Down Payment Assistance Loans – Info For Lenders
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Down Payment Assistance Loans
- The borrower calls NWWVT to review the Down Payment Assistance Loan program.
- Homebuyer Education is required if the borrower is a first time homebuyer.
- Borrower sends an email to 1st Mortgage Lender and NWWVT authorizing the sharing of information between the two.
- The 1st Mortgage Lender sends the full underwriting file to NWWVT including 1003, income and asset verification and property information.
- NWWVT creates application and disclosures to be signed by the borrower, either electronically or hard copy.
- 1st Mortgage Lender shares appraisal and all documents as they are provided by the borrower.
- 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.
- 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.
- 1st Mortgage Lender notifies NWWVT when the closing has been scheduled.
- NWWVT does its own closing disclosures and must abide by the TRID timelines.
- 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.
- 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
Amanda Moore, Director of Lending