Master Utah Housing Loan Programs with UHC Loan Officer Training
Table of Contents
- Introduction
- Utah Housing Training Process
- Participating Lenders Requirement
- Training Certifications
- Benefits of Utah Housing Programs
- Sections of the Training
- Downpayment Assistance Loan
- Overview
- Loan Details
- Requirements and Eligibility
- Processing Documents
- Utah Housing Website
- Highlighting Important Sections
- Loan Program Resources
- Participation Documents
- Utah Housing Loan Programs
- First Home Loan
- Home Again Loan
- Score Loan
- No MI Loan
- Streamline Refinance Loan
- Loan Program Details
- Income Limits and Household Calculations
- Recapture Tax
- Required Homebuyer Education
- Acceptable Property Types
- Loan Locking and Closing
- Closing Costs and Fees
- Realtor Partnership Benefits
- Realtor Training and Support
- Email Distribution List
- Conclusion
Introduction {#introduction}
Welcome to the new Utah Housing Training! We are here to assist homebuyers in achieving their dream of homeownership. In this training, we will provide you with all the information you need to become a Utah Housing certified loan officer. Our goal is to empower you with the knowledge of our incredible programs and tools that can help more homebuyers purchase their homes.
Utah Housing Training Process {#process}
Participating Lenders Requirement {#lenders-requirement}
Many Utah Housing participating lenders now require their loan officers to undergo Utah Housing training and obtain a training certificate before originating Utah Housing loans. This ensures that loan officers are well-equipped to assist homebuyers in utilizing Utah Housing programs effectively.
Training Certifications {#certifications}
To make the training process easy and accessible, we have developed an online training video that can be completed in just 20 minutes. The training is divided into three sections: downpayment assistance loan, familiarization with Utah Housing website, and qualification requirements for Utah Housing loans. After completing the training, you will be required to take a certification test.
Benefits of Utah Housing Programs {#benefits}
The Utah Housing programs offer numerous benefits to homebuyers. By understanding these benefits, you will be able to educate and assist homebuyers in successfully purchasing their homes. The programs focus on providing downpayment assistance, lower interest rates, and flexible credit score requirements to make homeownership more accessible for a wider range of individuals.
Sections of the Training {#sections}
The training is structured into three sections to provide a comprehensive understanding of Utah Housing programs. The first section covers the downpayment assistance loan, which allows eligible borrowers to borrow their entire down payment and most of their closing costs. The second section familiarizes you with the Utah Housing website, highlighting the important resources and forms available. The third section discusses the qualifications necessary for Utah Housing loans, including income limits, credit score requirements, and mandatory homebuyer education.
Downpayment Assistance Loan {#downpayment-loan}
Overview {#overview}
One of the biggest challenges in buying a home is arranging the required down payment. Utah Housing offers a downpayment assistance loan that caters to homebuyers who do not have sufficient funds for the down payment. This loan allows eligible borrowers to borrow their entire down payment and most of their closing costs. By combining this loan with a Utah Housing first mortgage, homebuyers can purchase a home with little or no cash investment.
Loan Details {#loan-details}
The downpayment assistance loan is a 30-year fixed-rate second loan with an interest rate 2% above the first loan rate. The maximum amount that a borrower can receive for their down payment is listed on the loan matrix available on the Utah Housing website. It's important to note that borrowers who have previously encountered a loss on a Utah Housing down payment loan are not eligible for another downpayment loan.
Requirements and Eligibility {#requirements}
To qualify for the downpayment assistance loan, borrowers must combine it with a Utah Housing first mortgage. The loan does not require any additional processing documents other than those already required by the lender. However, it is essential to consult with your company to ensure compliance with federal, state, and company regulations regarding the required documents and allowable fees.
Pros:
- Allows homebuyers to borrow their entire down payment and most of their closing costs
- Willingness to work with borrowers who have limited funds
Cons:
- Ineligibility for borrowers who have experienced a loss on a Utah Housing down payment loan
Processing Documents {#processing-documents}
All the necessary forms and documents required to process and originate the downpayment loan can be found on the lender web page under each loan program and property type. It's important to note that most of the forms will require a password, but the forms required for processing and originating the loan can be accessed without a login. It's crucial to review the participation agreement and selling supplement for additional information and lender contractual obligations.
