Saving for the down payment and/or closing costs can be one of the biggest hurdles many people face when purchasing a home.  To help homebuyers attain homeownership affordably, REI Down Payment Assistance offers two options.  The REI Market Rate Program can help meet your closing cost needs associated with FHA, HUD 184 and Rural Development Loans.  REI CHOICE100, a more versatile option, allows you and your lender to structure the mortgage loan to fit your individual closing cost and down payment requirements.  
 
<strong>REI Market Rate Program – link to new page for market rate program
Closing Cost Assistance for Government Loans</strong>
 
The REI Market Rate Program provides the homebuyer with the closing costs associated with an FHA, HUD 184, and Rural Development Loan.  Many times, people have the funds to make the required down payment for their home loan, but not enough for the closing costs and the Seller is only willing to help with a portion of the closing costs or not at all.
 
Eligible closing costs for this program include title fees, pre-paid costs, escrows, lender fees, and up front mortgage insurance or guarantee fees. 
 
Please review the Program Summary for more detailed information, below are some highlights of the program.
 
Eligible Lenders:  Lenders must be approved as a Mortgage Clearing Corporation (MCC) Correspondent Lender and in good standing.  MCC requires that lenders must meet the FHA net worth requirements and be FHA approved to be eligible for MCC Correspondent Lender status.  Lenders should contact Chris Jones, MCC at (918)749-2274 or <a href="chrisjones@mortgageclearing.com">chrisjones@mortgageclearing.com</a> to inquire about becoming a participating lender. If you don't meet these requirements, please contact Dena Sherrill at dsherrill@reiok.org or Jeremy Layman at jlayman@reiok.org.
 
Program Highlights: 
 
Structure:  This is a first and second mortgage program that are packaged together.  The first mortgage loan is a 30 year fixed rate government loan and the second mortgage is utilized to pay the closing costs associated with closing of the first mortgage loan.
 
Second Mortgage:  The second mortgage is sized a 3% of the total first mortgage loan amount.  The second mortgage is a 20 year fixed rate mortgage with an interest rate of 7.375%.  There is no pre-payment penalties on the second mortgage.   Second loan proceeds may be used to cover any gap between the FHA-insured first mortgage and the amount necessary to acquire the property, including closing costs, prepaid expenses, and payment of upfront mortgage insurance premiums and/or guarantee fees.  Borrower may be reimbursed for their earnest money and prepaid expenses. 
 
Interest Rates:  Interest rates are distributed by email daily by MCC.
 
Income Limits:  Income limits apply based on household income (link to income limits for FHA & HUD 184).  Rural Development standard income limits apply. 
 
Credit Score:  Minimum credit score of 640
 
CLTV:  Cannot exceed 105%
 
DTI:  Cannot exceed 45%
 
First-Time Homebuyer:  No first-time homebuyer requirement.
 
Lender Compensation, Fees, and Purchase:  Please review the Program Summary for lender compensation, fees, and purchase information.
 
Loan Funding:  Lender will fund the First Mortgage.  The second mortgage will be table funded by REI. 
 
For Example:  Borrower is purchasing a home for a total first mortgage loan amount of $100,000.  The second mortgage will be 3% of the total loan amount for a total of $3,000 to be used to pay the borrowers closing costs.  See chart below:  Still working on charts.
 
Jeremy will send below information in separate email:
 
Detailed Information for Lenders: 
Program Summary 
 
Forms: 
Loan Registration Form
Mortgagors Agreement & Disclosure Form
REI Down Payment Assistance Income Verification Form
Second Lien Rider
REI Down Payment Assistance Wire Request Form
 
 
REI CHOICE100 – link to new page for choice 100 program
Down Payment and Closing Cost Assistance - Fannie Mae My Community Mortgage Loans
 
The REI Choice100 program is just that, it provides you with numerous choices and types of assistance for your borrowers.  The program is utilized with Fannie Mae's 95% My Community Mortgage loan.  We have structured the program to provide the borrower with a second mortgage of 5% along with the "choice" to pay a higher interest rate and receive an additional 2% or more in assistance.  As the borrower's lender, you can advise them of the different "choices" available to them and what will be best for their situation.
 
This program can also be used for a rate/term refinance of existing loans.  Any loan that is refinanced must prove a demonstrable benefit to the borrower (i.e. lower payments, term, or interest rates).  Cash out refinances are not eligible.
 
Please review Program Guidelines for more detailed information, below are some highlights of the program.
 
Eligible Lenders:  Lenders must be approved as a 360 Mortgage Delegated Correspondent Lender and in good standing.  360 Mortgage requires that Lenders meet a minimum net worth requirement of $2.5 million to be eligible to sell this Program.  Lenders should contact Priscilla Bohot at (512)418-6094 or pbohot@360mortgage.com to inquire about becoming a participating lender.  If you do not meet this requirement, please contact Dena Sherrill at dsherrill@reiok.org or jlayman@reiok.org.
 
Program Highlights: 
 
Structure:  This is a first and second mortgage program that are packaged together.  The first mortgage loan is a 30 year fixed rate 95% My Community Mortgage and the second mortgage is utilized to pay the down payment, closing or mortgage insurance premiums associated with the first mortgage.
 
Second Mortgage:  The second mortgage is sized at 5% of the total first mortgage loan amount.  The second mortgage is a 20 year fixed rate mortgage with an interest rate of 6.00%.  There is no pre-payment penalties on the second mortgage.  Borrower may be reimbursed for their earnest money and prepaid expenses.
 
Interest rates:  Multiple choices of Mortgage Loan Rates will be posted daily by 360 Mortgage.  Rates are subject to change and confirmation by 360 Mortgage. 
  
Income Limits:  Income limits apply based on qualifying income (link to income limits). 
Borrower Investment:  Minimum borrower investment of 15, which must be derived from verified assets.
 
Credit Score:  Minimum credit score of 660.
 
Maximum DTI:  45%
 
Mortgage Insurance:  MCM 95 loans require 16% charter coverage.  MI coverage rates should match the MI coverage recommended by AUS and are subject to change.   Lenders may select from the various monthly, split and single “lender paid” MI premium plans available, subject to mortgage insurer terms and conditions.  Upfront single or split premiums may be funded by the Second Loan proceeds or from any available rebate pricing, as reflected in the daily rate sheet, or from a Seller’s concession. 
 
We are currently working with the following MI companies:  Genworth, MGIC, and National MI.  You must follow the MI companies HFA guidelines.
 
First Time Homebuyer:  No first-time homebuyer requirement.
 
Homebuyer Education:  If all borrowers are first-time home buyers, at least one borrower must complete pre-purchase home-buyer education and counseling. 
 
Lender Compensation, Fees, and Purchase:  Please review the Program Guidelines for compensation, loan fees, and purchase requirements.
 
For Example: