Lenders and Realtors

Special Training workshop for Lenders and Realtors - July 8th (Wed) 9 to 11AM at CHAC (670 Santa Fe Drive) - please RSVP (303) 572-9445. This workshop is held monthly. CHAC's downpayment assistance can be used in conjuction with FHA, Fannie Mae, Freddie Mac, many bank products, and in conjuction with some other downpayment programs. CHAC has a special program for people with disabilites. CHAC provides downpayment and closing cost assistance, homebuyer education, credit counseling and more. Come to our workshop to find out how we can help you serve more clients!

Meeting for borrowers - When applying for Downpayment Assistance all clients receiving an assistance loan from CHAC must attend a meeting at CHAC (670 Santa Fe Drive, Denver, CO 80204) before closing. The client will be notified of the date and time. All borrowers and co-borrowers must attend. For clients purchasing outside the Denver Metro Area other arrangements will be made. Borrowers will be assigned a date once their application has been approved.

To Apply: Send the following information. These documents should provide a complete picture of the family size and income. IF THEY DON'T please add a letter of explanation. This will make the process go much faster and save phone calls.

STEP 1 - Initial Application

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CHAC 2 page Information Sheet (See printable form page or call 303-572-9445 to have a copy faxed to you) This is basic information about the lender, realtor, first mortgage loan product, etc. as well as a disclosure by the buyer of family size and income. Please fill out completely especially the family size and income section and have signed by everyone in the household over 18! Please fully describe the first mortgage product or attach a description (interest rate, rate changes, seller paid costs, etc.)

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Loan Information - A copy of the complete 1003 loan application. Preferably a typed copy (signature not required)

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Income Information - two most recent pay stubs, VOEs, most recent tax return. We need to determine total income to the household for eligibility to receive assistance. We must determine total income for all household members over 18. This is the key to a quick file review by CHAC.

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Credit Information - a copy of the credit report, alt credit if required, a copy of the letter of explanation if you required it for issues on the credit report, etc. Please indicate if any accounts will be paid off at closing.

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A copy of the MOST RECENT tax return including attachments (not just the W2s). One year is all we need (unless self-employed). MUST BE INCLUDED! For self-employed borrowers please provide two years tax return printout from the IRS.

• A copy of the property inspection (this can not be waived)
Must pass all safety and hazard requirements

STEP 2 - Commitment
Once we receive the above items it takes 3 - 5 days to process.
A Commitment Letter for the lender and a Compliance Form for the borrower to sign will be faxed to you. These forms disclose the loan amount, payment, APR, etc. Please have the borrower sign the Compliance Form and fax back to CHAC.

STEP 3 - Additional application items required before closing -
These items can be sent individually by fax. Send as soon as available.

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Title Work - only the cover sheet with the closers name, phone number and fax number and the Schedule A which provides the legal description and correct names for title.

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Appraisal (UFAR) - the first three pages and any addendums, not the cover, pictures, etc.

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Lead Based Paint visual assessment for all properties built prior to 1978. The portion of the appraisal saying there is no chipped or peeling paint does not satisfy the federal requirement. If you have any questions please call.

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Mortgage Credit Analysis Worksheet (MCAW)) or its equivalent (final underwriter approved version) Please be sure it indicates a second mortgage loan including the payment on the line provided.

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Vacant/Owner Occupied or Tenant Occupied Property Disclosure Forms

STEP 4- Close

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Instructions will be faxed to the Title Closer

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CHAC will review the HUD 1 Settlement Sheet

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Documents will be faxed to the Title Company once all other documents have been received and approved.

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Once the HUD 1 is received, reviewed and approved the funds will be wired - funds can not be wired after 3 PM

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The Title Company will return the signed documents to CHAC

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About the process

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The borrower will be required to attend a meeting at CHAC. This meeting is specifically for our borrowers and is held at our office on Santa Fe Drive. A date to attend will be assigned once the initial application is received and a loan committed. If purchasing outside the Denver Metro Area the borrower must be available by phone. This is a vital part of our program It is about the closing, the CHAC loan and payment, and about being a homeowner. No one from CHAC attends the closing and we do not require the borrower to come to our office for a loan application. This is our opportunity to meet the borrower and explain our program and answer any questions they may have. Thank you for your assistance in assuring that your borrower attend

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ELIGIBILITY - CHAC determines eligibility for a loan based on all income to a household from everyone residing in the household that is over 18. This is the first step. Please provide sufficient documentation so that we can determine household size and income!!

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UNDERWRITING - CHAC underwrites the CHAC loan. The First Mortgage product should be fully amortizing. CHAC does not assist in conjunction with loans that are subprime, interest only, 80/20 etc. CHAC assistance can not be used in conjunction with seller gift programs. Borrowers may not have more than a 50% back ratio including the CHAC payment. The use of second job income must show consistency over time. We require 2 years of tax returns (printout from IRS) plus an up to date P&L for all self-employment. The ability to make a mortgage payment that is more than 1.5 times the rent (payment shock) should be explained. CHAC does not allow nonresident Co-Borrowers or Co-signers. The borrower must need assistance in order to purchase. All documentation needs to be consistent or explained. For specific questions about an underwriting concern please call.

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COMMITMENT LETTER - You must have a commitment from CHAC at least three days prior to closing. If you have not received a commitment please verify we have received everything required and that all requirements will be met in time to close.

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CLOSING - CHAC will contact the Title Company the day before closing with information about the second mortgage. Lenders - PLEASE notify the Title Company that a second mortgage is being used in conjunction with the first and provide us with the correct contact information. We can not wire until the TITLE COMPANY sends us a HUD1 and wire instructions.

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DOCUMENTS FOR CLOSING - The borrower or their representative will need to pick up the documents for the second mortgage to take to closing. (If outside the Denver Metro Area we will fax these to the Title Company).

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We ask the Title Company to fax us a copy of the HUD 1 Settlement Statement and wire instructions once complete. Documents will not be released or funds wired until we receive and review the HUD1.

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Remember to check for the following

    The borrower may not receive cash back.
    The borrower may not use CHAC funds to payoff debt
    The borrower must provide at least $1,000.00 of their own funds(not a gift) towards the purchase of the home.

Be aware of these items when you set the first mortgage amount.