ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org ANDP Neighborhood ANDP Neighborhood Stabilization Program (NSP) Stabilization Program (NSP) Program Training Program Training For Lending Professionals For Lending Professionals Implemented by Implemented by Atlanta Neighborhood Development Partnership Atlanta Neighborhood Development Partnership Presented by Clyde Anderson Presented by Clyde Anderson
ANDP Neighborhood Stabilization Program (NSP) Program Training For Lending Professionals. Implemented by Atlanta Neighborhood Development Partnership Presented by Clyde Anderson. ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org. The Initiative. - PowerPoint PPT Presentation
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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 Lending ProfessionalsFor Lending Professionals
Implemented by Implemented by Atlanta Neighborhood Development PartnershipAtlanta Neighborhood Development Partnership
Presented by Clyde AndersonPresented by Clyde Anderson
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.orgANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
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
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.orgANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
• 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
• Lenders RoleLenders Role
• ANDP’s RoleANDP’s Role
• To-Do or Not-To-DoTo-Do or Not-To-Do
Today’s AgendaToday’s Agenda
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NSP NSP Advantage Advantage TeamTeam
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• Christie CadeChristie Cade– Sr. Manager of Housing DevelopmentSr. Manager of Housing Development
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.orgANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
• 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% AMI1 $25,150 $40,250 $60,3002 $28,750 $46,000 $68,9503 $32,350 $51,750 $77,5504 $35,900 $57,450 $86,1505 $38,800 $62,050 $93,0506 $41,650 $66,650 $99,950
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.orgANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
• 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.)
NSP Advantage: OverviewNSP Advantage: Overview
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.orgANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
• 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)
NSP Advantage: OverviewNSP Advantage: Overview
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.orgANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
• 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 Advantage: OverviewNSP Advantage: Overview
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.orgANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
NSP NSP Second Second Mortgage Mortgage FactsFacts
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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
Atlanta Up to$20,000 0% 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
Files sent directly to ANDP from participating
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
Prorated,Reduces 10%/yr
15 yr
Files sent directly to ANDP from participating
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
Prorated,Reduces 10%/yr
Files sent directly to ANDP from participating
lender
Rockdale $14,500 plus 5% of sales price toward closing costs 0% 5 $500-
$1,000
Prorated,Reduces 20%/yr
Rockdale County pre-approval required for
NSP Assistance. Down payment assistance amount based on
income
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NSP NSP Second Second Mortgage Mortgage ProcessProcess
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• 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
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.orgANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
• 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
NSP Advantage: ProcessNSP Advantage: Process
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.orgANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
• 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
NSP Advantage: ProcessNSP Advantage: Process
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.orgANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
• 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
NSP Advantage: ProcessNSP Advantage: Process
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• 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
NSP Advantage: ProcessNSP Advantage: Process
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.orgANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
• 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
NSP Advantage: ProcessNSP Advantage: Process
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.orgANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
HomebuyerHomebuyerRequirementsRequirements
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• 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
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.orgANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
• 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
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.orgANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
PropertyPropertyRequirementsRequirements
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.orgANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
• 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
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.orgANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
Role of theRole of theLenderLender
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• 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
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The Lender will:The Lender will:• Originate, process and underwrite the first and mortgage Originate, process and underwrite the first and mortgage
in accordance with FHA, VA or Conventional loan in 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 household meets the NSP income requirements of less than 120% AMI and complete the Household Income than 120% AMI and complete the Household Income WorksheetWorksheet
Role of the LenderRole of the Lender
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• Obtain an appraisal to include interior and exterior Obtain an appraisal to include interior and exterior photographs photographs
• Credit underwrite the loan to include second Credit underwrite the loan to include second mortgage financing mortgage financing
• Deliver a complete underwriting package to ANDP Deliver a complete underwriting package to ANDP and receive ANDP compliance approvaland receive ANDP compliance approval
Role of the LenderRole of the Lender
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.orgANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
How do I become a NSP Lender?How do I become a NSP Lender?
• Fannie/FNMA Certified or FHA approved lenders Fannie/FNMA Certified or FHA approved lenders are invited to participate in the ANDP NSP are invited to participate in the ANDP NSP Advantage program. Advantage program.
• Lenders interested in participating in the Program Lenders interested in participating in the Program should contact Clyde Anderson @ should contact Clyde Anderson @ [email protected]@gmail.com
Lender ParticipationLender Participation
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Role of Role of ANDPANDP
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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
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.orgANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
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 itBe 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 loansMake sure application is filled out completely andMake sure application is filled out completely and
witnessed in appropriate placeswitnessed in appropriate places Leave blank sectionLeave blank sectionReview checklist to make sure all requiredReview checklist to make sure all required
documentation has been submitteddocumentation has been submittedSubmit incomplete application missing Submit incomplete application missing
documentationdocumentationUnderstand 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
ANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.orgANDP Homes… The NSP Advantage! Visit Us Online at www.ANDPHomes.org
Mock LoanMock Loan
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Questions?Questions?For additional information visit For additional information visit www.ANDPHomes.orgwww.ANDPHomes.orgOrOr Clyde AndersonClyde [email protected]@gmail.com678-500-9519678-500-9519