Down Payment Assistance Loans – Info For Lenders

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Down Payment Assistance Loans – For Lenders

Down Payment Assistance Loans

The Process:

  1. The borrower calls NWWVT to review the Down Payment Assistance Loan program.
  2. Borrower sends an email to 1st Mortgage Lender and NWWVT authorizing the sharing of information between the two.
  3. The 1st Mortgage Lender sends the full underwriting file to NWWVT including 1003, income and asset verification and property information.
  4. NWWVT creates application and disclosures to be signed by the borrower, either electronically or hard copy.
  5. 1st Mortgage Lender shares appraisal and all documents as they are provided by the borrower.
  6. 1st Mortgage Lender selects a settlement agent and shares information with NWWVT. If the borrower has their own attorney, the 1st Mortgage Lender shares that information as well.
  7. NWWVT issues a commitment letter once the 1st Mortgage Lender has issued theirs indicating the rate has been locked.
    • NWWVT requires a copy of both commitment letters signed for NWWVT’s file.
  8. 1st Mortgage Lender notifies NWWVT when the closing has been scheduled.
    • NWWVT does its own closing disclosures and must abide by the TRID timelines.
  9. NWWVT will send its documents to the settlement agent 48 hours prior to the closing and net fund their account. NWWVT requires a copy of the 1st mortgage note, mortgage, and CD for NWWVT files.

Helpful Information:

  • If you need it, we need it. Please include our loan in your total monthly housing payment.  Our loan is a community affordable second mortgage which means 100% financing in most situations should be available to the borrower while still allowing you to sell your mortgage.  Be sure to set the loan identifier to a type that will allow this program (i.e. Freddie Mac Home Possible Advantage, Fannie Mae Home Ready, etc.)  We will finance less than 20% upon request.
  • NWWVT’s rate cannot be more than 2% above the 1st Mortgage Lender’s and stay in compliance with the community affordable second mortgage designation.
  • Typical closing costs are between $750 and $850.
  • For document sharing: we have found that putting a flag on the file cover helps us remember to share all information with you.
  • NWWVT provides Homebuyer Education in-person and online but the choice of Homebuyer Education provider resides with the borrower.

The Top 3 List for a successful joint closing:

  • Provide the appraisal as soon as you receive it
  • Provide the settlement agent information and borrower’s attorney name as soon as possible
  • Be sure to notify us of the closing date and time as soon as it’s scheduled

Contact:

Amanda Moore, Director of Lending

(802) 797-8106

[email protected]

Download our Flyer for Lenders!

Down Payment Assistance Loans – For Lenders