2011 Housing Innovation Marketplace What’s Up with Government Products January 25, 2011 Jacki J. Young, NIFA Single Family Program Manager.

2011 Housing Innovation MarketplaceWhat’s Up with Government Products

January 25, 2011

Jacki J. Young, NIFASingle Family Program Manager

Single Family Program

2010 Loan ProductionLoan CharacteristicsDownpayment Assistance LoansProgram Purchase PricesProgram Changes in 2011

2010 Closed Loan Production

Total # Loans 1,583

Total $ Loans $157.7 million

Loans in Urban Areas 60%

Average Loan Amount (urban) $115,000

Loans in Rural Areas 40%

Average Loan Amount (rural) $85,000

Average Household Income $47,203

Average Borrower Credit Score 701 (50% above 700)

Average Total Debt Ratio 38%

Loans by Product FHA-77%, RD-19%, VA-4%

Downpayment Assistance Loans

NIFA has been providing assistance since 1996Closed over 13,000 loans with second mortgages to dateImportant resource for borrowers who do not have reserves or family members to provide gift fundsHelps borrowers with reserves to maintain funds after closing for emergency and deferred maintenance

HBA ProgramRedesigned in 2010NIFA must provide first mortgage loan in connection with assistance loanAmortizing second mortgage loan with monthly principal and interest paymentsFirst mortgage rate is .50% higher than NIFA’s unassisted mortgage rateSecond mortgage rate is 3%Second mortgage amount cannot exceed 3% of the purchase priceTerm is 7 years (84 months)Borrower minimum investment of $1,000No cash back

Comparison of Demand for Downpayment Assistance

In 2000, 46% of NIFA’s total loan production included assistance

In 2005, 34% of NIFA’s total loan production included assistance

In 2010, 17% of NIFA’s total loan production included assistance

NIFA Program – Average Purchase Price

Urban Rural50,000

75,000

100,000

125,000

200820092010

78,05677,959

113,904111,175115,210

85,730

Program Changes for 2011

Development of a conventional insured loan productAdding a conventional product will provide more options for borrowers especially in areas that have limited lenders who can originate FHA loans and communities that are ineligible for RD financingRedesign of the NIFA website that will include more information with easier access for all audience groupsEnhancing our Lender on Line site to improve efficiencies with loan originations

Contact Information:

Jacki J. Young, Single Family Program ManagerEmail address: [email protected] Phone number: (402) 434-3915Website address: www.nifa.org

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