax transcripts closely *Account for all employment*Verify any and all asset accounts*Accurate information on FHA documents

THDA FORMS

• THDA Worksheet (non THDA form)• Application Affidavit• Seller Affidavit• Federal Recapture• Homebuyer Education• Disclosure of Loan Terms for Great Choice & HHF• GFE for Great Choice & HHF• Program Certification for HHF• 3rd Party Authorization for HHF

Common 1003 Errors

● Loan amount & Interest rate should be correct on a signed 1003

● Must complete a full 3 year resident history for borrower due to ownership restrictions<3 yrs

Tax Transcript Red Flags

1. Borrower's name listed differently or additional people listed on the tax transcript 2. Dependents with different last names3. Total income listed does not match W2 totals4. Money owed to the IRS

Document all Employment

● Must have FULL VOE on “all” current employers● Previous Verbal on all employers that issued a W2 to verify no longer

employed● All W2’s should add up to total on transcripts-if it doesn’t order W2

transcripts● Must have income docs for everyone in the household

○ If a child 18+ either need full time school transcripts or income docs

○ If spouse who is not employed would need LOX explaining not employed nor receives any type of income or assistance

○ If non married household member need tax returns or if not employed transcripts to verify no file & lox explaining not employed

Document all Employment

● If borrower is Self Employed be sure to obtain a YTD P&L

● Paystubs provided must be within 30 days of file being submitted to THDA-this is 30 days from end date of payroll period not the paid date

● Make sure all tax returns are signed● If using future income-will need paystub once borrower

starts new job prior to THDA purchasing loan

Hidden Assets

● Bank statements will uncover income you never knew existed. All bank statements for all household members should be obtained.

● Must have an lox for all non AUS Employer deposits● Keep in mind additional accounts can be uncovered from pay stubs as

well as transfers from any accounts provided

Recurring deposits could indicate additional income.

Example: Multiple small deposits of $25, $40, & $60 on bank statements. LOX from borrower verified these deposits were due to borrower recently started mowing neighbors lawns for them. We now need a YTD P&L and income must be counted towards maximum income limits.

FHA LT Common Error

The highlighted section should contain the following information: Source-THDAGov’t should be checkedAmount of secondary financing should be listed

Joe WomacSouthern Heritage BankAssistant Vice President

Loan Originator

www.greatchoicemarketing.com

Lenders Password:mortgage

Realtors Password:downpayment

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