The Permanente Medical Group Home Loan Program - FHA

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Program Matrix

Last Updated 7/31/2020 12:00:00 AM
Program Name The Permanente Medical Group Home Loan Program - FHA
Loan Type FHA
Max Assistance 10% of the purchase price up to a maximum amount of $150,000. Note: Though not part of the loan, physician may be eligible for separate moving cost assistance from the employer up to $10,000 if relocating.
Max LTV/CLTV Contact The Permanente Group Inc.
Min FICO Score Contact The Permanente Group Inc.
Max DTI Ratio Contact The Permanente Group Inc.
Property Type 1-Unit SFR, Condo, Townhome.
First-Time Homebuyer Not Required. 
Max Sales Price/Max Loan Amount Follow 1st mortgage guidelines.
Product Codes N/A
Special Alerts/Comments

This program is only available to new TPMG physicians (not nurses or other KP employees). The TPMG physician cannot have owned a home in Northern California region at the time they accepted the offer of employment. They must remain an employee of TPMG for the term of the loan or it will be due.

 

This EAH is not approved for conventional financing as Fannie Mae requires the term to be at least 15 years. The guide says "Fannie Mae will purchase or securitize a first mortgage with subordinate financing under the Community Seconds option that provides for a balloon payment no earlier than fifteen years from the note date of the first mortgage loan or the maturity date of the first mortgage loan."

These program parameters pertain to the housing agency’s guidelines as of the last known agency change. Program guidelines should be confirmed with the respective agency prior to loan submission to ensure the use of the most current parameters. When combined with any program, the stricter guidelines will always prevail.

Program Terms

Program Name The Permanente Medical Group Home Loan Program - FHA
Maximum Assistance Amount 10% of the purchase price up to a maximum amount of $150,000. Note: Though not part of the loan, physician may be eligible for separate moving cost assistance from the employer up to $10,000 if relocating.
Program Type Employer Assisted Housing
State CA
County Property must be located within the northern California services areas of the Permanente Medical Group.
Repayment Ten years-if Borrower remains eligible throughout the tenyear term and continues eligibility thereafter, Borrower may extend the Maturity Date up to 2 years. To extend the Maturity Date, Borrower must pay a lump sum amount of at least 25% of the principal balance, on or before the original Maturity Date.

At the end of year 6, interest will be forgiven in 2 year sums and will occur each year thereafter until maturity when all interest is forgiven.
Special Alerts/Comments

This program is only available to new TPMG physicians (not nurses or other KP employees). The TPMG physician cannot have owned a home in Northern California region at the time they accepted the offer of employment. They must remain an employee of TPMG for the term of the loan or it will be due.

 

This EAH is not approved for conventional financing as Fannie Mae requires the term to be at least 15 years. The guide says "Fannie Mae will purchase or securitize a first mortgage with subordinate financing under the Community Seconds option that provides for a balloon payment no earlier than fifteen years from the note date of the first mortgage loan or the maturity date of the first mortgage loan."
Use of Funds Purchase
Interest Rate Contact TPMG Interest accrues for the 1st five years of the loan. At the end of year 6, interest will be forgiven in 2 year sums and will occur each year thereafter until maturity when all interest is forgiven.
Status Active
Eligible 1st Mortgage Type FHA
Eligible 1st Mortgage Types Notes N/A
MCC Permitted
Mortgage Insurance N/A
Equity Sharing Does not have equity sharing.
Last Updated 7/31/2020 12:00:00 AM
Comments

Borrower Eligibility

First Time Homebuyer Not Required. 
Homebuyer Education Requirement Not Required
Income Limits N/A
Income Calculation Method N/A
Minimum FICO Contact The Permanente Group Inc.
Debt To Income Ratio Contact The Permanente Group Inc.
Borrower Contribution None. Follow first mortgage guidelines.
Maximum Assets N/A
Minimum Reserves
Other Borrower Eligibility Requirements
Co-Signers N/A
Non-Occupant Co-Borrowers and Co-Signers 1st mortgage guidelines

