AzIDA Home Plus

The non-forgivable Home Plus is a temporary program created by AzIDA in response to the current market and will be retired once funds are depleted (approximately 1,000 loans).

The regular Home+Plus Guidelines, and processes apply to the non-forgivable DPA product.  The following represent additional overlays strictly associated with the non-forgivable DPA offerings.

• Allowable 1st mortgage types:  FHA, Fannie Mae HFA Preferred over 80% AMI and Fannie Mae HFA Preferred under 80% AMI
• DPA Options: 5% only
• No manufactured homes
• Terms of DPA second lien:

• No interest and no monthly payments are required. 
• The full amount of DPA provided is due and payable if any of the following events occurs during the 30-year term of the loan:

• Sale or other transfer of property,
• Refinance of property - subordinations will NOT be granted
• Rental of property,
• Failure to occupy property as principal residence.

Follow the One-Off Program Process for submission instructions & guidelines located at Arizona Department of Housing and US Bank Lending Guide

Calculated on the total amount of the 1st mortgage. DPA can be rounded up or down to the nearest dollar

• Freddie/LPA-Under 80% AMI 3.0% 4.0% & 5.0%     
• Fannie DU – Under 80% AMI 0%,3%, 4% & 5%      
• Fannie/DU - Over 80% AMI 3.0% & 4%     

Statewide

Assistance is forgiven 1/36 monthly. Fully forgiven after three years. Pro-rated principal balance is due upon sale, transfer, or property becomes non-owner occupied prior to three years.

Note: AzIDA does not re-subordinate.

1st: Purchase only

2nd: Down payment and closing costs, including MRI.

1st: See PML

2nd: 0%

>80% Borrowers : Standard MI
<80% borrowers:  Charter level MI:
LTV 80.01% - 85.00%, 6% 
LTV 85.01% - 90.00%, 12% 

LTV 91.00% - 95.00%, 16% 

LTV 95.01% - 97.00%, 18% 

Does not have equity sharing.

There is no first-time homebuyer requirement.

Required for one occupant borrower through a HUD-Approved provider prior to closing. MI Homebuyer Education Classes are not allowed. AzIDA does not impose an expiration date for completed certificates.

• In-person classes: See U.S. Department of Housing and Urban Development (HUD)

• Approved online providers:
• eHome America
• Frameworks
• Take Charge America
• Hometrek
• CreditSmart
• Fannie Mae HomeView

HomePlus Summary for current limits.

Currently, $122,100 for FHA, Fannie Mae HFA Preferred >80% AMI. Fannie Mae HFA Preferred – under 80% AMI and Freddie Mac HFA Advantage – <80% AMI varies by the County the subject property is located in. Always follow the DU or LPA findings.

Note: When a non-occupant co-borrower or non-occupant co-signor is used on Fannie Mae HFA Preferred – < 80% AMI, the non-occupant’s income counts against the respective 80% AMI figure.
Effective May 1, 2023 income limit to increase to $126,351

The income of each borrower expected to both live in the residence and whose income is required to be included in credit-qualifying must be taken into account. 

• The non-occupant co-signor (as well as non-occupant co-borrower) income will count against the program income limit when using Fannie DPA options – Series 3. Fannie/DU – under 80% AMI. 
• The non-occupant co-signor (as well as non-occupant co-borrower) income will not count against the program income limit when using Fannie DPA options – Series 3A. Fannie/DU – over 80% AMI.

FHA-Non-occupying co-signor’s income will not count against the income limit.

• 640 up to 45% DTI
• 680 45.01%-50% DTI
• Manufactured: 680 for FHA & Conventional.
• Minimum score applies to all borrowers.

• All borrowers whose income is being used to qualify for the loan must have been on their current job for 6 months.
• One month reserves required.

• Front-end: Follow 1st mortgage guidelines.
• DTI 45.01% - 50%: Allowed with approve/eligible or accept AUS determination. Regardless of the AUS findings, US Bank will require a minimum 680 credit score
• Manufactured: 45%

Program has no max assets restrictions

• Title only participants (persons taking ownership interest in property but are not borrowers on the loan), are allowed per FHA & FNMA guidelines. US Bank & GSFA have no overlays for this.
• Citizenship: See Underwriting section 713.5. NPRA Documentation Requirements for USCIA or Visa documentation.
• Non U.S. Citizens lawfully residing in the U.S. as a permanent resident alien are eligible  All non-U.S. citizen borrowers must have current acceptable documentation. Non U.S. citizens for loan purposes are categorized as follows:

• • Permanent Resident Alien
  • Non Permanent Resident Alien
  • Non Resident Alien

DACA status applicants are eligible to apply for FHA financing. The following FHA requirements include:

• The property will be the borrower’s principal residence.
• The borrower has a valid Social Security Number (SSN), except for those employed by the World Bank, a foreign embassy, or equivalent employer identified by HUD.
• The borrower is eligible to work in the U.S., as evidenced by the Employment Authorization Document issued by the USCIS; AND
• The borrower satisfies the same requirements, terms, and conditions as those for U.S. Citizens.

