Welcome to the TSAHC Lender Training

Call‐in #: 1‐877‐347‐4079 Guest Code #: 6699

All callers will be in listen mode only.

TSAHC is a 501(c)3 nonprofit organization.  Our mission is to serve the housing needs of low‐income Texans and other underserved populations.

We fulfill our mission through our concept of:

About Us

• TSAHC’s homeownership programs were created by the Texas Legislature, acknowledging specific professionals’ commitment to the safety and welfare of all Texans. 

• Two types of assistance are made available to homebuyers:

• A low interest loans with down payment assistance for:

• First‐lien purchase or 

• Rate/term refinance loans 

• Mortgage Credit Certificate

• If the borrower is  a first‐time homebuyer, the two types of assistance can be used together. 

Homeownership Opportunities

• Low interest rates loan with down payment assistance• Provides a 30‐year fixed interest rate mortgage loan, plus • Down payment and closing cost assistance

• DPA is provided as a grant and never has to be repaid.• You no longer need to be a first‐time homebuyer to qualify. • Available for purchase or refinance mortgage loans

• Streamlined or cash‐out refinances not allowed.

• Available Funds and Rates• Available funds: $Unlimited • Rates:

• Standard Rate Option.  Purchase or rate/term refinance transaction with a grant equal to 5.0% of the loan amount.

• Lower Rate Option.  Purchase or rate/term refinance transaction with a lower interest rate and a grant equal to 3.0% of the loan amount.

*Interest rates are based on current market conditions and may change daily.  Rates will be posted by 9:00 a.m. (CST) and can be found at www.tsahc.org or on the Lender Portal at www.tsm‐online.org.

Homeownership Opportunities

• Mortgage Credit Certificate• Gives the homebuyer the ability to take an annual tax credit of up to $2,000 

as long as they occupy the home as their principal residence.• TSAHC provides an MCC credit rate of 40%. The MCC has the potential of 

saving the homebuyer thousands of dollars over the life of the loan.• This program is only available with first‐lien purchase loans. • Borrowers refinancing their current mortgages are not eligible for this 

program.

• Available Funds and Rates

• Available funds: $Unlimited • Current rate: Unlike our DPA Program, the Lender qualifies the homebuyer 

and provides the interest rate.

Homeownership Opportunities

• Mortgage Credit Certificate Example 

• The homeowner is able to take a special tax credit of $1,937.50. • The homeowner will still be able take a mortgage deduction of $2,906.25 

($4,843.75 ‐ $1,937.50 credit) when they file their taxes that year. 

40% MCC Rate

Loan Amount $125,000.00

Interest Rate X 3.875%

Interest 1st Year = $4,843.75

MCC Rate X 40%

MCC Tax Credit = $1,937.50

Homeownership Opportunities

How does a individual qualify?

1. Profession or Income Level

• Homes for Texas Heroes: 

• Classroom Teacher, Teacher Aide, School Librarian, School Nurse, School Counselor, or Nursing and Allied Health Faculty, Veteran, Firefighter, EMS Personnel, Peace Officer, Corrections Officer (TDCJ or TJJD), County Jailer, or Public Security Officer. 

• Home Sweet Texas Loan: An individual or family at or below 80% Area Median Family Income (AMFI)

2. Underwriting/Credit Requirements

• Must meet standard mortgage underwriting requirements as determined by the lender.  However, a minimum FICO score of 640 has been established for the DPA program only.

3. Borrower cannot exceed Income and Purchase Price Limits

• Based on County of residence and household size

Income Example:

How does a individual qualify?

4. Purchase loan borrowers need to complete a homebuyer education course prior to closing on the home loan

• Met by attending a one‐on‐one session through TSAHC’s network of housing counseling agencies, an online course, or a HUD, Fannie Mae or Freddie Mac approved counseling program. 

• Visit the Texas Financial Toolbox at www.texasfinancialtoolbox.com to find a Homebuyer Education Course near your borrower.

• A certificate of completion must be presented at the time of closing.

5. Work with an approved participating lender 

6. MCC Requirement ONLY: Must be a first‐time homebuyer

• No ownership interest in any principal residence in the past 3 years, purchasing a home in a Targeted Area, or be a Qualified Veteran 

Take the Eligibility Quiz

• Unsure if a client qualifies? Take the Eligibility Quiz under the Homeownership section of our site at www.tsahc.org. 

Eligibility Requirements – Program Comparison

Program Homeownership Program MCC Program Combined MCC/Homeownership Program

Subsidy Up to 5% of loan amount for down payment and closing cost assistance. Non-repayable grant.

Tax Credit equal to 40% of annual mortgage interest paid up to $2,000 per year.

Borrower(s) will receive both the Assistance Grant and the 40% Tax Credit.

Eligible Borrower Texas Hero or Low Income Borrower (80% or less of median family income).

Texas Hero or Low Income Borrower (80% or less of median family income).

Texas Hero or Low Income Borrower (80% or less of median family income).

