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Revised August 2012
Texas Veterans Land Board Housing Assistance Program
Citibank Correspondent Lending
Special Programs Division
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Texas Veterans Land Board Eligibility
Veterans living in Texas are eligible if they:
Have served no fewer than 90 cumulative days on active duty in the Army, Navy, Air Force, Marines, Coast Guard, or United States Public Health Service
Have served after September 16, 1940
Have not been dishonorably discharged
The applicant must be a bona fide resident of Texas at the time the application is made. (A “bona fide resident” is someone who is living in Texas with the intent to remain in Texas.) This may include a Texas resident currently serving on active military duty outside of Texas. Presence in Texas due solely to military service may not establish bona fide residency.
Note: The one-year residency requirement for veterans who were not bona fide residents of Texas at the time they entered the service has been eliminated.
Have successfully repaid any previous TVLB loan
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Texas Veterans Land Board Eligibility Cont’d
Download Forms from www.texasveterans.com website
Required Forms
Request for Certification – VLB Form 41 Veteran’s Declaration of Eligibility – VLB Form 42 Affidavit of Texas Residence – VLB Form 43 DD-214/Statement of Service
Verify Veteran has completed and signed all applicable forms
Submit forms Via e-mail to [email protected] By fax to the Austin VLB office at 512-475-0936 By mail: Texas Veterans Land Board P.O. Box 12873 Austin, Texas 78711-2873
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Request for Certification – VLB Form 41
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Veteran’s Declaration of Eligibility – VLB Form 42
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Affidavit of Texas Residence – VLB Form 43
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DD-214/Statement of Service
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Pricing
Rates are published by TVLB every Monday morning and are good through Friday on VLB’s website at www.texasveterans.com
Current Interest Rate: 4.40*
The lock period is 60 days
Rate Reductions:– Veteran’s w/ Disabilities: .50 bps
*VLB Base Rate and rate reductions are subject to adjustment on the first business day of each week.
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Program Options
Veterans with Disabilities Program
• .50% reduction of Note rate
• The Veteran must have a compensable service-connected disability of 30% as verified by the U.S. Department of Veterans Affairs
• The TVLB will accept the following as evidence: VA Award Letter dated within 12 months of closing.
• Review the approved documentation to determine the Veteran has a service-connected disability of at least 30% prior to obtaining an interest rate commitment.
• Include a copy of the approved documentation in the file submission package.
Note: An unmarried surviving spouse of a veteran who is missing in action, or who died in the line of duty, or died from a service-connected cause and had a compensable service-connected disability rating of 30% or greater (as verified by an Award Letter from the VA) at the time of death is also eligible for the discount.
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Loan Eligibility
Products: VA, FHA and Conventional
Loan Limit: $417,000 (not to exceed FHA limits for area)
Maximum LTV
• Conventional: One Note-95%• FHA: maximum allowed by FHA• VA: max allowed by VA and the guaranty and down payment must equal 25% of the
lesser of the CRV or sales price
Eligible Terms: 15-, 20-, 25- or 30-year loan terms
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Loan Eligibility Cont’d
Eligible Lending Area: wholly located within the boundaries of the State of Texas
No Maximum Acreage
Owner Occupied Only
Assumptions generally not allowed
Down Payment Assistance: borrowers can obtain a gift from a relative or a grant from an employer or a public agency (gifts or grants from non-profit organizations need prior approval)
Refinances, except Construction to Permanent refinances, are not allowed
Construction to Permanent Financing• Interim financing cannot exceed 24 months• Veteran must sign the TVLB Take Out Affidavit and provide a copy of the interim
financing agreement (as referenced on Renewal and Extension Rider)• 2-4 family units are NOT eligible• “One-Time Closings” are NOT eligible
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Property Types
Single Family Detached/Attached
Townhouse or Town Home
Condominium
2-4 units constructed at least 5 years prior to loan closing
Manufactured Housing • FHA/VA only per GNMA guidelines• SFR• Factory Built after June 15, 1976• Delivered on site in at least two sections• Permanent Foundation• Dimensions not less than 20 ft x 40 ft • Sloping Roof• Not Eligible: Mobile Homes
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ENERGY STAR Program
All new construction loans must meet the U.S. Environmental Protection Agency’s (EPA) ENERGY STAR rating as an energy efficient home or A HERS Index Score of 75 or less following the RESNET National Home Energy Rating Standards and must have an energy rating Certificate that documents the HERS Index score of 75 or less to be eligible for purchase
A government-backed symbol for a home that is significantly more energy efficient than a standard home
Rating obtained from an independent third-party who is accredited by RESNET (http://www.natresnet.org/)
Property must achieve an ENERGY STAR rating or A HERS Index score of no more than 75 to participate in the VHAP program
Copy of the ENERGY STAR certificate or HERS certificate with score must be included in file
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Underwriting
Automated Underwriting• DU is acceptable for conventional, FHA and VA loans• LP is acceptable for FHA and VA (not allowed on conventional)
Appraisals must provide for interior/exterior inspections. Appraisal Form 1004 is required
Standard mortgage insurance coverage must be obtained regardless of the AU findings
Please follow agency guidelines for minimum FICO score
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Allowable Fees
Reasonable and customary (e.g., 1% origination fee and actual costs for appraisal fees, title insurance, credit report, etc.)