All other requirements per FHA’s 4000.1

The Employment Authorization Document is required to substantiate work status. If the Employment Authorization Document expires within one year and prior history of residency status renewals exist, you may assume that continuation will be granted. If there are no prior renewals, you must determine the likelihood of renewal based on the information from the USCIS.

• FHA and FNMA: Non-occupant co-signers and non-occupying co-borrowers are allowed. Follow FHA or FHMA guidelines. 
• Freddie Mac HFA Advantage: Non-occupant co-signers are not allowed 

• Freddie Mac HFA Advantage and Fannie Mae HFA Preferred Loans: SFR, condominiums, town homes, 2 Unit (Duplex) One unit must be occupied by the eligible borrower as their principal residence and PUDs. 
  • Manufactured housing – Fannie Mae HFA Preferred only
•  Government loans: SFR, 2 Unit (Duplex) One unit must be occupied by the eligible borrower as their 
  principal residence.
  o Condominiums and townhomes.
  o Manufactured housing – FHA ONLY (3% and 4% DPA)
  See Az Housing Division.

See link for U.S Bank Condominium requirements and Overlays.

Owner-occupied, primary residence

• FHA – 96.5%/105%
• Conv – 97%/105%
• Conv manual UW CLTV 105% - see agency & US Bank overlays.
• Manufactured 95.0% FNMA HFA Preferred. FHA 96.5%/105%.

• Condos to 95% LTV Conv. and 96.5% FHA.

Sales Price: Follow any Agency guidelines for acquisition limits on all loans. 

Max Loan: Follow the lesser of conforming loan limit or county limit. 
See HUD

N/A

Recommended, but not required. Additionally, a home inspection is encouraged, but not required. Fee for inspection may be paid with the 2nd lien funds.

• Occupant borrower(s) may have an ownership interest in 1 additional residential property at the time of closing.
• When the LTV/CLTV >95%, the borrower cannot retain ownership interest in other properties also financed by U.S. Bank.

Loss Payee clause upon closing:

Mountain West Financial Inc. DBA Mortgage West Financial It’s successors and or assigns, 1209 Nevada Street, Redlands, CA 92374.

If the policy does not indicate guaranteed replacement or 100% full replacement cost insurance limits must at least equal the higher of the unpaid principal balance (UPB) or 80% of the replacement costs.

Per US Bank Guidelines, flood insurance is required to be equal to or greater than the lowest of the 3 amounts. Total of all liens (second liens only if serviced by US Bank), insurable value, or NFIP Maximum of $250,000.

• Conventional - Cannot exceed 5% of the face value of the policies dwelling coverage amount or condominium master policy.
• FHA – Cannot exceed the greater of $1,000 or 1% of the face value of the policies dwelling coverage amount.
• Flood: The maximum allowable deductible is $10,000.

Required on the 1^st mortgage

The process will remain the same as a standard mortgage loan file.

Manufactured Homes: The appraisal needs to be on the 1004 C Manufactured Home Appraisal

Report and contain: Make/Model/Year, HUD Label #/s, Serial Number/s and or VIN/s

Required. MWF is approved

Program and/or system training is not required, but recommended. See Lender Support - Lender Training

Optional US Bank (servicer) Training is available 24/7, is self-paced and can be completed in 30-45 minutes.

Borrower paid origination fee is set by the Originator.

$84 - not charged to borrower

$225 to Hilltop Securities (HTS) before compliance approval - borrower paid. Payment must be made through HilltopPay via the lender portal.  

Disclosed as $400 Servicing Funding payable to MWF in Block A. See Disclosures tab. 

N/A

$295 MWF doc prep fee,
recording fee TBD - borrower paid.

MWF will accept lock requests for ADOH programs from 8:30 AM to 3:00 PM PT.

Loans may be locked after MWF Underwriter initial approval.

Locks are available for 30 days only.

