Board of Housing ~

Homeownership Program

(Revised)
TERMS AND CONDITIONS
 NHS STATEWIDE AFFORDABLE HOUSING PROGRAM SETASIDE
 5.25%
 November 11, 1998 (revised 6/29/07)

  1. Each Mortgage Loan shall be either insured by FHA under Section 203(b) of the National Housing Act, guaranteed by RD under Title V of the Housing Act of 1949, or guaranteed by the VA under Section 810, Chapter 37 of Title 38, U.S. Code. Applicants to have a minimum of $500 of their money into FHA, VA and RD loan transactions.
  2. The fixed rate of interest on the Mortgage Loans shall be 5.25% per annum (at current time but rate is subject to change at Board's discretion).
  3. The term of the Mortgage Loans shall be 30 years and such Mortgage Loans shall provide for complete amortization by maturity by equal monthly payments of principal and interest.
  4. The Servicer may deduct a monthly servicing fee at the annual rate of three-hundred-seventy-five thousandths of one percent (.375%) of the outstanding principal balance of Mortgage Loan. The servicing fee factor is .071428 (for 5.25%).
  5. The acquisition cost of a Residence being financed by a Mortgage Loan shall include cost of completing the residence and unpaid SID assessments and must not exceed maximum purchase price limits:

    Area Maximum Cost for Existing Maximum Mortgage for
    New Construction    		 New Construction**
    FHA $237,031 $200,160 $237,031
    RD & VA $237,031 $237,031 $237,031
  6. Total Family Assets not to exceed $70,000 and $5,000 in net liquid assets.
  7. Homebuyer to be either a first-time homebuyer; single parents who owned a home with a spouse while they were married; or disabled.
  8. The Residence to be financed shall be occupied as the mortgagor's principal residence, and no more than 15% of the total area of the residence may be used in a trade or business.
  9. Refinancings of existing Mortgage Loans are not eligible for purchase by the Board. Refinancings of construction period loans or other interim financings which have a term of 24 months or less are not considered refinancings of existing Mortgage Loans.
  10. Recapture tax provisions will apply.
  11. A mortgagor can be obligated on only one Montana Board of Housing loan at a time.
  12. An eligible Mortgage Lender desiring to reserve funds must submit:
    1. the Mortgage Loan Reservation/Confirmation Report (BOH Form 99);
    2. a copy of an executed FHA/VA/RD Loan Application or other complete loan application used by the Mortgage Lender;
    3. a copy of an executed Buy/Sell Agreement;
    4. verification of Annual Family Income;
    5. Letter from the Neighborhood Housing Services confirming the eligibility of the Mortgagors for the program; and
    6. Signed
  13. Maximum Gross Annual Family Income from all sources not to exceed 80% of the area median income for the County as adjusted annually and for household size.
  14. Funds can also be reserved online, but a copy of the NHS letter must be faxed to MBOH at the time of reservation.
  15. The Board will purchase Mortgage Loans at up to one hundred two percent (102%) of the face amount of the Mortgage Loan depending on the project/lender agreement.
  16. Reservations for mortgage funds are on a first-come, first-served basis and must include written certification from the Neighborhood Housing Services that the borrowers have been selected to participate in the program.
  17. Mortgage Loans shall be tendered for sale to the Board within 45 days following execution of the note by the mortgagor. If the Mortgage Lender fails to deliver such loans within 45 days after origination, the purchase price will be reduced by one-half of one percent (.5%) for each 30 days the loan is not delivered. To determine the accrued interest for purchase and interest on monthly mortgage payments, multiply the number of accrual days by the outstanding principal balance, and divide by the 360 day factor 6857.14 (for 5.25%). To determine the accrued interest for payoff, multiply the number of accrual days by the outstanding principal balance, and divide by the 365 day factor 6952.38 (for 5.25%) . The monthly remittances and payoffs can be wired or ACHed to:

    Wells Fargo Bank West,N.A.
    ABA #102000076
    For Deposit to CK ACCT #196897979
    Credit: Montana Board of Housing
    Servicer (3 digit #) ________

     Send only ONE wire (all series combined) for each remittance made during the month. You must complete the MBOH Wire Remittance Detail Fax form listing the individual remittances for each series (even if remitting only one series). Fax the form to both U.S. Bank N.A. and to the Montana Board of Housing. See the Remittance Detail Fax forms for the appropriate fax numbers.

    ACH:

     Wells Fargo Bank West, N.A.
    ABA #102000076
    CK ACCT #196897979
    CR ACCT: MT BD OF HSG
    Servicer (3 digit #) _______

     Send only ONE ACH remittance (all series combined) for each remittance made during the month. You must complete the MBOH ACH Remittance Detail Fax form listing the individual remittances for each series (even if remitting only one series). Fax the form to both U.S. Bank N.A. and to the Montana Board of Housing. Again, see the Remittance Detail Fax form for the appropriate fax numbers
  18. Mortgage Lenders will be required to provide the Board with information regarding Mortgage Loans when requested by the Board to comply with the requirements of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.
  19. The Program will expire December 31, 2010.