Getting Prepared!

After you have submitted a Hope for Homeowners Program loan application, you will need to be prepaired to provide us with some information. The following is information you will need to become successful:

Step 1:  Application

To get you approved we will need you to fax or email the following documentation:

• We are here to help, please call us to discuss your situation or you may follow the instructions below and apply on line.

• Last 2 years W-2's or Federal tax returns if self-employed for all borrowers
• Most recent months paycheck stubs for all borrowers
• Current month's Mortgage Statement(s) for any loans secured by your property
• Current month's asset statements (checking, savings, 401k, etc.) 
• Copy of the declaration page of your homeowner's property insurance
• Copy of all borrower's drivers license

Step 2:  Cost-Benefit Analysis

Upon receipt of your documentation we will issue a prequalification and provide a Cost-Benefit Analysis which will include: 

• What loan amount you qualify for under the H4H, FHA insured financing program
• Instant Equity...10% of your homes value
• Closing costs estimate...upfront closing costs are NOT required
• FHA requires a 3 percent upfront mortgage insurance premium and a 1.5 percent annual premium
• 50/50 Equity and appreciation sharing with FHA, this includes the "instant equity" that you will obtain at closing
• Prohibition against new junior liens against the property unless they are directly related to property maintenance
• Homeownership Retention   

Step 3:  Negotiations with Current Lien Holders

We will need to secure an agreement from the existing lien holder(s) to waive all prepayment penalties and default fees on the existing loan(s) and accept the loan proceeds from the H4H, FHA Insured loan as payment in full.  The loan amount that we will present to your current lender(s) for full repayment will not exceed 90% of your homes current appraised value.  This means that 10% of your homes current value will be left as equity.  To entice lien holders to participate in the negotiation process and release their liens, you will be required to share this equity and future equity with FHA who will in turn share it with the lien holders who have reduced your loan balance(s).

Step 4:  Loan Closing Steps

• Loan submission and approval by our in-house FHA approved underwriter

  During underwriting of the loan, the lender will calculate the future appreciation interest amount for each subordinate lien holder in accordance with instructions provided by FHA.

  We will also submit the new mortgage for insurance to FHA, certifying that it has been originated, underwritten and closed in accordance with the H4H program guidelines.

  Issue loan documents for all borrowers to execute.

  At closing, subordinate lien holders (if applicable) will receive a certificate that evidences their interest as an obligation backed by HUD, with payment conditional on the value of HUD’s appreciation share.

  Following funding of the loan we will record – in addition to the typical security instrument and note for the first mortgage – a shared equity note and mortgage (SEM) and a shared appreciation note and mortgage (SAM).  These mortgages will be serviced by FHA.

Step 5:  Your Fulfillment of the H4H Mortgage Obligations

Upon the future sale of the property, the homeowner will use their sale proceeds to pay off the H4H mortgage as well as the shared equity and shared appreciation mortgages.  FHA will provide instructions to the settlement agents regarding subordinate lien holders who are entitled to a portion of any appreciation (if applicable).

We are an authorized and Licensed FHA Lender ready to help you. Please complete a loan application here:  Click Here