Property Eligibility

Eligible Property Types 1-Unit SFR, Condo, Townhome.
Maximum Units 1
Ineligible Properties Manufactured homes, 2-4 units, Investment properties
Occupancy Home must be primary residence
LTV/CLTV Contact The Permanente Group Inc.
Max Sales Price/Max Loan Amount Follow 1st mortgage guidelines.
High Balance Loan Amount Standard HBL procedures.
Home Warranty / Termite Inspection Contact Agency.
Additional Subject Property Requirements Contact The Permanente Group Inc.
Other Property Owned Not Allowed.
Hazard Insurance The Permanente Group Inc.
Hazard/Flood Insurance Max Deductible Follow 1st mortgage guidelines.
Impound Requirements Follow 1st mortgage guidelines.
Appraisal Requirements Standard appraisal procedures apply.
Comments

Lender Eligibility

Lender Participation Info N/A
Training Requirements Not Required.
Comments

Fee Information

1st Mortgage Origination Fee N/A
1st Mtg Underwriting Fee N/A
1st Mortgage Processing Fee N/A
1st Mtg Tax Service Fee N/A
Compliance Review Fee N/A
Master Servicer Funding Fee N/A
Other 1st Mortgage Fees N/A
2nd Mortgage Processing Fee None
Other 2nd Mortgage Fees
Other Fees

Lock Information

Lock Time Frame N/A
# Days for Rate Lock N/A
Extension Policy N/A
Cancelation Policy N/A
Additional Lock Requirements See rate lock policies and procedures MWF does not allow discount points for lock extensions.

Submission

Loan Submission Assistance is stated in the employee’s offer of employment letter. Employee to contact the employer to begin the process.
BOLT Input
Product Code N/A
Linked Loan Product Code
Comments

Disclosures

1st Mortgage Registration and Disclosures N/A
2nd Mortgage Registration and Disclosures Employer provides the disclosures for the assistance.
Closing Disclosure Standard CD procedures apply.
QM Standard QM guidelines apply.
HPML Standard HPML guidelines apply.
Comments

Underwriting

AUS Follow 1st mortgage guidelines.
Manual Underwriting Follow 1st mortgage guidelines
Gift Funds 1st mortgage guidelines
Seller Contribution 1st mortgage guidelines
Prior-to-Doc Conditions None
Prior-to-Funding Conditions Contact The Permanente Group Inc
Compliance File N/A
MWF Overlays Underwriting: Complete Custom Field code 57 in LQB. Place a checkmark in the box and include the program name and dollar amount. If using multiple assistance programs, place the dollar amount of all the programs in the field and break out the programs by name and individual dollar amounts in the comments section of the Custom Field.

No Escrow Holdbacks.
Comments

Loan Documents

Lien Position Contact The Permanente Group Inc.
MERS Standard MERS procedures apply.
Max Cash Back Contact The Permanente Group Inc.
Excess Funds Contact the Permanente Group.
Escrow Holdbacks N/A
Doc Provider Contact The Permanente Group Inc.
Note Holder Offering agency.
Requesting Docs Inform program contact of estimated closing date.
Wiring of Funds Offering agency wires the funds for the assistance.
Notice Prior to Funding Contact The Permanente Group Inc.
Title Insurance Contact The Permanente Group Inc.
Required Documents Agency to provide checklist.
Late Payment Information N/A
Collateral Process Standard collateral processes apply.
Funding Source Contact The Permanente Group Inc.
DPA Source Documentation As indicated in HUD ML 2019-06, for FHA mortgages, documentation must be in the file from the governmental offering agency indicating they can legally provide funds for the borrower’s MRI and a signed legal opinion indicating they are within the jurisdiction in which the Property is located. Without this documentation, the program cannot cover the Borrower’s MRI for a FHA first mortgage.
Comments

Post Closing

Credit Package Delivery Checklist N/A
Compliance File Delivery/Checklist N/A
# of Days to Purchase File N/A
Post Closing Requests N/A
Post Closing Additional Requirements N/A

Offering Agency

Offering Agency The Permanente Medical Group.
Agency Contact Information

Rhonda Mills (510) 987-4900

[email protected] 

TPMG Financial ManagementPhysician Services–Home Loan Department
Website Links

https://physiciancareers-ncal.kaiserpermanente.org/about/

 
Program Flyer/Guidelines https://physiciancareers-ncal.kaiserpermanente.org/compensation-benefits/ 
Program Provider Type Employer.
Address

1950 Franklin St. 18th Floor

Oakland CA 94612
Master Servicer N/A
EIN/Tax ID Contact The Permanente Group Inc.
Investor N/A
Program Administrator N/A
Comments