Dallas Homebuyer Assistance Program
Funded by:
U.S. Department of Housing and Urban Development
(HUD)
Tammi Southall
Sr. Contract Compliance Administrator
Housing/Neighborhood Revitalization
City of Dallas
Program Website: www.dallasmap.org
Presentation Overview
• Background/History
• Purpose
• Community Impact
• Program Overview
• Important Note – Notice of Funding Availability
• Next Steps
2
Background/History
• Provided homeownership opportunities for low to
moderate income families since 1991.
• Assisted nearly 7,900 families to become
homeowners within the City of Dallas.
3
Purpose
• Continue to increase homeownership opportunities,
especially for low-income families;
• Preserve existing owner-occupied and rental
housing stock;
• Increase availability of affordable housing
opportunities; and,
• Support neighborhood and community-based
preservation and revitalization efforts.
4
Community Impact – 2016 -2017
5
• Families Served 120• African American 34%• Anglo 08%• Hispanic 57%• Other Ethnic Background 01%
• Area Median Income• 51% - 80% 82%• 50% and below 18%
• Average Family Income $39,914
• Average Sales Price $122,485
• Average Subsidy Received $15,733
• Total Subsidies Provided $1,887,937
• Private Mortgage Financing Leveraged $13,422,608
Community Impact - 2016-2017
6
Construction Type
Existing Properties 64 Units
New Construction - General 21 Units
New Construction - CHDO 27 Units
New Construction – Land Bank 8 Units
Community Impact - 2016-2017
7
Total Loans Closed 7,852
Public Subsidy $81,601,141
Cumulative Loan Production
From Oct. 1, 1991 – Sep. 30, 2017
Program Overview – Key Changes
• Homebuyers to be prequalified for assistance by DHAP
• Homebuyer assistance will be determined based on need
• Changes to housing expense/total debt to income ratios
• Homebuyer assistance is due in full upon sale, lease,
transfer or disposition of property
• MHS Repair Reimbursement Program discontinued
• Homebuyers to sign a City of Dallas Homebuyer Written
Agreement prior to closing
• Affordability period expirations for HOME Investment
Funding
8
Program Overview – Existing and New
Construction Homebuyer Assistance
9
• Homebuyers may be eligible to obtain a deferred loan for the purchase of
their Primary Residence. Actual assistance amount will be need
based.
• Borrowers must contact DHAP for an in-office appointment for
applicant pre-qualification of income eligibility.
• Purchase Property must be within the City of Dallas
• The funds have a 5, 10 or 15 year affordability restriction. Affordability
restriction is based on the amount of HOME Investment funds received.
• No payment, no interest
• Due in full upon sale, lease, lease with option to purchase, transfer or
other disposition (including contract for deed) of the property within the
deed restriction period. These loans are secured by a lien on the property
Program Overview – Existing and New
Construction Homebuyer Assistance
(continued)
10
• Conventional, FHA, Portfolio or VA Loans. Lenders must establish
Escrow Accounts
• FHA 203K loans are not eligible for DHAP funding.
• Not allowed: High Cost or Sub-Prime Loans, Adjustable Rate
Mortgages (ARM), Interest only loans, Discount Points paid by
Borrower, and Cash Back at Closing
• Home sales price cannot exceed $195,000-Existing Homes / $224,000-
New Homes.
• Properties occupied by a tenant other than seller/borrower must be
vacated for a period of 60 days prior to execution of the sales contract.
Program Overview – Eligible Borrower
Requirements
11
• Homebuyer incomes must be between 40% and 80% of the Area Median Income for household size.
• Homebuyer must be a U.S. citizen or permanent resident, with a valid Social Security Card. Permanent residents must provide a copy of their unexpired immigration documents.
• Homebuyers must owner-occupy the property as their homestead.
• Homebuyers requesting assistance must conform to IRS filing requirements.
• Homebuyer must have continuous, satisfactory employment history for the past six months.
• Homebuyer must contribute at least $1,000 toward down payment and closing costs.
Program Overview – Eligible Borrower
Requirements (continued)
12
• Homebuyer with liquid assets in excess of $10,000 must invest excess assets
into the purchase of the property. Funds in IRS-recognized retirement accounts
excluded.