Utah Housing Website {#website}
The Utah Housing website is a valuable resource that contains all the information you need to know about Utah Housing and its loan programs. It's essential to bookmark the website and familiarize yourself with its layout and sections.
Highlighting Important Sections {#highlights}
The Utah Housing website offers various sections that provide crucial information about the loan programs and requirements. Key sections to explore include the loan matrix, Utah Housing selling supplement, interest rates, and forms for each loan program. The website also provides access to participation documents, including the participation agreement and selling supplement, which provide essential information on lender obligations and loan processing requirements.
Loan Program Resources {#loan-program-resources}
When navigating the Utah Housing website, it's important to explore the resources available for each loan program. The loan matrix provides detailed information about each loan program, including the downpayment loan. By clicking on the info icon or visiting the website, you can access further details about the loan programs and view additional resources.
Participation Documents {#participation-documents}
Utah Housing provides participation documents that outline the lender's contractual obligations and the selling supplement used for originating, processing, and closing loans. These documents serve as a guide and offer extra information to assist loan officers throughout the loan origination process. It's recommended to spend time familiarizing yourself with these documents and refer to them as needed.
Utah Housing Loan Programs {#loan-programs}
Utah Housing offers five loan products designed to meet the diverse needs of homebuyers. Understanding each loan program's details and requirements will enable you to match homebuyers with the most suitable financing option.
First Home Loan {#first-home-loan}
The first home loan is geared towards first-time homebuyers with modest incomes. It typically offers the lowest interest rate among the Utah Housing loan programs. While it doesn't have the lowest payment, it provides eligible FHA or VA loans for those with higher credit scores. The first home loan is the only program that allows non-occupant cosigners, provided they have a debt ratio of 41% or less. Income limits based on household income apply to the first home loan program.
Home Again Loan {#home-again-loan}
The home again loan is an FHA or VA loan designed for first-time or repeat homebuyers with relatively higher incomes. The income limit for home again loans is based on the borrower's qualifying income, which is calculated by multiplying the qualifying annual income (as determined by automated findings or underwriter approval) by 12. Household members not included in the loan and their income do not need to be considered for qualifying income limits.
Score Loan {#score-loan}
The score loan is suitable for first-time or repeat homebuyers with lower credit scores. This loan program carries a higher interest rate due to the associated risk but provides an opportunity for homebuyers with a credit score of 620 or higher to purchase a home. Borrowers taking advantage of the score loan, along with the downpayment loan, are required to complete a homebuyer education class. Utah Housing requires a copy of the borrower's signed homebuyer education certificate.
No MI Loan {#no-mi-loan}
The no MI loan is a conventional loan with a 97% loan-to-value (LTV) ratio that does not require mortgage insurance. It caters to borrowers with higher credit scores but offers payments that are typically lower than other Utah Housing programs. The no MI loan may have more rigorous qualification requirements, but its benefits make it an attractive option for eligible homebuyers.
Streamline Refinance Loan {#streamline-refinance-loan}
The streamline refinance loan program allows homeowners to lower their payment by refinancing their current Utah Housing downpayment loan. This program is specifically for homeowners who do not have funds to pay off their existing Utah Housing loan. Utah Housing will authorize the subordination of the borrower's current Utah Housing II loan when combined with an eligible UHC FHA Streamline refinance. Certain requirements and property types apply to streamline refinancing.
Loan Program Details {#loan-details}
Income Limits and Household Calculations {#income-limits}
Different loan programs have varying income limits, which determine eligibility. Household income includes income earned by all household members aged 18 and older, even if they are not on the loan. Calculating household income accurately is essential, as it affects eligibility for certain loan programs. Utah Housing provides an income calculation spreadsheet specific to the first home loan program, which can be found on the lender web page under resources/forms.
Recapture Tax {#recapture-tax}
A recapture tax may be applicable in rare cases when a first home loan borrower sells their home. However, Utah Housing reimburses borrowers in the unlikely event that they owe a recapture tax. The borrower receives detailed information about recapture in the Utah Housing recapture notice, which they must sign at closing. It explains the three conditions that must be met for a recapture tax to be triggered.
Required Homebuyer Education {#homebuyer-education}
Utah Housing requires first-time homebuyers, utilizing the first home or score loan program, to complete a homebuyer education class. A copy of the borrower's signed homebuyer education certificate must be provided to Utah Housing for qualification. Approved homebuyer education classes can be found on Utah Housing's homebuyer web page.
