Open Doors Program

As of 4-12-22:

Specialty Lending Programs with DPA – Due to the recent market conditions, and especially the illiquidity/lack of demand for higher rate Government Mortgage-Backed Securities, Government Specialty Programs have not been offering FHA 30 Year DPA options. Please note that DPA options are currently available for Conventional first liens. Please continue to check the daily rate sheets as market conditions do vary from day to day.

FHA: Up to 6.5% of the total 1st mortgage loan amount, including MI, in the form of a 2.0% deferred 2nd lien and up to 4.5% as a gift.

• Gift options: 1%, 1.5%. 2%, 2.5%, 3%, 3.5%, 4%, 4.5%

Conventional: Up to 7.0% of the total 1st mortgage loan amount, including MI, in the form of a 3.5% deferred lien and up to 3.5% as a gift.

• Gift options for borrowers at or below 80% AMI: 1.0%, 1.5%, 2.0%, 2.5%, 3.0% or 3.5%

• Gift for borrowers above 80% AMI (Plus coded products): 0%, 1.0%, 1.5%, 2.0%, 2.50% or 3.0%

All loan types:
DPA options may vary with market conditions. Contact [email protected]
for current offerings.

• The Gift from GSFA does not need to be rounded up or down.
• 2^nd lien is to be rounded down to nearest dollar.
• Gateway will not allow a 3^rd lien on the property.  
• If assistance will result in excess funds at closing, MWF is to reduce the grant amount.

FHA: UFMIP 1.75

Conv: Follow LPA

GSFA is pleased to announce an increase to the maximum loan limit for the GSFA Platinum and OpenDoors Programs, from $647,200 to $726,200 for 2023.

Lenders may reserve/lock Conventional Loan transactions for either Program applying the new loan limit beginning December 19, 2022. For FHA loan transactions, the new loan limits for 2023 only apply to case numbers assigned on or after January 1, 2023.

Conventional: Required of one borrower when all borrowers are first time home buyers. Must be completed prior to closing. Unless otherwise stated in our guide, any HUD approved HBE agency is acceptable.

Conventional:

Follow GSFA Income Limits by county, regardless of household size.

<80% AMI (LLADJ product codes) have more attractive pricing, DPA options and Charter MI than >80% AMI borrowers.

FHA: Follow FHA guidelines. Currently, FHA and FHA Open Doors do not have income limits.

Use 1003 income, not household income.

Conventional:

< 80% AMI: 620 with LPA approval

>80% AMI: 680 with LPA approval

FHA:
 Minimum FICO for FHA loans is 620 with AUS approval.

• For FICO <660 and/or DTI >45%  with AUS approval, Lenders must use the pricing grid on the rate sheet labeled “GOVERNMENT GSFA OpenDoors-LLADJ”.
• 640 for manual underwrites

All loan types:

Conventional: Per LPA approval; DU is not allowed.

FHA:

• Max DTI is 55% with AUS approval.
• For DTI >45% and/or FICO <660 with AUS approval, Lenders must use the pricing grid on the rate sheet labeled “GOVERNMENT GSFA Open Doors-LLADJ”.
• For manual underwrite (FHA only): 43%

• FHA manually underwritten loans: 2 months.

• All others: Open Doors has no minimum reserves requirement.

Conventional and FHA: Open Doors follows agency guidelines for citizenship requirements.

Conventional: DACA status borrowers are not allowed.

FHA: DACA status borrowers are allowed.

• Single family properties only; 1-unit SFRs, Condos (if using Conventional, borrowers must be <80% AMI), PUDs, Townhomes.
• Currently, GSFA allows for the following FHA condo project approval process: 4000.1 HUD
• FHA Spot approvals are allowed.

• Manufactured Homes
• 2-4 Units
• Condos for Conventional borrowers >80% AMI
• Co-ops
• Second Homes
• Investment Property
• Tribal land
• Land Trusts
• Any property with a PACE or HERO loan not being paid off.
• Properties with resale restrictions (MWF-approved restriction for age 55+ is acceptable).

