2 vhda.com | 800-227-VHDA
SPARCSponsoring Partnership And Revitalizing Communities
Round 8 (FY 10)-Webinar
33 vhda.com | 800-227-VHDA
VHDA Participants• Michele Watson
– Director of Home Ownership Programs
• Janice Burgess – Loan Programs Manager
• Toni Ostrowski – Senior Community Housing Officer
• Sandy Redd– Business Partner Products Manager
44 vhda.com | 800-227-VHDA
Purpose of Webinar
• Inform VHDA partners and stakeholders of Round 8 funding availability
• Review programmatic changes
• Discuss underwriting criteria
• Answer questions or concerns
55 vhda.com | 800-227-VHDA
Questions?
• Questions will be addressed at the end of the webinar
• Please type your question in the dialogue box
77 vhda.com | 800-227-VHDA
Round 8Special allocation available to:
– Local governments– Redevelopment and housing authorities– Nonprofit housing advocates– For profit developers– Other
Purpose:– Assist housing advocates by providing a
set-aside of resources to address critical housing needs
88 vhda.com | 800-227-VHDA
Round 8 AllocationGuide is available on line www.vhda.com
Timeline– Applications deadline: Close of business August 14,
2009– Submit applications electronically to:
[email protected] – Scoring & Ranking completed by mid-Sept– Notification of VHDA Board of Commissioners– Commitments mailed by 3rd week of September– Reservations available October 1st
99 vhda.com | 800-227-VHDA
Eligible Projects
• Project proposal-5 units or more• Single family detached, townhomes and
approved condominiums• Subdivision or scattered sites acceptable• All deed restrictions must terminate at
foreclosure
1010 vhda.com | 800-227-VHDA
Scoring of SPARCSPARC Proposal
POINTS TAB DOCUMENTATIONMandatory I. Application Transmittal
80 (90 for NSP)
II. Narrative Summary20 pts. Need
60 pts. Strategy (70 NSP)Mandatory III. Typical Home Transaction
20 IV. Supporting Documentation-Proposal Readiness
10 V. Bonus points
1111 vhda.com | 800-227-VHDA
Housing Strategy
Areas of Concentration• Expand Affordable Housing Opportunities• Address Housing Needs of Minorities &
Diverse Cultures• Support Community Revitalization• Increase Housing Opportunities for
Seniors and People with Disabilities
1212 vhda.com | 800-227-VHDA
Expand Affordable Housing Opportunities
Scoring based on the following:1. Income2. Home Inspection3. Leverage
Round 8 changes:• 20 points (high) for 80% AMI & below• 30 points (high) for leverage of 10%
1313 vhda.com | 800-227-VHDA
Address the Housing Needs of Minorities and Diverse Cultures
Scoring based on the following:1. Marketing/Outreach2. Home Inspection3. Leverage
Round 8 changes• Leverage
1414 vhda.com | 800-227-VHDA
Support Community Revitalization
Scoring based on the following:1. Property2. Home Inspection3. Leverage
Round 8 Changes• Priority 30 points given to NSP
partnerships• Leverage
1515 vhda.com | 800-227-VHDA
Increase Housing Opportunities for Seniors and PWD
Scoring based on the following:1. Property2. Home Inspection3. Leverage
Round 8 changes:• Leverage
1616 vhda.com | 800-227-VHDA
Readiness of Proposal• Zoning
• Site Control
• Utility Service
• Partnerships in place
• Utilization of past SPARC allocation
1717 vhda.com | 800-227-VHDA
Bonus Points Categories
Green Building– Energy Star Certification (5 Star)– EarthCraft Certified– Certified by the Enterprise Foundation Green
Communities program
Universal Design– Incorporate UD elements to meet minimum
standards for visitability– Attend a UD training session
1818 vhda.com | 800-227-VHDA
Allocations
Allocations will carry an interest rate reduction of ½%
and/or
Allocations of FHA Plus resources(prevailing FHA Plus rate at time of reservation)
– Proposal scoring/ranking and leverage will determine allocation types
1919 vhda.com | 800-227-VHDA
SPARC Commitments
• Commitment will specify the following:– allocation amount and type
• 1/2% - all eligible programs• Prevailing market rate –FHA Plus only
– Expiration: June 30, 2010– Loan type (e.g. government insured or
conventional)
2121 vhda.com | 800-227-VHDA
Lender Responsibilities• Confirm procedures with SPARC sponsor• Confirm special commitment criteria with
SPARC sponsor • Make loan reservation• Determine borrower eligibility per VHDA
guidelines• Originate/Process/Underwrite/Close loan• Submit all required documents to VHDA
2222 vhda.com | 800-227-VHDA
Eligible SPARC Programs• Conventional• FHA• VA• RHS• FHA Plus• Homebuyer Tax Credit Plus (must close no
later than November 30, 2009)
2323 vhda.com | 800-227-VHDA
SPARCSPARC Loan ParametersBorrowers 1st time homebuyers
Interest Rate Refer to Sponsor’s commitment: ½% below VHDA 1st time homebuyer rate @ reservation or the prevailing FHA Plus interest rate
Mortgage Insurance Loans with LTV’s of 80% or more must be government insured
Sales Price Limitations
Cannot exceed VHDA Income limits for 1st time home buyer program
Income Limits
Gross household income cannot exceed VHDA’s 1st time home buyer program. Cannot exceed limits established by Sponsor in SPARC application
Underwriting VHDA standards for 1st time homebuyer program
2424 vhda.com | 800-227-VHDA
Recent Underwriting Changes FHA Plus
• Minimum 620 Credit score• Collections exceeding $250 or $1000
cumulative must be paid prior to closing• Maximum 31%/43% ratios (DE underwriter may
grant exceptions up to 38%/50%)
• Qualifying income – part time, overtime, commissions – consider current earnings
2525 vhda.com | 800-227-VHDA
Condominium Requirements
• Property must meet the requirements of the insurer and must be approved by:– FHA– Fannie Mae or– Freddie Mac
• It is recommended that condominium developments be FHA approved
– VHDA will finance no more that 25% of the units in any development
2626 vhda.com | 800-227-VHDA
Secondary Financing
• Providers must execute a VHDA Secondary Financing Certification
• Secondary financing must be provided by government entity
• Secondary financing may not be made by seller
• Shared equity and deed restrictions must be approved by VHDA
2929 vhda.com | 800-227-VHDA
Reservations Procedures
• Pricing Options are not available
• Reserve SPARC funds
– Must have authorization from SPARC sponsor prior to reserving
– Reservation form faxed to VHDA (cannot reserve on-line)
• Fax reservation form to (804)343-8413
Top Related