Exhibit O
Originating Lenders Submission Cover Letter VHDA Mortgage Loans or Mortgage Credit Certificates To:
Virginia Housing Development Authority
VHDA Loan # (if applicable)
From:
MCC # (if applicable) ________________________________ Originating Agent
Address:
Borrower:
Fax #: Attn: 1.
2.
Agents certification re: Acquisition Costs Items: Estimated value of personal property items transferring with the residence (new construction only) Estimated costs of completing any unfinished area in the residence
$ $
Agents certification re: Compliance with Internal Revenue Code - Based on Agent' s review of all loan documents, Agent is of the opinion that: a. b. c. d. e. f.
g. h.
i.
the borrower has not used his principal residence primarily in trade or business the financed property is suitable for use as permanent residence and not for use primarily in a trade or business (or for recreational purposes) or as an investment property lot size does not exceed 2 acres (unless waiver from VHDA has been obtained) and is not a source of income other than incidentally borrower(s) intends to occupy the financed dwelling as a principal residence within 60 days (90 days for acquisition & rehab) the borrower(s) has had no present ownership interest in a principal residence at any time during the three year period prior to anticipated closing date. the total acquisition costs has been properly calculated in the Affidavit of Seller and Affidavit of Borrower and does not exceed VHDA's maximum Sales Price limit (or federal safe harbor limits as determined by VHDA) Sales Price and total loan amount do not exceed VHDA Sales Price limits. Maximum VHDA Sales Price for area:
$
Sales Price:
$
Acquisition Cost:
$
Total Loan Amount:
$
personal property has not been financed by the loan proceeds mortgage proceeds will not be used to acquire or replace an existing mortgage or debt for which the borrower is liable or which was incurred on behalf of the borrower (except for construction, bridge or similar temporary financing having a term of 24 months or less) the borrower(s)' gross income as indicated below has been verified and does not exceed VHDA' s applicable maximum gross income limit: Maximum Annual Gross VHDA Income Limit: $ Borrower Base: $ O. T. : $ Other: $ Total: $ Total Annual Household:
Co-Borrower $ $ $ $
Total: $ $ $
$ $ $ $ $
j.
3.
The Affidavit of Seller and Affidavit of Borrower have been completed and executed without any deletion or modification. Based on review of the foregoing and all other loan documents, there is no reason to believe that any statement in the foregoing documents is untrue, incorrect or incomplete. k. The borrower has submitted copies of signed federal income tax returns for the three years immediately preceding the execution of the mortgage documents or a copy of an IRS letter stating that its form 1040A or 1040EZ was filed for such year. l. The financed dwelling is or is not in a "targeted area" based on information provided to us by the locality. (If the residence is in a targeted area, Agent may delete 2. e above). Other VHDA Requirements: a. b. c.
Borrower(s) are over the age of 18 or have been declared emancipated by court order or decree. Borrower(s) are U. S. Citizens, lawful permanent resident aliens or are authorized to work in the U. S. with a Social Security number. Borrower(s) net worth does not exceed 50% of the sales price (as stated in VHDA regulations – VHDA loans only).
V H D A Originating A gents Cover Letter, Exhibit O
Page 1 o 2
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d. e. f.
g. 4.
Property is located in the State of Virginia, is a single family detached residence, a townhouse or an approved condominium. If residence is a mobile home, the residence is permanently affixed to land and if the loan i s f i n a n c e d w i t h a V H D A f i r s t m o r t g a g e it must be insured by FHA or meet VHDA guidelines. Property financed with VHDA's conventional program is located on state maintained road and serviced by public water and sewer if available. (Private well and septic if not available). A waiver from VHDA has been obtained for any exception. VHDA Loans Only) MCC’s only – the first mortgage is not financed with proceeds from tax-exempt bonds
Borrower Qualification: (VHDA Loans Only) Ratios: PITI/income Cash Reserves: Credit Score:
% # mos.
Monthly Qualifying Income: Borrower
Total Debt/Income Current Housing $ Proposed Housing $
%
Co-Borrower
Base:
$
$
*Other:
$
$
*Explain: 5.
We have complied with all of the procedures set forth in VHDA' s Originating Guide or the MCC Program Guide and in our opinion, the enclosed application meets all of the Authority' s requirements set forth therein for compliance with the provisions of the Internal Revenue Code of 1986, as amended, and such provisions have been satisfied.
6.
Certification re: Availability of Mortgage Loans (VHDA Loans Only) The undersigned hereby certifies as follows: On the basis of our review of the information submitted to us by the borrower and on the basis of our knowledge of the present cost of mortgage loans in this area, it is our opinion that a long-term first mortgage loan is not otherwise available to the borrower from private lenders upon reasonably equivalent terms and conditions.
7.
NOTE: The Originating Lender, must retain in its files, in accordance with the regulations of the insurer or guarantor, all documents required to be retained by such insurer or guarantor or by the Internal Revenue Code of 1986, or for 3 years whichever is longer.
8.
Originating Lender certifies that any fees charged to Borrower by Originating Lender dot not exceed the amount or type of fees customarily charged by the Originating Lender on its comparable non-VHDA loans.
By: Originating Lender Underwriter Name
Signature
Date
To be completed by VHDA The above referenced file has been reviewed and determined to be in compliance with Internal Revenue Code of 1986 and VHDA regulatory requirements unless exceptions cited below:
VHDA Reviewer:
Date:
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