Principal Residence Property must be or serve as Borrower(s) Principal Residence. Property must serve as Borrower(s)

Principal Residence. Property must serve as Borrower(s) Principal Residence.

First-Time Homebuyer Requirement No Yes Yes Income Requirement/Calculation

Family Income calculation based solely on Mortgagors’ qualifying income (1003 income).

Family Income calculation based on the income of all persons who will occupy the Residence and take an ownership interest in the property (execute the deed of trust), including non-purchasing spouses. Based on all income coming into the residence, not just qualifying income.

Family Income calculation based on the income of all persons who will occupy the Residence and take an ownership interest in the property (execute the deed of trust), including non-purchasing spouses. Based on all income coming into the residence, not just qualifying income.

Purchase Price Requirement Based on the sales price stated in the purchase contract or the Appraised Value.

Based on IRS guidelines related to Acquisition Cost of the property. Based on IRS guidelines related to

Acquisition Cost of the property. Potential Recapture Tax No Yes Yes

Maximum Total Debt-to-Income Ratio N/A. Based on Lender’s internal

policies and Agency guidelines.N/A. Based on Lender’s internal policies and Agency guidelines.

N/A. Based on Lender’s internal policies and Agency guidelines.

Minimum Representative Credit Score 640 N/A. Based on Lender’s internal

policies and Agency guidelines. 640

Underwriter Certification Underwriter Certification Form must be uploaded to the Lender Portal within 15 calendar days of loan reservation.

N/A. Underwriter Certification is not required for the stand-alone MCC Program.

Underwriter Certification Form must be uploaded to the Lender Portal within 15 calendar days of loan reservation.

Eligibility Requirements – Program ComparisonProgram Homeownership Program MCC Program Combined MCC/Homeownership

Program Reservation Period

Loan must be purchased by Servicer within 70 days of reservation date.

Post-Closing Compliance Package due to TSAHC within 120 days of reservation date.

Loan must be purchased by Servicer within 70 days of reservation date.

Eligible Loan Types FHA, VA or USDA-RHS. 30-year fixed-rate purchase or rate/term (no streamlined or cash-out) refinance mortgages.

FHA, VA, USDA or Conventional loans. Fixed-rate mortgages only. Refinances not allowed. No term requirements.

FHA, VA or USDA-RHS. 30-year fixed-rate purchase mortgages only.

Program Fees $150 Funding Fee;$85 Tax Service Fee; and $200 Compliance Review Fee *Lenders may collect all reasonable and customary fees and closing costs. Ancillary fees collected may not exceed the amount collected on the Lenders’ similar non‐Program loans. 

Issuance Fee (1% of loan amount); and $200 Compliance Review Fee *Lenders may collect all reasonable and customary fees and closing costs. Ancillary fees collected may not exceed the amount collected on the Lenders’ similar non‐Program loans.

$150 Funding Fee;$85 Tax Service Fee; $200 Compliance Review Fee; and Issuance Fee (1% of loan amount) *Lenders may collect all reasonable and customary fees and closing costs. Ancillary fees collected may not exceed the amount collected on the Lenders’ similar non‐Program loans.

Payment of Fees Master Servicer (U.S. Bank) will deduct all of the above-referenced fees from the Lender’s wire at loan purchase.

The Issuance Fee (1% of loan amount) and the Compliance Review Fee ($200) must be paid directly to TSAHC through ACH transfer or corporate check.

Master Servicer (U.S. Bank) will deduct all of the above-referenced fees from the Lender’s wire at loan purchase with the exception of the 1% Issuance Fee. The Issuance Fee must be paid directly to TSAHC via ACH transfer or corporate check.

Homebuyer Education Requirement Only for purchase loans. Yes Yes

Funding Down Payment Assistance Grant TSAHC will remit funds for the down

payment assistance grant directly to closing. Lender is required to submit request for funds and approved HUD-1 2 business days prior to closing.

N/A.

TSAHC will remit funds for the down payment assistance grant directly to closing. Lender is required to submit request for funds and approved HUD-1 2 business days prior to closing.

Origination Fees Lender may collect a maximum of 2.0% in origination fees/points from the buyer or seller.

Except for the required MCC fees, the lender may only charge the buyer/seller those reasonable fees that would be charged for a non-MCC application.

Lender may collect a maximum of 2.0% in origination fees/points from the buyer or seller.

Servicing Release Premium U.S. Bank will pay Lenders a 0.50% SRP at loan purchase. FHA and USDA-RHS loans only. VA loans do not receive the SRP.

SRP is not paid for loans originated under the stand-alone MCC Program.

U.S. Bank will pay Lenders a 0.50% SRP at loan purchase. FHA and USDA-RHS loans only. VA loans do not receive the SRP.

A borrower may purchase any of the following types of homes:• New or existing single family residences• Duplexes or fourplexes (one unit must be owner‐occupied)• Condominiums and townhomes• Planned Unit Developments• Manufactured home (FHA‐approved)• Not allowed: Rental homes, co‐ops, investment properties, vacation and/or 

second homes.

