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Introducing Great Choice to Your Clients
Who is THDA?
How to Accomplish SuccessfulHomeBuyer Education ClassKENDRA LOVE
THDA HOUSING COUNSELOR COORDINATOR: WEST TN
BackgroundWorked in the Homebuyer Education Department nonprofit in Memphis, TN (West TN region)
Top 10 of THDA producers in urban and rural
Over 400 families annually for face to face Homebuyer Education Classes
E-Home America Clients
Why is Homebuyer Education Important?Studies have shown that homebuyers whom take the class are less likely in comparison to those who do not to default or go into foreclosure
Knowledge is power
The more you know the better you do
What is Taught?Realizing the American DreamAre you Ready to Buy A HomeManaging Your MoneyUnderstanding CreditObtaining a Mortgage LoanShopping for a HomeProtecting Your Investment
Pre-Purchase ClassOptions
Face to Face Education Classes• Minimum of 6 hours
2 or more Families• Four hours plus 1 hour counseling
session, 1 household
• Costs varies by organization, but no more than $99
Online Education• eHome America - $99• One hour counseling session required
Post Purchase Class OptionsRequired for Hardest Hit Funds DPA-HHF Can be completed in-person or online If Pre Purchase is completed in person, in-person Post Purchase with the same agency
OR online is required.
Required prior to ClosingCosts no more than $50 in-person ClasseHome America Online $50All approved HBE agencies are not HHF-DPA participants Please visit www.thda.org for current program providers
How to Conduct a Successful Class Organization
Speakers
Real Life Examples
Audience
Control
Class size
Comfort level
Remain up to date on Homeownership changes
Outreach
Relationships with Realtors, Lenders, Attorney’s, Insurance Agent
Media (Social, Radio, TV)
Referrals from previous clients
Expectations
What are your funders expectations?
What are your expectations?
What are your audiences expectations?
How Do I Get Started?Visit www.thda.orgAttend a Homebuyer Education courseContact an approved lenderFind an approved REALTOR
Questions?
Kendra Love Homebuyer Education Coordinator:
West TN901-356-2251
HOW TO GET A THDA LOAN SUBMITTED & COMMITTED IN THE
SAME DAY
*Make sure you are using the correct THDA forms*Double check all information provided on 1003*Review tax transcripts closely *Account for all employment*Verify any and all asset accounts*Accurate information on FHA documents
THDA FORMS
• THDA Worksheet (non THDA form)• Application Affidavit• Seller Affidavit• Federal Recapture• Homebuyer Education• Disclosure of Loan Terms for Great Choice & HHF• GFE for Great Choice & HHF• Program Certification for HHF• 3rd Party Authorization for HHF
Common 1003 Errors
● Loan amount & Interest rate should be correct on a signed 1003
● Must complete a full 3 year resident history for borrower due to ownership restrictions<3 yrs
Tax Transcript Red Flags
1. Borrower's name listed differently or additional people listed on the tax transcript 2. Dependents with different last names3. Total income listed does not match W2 totals4. Money owed to the IRS
Document all Employment
● Must have FULL VOE on “all” current employers● Previous Verbal on all employers that issued a W2 to verify no longer
employed● All W2’s should add up to total on transcripts-if it doesn’t order W2
transcripts● Must have income docs for everyone in the household
○ If a child 18+ either need full time school transcripts or income docs
○ If spouse who is not employed would need LOX explaining not employed nor receives any type of income or assistance
○ If non married household member need tax returns or if not employed transcripts to verify no file & lox explaining not employed
Document all Employment
● If borrower is Self Employed be sure to obtain a YTD P&L
● Paystubs provided must be within 30 days of file being submitted to THDA-this is 30 days from end date of payroll period not the paid date
● Make sure all tax returns are signed● If using future income-will need paystub once borrower
starts new job prior to THDA purchasing loan
Hidden Assets
● Bank statements will uncover income you never knew existed. All bank statements for all household members should be obtained.
● Must have an lox for all non AUS Employer deposits● Keep in mind additional accounts can be uncovered from pay stubs as
well as transfers from any accounts provided
Recurring deposits could indicate additional income.
Example: Multiple small deposits of $25, $40, & $60 on bank statements. LOX from borrower verified these deposits were due to borrower recently started mowing neighbors lawns for them. We now need a YTD P&L and income must be counted towards maximum income limits.
FHA LT Common Error
The highlighted section should contain the following information: Source-THDAGov’t should be checkedAmount of secondary financing should be listed
Joe WomacSouthern Heritage BankAssistant Vice President
Loan Originator
www.greatchoicemarketing.com
Lenders Password:mortgage
Realtors Password:downpayment
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