Participating Lenders:
Wells Fargo
5601 Montana Ave
El Paso, Texas
(915) 881-2003
(www.wfhm.com/loans/lorena-medina)
GECU
Mortgage Department
7227 Viscount
El Paso, Texas
(915) 774-6081
EMC/EQUITY MORTGAGE
Elena Mata
1201 Airway D-7
778-4208 x 208
Prime Lending (a Plains Capital Company)
Contact: Mark Hoffman, Direct Mortgage Lender; NMLS #: 184428
Office: (512)716-3505
Cell: (512)785-3279 Fax (866) 424-1849
To Participate a Lender shall abide by the following:
- Provide fixed mortgage loans at market interest rates to LMMI households.
- Ability to make loans with CLTV greater than 100%
- Have the ability to provide a first mortgage with subordinate loans in favor of EPC.
- No Buy-downs, Adjustable Rate Mortgages or Graduated Payments Mortgage allowed
- Lender may not charge Discount points
- Loans may not be Sub Prime Products
- Provide mortgages to homebuyers whose debt ratio do not exceed 43%.
- Not allow any cash back to buyer at closing; any remaining cash must be applied toward EPC's second mortgage.
- Allow Borrower to receive 50% of the down payment, closing costs and, in some cases gap financing from NSP Homebuyer Assistance.
- Establish an impound/escrow account for taxes and insurance.
Participating Lenders must agree to provide the following documents to EPC for each participant:
- Pre-qualification Letter signed by underwriter stating that lender has been provided sufficient information to determine income, down payment, credit worthiness. If participant does not qualify, copy of denial letter including reason for such action.
- Approval Letter signed by underwriter indicating full approval and any conditions to close.
- Certification form signed by underwriter showing calculations of how underwriter determined income qualification for borrowers.
- HUD-1 Settlement Statement (prior to closing and certified copy of final).
- Final 1003 prior to closing.
- Provide EPC copy of borrower's credit report (with borrower's approval) or provide copy to borrower so they may provide it to us, if doing so is not in conflict with your credit reporting agency agreements.
Lender to ensure that hazard insurance binder is sufficient to cover the amount of first and subordinate lien notes.
EPC may exclude or limit participation of any participating lenders for failure to communicate, respond, or for charging excessive rates or fees.
EPC will provide participating lender a pre-qualification letter indicating borrower qualifies for participation in NSP2program assistance.
Appraisals
After-rehabilitation appraisal:
- Our company will order its own appraisal
- Our company may use EPC's appraisal
EPC's Subordinate Lien(s)
The amount of the NSP Homebuyer Assistance shall be determined by EPC on a case-by-case basis determined by buyer's household size, household income, lender's mortgage loan requirements and maximum loan amount lender is willing to finance, closing costs and sales prices. The amount of Homebuyer Assistance provided to a Participant will be secured by a Promissory Note and Deed of Trust with Grantee named as lien holder.
Homebuyer Assistance and Maximum Income Limits
| Income Qualifications for Homebuyers Assistance* | |||
|
Household Size |
Home Buyer Assistance Up to $20,000 |
Home Buyer Assistance Up to $20,000
|
Home Buyer Assistance Up to $20,000 |
| 1 | $17,300 |
$27,650 |
$41,400 |
| 2 | $19,750 | $31,600 | $47,350 |
| 3 | $22,200 | $35,550 | $53,250 |
| 4 | $24,650 | $39,450 | $59,150 |
| 5 | $26,650 | $42,650 | $63,900 |
| 6 | $28,600 | $45,800 | $68,650 |
| 7 | $30,150 | $48,950 | $73,350 |
| 8 | $32,550 | $52,100 | $78,100 |
*Subject to change annually per HUD AMFI Guideline for El Paso MSA
Based upon the amount of Homebuyer Assistance for which the NSP Participant qualifies, the following mounts will be forgiven:
Affordability Period—the term shall be:
| Amount of Homebuyer Assistance | Affordability Period | Forgivable Rate |
| 0 - $15,000 | 60 Months | 1/60 per month |
| > $15,001 < $20,000 | 120 Months | 1/120 per month |
Resale during affordability period - If the buyer sells the assisted property prior to the end of the affordability period, NSP funds will be recaptured by EPC as Grantee out of the net proceeds of the sale according to the formula contained in the NSP recapture note and mortgage.
Non-occupancy or conversion of use of property – If the buyer fails to occupy property as a primary residence or converts property to any other use other than residential during the affordability period, the entire amount of the forgivable Homebuyer Assistance will become due.
BANK REGULATORS' GUIDE FOR NON-TRADITIONAL MORTGAGES
Lenders are required to comply with the bank regulators' guide for non-traditional mortgages (See statement on Subprime Mortgage Lending issued by the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporations, Department of the Treasury, and the National Credit Union Administration available at: http://www.fdic.gov/regulations/laws/rules/5000-5160.html.) Participating lenders must comply with bank regulators' guide for non-traditional mortgages. No subprime loans will be permitted.
Disclosure: EPC is NOT approved by FHA as a non-profit entity. Therefore, Homebuyer Assistance for the NSP Program is not approved for use in conjunction with FHA loans.
Minimum investment - Participants must make a minimum required investment (Down Payment plus any other investment required). Investment may be the participant's savings or a gift received from a family member. This money may not be borrowed unless it is a collateralized loan, said loan to be included in the Participant's debt ratios. Minimum required investment is the greater of:
- One half (1/2) of the Participating Lender's minimum down payment requirement OR
- Minimum Cash to close Requirement on following grid (U.S.D.A Financing Only)
| Household Income | Minimum Cash-to-Close Requirements |
| Up to 50% AMFI | $ 500 |
| > 51% to 80% AMFI | $ 1,000 |
| > 81% to 120% AMFI | $ 1,500 |
Homebuyer Counseling - Participants must attend 8 hours of homebuyer counseling at a HUD-approved housing counseling agency and must also attend one 2 hour Financial Literacy class at EPC.
Non-Occupying Participant – The NSP2 program will not allow the participation of non-occupying borrowers, nor will it allow co-signers.
Hazard Insurance – Participants must maintain property insurance for a sufficient amount to cover the first and subordinate mortgages as well as full replacement value of subject property for the term ofall loans.