1% Participation Fees (Optional) on the Program Loan. (This fee may not be financed with an FHA or VA loan.)
No Discounts Allowed
Review Fee: – $200 Review fee (cannot be passed to veteran)– $70 Tax Service Contract fee for government loans– $89 Tax Service Contract fee for conventional loans– $10 Life of loan Flood Monitoring fee
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Loan Registration
Notice of Eligibility must be issued prior to locking your loan
Due to subsequent verification with VLB Administration, lock process may be up to 48 hours to ensure rate and eligibility
Commitment Confirmation – please review for accuracy
Lock is good for 60 days which includes loan delivery
NOTE: Items with arrows are common information we see missing when lock is submitted
For disability both the section above the rate should be checked and the rate entered or we will need updated lock
Registration Form Registration Change Form ATTN: CITIMORTGAGE COMMITMENT DESK FAX: 866-989-7606 PHONE: 800-967-2205 opt 1,0,1
Request must be received by Friday, 4:45 pm CST. After 4:45 pm, loans will be registered with next weeks pricing. Company Name _______________________________________________________________________________ Contact Name _______________________ Phone _________________________ Fax__________________ Loan Type: Conventional FHA VA
Conventional loans will be charged 25bps when purchased by the VLB. All conventional loans that are underwritten using Desktop Underwriter must be Version 7.0 (DU 7.0).
Loan Term: 180 240 300 360 Other____________
Property Type: SFR Duplex Townhouse Condo PUD Manufactured
Reservist/National Guard Yes No
*** All New Construction Homes Are Subject to ENERGY STAR Compliance ***
Please indicate if the Veteran is eligible for the Disabilities Program by checking the box. The Veteran must be at least 30% disabled to be eligible for the program. Veterans with Disabilities Program. (Apply 0.50% reduction in the published weekly rate for Disabled Veterans) Published Weekly Rate: __________% Less Disability Reduction: __________% Consumer Rate Set Date _______________ Net (NOTE) Interest Rate: __________% Estimated Closing Date:_____________ Initial Application Date:_________________ Loan To Value:______% Contract Date:________________ VLB Program Loan Amount:______________ Sales Price:______________ _____ Appraised Value: ____________________ Property Address: ___________________ _________________________________________ Number Street Name ___________________ _____________ City Zip Code Veteran: ___________________________________ ________________________________________ Last Name First Name Social Security Number: _____ _____ _____ _____ _____ _____ _____ _____ _____
FOR USE BY ADMINISTRATOR ONLY Loan is Eligible for MRB Program. Deliver SERVICE RELEASED to CitiMortgage Special Programs Division per the MRB Guidelines. Loan is Eligible for Standard VHAP Program. Deliver SERVICE RETAINED to TVLB Administrator. Confirmed Net (Note) Rate:______________% Commitment Expiration Date: __________________ Confirmation Number: __________________ NOTE: ALL Applicable fields MUST be completed prior to submitting the registration form or the form will be returned without a rate confirmation. Texas Veterans Land Board Registration/Registration Change Form Form B Revised December 2009
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Loan Packaging and Delivery
Two checklists – stack in order to expedite review– Citibank credit/collateral checklist
o Located at http://correspondent.citimortgage.com/SpecialPrograms/index.jsp under operation procedures Exhibit # 6
– VLB checklisto Located at http://correspondent.citimortgage.com/SpecialPrograms/index.jsp under
programs, select state then View Program. Click to Save the word document.– The VLB package should be put inside the bigger file and delivered together
Loans are reviewed within 48 hours; pending letter sent after review. Pended report is sent daily for all loans in pended status.
Loans are purchased every business day. Wire sent same day.
Correspondent Special ProgramsCitibank, N.A.
Attn: Correspondent Special Programs/TVLB 4000 Regent Blvd 3rd Floor
Mail Code N3B – 345Irving TX 75063
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Websites
Citibank Solutions– Website: www.agentsite.com/solutions
When you log onto this site with your correspondent ID, you will find a copy of this Orientation Overview. Additionally you will see an overview of the CitiMortgage Special Programs Website, a link to the Citibank Special Programs Website, and very importantly, our QUALITY TOOLKITS, which will assist you delivering loans that will be promptly and efficiently purchased.
Citibank Special Programs Website– Website: correspondent.citimortgage.com/SpecialPrograms
Our website is where you will find daily rate sheets, bulletins, announcements, manuals, and forms, as well as specific program information.
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Contacts
Correspondent Special Programs Division
1-800-967-2205
Commitment Desk - registrations– Option 1, enter ISN, option 7– [email protected]
Customer Relations Division – specific product questions, pending conditions or training– Option 1, enter ISN, option 7– [email protected] – wire confirmations– Option 1, enter ISN, option 7– [email protected]
http://correspondent.citimortgage.com/SpecialPrograms/index.jsp