• Homebuyer must have two months reserves in liquid assets after closing.
• Homebuyer must receive homebuyer education by a DHAP and HUD approved agency.
Online courses are not eligible.
• Homebuyer must be pre-qualified for a 30 year fixed rate mortgage loan by a DHAP
approved mortgage lender.
• Homebuyer’s Housing Expense to Income ratio may not exceed 30%, while the
Homebuyer’s Total Debt to Income ratio may not exceed 43%. Housing Expense
to Income ratio’s below 20% are not eligible for the homebuyer assistance.
• Homebuyers must requalify for assistance if closing does not occur within 3
months of initial prequalification.
• Co-Signers are not eligible.
Program Overview – Income Calculation –
Family Household Income
13
• All sources of income for the household must be documented and will
be used to determine the Annual Family Household Income.
• Income eligibility will be determined by using the IRS Form 1040
Adjusted Gross Income Method. This will require the Tax Return for
the last tax period, the DHAP Verification of Employment (VOE)
Form and two months most recent paystubs. Documentation of all
other sourced income must be provided.
• The greater of the income calculation will be used to determine DHAP
eligibility.
• Self-employed homebuyers must provide the two (2) most recent tax
returns and a current profit and loss statement [Must be Self-
Employed for past two (2) years]
Program Overview – Income Calculation –
Family Household Size
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• Dependents:
• Individuals under 18 years of age, or is a person with
a disability, or is a full-time student and reside in the
household with the borrower. Full time student(s)
must provide current school records, such as
paid fee statements that show a sufficient
number of credits to be considered a full-time
student by the educational institution attended.
• Supporting documentation for dependents must
include legal documents such as:
• Birth Certificate
• Social Security Card
• Marriage Certificate
• Custodial Agreement
Program Overview – Income Calculation –
Family Household Size
15
• Dependents not counted:
• Foster Children
• Live-in aides and children of live-in aides
• Unborn children
• Children being pursued for legal custody or
adoption
Program Overview – Property
Requirements
16
• City Limits of Dallas (http://maps.dallascityhall.com)
• The sales price must not exceed the appraised value of the property
• Types of properties:
• Single Family
• Condominium
• Town home
• 1-4 unit development
• Properties must be occupied by the owner or borrower
• If occupied by a tenant other than the borrower, must be vacated for a
period of 60 days prior to execution of sales contract
• Properties must meet Minimum Housing Standards (MHS) including lead-
based paint regulations
• HUD Foreclosures built after January 1, 1978 are eligible
• HUD Homes must meet all DHAP guidelines.
• All MHS required repairs must be completed prior to submission of
DHAP loan file.
• FHA 203k loans not eligible
Program Overview – MHS Property Review
17
• MHS reviews must be completed by an authorized representative of the City of Dallas (at no cost to the homebuyer).
• The MHS review is to ensure the property meets standards for the program. It is not for the benefit of the homebuyer.
• Should be requested and performed during option period of purchase contract
• All MHS required repairs must be completed prior to closing
• Homebuyers are not allowed to make MHS required repairs to the purchased property.
Program Overview – MHS Property Review
Process
18
Initial MHS Review
Once purchase contract is executed, lender is allowed to register homebuyer with DHAP
Once the homebuyer is registered, the MHS Review may be requested
Once submitted, within 48 hours, a representative from the City of Dallas will contact the requesting party to confirm the date and time of the review.
Final MHS Review
Once required repairs are completed, same MHS Review request process should be followed
Final inspection is performed once all MHS required repairs are completed
TREC Inspection
Is HIGHLY recommended
Not required for DHAP
Forms are available at www.dallasmap.org/ MHS Inspection Process
Program Overview – Lead-Based Paint
Hazard Reduction
19
• Homes built before 1978 may have lead in the paint.
• No deteriorated paint (chipping, peeling, cracking, flaking,
chalking).
• Visual inspection of all painted surfaces (interior, exterior,
garage, detached buildings, fences).
• Deteriorated paint should be addressed before the
inspector arrives.