Rate Lock Extension Period Extension Fee:

• 7 days 0.06250 points
• 15 days 0.12500 points
• 22 days 0.18750 points
• 30 days 0.2500 points

The cost of a lock extension cannot be charged to the borrower and must be covered by the branch or broker.

If a loan is cancelled, a new lock cannot be made for a period of 60 days. AzIDA will consider exceptions. If a loan has been canceled at any point, the lock shall be subject to worse case pricing at the time of reinstatement.

When locking the loan, please select the Doc/Funding manager as the lender contact person.

See rate lock policies and procedures. MWF does not allow discount points for lock extensions.

Originator is to submit loan in the system. Originator is to issues initial disclosure.

The Anti-Steering Disclosure is required for every Wholesale loan file.

A COVID-19 Borrower Attestation must be included in the loan file.

FF30ADOHHP3% - FHA FIXED 30YR ADOH HOME PLUS 3% DPA

FF30ADOHHP4% - FHA FIXED 30YR ADOH HOME PLUS 4% DPA

FF30ADOHHP5% - FHA FIXED 30YR ADOH HOME PLUS 5% DPA

CF30ADOHHP3% - CONF FIXED 30YR ADOH HOME PLUS FNMA 3% DPA AMI OVER 80%
CF30ADOHHP3% - CONF FIXED 30YR ADOH HOME PLUS FNMA 3% DPA AMI UNDER 80%

CF30ADOHHP4% - CONF FIXED 30YR ADOH HOME PLUS FNMA 4% DPA AMI OVER 80%
CF30ADOHHP4% - CONF FIXED 30YR ADOH HOME PLUS FNMA 4% DPA AMI UNDER 80%

CF30ADOHHP5% - CONF FIXED 30YR ADOH HOME PLUS FNMA 5% DPA AMI UNDER 80%

CF30ADOHHP4% - CONF FIXED 30YR ADOH HOME PLUS FHLMC 4% DPA

CF30ADOHHP5% - CONF FIXED 30YR ADOH HOME PLUS FHLMC 5% DPA

• The Master Servicer Funding fee is charged to MWF and is deducted at loan purchase.
• MLM/LQB will fire at initial a 400.00 Servicing Funding fee in block A payable to Mountain West Financial. There will only be the one fee in block A. This is disclosed as $400 Servicing Funding payable to MWF in Section A.   
• US Bank: This fee is a secondary market cost to the MWF and is not part of the primary transaction, therefore it is not appropriate to charge this fee in section B or C of the LE/CD. Any addition to the lender’s fees to the borrower to offset this charge must never reflect as a charge payable to US Bank and must always be listed in Section A, paid to MWF (for example, included in the Origination Charges or as a separate line-item charge). Any fees added to Section A must be included in the TRID points & fees test.

AzIDA requires a TIL, which MWF Docs will pull from the Home PLUS portal.

• The second mortgage program must be selected and registered. The 1st and 2nd must be created and registered concurrently in order to properly issue disclosures.
• The Originator or Processor is to enter a comment that there is a 1st and 2nd, plus reference the 2nd loan numbers.

Follow the standard procedures for generating disclosures.

HPML loans are eligible.

Follow 1st Mortgage guidelines, Master Servicer and MWF guidelines.

Manufactured Homes: If run through DU using the “additional Data” screen, select “HFA Preferred”. A DU Approve/Eligible is required. If DU shows “Approve/Ineligible”, it is still eligible if the reason for “Ineligible” is “the CLTV cannot exceed 95% for fixed-rate purchase transaction secured by a manufactured home” and the CLTV does not exceed 105%.

• FHA: Manual UW is not allowed.
• Conventional: Manual UW is allowed max 36% DTI: 95% LTV and 2 months PITIA reserves.
• Manual underwriting is not allowed on manufactured housing.

Allowed

Allowed up to Interested party Contributions guidelines: 6% max.

• Homebuyer Education Certificate must be completed prior to closing.

Septic Certification (required on all loan types).

Well Certification (required on all loan types).

Compliance file is to be sent MWF HTS via Emphasys.

All Home Plus program related forms must be included. See Emphasys

All compliance related review is conducted post-closing.  MWF uploads the DPA Compliance Package to Hilltop within the agency’s reservation system.  At the same time, MWF uploads the credit / collateral package to US Bank.  Parallel review is conducted by both entities and purchase is completed once each entity clears their compliance process. 

1st 

ADOH loans must be secured by a Deed of Trust that includes the required MERS language and the required MERS MIN numbers. The correct MIN must be placed in a visible location on the first page of the Deed of Trust.

