House to Home Ownership Program (H2O)
The H2O program is a revolving loan fund that provides loans to first-time homebuyers for down payment and closing cost assistance up to 5% of the home purchase price. Homebuyers must earn 80% *Area Median Income (AMI) or less to qualify for the loan. Loan terms are written with deferred payment of all principal and interest due on sale, refinance, or upon 10-year maturity, whichever occurs first. Simple interest accrues at 3% for the initial 2-year period, converting to an adjustable rate for the remaining term. Adjusted rate is reflective of the annualized rate of appreciation of the home, as calculated at the time of payoff, and applied uniformly after the second anniversary. The minimum rate is 3%, with a cap of 11.5%.
Loans are closed and funded simultaneous to the purchase transaction, after personal counseling with partner agencies. Historically, the program has been marketed and administered through select housing agencies in each county; however, greater portfolio control and market penetration have been recognized through centralized loan processing and lender-focused campaigns. Average time between application and loan closing is less than 21 days.
*This link will connect you with Colorado Housing and Finance Authority's website and is a reference provided as a customer service and does not imply endorsement by Funding Partners.
Mammel Affordable Housing Loan Fund (MAHLF)
The MAHLF program is a highly adaptive "gap" loan fund offered to both non-profit and for-profit organizations that acquire, develop, rehabilitate or hold affordable housing units for low-income residents. Short-term in nature, terms are typically written between 4 - 7% simple annual rates, with flexible repayment schedules according to the needs of the project and maturity within 3 years, or less. Origination costs are typically 1 - 1.5% of the total loan amount.
Collateral may be the subject property, cross-collateralized, or by other sufficient security position, as dictated by circumstances and risk assessment. A Loan Committee, comprised of sitting Board members, must approve all loans in excess of $50,000 or make recommendation to the full Board, dependent upon established thresholds. Average time between loan application and loan closing is less than 45 days.
Employee Home Ownership Program (EHOP)
To facilitate the attraction and retention of a qualified workforce, employers will be offered the opportunity to extend employees down payment and closing cost assistance for the purchase of their first home. Employers will make investments into an account held in trust by FP, establish qualification criteria, and refer eligible employees to the program as long as funds remain available. Employees must be qualified by participating primary mortgage lenders, whereby EHOP is utilized for equity requirements up to 5% of the purchase price. EHOP loans become forgivable, in whole or in part, as the employee achieves specified service thresholds; due and payable upon voluntary termination under pre-set terms where such repayments are returned to the trust account. Although employers will establish eligibility guidelines, credit and risk assessments will be made according to established lender guidelines, while target markets will assume similar characteristics to the H2O program.
To capitalize on efficiencies and expertise developed through existing programs, FP has entered into agreements with other organizations that have the capital to provide down payment assistance and multi-family development/acquisition services, but lack sufficient organizational capacity to deliver services in their market area. Leveraging existing systems, FP significantly reduces the cost of such loan services to the client with only a marginal increase to internal operational expense. FP has established a reputation of originating, underwriting, closing, servicing and portfolio management functions that emphasizes user-friendly technologies with adaptive resources to maximize deployment and increase portfolio integrity.
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