Board of Housing ~ Single Family Program

LOL LOAN SUBMISSION VOUCHER DETAILS

Be sure that the bottom of your voucher is signed and completed,
and that your purchase package is submitted
no more than 45 days after closing.

1.This is pretty self-explanatory; FHA & VA printouts can be to-follow documents. The RD Loan Note Guarantee must be the original & has to be received before the purchase can take place. Be sure signatures are placed where required. Once again, 90 days is allowed to get the documents for FHA & VA loans required. Genworth and MGIC P.M.I. certificates must be received before purchase can take place.

2.The original note must be sent before purchase can take place. It must contain signatures of each borrower & co-signer and it must be assigned by the lender to the Board. Must be sure the property on the note matches that for which the loan is being made. If payments have been made, a loan history breaking out principal payments and interest paid must be sent.

 3. The Assignment can be the original or a clerk & recorder's certified copy (not a copy of the certified copy). It must contain the deed of trust information showing that it has been transferred to MBOH. The borrower doesn't sign this document, but the lender does and it must be notarized. This can also be the MERS online summary page showing the transfer of the loan to MBOH and the number assigned by MERS.

 4&5. If a Neighborhood Housing Statewide Program (Montana Homeownership Network) with a second mortgage loan is being purchased, a separate loan is being made by the MBOH. Therefore, the trust indenture and note for the second loan must be filled out & the originals sent with the purchase package. The mortgage must be recorded. Blank documents for the NHS (MHN) loans should be sent to you at the time the funds are reserved and a commitment is given.

 6. A copy of the original recorded Deed of Trust document is needed. The originator keeps the original. The MBOH Uniform Rider, VA Assumption Rider (when applicable) and NHS (MHN) Rider (when applicable) must accompany the Trust Indenture and must also be recorded. The Deed of Trust must include proper names, loan amount, legal description & property address, signatures of borrowers & be notarized.
7&7a. Original Mortgagee Title Insurance Policy, which must name the MBOH as the insured party and show sufficient coverage and proper address and borrower(s). If the original is not available, a title company commitment can be accepted but it must show the above needed information and the original policy is needed within 90 days. Remember to include endorsements 100, 116, 8.1 and, if a manufactured home, FA7

8. The HUD 1 documents are used to check figures relating to the loan & calculations. Such figures include mortgage insurance, loan origination fees & costs, hazard insurance and acquisition costs. HUD 1 figures are also used to help determine if RD loans have the required $1500 investment or $500 investment and a copy of the Homebuyers Education Certificate . Both the borrower & seller HUD 1's are needed except in the case of rollover of a construction loan. The HUD 1 must be signed by the borrower, seller & settlement agent and does not have to be original or certified. The lender/settlement agent signature can be placed on the addendum of the FHA HUD 1. Watch to be sure no cash back is generated.

 9. The Mortgagor's Affidavit must be the original & signed by all borrowers and notarized. Check for correct interest rate and income & family size found under question #6. It must be marked whether or not it's in a targeted area. A legal description is no longer needed but all other blanks must be filled or the document will be returned and missing items will have to be completed.

 10. This document must be the original, notarized and signed by the seller and lender. The selling amount must match that on the borrower's affidavit and must have one of the boxes marked on question #1. Number 9 also must be marked & though no legal description is needed, the property address must be correct.

11. The final application should be sent with the purchase package. All requirements can be copies. The HUD form 92900 and VA form 26-1820 addendums must be signed on the first page by the lender and by the borrower on the second page. RD loans require only the application with no addendum. Please be sure the VA disclosure statement is signed.

12. V.O.E.'s can be copies and are usually the same as those sent with the reservation package provided they are still current. Any additional income found since the reservation must be reported MBOH borrowers must qualify at the time of purchase.

13. If the property is not located in a targeted area, federal tax returns for the past three years are needed to prove that no prior ownership has taken place.

14. This copy should be signed by the borrower and should have been presented to the borrower & signed at time of application. Be sure to stress that MBOH will reimburse any federal recapture tax paid associated with the MBOH Loan.

15. Please be sure the figures on this document are correct and that it's signed. As stated on the submission voucher, it can be a copy or original. Please check for correct name, address and loan amount. Question #3 should be the MBOH limits found on the Max Income Limits sheet provided by MBOH. Under the table section, the recapture figures must be used. These figures are allowed to increase by .05 each year so multiply the beginning income amount by 1.05 to get the limit for the second year and continue the calculation until the ninth year's limit is computed. Once again, reassure borrowers that they will be reimbursed for any recapture tax they may have to pay associated with the MBOH Loan.

16. A copy of the buy/sell signed by the borrowers & sellers is needed. Check to be sure it has the proper address, check the number of lots if more than one, need proof home sits on all lots or that lots can 't be divided & sold off. Please double check purchase price and send all counter offers. Also watch for personal property and be sure to get a signed " statement of no value" if any is listed.

17. A copy of the Hazard Insurance binder is needed in order to purchase. It must show that the deductible doesn't equal more than $1,000 (including wind/hail), show the correct insured party & address, indicate that coverage is adequate and MBOH is named as the mortgagee. If MBOH is not listed, a copy of the request for change of mortgagee clause must be included. Coverage must be at least a dollar amount that will re-build the house or replacement cost. We usually look at the cost of the home minus the land for replacement cost.

18. If property is located in a flood zone, evidence of flood insurance must be included with a deductible not to exceed $750 .

19. Whether it's a VA Certificate or Uniform Residential Appraisal Report, the address and the involved parties must be correct. The FEMA special flood hazard area should have the "No" box marked. Land limitations and possible rental situations are checked through the appraisal. Requirements for the Uniform Appraisal are the first 2 pages (plus the signature page and any explanation regarding multiple lots). We pull appraised value using the sales comparison approach.

20. Just one photo is needed as long as it's clear and color copies are permitted.

21. As noted, the RD Guaranteed Rural Housing Lender Record Change or copy of your letter sent to VA advising them of sale of VA Mortgage to MBOH can be a copy. The document must be signed by the mortgagee and MBOH must be named as the purchaser. RD's can use the FHA form and have it complete including signatures. Please be sure all applicable code #'s are inserted - each lender has its own 10 digit code.

22. The Early Delinquency Counseling Form is required for all loans & needs to be signed by all borrowers.

23. Set-asides only a copy of:
a. Letter from sponsoring agency
b. Release of financial information form
c. MHN certified homebuyer education certificate (on-line courses not allowed)

updated 5/9/2007