A borrower may use the following loan types:• FHA• USDA/RHS• VA• Conventional (eligible only for MCC assistance)

Property & Loan Types

Additional Information

• There is no minimum time on the job required prior to or after participation.  

• Borrowers can refinance their loans without any penalty or loss of down payment assistance. 

• Borrowers are not required to stay in the home for a minimum number of years.  However, homebuyers using the MCC Program are subject to Recapture Tax.

• TSAHC’s Home Loan Programs can be combined with other down payment assistance (i.e. community second programs) and MCC Programs, as long the homebuyer meets all of the programs qualifications.

Loan Reservation

• Participating lenders will reserve loans and submit compliance packages through TSAHC’s new Lender Portal at www.tsm‐online.org.

• One person from each Lender’s organization will be designated the “administrator” of the TSAHC Lender Portal for purposes of granting access to company personnel.

• It will then be the administrator’s responsibility to determine who, within their company, will have access to the Lender Portal and determine the level of access each employee will have. 

• U.S. Bank Home Mortgage will continue to act as TSAHC’s Master Servicer under the Homeownership Programs.

• TSAHC will be table‐funding all down payment assistance grants.  Lender must deliver a Funding Request Form and approved HUD‐1 two business days prior to closing.

Let’s visit the TSAHC Lender Portal at www.tsm-online.org

1. Login to the TSAHC Lender Portal at www.tsm‐online.org.

2. Click on Program Documents

Home Page

• Download and print the “Step‐by‐Step Origination Procedures” document to help you determine our timeline and the required documents for each program.

Important Documents

1. Select the “New Reservation” tab in the upper left corner.

2. Select the appropriate Program from the list and complete the reservation form.

New Reservation

3.   Fill out all appropriate fields using the completed 1003.

4.   Required fields are designated with a red asterisk.

New Reservation

New Reservation5. Once the Mortgage Loan is reserved, you will have the option to view or print your    

reservation confirmation.

• You can always check the stage of your loan by clicking on the “Loan Status” tab.

• For definitions of each stage, click on the “Program Documents” tab and download the “Loan Stages in Lender Portal” document.

Loan Stages

Loan Stages

Loan Stages

• The Lender Portal allows Lenders to complete and submit electronic documents.• All documents must be uploaded electronically.• No paper documents are required.

• Click on the “PDF Docs” button to access the electronic documents.

TSAHC Program Documents

TSAHC Program Documents• Select/generate the desired document and ensure all required fields are completed. 

• If the applicable form requires no signature, it will have an “Upload Package” button at the bottom. This will automatically upload the forms to the eDocs module of the Lender Portal.

• If the applicable form requires a signature, the form must be completed, printed, scanned and saved as a PDF. To upload, click on the “eDocs” function associated with your loan. 

1. Go back to the “Loan Status” button. NEVER use the back arrows or it will log you out of the system.

2. Simply click the “eDocs” button and follow the instructions to upload the required documents.

3.   Click the “Add New” button to upload a form. 

Uploading Program Documents

4. Click the “Click Here” button to access your computer files and select the document you wish to upload.

Uploading Program Documents

5. The next step is to name the document you are uploading. • Choose an option from the drop‐down list under “Select a document from the 

predefined list”. • The drop‐down will list all of the required documents for the applicable package. • If you don’t see your document on the list, use the “Enter a customized document 

name” field to name the document you are uploading.

6.  Then you MUST click SAVE!

Uploading Program Documents

7. Once all of the required documents have been uploaded to the Lender Portal, click on the “Submit” button associated with the each section and • TSAHC will be notified that your package has been delivered.

8. If you do not hit the “Submit” button, we will NOT know that you have uploaded any documents!

Uploading Program Documents

Need more Training on the Lender Portal?

Tune in tomorrow at 10am for an in‐depth Lender Portal Training! 

To register, visit http://www.tsahc.org/homeownership/approved-lenders.

Recommended for Loan Processors, Underwriters, Closers, and Shipping Departments

Topics covered include:

• Loan Reservation/Timelines• Underwriter Certification Uploads

• Pre‐Closing Compliance Package Uploads• Closing Procedures/Requirements

• Post‐Closing Compliance Package Uploads• US Bank Package Delivery

• Links to the Guidelines, forms and training information.

• Access the TSAHC Lender Portal (www.tsm‐online.org) to make loan reservations.

• Borrowers have access to YOU through our Lenders List.

• Marketing materials and training available at no cost to you.

• We’ve also launched the Texas Financial Toolbox , a new online resource at www.financialtoolbox.com, that connects consumers with entities in Texas who help consumers manage their finances, provide homeownership programs or assist homeowners facing foreclosure. 

Visit www.tsahc.org to find:

Homeownership Hotline: (877) 508-4611

Program Staff

Paige Omohundro(512) 477‐3561

pomohundro@tsahc.org

Sarah Ellinor(512) 220‐1171

sellinor@tsahc.org

Compliance Staff

Tim Almquist(512) 334‐2156

talmquist@tsahc.org

Delia Davila(512) 334‐2158

ddavila@tsahc.org