Conventional: 97%/105%

Open Doors does not have a sales price limit, however, loan limits apply.

• Max loan amount is based on base loan amount.
• Maximum FHA loan amount is the lesser of county or conforming loan limits (currently $647,200). See  FHA Mortgage Limits.   
• Maximum Conventional loan amount is the conforming loan limit: Currently; $647,200.

• If a PACE loan exists, the PACE funding must be paid in full prior to or at closing.
• Property may not have a deed restriction tied to it. (MWF-approved restriction for age 55+ is acceptable).

FHA: May own other property at closing – follow FHA guidelines.

Mountain West Financial, Inc. its successors and assigns.

Upon MWF sale of 1^st to Gateway, MWF will update loss payee to read:

Gateway Mortgage Group, a division of Gateway First Bank

ISAOA/ATIMA,

PO Box 5013, Troy, Michigan, 48007-5013

2^nd mortgage:

Gateway Mortgage Group, a division of Gateway First Bank

ISAOA/ATIMA,

PO Box 5013, Troy, Michigan, 48007-5013

Flood insurance must show Gateway as the beneficiary within 5 days of loan purchase and coverage must include both the 1^st and the 2^nd

• Hazard: Max deductible is the greater of 2.5% or $2,500. 
• Flood Insurance Deductibles are $10,000.
• A Flood Zone Determination Certificate with Life of Loan Monitoring is required in each file. Client may obtain this initial determination from a vendor of their choice. However, if CoreLogic Flood Data Services is used for this required initial determination, Gateway will waive its $10 flood determination fee and continue monitoring under the original certificate. Please see transfer instructions below. Gateway Specialty Loan Program Second Liens may use the Gateway First Lien flood certificate.
• MWF must transfer the CoreLogic Life of Loan flood certificate to Gateway within 5 business days from the date of purchase. The correct way to transfer is: Servicer: 0002819028 (Gateway First Group) Subservicer: None and Investor: 0002819028 (Gateway First Group)

• Appraisal condition ratings of C 5 and C 6 are ineligible.
• Condos require an HOA Certification form.

• See MWF Wholesale Fee Chart.
• Tax Service Fee and Flood Cert fee that are not passed on to the borrower but will be netted out.

• MWF will accept lock request for Open Doors programs from 8:30AM to 3:00PM.
• Contact MWF Lock Desk for questions [email protected]

Lenders may reserve/lock Conventional Loan transactions for either Program applying the new loan limit beginning December 19, 2022. For FHA loan transactions, the new loan limits for 2023 only apply to case numbers assigned on or after January 1, 2023.

• 1-3 days, .0375%
• 4-7 days, .0875%
• 8-15 days, .1875%
• 16-30 days, .3750%

Gateway's Lock and Shop program does not apply to Gateway's specialty programs.

FF30OD4% - FHA FIXED 30YR OPEN DOORS 4.0% GRANT

FF30OD1% - FHA FIXED 30YR OPEN DOORS 1% GRANT LLADJ
FF30OD15% - FHA FIXED 30YR OPEN DOORS 1.5% GRANT LLADJ
FF30OD2% - FHA FIXED 30YR OPEN DOORS 2.0% GRANT LLADJ

FF30OD25% - FHA FIXED 30YR OPEN DOORS 2.5% GRANT LLADJ

FF30OD3% - FHA FIXED 30YR OPEN DOORS 3.0% GRANT LLADJ

FF30OD35% - FHA FIXED 30YR OPEN DOORS 3.5% GRANT LLADJ

• The Originator or Processor will be responsible for issuing a Full Disclosure Package on the 1st, as the Originator or Processor does on a standard 1st mortgage file.
• There are no changes in the process or disclosure requirements for the 1st mortgage. The disclosure and closing documents will mirror the exact procedure as a standard file.