Program Overview – Loan Processing
Procedures
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• All DHAP loans will be registered online
• Homebuyers must contact DHAP to schedule an appointment for application intake and prequalification
• Loan Officers will receive a User ID and Password to access the loan registration system
• Once loan is registered, lender will:• Save registration confirmation (includes assigned DHAP loan number)• Submit loan package in pdf form via email to
[email protected]• Within 30 days for existing properties• Within 120 for all new construction properties
• If complete loan package is not received within 30/120 day timeframe, DHAP registration will expire and be deemed null and void
• INCOMPLETE LOAN PACKAGES WILL NOT BE ACCEPTED
• Estimated 10 business day turn-around
Program Overview – Closing and Funding
21
• Homebuyer(s) to sign City of Dallas Homebuyer
Written Agreement prior to setup of closing
• Closing and Table Funding only at DHAP participating title
offices registered as a Vendor with the City of Dallas
• DHAP lenders and City of Dallas set closing date, order
documents and wire funds for closing
• City of Dallas authorizes funding only after the title office
has provided the required documents
• Second-lien associated charges disclosed by Lender
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Program Overview – Flow of ProcessHomebuyer Process
Homebuyer Education
Mortgage Prequalification
Contact DHAP for Interview
DHAP underwrites for program
eligibility/prequalification
Yes No
Sales Contract
RegisterBorrower
MHS Review
1st Lien Loan Package
Submission
DHAP underwrites for final loan approval
Yes No
Homebuyer Written
Agreement
Request for closing
instructions
End of Process
Fund End of Process
SuspendedDenied
Order Closing
Documents
Notice of Funding Limitations
23
Subsidies are subject to fund availability on a first-come,
first-served basis. Acceptance of an application for
DHAP in no way constitutes a commitment or obligation
on the part of the City of Dallas. No commitment is
made or implied until City of Dallas has approved
funding for each application. Due to funding limitations,
no applicant should assume any commitment even when
an applicant must expend personal funds to meet
application requirements.
Next Steps
24
Lender Partner Program Approval Process
Partner application available at www.dallasmap.org/Lender
Resources.
Original, executed application package must be sent to our office:
Attention: Pamela Beck
City of Dallas Housing/Neighborhood Revitalization
1500 Marilla St, Suite 6BN
Dallas, Texas 75201
Processing time is 24 hours for determination of approval
Next Steps
25
Title Company Partner Program Approval Process
Partner application available at www.dallasmap.org/ Title
Companies.
Original, executed application package must be sent to our office:
Attention: Pamela Beck
City of Dallas Housing/Neighborhood Revitalization
1500 Marilla St, Suite 6BN
Dallas, Texas 75201
Processing time is 24 hours for determination of approval
Next Steps
26
Homebuyer Education Partner Program Approval Process
Partner application available at www.dallasmap.org/ Education
Providers
Original, executed application package must be sent to our office:
Attention: Pamela Beck
City of Dallas Housing/Neighborhood Revitalization
1500 Marilla St, Suite 6BN
Dallas, Texas 75201
Processing time is 24 hours for determination of approval
Program Staff
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Dallas Homebuyer Assistance Program Team
David Silva, Sr. Housing Assistance Specialist
Tammi Southall, Sr. Contract Compliance Administrator
Melissa Hale, Loan Services Representative
Kimberly Hubbard, Loan Services Representative
Pamela Beck, Administrative Assistant
Office Management
Jacqueline Rodarte-Valle, Assistant Director
Rick Robin, Development Manager
Dallas Homebuyer Assistance Program
Funded by:
U.S. Department of Housing and Urban Development
(HUD)
Tammi Southall
Sr. Contract Compliance Administrator
Housing/Neighborhood Revitalization
City of Dallas
Program Website: www.dallasmap.org
Dallas Homebuyer Assistance Program
Funded by:
U.S. Department of Housing and Urban Development
(HUD)
David Silva
Sr. Housing Assistance
Specialist
Housing/Neighborhood
Revitalization
City of Dallas
Program Website:
www.dallasmap.org
Presentation Overview
• Lender Required Forms
• DHAP Underwriting Guidelines
• Final Homebuyer Underwriting
Assessment
• City of Dallas Homebuyer Agreements
• Recapture Policy
2
Questions
19
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