Acceptable Property Types {#property-types}
Utah Housing offers loan programs for owner-occupied single-family properties, including condominiums and planned unit developments that comply with FHA, VA, Fannie Mae, and Freddie Mac requirements. However, cabins, recreational properties, multiple units, non-owner-occupied dwellings, and mobile homes are not eligible. Manufactured homes can be eligible if they meet specific Utah Housing and agency requirements. There is a separate checklist and documentation process for manufactured homes.
Loan Locking and Closing {#loan-locking}
Loan locking procedures vary among lenders, and it's essential to follow your company's guidelines for locking loans. Lock agreements must be delivered to Utah Housing and typically remain valid for 35 days. If required, lenders can extend the lock for an additional 30 days for a fee. Closing costs for all loans, except the first home loan, are determined by the lender and applicable agency requirements. Utah Housing does not limit closing costs for the first home loan.
Closing Costs and Fees {#closing-costs}
When processing a downpayment loan, the total lender and title fees should not exceed $450, plus interim interest. Lender fees are usually around $250, with the title company charging around $200. The borrower should not receive any cashback other than funds paid in advance of closing, such as an earnest money deposit. It's crucial to adhere to these guidelines and comply with Utah Housing's policies when determining closing costs and fees.
Realtor Partnership Benefits {#realtor-partnership}
By partnering with Utah Housing and offering Utah Housing loans, Realtors can contribute significantly to helping homebuyers achieve homeownership. Utah Housing provides various benefits and support to Realtors to assist them in closing more deals successfully.
Realtor Training and Support {#realtor-training}
Realtors who collaborate with Utah Housing receive access to training sessions tailored specifically to their needs. These trainings cover the Utah Housing loan programs, benefits, and how to effectively utilize them to help homebuyers. By attending these trainings, Realtors gain in-depth knowledge and become instrumental in helping more homebuyers fulfill their homeownership dreams.
Email Distribution List {#email-distribution}
Realtors can subscribe to Utah Housing's email distribution list, ensuring they stay updated with the latest information and updates. Subscribers receive a weekly "Did You Know" email that contains valuable updates, hints, tips, and daily interest rates. The email distribution list provides an ongoing resource to help Realtors originate more Utah Housing loans and stay informed about program changes.
Conclusion {#conclusion}
Congratulations on completing the Utah Housing Training! You now have the knowledge and tools to assist homebuyers in achieving their dream of homeownership. Utah Housing offers various loan programs tailored to different needs, and by partnering with Utah Housing, you can make a significant impact in helping more families purchase homes. Remember to utilize the Utah Housing website and resources to access all the necessary information to effectively guide homebuyers through the loan process.
FAQ
Q: What is the downpayment assistance loan offered by Utah Housing?
A: The downpayment assistance loan allows eligible borrowers to borrow their entire down payment and most of their closing costs, making homeownership more attainable for those with limited funds.
Q: Are there income limits to qualify for Utah Housing loan programs?
A: Yes, income limits vary depending on the loan program. It's important to review the specific requirements for each loan program to determine eligibility.
Q: Do Utah Housing loans require mortgage insurance?
A: Some Utah Housing loan programs, such as the no MI loan, do not require mortgage insurance. However, other programs may have different requirements regarding mortgage insurance.
Q: Can a non-occupant cosigner be included in a Utah Housing loan application?
A: Non-occupant cosigners are allowed for the first home loan program if they meet specific criteria, including having a debt ratio of 41% or less.
Q: Is homebuyer education mandatory for all Utah Housing loan programs?
A: Homebuyer education is required for the first home and score loan programs. Borrowers must complete a homebuyer education class and submit a signed certificate as part of the qualification process.
Q: What property types are eligible for Utah Housing loans?
A: Utah Housing loans can be used for owner-occupied single-family properties, including condominiums and planned unit developments that comply with specific requirements. However, cabins, recreational properties, multiple units, non-owner-occupied dwellings, and mobile homes are not eligible.
Q: How can Realtors benefit by partnering with Utah Housing?
A: Realtors who partner with Utah Housing gain access to training, support, and resources that empower them to assist homebuyers in utilizing Utah Housing loan programs effectively. This collaboration increases the possibility of closing more deals successfully and helping more families achieve homeownership.