CRHMFA HOMEBUYERS FUND
CHF ACCESS
PROGRAM TERM SHEET
CRHMFA Homebuyers Fund 1 of 2 Revised 8/18/2009
ACCESS California
PROGRAM SPONSOR CRHMFA Homebuyers Fund (CHF).
DESCRIPTION CHF ACCESS offers up to 99.5% financing designed to increase
homeownership opportunities for low-to-moderate income individuals and
families in California.
AVAILABLE FUNDING $5,000,000 from CHF to provide second loan funding to Eligible Borrowers
for home purchases in California.
PARTICIPANT AND
SERVICER
First Mortgage Corporation (FMC).
PROGRAM START
DATE
8/1/2009.
MORTGAGE LOAN
TYPES AND TERMS
30-year fixed term FHA Loans with full amortization.
SECOND MORTGAGE
LOAN TERMS
Second Mortgage Loan available from CHF:
· 15-year fixed term with full amortization;
· Note Rate of Second Loan is 8.25%;
· May not exceed 3% of the sales price;
· Combination of Mortgage Loan and Second Mortgage Loan may not
exceed 99.5% CLTV;
· Proceeds may be used for downpayment and/or closing costs, subject to
CLTV limit;
· There must be no cash back to the borrower from the Second
Mortgage Loan proceeds;
· Any Second Mortgage Loan proceeds remaining must be re-applied to
the Second Mortgage Loan to reduce the principal balance. If there is
more than $500 remaining from the Second Mortgage Loan proceeds
as of the close of escrow, then documents must be redrawn;
· FMC must conform to federal RESPA and Truth-in-lending laws in
disclosing the terms of the Second Mortgage Loan both at application
and again at close.
SECOND MORTGAGE
LOAN
DOCUMENTATION
· Required Second Mortgage Loan Documents include: Note, Security
Instrument, Second Loan Rider, Second Loan Truth in Lending
Statement, Mortgagor’s Agreement and the Acknowledgement of
Disclosure Information form;
· CRHMFA Homebuyers Fund must serve as the lender and
beneficiary for the Second Note and Security Instrument
· FMC is required to report to HUD the Employer Identification Number
(EIN) of all government, state, county, city municipalities and nonprofit
organizations providing secondary financing assistance, grants
or gifts to the borrower when the borrower is receiving an FHA First
Mortgage. Lenders are required to reflect this information on HUD’s
new FHA Loan Underwriting and Transmittal Summary. CRHMFA
Homebuyers Fund EIN is 68-0322272;
· FMC is responsible for recording the Second Mortgage Loan Security
Instrument.
OCCUPANCY/
PROPERTY USAGE
Primary Residence.
