[OPLINLIST] ICYPA: Ohio Home Mortgage Refinancing Program

[Frank Atkinson]

Your patrons might see this in the news (it's on local and national news)
and be looking for it on the Internet.

 

This is a Hannah News story on the mortgage refinancing program. The
www.Ohiohome.org website has information on the program, income limits and
lenders to talk to. 

 

 <http://www.ohiohome.org/> www.ohiohome.org

 

OHFA Targets $500 Million Annually for Refinancing Program



The Ohio Housing Finance Agency (OHFA) gave the heads-up this week on a new
refinancing program to helped "burdened borrowers" in Ohio. The refinance
program will offer 30-year, fixed-rate loans to homeowners facing a change
in circumstances, such as divorce or unemployment, or an existing loan that
no longer meets their needs, such as interest-only mortgages or adjustable
rate mortgage loans that have entered or will soon enter the adjustable
stage.

"We are aware of the detrimental effect of unaffordable monthly mortgage
payments on the people of the state of Ohio," said Doug Garver, executive
director. "The agency has worked diligently with our partners to develop a
refinancing program that will address this issue. After helping over 100,000
families purchase their first residence, OHFA is determined to help other
families continue to afford the place they call home."

To assist with closing costs, the refinance program also offers a 20-year,
fixed-rate second mortgage option at an amount up to four percent of the
appraised value of the home. The second mortgage may be used for other
similar financing charges such as payoff of the first mortgage, including
late fees or attorney fees. Interest rates on this option will be two
percent above the rate of the first mortgage.

Education is a key component in guarding borrowers against decisions that
could lead to foreclosure, said OHFA. A total of four hours of face-to-face
counseling is required. Typically, this includes two hours during the
initial interview, and an additional two hours of one-on-one counseling.
Proof of education must be provided prior to closing. Interested parties can
find a list of available counselors at  <http://www.hud.gov./> www.hud.gov.
OHFA also requires post-purchase counseling in the event a mortgage payment
is 30 or more days late.

"Purchasing a home can be a very overwhelming experience for many people,"
said Joel Ghitman, OHFA director of homeownership. "It is extremely
important that buyers are educated about the process so that they can make
informed decisions in the best interest of their family."

OHFA's network of over 185 lending partners throughout the state will be
able to offer the refinance program to clients beginning this Monday. The
program is available in all 88 counties. Unlike OHFA's First-Time Homebuyer
Program, the refinancing program does not impose limits on the loan amount.
However, participants must have a household income that does not exceed 125
percent of the area median gross income in order to qualify. These limits
vary by county and range from approximately $73,000 to $84,000 with an
average of $74,600. This condition will ensure that the program serves
moderate and low-income Ohioans. Income limits and a list of participating
lenders will be available at  <http://www.ohiohome.org/> www.ohiohome.org on
April 2.

In addition to income qualifications, applicants must live in the residence.
Eligible owner-occupied properties include single-family detached housing,
condominiums, or townhouses. No two- to four-unit properties or manufactured
homes are currently permitted. No minimum credit score is required. Certain
credit bumps on the underlying mortgage payment history in the last 12
months are acceptable without a loan-level price adjustment.

Initially, the refinance program will be funded by taxable bonds. OHFA's
initial bond issue will allow it to serve approximately 1,000 families,
presuming an average loan amount of $100,000 per home. 

"This is just an approximation," said OHFA. "If demand is sufficient, the
agency will issue additional bonds or other forms of financing."

OHFA hopes that up to $500 million each year can be provided if the demand
exists. Funding obtained from these sources will allow OHFA not only to
offer refinancing options, but also to fund additional homeownership
programs in the future to meet the housing needs of Ohioans.


Story originally published in The Hannah Report on March 29, 2007. Copyright
2007 Hannah News Service, Inc.

 

 

Frank Atkinson                                         franka at ohcapcon.com

Rotunda Inc/Ohio Capitol Connection
http://www.rotundacollection.com <http://www.rotundacollection.com/> 

21 W Broad St, Columbus Ohio 43215        

 

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