Home Opportunities Program

• 30 year fixed, 40 year fixed, 30 year fixed with 1st 10 years interest-only, interest-only available for 5, 7 and 10-year fixed 1st mortgages.
   
• Income limited to 140% of AMI of 4-person household. In San Diego County, this income limit is $97,160. Income of other adults in the household that will not be on the loan is not included in this figure. This income limit applies to all household sizes.
   
• The above income limit is waived if at least one person is a public employee. Examples of public employees are fire fighters, police, school employees, health care workers, and active duty armed forces, and armed forces retirees who have retired less than two year ago.
   
• Public employees are also allowed up to a 50% debt ratio. All other borrowers are limited to 45%. If a public employee has a debt ratio of between 45% and 50%, 2 months PITI reserves are required and no secondary stated income (discussed later) is allowed.
   
• For households with 80% of less of the AMI, the interest rate is between 0.125% and 0.25% lower than otherwise. The normal rate for the Home Opportunities program is approximately the conforming (the lowest available) rate.
   
• Loan limits are equal to the Conforming Limits. For a one-unit property, the Conforming Loan limit is $417,500.
   
• 1st mortgages to 100% of purchase price. An MI factor (loan officer speak) of .97 is applied for 80+LTV loans with mid FICO score of less than 680. For other cases of 80+ LTV loans, an MI factor of .59 is applied.
   
• This loan product can be used to purchase units. Credit score and debt ratio requirements can be slightly higher for purchasing units. 75% of expected rental income for 2 units properties and 65% of 3 to 4 unit properties can be used to qualify.
   
• Rental income from boarders for a 1-unit property can be used. Boarder income cannot exceed 30% of total qualifying income and proof of boarder's residency and previous 12 months of payments must be provided.
   
• Secondary stated income can be used up to the lesser of 33% of total income or $1,200 per month can be used to qualify. Must be reasonable and difficult to verify. Examples of this would be child care, cleaning services, auto or home repair, odd jobs, employed by relative, voluntary (not court-decreed) child support or alimony, unreported tips, and general sales. Maximum allowed debt ratio is 40% if using unverified income.
   
• No reserve requirements for 1 to 2-unit properties. 2 months PITI reserves required for 3 to 4 unit properties.
   
• Income from non-occupant co-borrower is allowed as long as stand-alone income of occupant co-borrowers produces a debt ratio no higher than 55%. Relationship must be blood or other long-term.
   
• Paydown of revolving debt is generally not allowed. Installment debts must be paid off completely. (i.e. No < 10 months is allowed).
   
• 620 minimum middle FICO score for 97% or more LTV on 1st mortgage. 600+ Fico FICO allowed for less than 97% LTV. 660 FICO required for 3 to 4 units with with LTV of 95% or less.
   
• Will allow up to 105% CLTV to cover closing costs.
   
• Chapter 7 bankruptcy discharge is lat 2 years ago. Chapter 13 must be discharged. In both cases, good credit must since have been established.
   
• No foreclosures in the last 2 years due to extenuating circumstances. No foreclosures in last 4 years due to financial mismanagement. In this case, a 680 FICO score is required.
   
• Non-traditional credit allowed if either borrower or co-borrower has no score or insufficient trade lines. 4 non-traditional credit lines (phone, electric, gas, cable, etc.) can be used as long as one of them has at least 24 months of history. 12 months of on-time rental history must be proven as well.
   
• 401(k) loan payments are not counted against debt ratio.
   
• No prepayment penalties.
   
• Occupant borrower(s) cannot own other property at the time of closing.
   
• Combines with number other subordinate mortgage assistance programs
   
• Homebuyer education course required for 2 to 4 unit property purchases.
   
• Up to 6% seller contribution allowed for closing costs.
   
   

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