Homeownership with the HEART Loan Program

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Homeownership with the HEART Loan Program

• Brought to you by
• The HEART of San Mateo County
• Meriwest Mortgage

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Todays Agenda

• HEART Housing Endowment and Regional Trust of
  San Mateo County
• Paula Stinson
• The Financing Process
• John Souza Meriwest Mortgage
• The HEART Down payment Assistance
• John Souza Meriwest Mortgage

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Fannie Mae Underwriting Guidelines

• DEBT TO INCOME RATIO
• What is a debt to income ratio?
• What ratio is acceptable under Fannie guidelines?
• CREDIT SCORE
• What is a credit score?
• What scores do you need to get approved for a
  loan?
• How does your credit score affect the cost of
  your loan?
• LOAN TO VALUE
• What does loan to value mean?
• How does down payment affect loan to value?
• How much down payment is required to get a loan?
• RESERVES
• What is reserves? PITI principle, interest, tax
  and insurance
• How much reserves do you need to qualify?

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Loan Preparation

• Preparing to purchase a home Importance of a
  pre-approval letter
• 4 key parts of the Equation
• Income from all sources (W2s, tax returns if
  self-employed)
• Debt
• Credit cards, student loans, car payments, etc.
  Anything that comes from your credit report plus
  legal obligations
• Not all debt is treated the same way
• Assets Bank Accounts, CDs, Retirement Accounts,
  401Ks, Cash, Stocks, Investments Anything of
  Value
• Credit History Derived from your Credit Report

Carlos, Denise, and John
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Key Mortgage Terms

• Points (Origination versus Discount)
• Pre-payment Penalty
• PMI (Private Mortgage Insurance)
• Underwriting
• ARM (Adjustable Rate Mortgage)
• Loan Approval

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Meriwest vs. Competition

• Direct Lender NO Broker Fees
• Less Expensive Fees
• Competitive Rates
• Fast and Efficient Processing
• Loan Servicing
• No Pre-payment Penalties
• Wide Variety of Mortgage Products
• Relationship Advantage Rebates
• Fast Pre-approval

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Underwriting Criteria Guidelines

• Residence Status
• US Citizen
• Permanent Resident Aliens Provides evidence of
  Green Card.
• Non-Permanent Resident Aliens Provides
  acceptable evidence of legal residency issued by
  the INS with legal permit to work in the U.S.
• Minimum down payment 5 required by Borrower.
• Property Type Single Family Residential Detached
  and attached PUDS
• HEART 2nd Lien interest rate will be based on
  Meriwest Mortgage Company, LLC 30-year conforming
  fixed rate plus 150Bps.

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Underwriting Criteria Guidelines(continued)

• Maximum purchase price 781,000 (10 down
  payment required for loan amounts from 417,001
  to 625,500.
• Maximum purchase price 521,250 (5 down
  payment required for loan amounts from 50,000 to
  417,000)
• Maximum debt to income percentage of 45.
• HEART 2nd Lien will have a 15-year term with a
  balloon payment and amortized over 30-years.

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Underwriting Criteria Guidelines(continued)

• Impounds will be required for all transactions.
• Subordinate Financing is allowed but must be
  subordinate of 2nd lien.
• Underwriting guidelines will be based on Meriwest
  Mortgage Company, LLC guidelines.

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Underwriting Criteria Guidelines(continued)

• Income limits of 150,000.
• Minimum FICO score of 680.
• Maximum CLTV of 95.

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How do you apply?

• Please go to the HEART of San Mateo County
  Website WWW.HeartofSMC.Org
• Click on Homebuyer Loans Link
• Choose the Click Here to Apply Link
• That link will take you to a HEART and Meriwest
  Mortgage co-hosted site for your application

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• For more info, please contact

Meriwest Mortgage John Souza jsouza_at_meriwest.com
[phone] HEART of San Mateo County Paula
Stinson pstinson_at_heartofsmc.org 650-872-4444 ext
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