The ADOH loan must be registered with MERS and the Investor and Servicing rights transferred to US Bank within the time frame required by MERS.

MRI must be met/remaining cash back cannot exceed sourced EMD.

Any excess funds are to be applied to the principle of the 1st mortgage

N/A

Drawn in the name of Mountain West Financial, Inc.

Mountain West Financial, Inc.

Full documentation package is required. The process will remain the same as a standard loan file. Review the documents to ensure the correct Note, Deed and Misc. forms print in the closing package. A request for loan documents for the 2nd TD MUST be sent to your Closer.

Standard U.S. Bank notification procedures apply.

Standard Title Insurance requirements apply.

Manufactured housing: Obtain vehicle title or evidence of title surrender immediately to avoid closing delays. AZ requires a complete and recorded  “AZ Affidavit of Affixture” form 82528. U.S. Bank will only accept the Manufactured Home endorsement issued with the 2006 policy and will not accept an ALTA 7 endorsement. If a title company refuses to issue an ALTA 7.1-06, the loan should not close.

See Program Guidelines section of Program Documents tab Checklist
The COVID-19 Attestation must be signed by each borrower and included in the closing package. See www.usbank.com/correspondent 

Manufactured Homes: The borrower must sign a written statement to acknowledge their intent that the manufactured home is a part of the real property 
that secures the mortgage. The Affidavit of Affixation must be recorded with the 
Security Instrument. The Affidavit of Affixation can be obtained from the US Bank Lender site. 

IRS tax transcripts form 4506-C has replaced form 4506-T and must be used for all loans closed.

Wholesale: Mortgage Loan Originator Agreement must be signed and dated by Borrower and Originator and included in the loan file.

FHA 1st Charge: 4% at 15 days late.

CONV 1st Charge: 5% at 15 days late.

The original Note is retained by the Post Closing Department until the file is ready to be shipped. The Note is to be endorsed by Mountain West Financial, Inc.

Ship to:

US Bank Home Mortgage

Attn: Note Vault 5th floor

9380 Excelsior Blvd.

Hopkins, MN 55343

HFA

For all AzIDA Home+PLUS mortgages, the following documentation must be in the file:

Legal Opinion Letter - posted on agency website, lender to download and include in delivery file. Also called the Legally Enforceable Obligation Letter

NOTE: For those documents where e-signature is allowed, borrower(s) may sign those documents no more than 3 business days prior to closing (the date the wet signed documents are signed).

See: Lenders Housing.

Both Credit and Compliance packages to be shipped post-closing. See for checklist: www.usbank.com/correspondent 

Compliance files must be sent to HTS Compliance review via Lenders Housing. US Bank will not accept paper files.

All HFA Final Docs should be delivered to:
Attn: CIC HFA Final Docs EP-MN-X3CI
Hopkins Excelsior Blvd
9380 Excelsior Blvd, 3rd Floor
Hopkins, MN 55343

Delivered to the Servicer within 35 days of loan reservation and purchased within 60 calendar days from reservation date.

Rate Lock Extension Period and Extension Fee:

• 7 days 0.06250 points
• 15 days 0.12500 points
• 22 days 0.18750 points
• 30 days 0.2500 points

Note is to be endorsed to U.S. Bank and the Deed of trust assigned to U.S. Bank.

Addresses for Transfer of Service letter to borrower:

1. Servicing transferred to U.S. Bank National Association Attn: Customer Service PO Box 21948 Eagan, MN 55121-4201 Phone: 800-365-7772
2. Borrower is to send payments to U.S. Bank National Association P.O. Box 790415 St. Louis, MO 63179-0415

Note: Address for payments received by the lender after U.S. Bank purchase should be sent using overnight delivery to:
U.S. Bank Home Mortgage
Attn: Payment Processing 4801 Frederica St. Owensboro, KY 42301

Arizona Industrial Development Authority (AzIDA) (Formerly Arizona Housing Finance Authority AzHFA/ADOH)

Dirk Swift, Executive Director AFA & Homeownership Programs Administrator: (602) 319-9620 [email protected]

US Bank: Account Executive, Rhys Nevarez: 800-200-5881 Option 1.
Client Support: [email protected]

Also - [email protected]

(US Bank manufactured Housing Division).

Arizona Department of Housing

Home Plus

Arizona Department of Housing:

1110 W. Washington #280

Phoenix, AZ 85007

U.S. Bank
Attn: Customer Service
PO Box 21948
Eagan, MN 55121-4201
Phone: 800-365-7772

AzIDA ‘s EIN: 81-3526584

U.S. Bank

N/A