â€¢ Must go maximum allowed LTV on the first mortgage.
â€¢ Property must pass HQS inspection (Lead Paint).
â€¢ Cannot be used in conjunction with REO properties or FHA 203K streamline program.
If all of these are met, you must determine how much HOME DAP can be accessed. This is total cash needed to close, minus seller concessions, minus borrower funds in excess of two monthsâ€™ PITI. Whatever remains, rounded to the nearest $100, is the HOME DAP loan amount.
3. Does the borrower or property meet one of the three Neighborhood DAP qualifiers?
â€¢ Is the property being purchased as an REO, foreclosure, bank-owned, or short sale property?
â€¢ Has the property been marketed for six months or more?
â€¢ Has the borrower experienced a foreclosure, short sale, or deed-in-lieu in the past and now credit qualifies?
If yes to any of these, the borrower qualifies for the $10,000 Neighborhood DAP. Funds can be used toward the down payment or for closing costs and prepaids. Loan is amortized over 30 years at 1 percent interest rate. The borrower must qualify with second mortgage payment. If not, proceed to Regular DAP
NMLS # 6395
Financing Kentucky One Home at a Time