• The second liens are TRID exempt therefore do not require a LE OR CD. Use the partial exemption disclosure which is part of the second lien closing docs. 
• 2^nd lien is TRID exempt- Second mortgage partial exemption disclosure is found on GSFA’s website and must be included on the closed file.
• MWF Locks will pull the partial exemption disclosure at registration and the doc/Funders will complete it with the Second Loan docs.
• A CD is not required for second lien. Disclosure of the loan terms are included in the Borrowers’ Acknowledgement of 2nd Lien Loan Terms.
• Gateway requires an ULI number for the 2nd lien, which LQB assigns, and can be found on the HMDA LAR Data screen. This number is to be placed at the very top of the GEMS portal home page. This should be completed by MWF Post-Closing prior to submitting the loan to Gateway for purchase review.
• Disclosures for the 2^nd are found at GSFA/NHF lender portal.
• The Open Doors docs must come from the GSFA/NHF website: No exceptions per GSFA.

• GSFA Conv. Open Doors: Select HFA Advantage for HFAs as the Offering Identifier 251 in the UW section. This identifier will include required AMI information for loan to be saleable.  Do not run as Home One as the AMI information will be missing

   

• FHA follows FHA guidelines  DU or LPA are acceptable to Gateway & GSFA
• Conventional: 2^nd loan is to be listed as subordinate financing in LPA.
• FHA: 2^nd loan is to be listed as an Affordable Second.

• Conventional: Not allowed.
• FHA- Allowed- Minimum FICO 640, with restrictions:  Per Gateway, max 43% DTI, 2 months’ reserves required, meet FHA guidelines including compensating factors File must include copy of AUS finding of Caution/Refer/Ineligible.

• Note: Standard Gateway overlays do not apply to Open Doors. Do not refer to Gateway’s Overlay matrix.
• MWF: 2-4 units are ineligible property types.
• No Escrow Holdbacks.

• 2^nd GSFA & Gateway will not subordinate to allow the borrower to refinance to a lower rate.
• If using a different MWF-approved DPA in lieu of Open Doors standard assistance, prior Gateway approval is required.
• 3^rd liens are not allowed.
• Grant is forgiven at closing- no lien position.

• The Closing Disclosure must be received by the borrower no less than 3 business days before loan closes.
• Closing docs for the 2^nd are pulled from GSFA/NHF Lender Portal  9:00 am to 4:00 pm M-F, excluding National Holidays.
• Gift letter is included in the DPA commitment letter.
• The first lien and second lien closing docs need to be dated the same date.

• 1st is closed in MWF’s name, then endorsed to Gateway:
  • “Pay to the order of Gateway Mortgage Group, a division of Gateway First Bank without recourse”.
• 2nd closes in GSFA’s name.

• ISAOA ATIMA
  244 South Gateway Place
  Jenks, OK 74037-3448

• Either an executed Patriot Act form or Customer Information form is required.
• UCDP – Gateway now requires Underwriter to provide written documentation addressing any UAD Summary Report with CU Scores => 4.0.
• UCD - UCD Submission Summary Report must be included.  If DU is used, the Casefile ID on the UCD must match the Casefile ID on DU findings. 
• GSFA must be the beneficiary on the 2nd TD documents.

• See Gateway Forms for required docs, including the Fraud Report.
• Gateway credit/collateral checklist: Resource Center/Associated and GSFA Open Doors Checklist
• Resource Library/GSFA Open Doors Client Checklist for 2^nd loan Docs/Delegated File Submission Checklist
• Use the General and Open Doors checklists
• Original 1^st and 2^nd Notes:

Gateway Mortgage Group LLC

Correspondent Note Custodian

244 South Gateway Place

Jenks, OK 74037-3448

• Recorded 1^st & 2^nd TDs: Same address, attention Correspondent Final Documents.
• Shipping/delivery: 1^st & 2^nd may be in one package uploaded to the first lien, or first lien docs uploaded to the first and second lien docs to the second. The collateral can be delivered in the same package Gateway.

• Post Purchase Documentation – Extension request for Post Purchase Documents greater that 120 days old must be submitted in writing to a Regional Sales Manager with a business justification and expected date for providing the required documentation.

Linda Garloch, VP Correspondent Operations: (972) 372-2546 [email protected] 

Golden State Finance Authority

Gateway First Bank