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Within Reach™ for FHA Loans
Down Payment Assistance designed to increase homeownership opportunities.
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• 2,290 Homebuyer Programs Across America
• 37% of Down Payment Programs Have No First-Time Homebuyer Requirement
• 91% of Down Payment Assistance Programs Have Available Funds For Buyers
Down Payment Help is Widely Available
Not Available in the state of New York and Washington
3
• Borrowers that have achieved financial stability
• Borrowers with lack of down payment / reserves
• Borrowers that have demonstrated the ability to save
• Purchase Clients with no Seller Credits
• Borrowers with limited savings
• LHFS DPA Programs may be used to meet the product minimum down payment investment requirement
Target Borrowers
Not Available in the state of New York and Washington
4
• Within Reach™ is a competitively priced government loan program that does not require a minimum down payment from the homebuyer(s)
• Provides borrower(s) with a choice of a 3%, 4%, or 5% assistance
• Proceeds from Within Reach™ program can be used for:• Down Payment
• Closing Cost
• Prepaid Items*
• Earnest Money*
Within Reach™ FHA
Not Available in the state of New York and Washington
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• No minimum borrower cash investment requirement
• FHA 203(b) in accordance with FHA guidelines
• Transferred Case Number Not Allowed
• Transferred Appraisals Not allowed
• 30-year fixed term with full amortization
• Manufactured Housing Allowed
• Conforming FHA loan limits apply as applicable to geographic location
• (High Cost not allowed, must select the lesser of FHA or Conforming limits)
• Down Payment Assistance is Calculated off the total First Mortgage Amount
• Including upfront MIP
Within Reach™ FHANo First
Time Home Buyer
Restriction
Not Available in the state of New York and Washington
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• 640 – 659 Credit Score 3% or 4% with a maximum 45% DTI
• 660 + Credit Score 3%, 4%, or 5% AUS determines DTI
• If DTI > 50% 1 Compensating Factor Required
• 160% of the Area Median Income (AMI)
• Income limits are calculated from income reported on the URLA
• No co-signers or non-occupant co-borrowers
• Borrower(s) must occupy the subject property as their primary residence
• One borrower must complete Home Buyer course
Borrower Eligibility
Not Available in the state of New York and Washington
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Verification of RentIf the borrower is paying rent:
• Rental history must be 0x30, AND
• Written VOR and 12 months
cancelled checks, OR
• Written VOR and 12 months bank statements, OR
• Written VOR and 12 months electronic HUD approved third party verification vendor.
If the borrower lives rent free:
• 3 months savings/reserves (PITIA) required,• Gift funds cannot be used to meet the
savings/reserve requirement.
AND
• Letter from landlord stating no rental payment required.
• Land Home will confirm landlord owns property
Not Available in the state of New York and Washington
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Make certain student loan payments are calculated correctly and are counted in the Debt-To-Income Ratio
Student Loan Reminder
Not Available in the state of New York and Washington
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How Does it Work?
Loan Information 3% Assistance 4% Assistance 5% Assistance
Purchase Price $450,900 $450,900 $450,900
Down Payment $15,782 $15,782 $15,782
Base Loan Amount $435,118 $435,118 $435,118
UFMIP $7,614 $7,614 $7,614
Total Loan Amount $442,733 $442,733 $442,733
2% Loan Origination $8,854.65 $8,854.65 $8,854.65
Total Assistance $13,282 $17,710 $22,137
Not Available in the state of New York and Washington
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Soft Second Mortgage
5 Year mortgage term with Zero (0) Interest Rate
100% forgiven at the end of the 5-year term (61st month)
Borrower must remain current on their mortgage for the second to be forgiven
In the 5-year period the Soft second must be paid in full when
➔ Borrower Sells the Property➔ Borrower Refinances➔ Borrower becomes delinquent on their first mortgage
Not Available in the state of New York and Washington
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• No Payments on the Mortgage Application
• No Second Mortgage File
• No Second Mortgage Approval
• Locking DPA Loan not required
• No Requirement to request DPA Funds
Soft Second Mortgage
Not Available in the state of New York and Washington
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• Must be done using Land Home Financial Services, Inc. eXPRESS portal
• Lock allowed once loan has been Conditionally Approved, and
• Appraisal has been reviewed
** Any locked Within Reach™ loan that does not fund will result in a $400.00 cancellation fee charged to Broker
Locking First Mortgage
Not Available in the state of New York and Washington
Submission Requirements for Within Reach™ for FHA Loans
Not Available in the state of New York and Washington
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• Completed Land Home Submission Checklist
• Approve / Accept - AUS Findings Released to LHFS Wholesale
• No Manual Underwriting
• Refer, Ineligible, Caution Not Allowed
• LOE regarding inquiries in last 120 days
• Earnest Money Deposit Documentation
• Valid Purchase Contract – Minimum 30 Days
• Contract close date must agree with LHFS Turn Times
Fully Processed Files
Not Available in the state of New York and Washington
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Income documentation per AUS including:
• Written VOE covering 2 years
• 30 days of Pay Stubs
• 2 Years W2’s
• Self Employed Borrowers – 2 Years Tax Returns
Income Documentation
Not Available in the state of New York and Washington
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• If the borrower is paying rent
• Rental history must be 0x30
• Written VOR and 12 months cancelled checks, OR
• Written VOR and 12 months bank statements, OR
• Written VOR and 12 months electronic HUD approved third party verification vendor.
• If the borrower lives rent free
• 3 months savings/reserves (PITIA) required, AND
• Gift funds cannot be used to meet the savings/reserve requirement
• Letter from landlord stating no rental payment required
• Land Home will confirm landlord owns property
VOR Submission Required
Not Available in the state of New York and Washington
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Asset Documents per the AUS Findings including:
• 2 Months Bank Statements required on all submissions
• Borrower with the following are not eligible:
• Borrower with overdraw accounts, negative balances at any time
• Excessive NSF’s and/or Overdrafts
• 1 NSF is maximum allowed
Asset Documentation
Not Available in the state of New York and Washington
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All items are required at the time of submission.
Incomplete files will be rejected at time of registration.
Submission Checklist
Not Available in the state of New York and Washington
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URLA Requirements
Not Available in the state of New York and Washington
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URLA Requirements
Not Available in the state of New York and Washington
QUESTIONS
✓Within Reach™ for FHA Loans