AHAA - Association for Homeowners Across America
Protecting the American Dream

Loan Type/Terms

• 30 year conventional fixed rate
• Interest rate buy-down available
• Subsidized Rate offered
• No prepayment penalties

Risk Considerations

More liberal terms and conditions bring additional risk to a mortgage portfolio. This program attempts to offset risk to the lender by requiring assistance to the homeowner in the form of required pre and post-closing homeowner counseling. In addition, the underwriters will exercise flexible, yet stringent review of homeowners’ mortgage scenario, credit history and income and will ensure an improved overall financial situation. Each loan must also meet the standards of a Net Tangible Benefit to Borrower Worksheet.

Financing Limit

Maximum combined Financing Amount: $565,000

Loan-To-Value

100% maximum first trust (standalone)
95% maximum first trust when secondary financing is involved

Subordinate Financing

Subordinate financing is allowed only from approved public agencies, assistance providers, non-profit organizations or Housing Finance Agency and can be used to pay off negative equity and/or closing costs.

Loan Purpose

This program is specifically designated for homeowners that need to fix their payments in order to avoid foreclosure due to adjusting ARM loans. As such, this program is offered as a rate/term refinance only with no allowance for walk-away cash at settlement.

Property Type

Existing 1-4 Family, owner occupied (including PUDs, townhomes and condos)
No investment properties or second homes.

Income

• Qualifying income sources are based on Fannie Mae/Freddie Mac guidelines for purposes of calculating maximum allowable ratios.
• The income used to qualify the borrower(s) is the same income used to determine compliance with our Low-to-Moderate income target limitations
• Non-Occupant co-borrower income is not eligible

Employment/Income Verification

• 2 year history of employment is required
• Income such as part-time, commission, bonus, family boarder, etc. must have a 24-month history with a strong likelihood of continuation to be used for qualification purposes

Credit Requirements

• Less than perfect credit is accepted.
• All ‘poor’ pay history must be explained and demonstrated to have been caused by some circumstances such as upward adjustments on an ARM loan.
• All loan adjustments must be documented with complete dates, new payments, etc prior to eligibility determination.
• Credit history on all other debts will be taken into consideration prior to underwriting approval. Given circumstances, certain late payments will be considered as acceptable depending on circumstances at the time of the delinquency.

Property Appraisal

A conventional appraisal (Form 1004) is required.

Mortgage Insurance

Standard Mortgage Insurance applies if First trust LTV is above 80%.

Escrows

Escrow waivers for taxes and insurance are not permitted.

Assumability

This loan is not assumable.

Borrower Eligibility

Borrowers must first call in for pre-screening and acceptance.

Other requirements

Back On Track Fund: $49 per month for five years. This payment occurs once the homeowner refinances through the program and is part of their qualifying monthly mortgage payment. This is an assistance fund where the homeowner can receive access to membership benefits and homeownership assistance programs.