ILLINOIS HOUSING DEVELOPMENT AUTHORITY IHDA Team 2016 AGENDA
- Slides: 14
ILLINOIS HOUSING DEVELOPMENT AUTHORITY IHDA Team 2016
AGENDA • • PROGRAM ELIGIBILITY AND REQUIREMENTS – WHO IS ELIGIBLE IHDA HOMEOWNERSHIP PROGRAMS MORTGAGE CREDIT CERTIFICATE (MCC) @HOMEILLINOIS PROGRAM
PROGRAM ELIGIBILITY HOMEOWNERSHIP PROGRAMS IHDA Team 2016 3
PROGRAM ELIGIBILITY AND REQUIREMENTS • AVAILABLE TO FIRST-TIME HOME BUYERS( AND NON FIRST-TIME HOME BUYERS AS PERMITTED BY PROGRAM) • • VETERANS AND THOSE PURCHASING IN A TARGETEDA REA ARE EXEMPTED FROM FIRSTTIME HOME BUYER STATUS 30 -YEAR FIXED RATE LOAN (VA, FHA, USDA, FNMA CONVENTIONAL) MUST PURCHASE A QUALIFIED DWELLING = 1 (OR 2) UNIT SINGLE FAMILY PROPERTY –ON LESS THAN 5 ACRES OF LAND • FIRST-TIME HOME BUYER IS PERSON WHO “HAS NOT” HAD AN OWNERSHIP INTEREST IN A PRINCIPAL RESIDENCE AT ANY TIME DURING THE THREE-YEAR PERIOD PRIOR TO THE DATE THE MORTGAGE IS EXECUTED. BORROWER MUST OCCUPY PROPERTY AS PRIMARY RESIDENCE (NO NON-OCCUPANT CO-BORROWER OR CO-SIGNOR ALLOWED!) TOTAL HOUSEHOLD INCOME AND PURCHASE PRICE MUST BE WITHIN LIMITS
PROGRAM ELIGIBILITY AND REQUIREMENTS (CONTINUED) • • FUNDING IS ON A FIRST-COME, FIRST-SERVED BASIS FOR ALL PROGRAMS • LOANS ARE PURCHASED BY US BANK HFA DIVISION TOGETHER IN ORDER TO RECEIVE IHDA’S DOWN PAYMENT ASSISTANCE, YOU MUST ALSO USE A IHDA FIRST MORTGAGE
IHDA’S PROGRAM QUALIFICATIONS • • MINIMUM CREDIT SCORE ON ALL FHA PRODUCTS WILL BE 660. MINIMUM CREDIT SCORE - VA, USDA AND FNMA -95% LTV OR LESS , 640. CONVENTIONAL HFA PREFERRED > 95. 01% REQUIRES MINIMUM 680 (DU APPROVE ELIGIBLE, ONLY DU FINDINGS ARE ACCEPTED, NO LP AT THIS TIME) - US BANK HFA DIVISION MUST UNDERWRITE ALL CONVENTIONAL LOANS THAT EXCEED 95% LTV (UNLESS DELEGATED BY US BANK HFA DIVISION) ALL CONVENTIONAL MUST BE RUN THROUGHD U AS “HFA PREFERRED” SPECIAL FEATURE CODE – NO HOME READY FOR IHDA LOANS • • NO MANUFACTURED HOMES PERMITTED. • HOMEOWNERSHIP COUNSELING PRIOR TO CLOSE REQUIRED FOR ALL BUYERS! NO MANUALLY UNDERWRITTEN FHA AND FNMA MAXIMUM DEBT TO INCOME RATIO OF 45 PERCENT – NO EXCEPTIONS BORROWER MUST CONTRIBUTE THE GREATER OF 1% OF PURCHASE PRICE OR $1, 000 FROM BUYER’S OWN FUNDS
Offers $5, 000 in down payment assistance to first AND non first-time home buyers 7
AVAILABLE FOR FIRST-TIME AND NON-FIRST-TIME HOMEBUYERS FEATURES: • 30 -YEAR FIXED RATE LOAN (VA, FHA, USDA, FNMA CONVENTIONAL) • $5, 000. 00 DOWN PAYMENT AND/OR CLOSING COST ASSISTANCE - PURCHASE ONLY! - THE DPA SECOND IS AMORTIZED OVER 10 YEARS @ 0% FOR A PAYMENT OF $41. 67/MONTH • QUALIFIED DWELLINGS, 1 -2 UNITS (MUST BE OCCUPIED AS BORROWER’S PRIMARY RESIDENCE) ON LESS THAN 5 ACRES OF LAND • OPTIONAL – MORTGAGE CREDIT CERTIFICATE – LENDER PAID MI
MORTGAGE CREDIT CERTIFICATE (MCC) IHDA Team January 2016 9
WHAT IS A MORTGAGE CREDIT CERTIFICATE (MCC)? AN MCC IS A CERTIFICATE AUTHORIZED BY THE FEDERAL GOVERNMENT AND ISSUED BY IHDA. IT ALLOWS THE BORROWER TO TAKE 20 PERCENT OF THE ANNUAL MORTGAGE INTEREST PAID, AS A DOLLAR-FOR-DOLLAR REDUCTION TO THE ANNUAL FEDERAL INCOME TAX LIABILITIES. THIS IS AVAILABLE TO ALL FIRST-TIME HOW DOES AN MCC WORK? ADJUSTED GROSS INCOME $55, 000 LOAN AMOUNT $135, 000 INTEREST RATE 4. 00% INTEREST PAID FIRST YEAR $ 5, 349 10
CALCULATION OF BENEFIT: Without MCC With MCC Income $55, 000 Mortgage Interest Deduction - $5349 - $4, 280 (80%) Taxable Income $49, 651 $50, 720 Taxes Paid @ 15% Tax Bracket $7, 448 $7, 608 MCC Tax Credit N/A $1, 070 (20%) Income Taxes Due $7, 448 $6, 532 Tax Savings Due to MCC N/A $916 THE EXAMPLE SHOWS THAT THE 20% CREDIT WILL LOWER THE TAX LIABILITY BY $916. 00 ST POTENTIALLY SAVING THE BORROWER $916 ÷ 12= $76. 00 PER MONTH THE YEAR 1 11
OPTIONAL WITH @HOMEILLINOIS ONLY MORTGAGE CREDIT CERTIFICATE (MCC) A FEDERAL INCOME TAX CREDIT FOR THE LIFE OF THE LOAN (AVAILABLE FOR FIRST-TIME HOME-BUYERS , ( VETERANS AND THOSE PURCHASING IN A TARGETED AREA, EXEMPTED FROM FIRST-TIME HOME BUYERSTATUS ) • SINGLE FAMILY HOME, CONDO AND TOWNHOME) • $500 FEE TO IHDA
YOUR PUBLIC FINANCE PARTNER www. ihda. org
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