Important Program Updates for Participating Lenders
July 26, 2018
Lender Bulletin 2018-8:
NJHMFA First-Time Homebuyer
Program Reminders
Attention Lenders:
Please review the following First-Time Homebuyer Lender Guidelines prior to submitting your next underwriting package. Note that the information below has been available for review since June 5, 2018 in either the Lender’s Policy and Procedures (“Seller’s Guide”) or the underwriting checklist, and/or during the onsite training the Agency held in April:
Lender origination/application fees may not exceed $325. Tax service fee may not exceed $79. It is the Lender’s responsibility to ensure that all fees charged are compliant for the applicable loan type.
The potential recapture tax form must be disclosed to all borrowers prior to closing and is to be included in the underwriting submission package. The form can be accessed here.
The maximum allowable DTI for loans in the First-Time Homebuyer program is 45.00%
A termite inspection and a survey or affidavit are required for the First-Time Homebuyer Program. Refer to Chapter 7 of the Seller’s Guide for comprehensive instruction.
