News Release 
| FOR IMMEDIATE RELEASE September 5, 2007 |
Media Contact: Erin Biehl, ebiehl@ohiohome.org Phone: 614.387.2863 |
THE OHIO HOUSING FINANCE AGENCY EXPANDS UNDERWRITING GUIDELINES OF REFINANCE PROGRAM TO HELP MORE OHIOANS
Opportunity Loan Refinance Program guidelines now more flexible
COLUMBUS — The Ohio Housing Finance Agency (OHFA) today announced expanded program guidelines for the Opportunity Loan Refinance Program. As a result of lender and borrower feedback, certain credit issues will now be permitted that have prevented some borrowers from using the program under the previous guidelines.
“The new, more flexible guidelines will allow us to help families who are facing the prospect of losing their homes as their payments begin to rise and become unaffordable,” said Executive Director Doug Garver. “With these expanded underwriting guidelines, we hope to help hundreds of Ohio families keep the home they have worked so hard to obtain.”
Borrowers may be permitted to have up to one 60-day late payment and two 30-day late payments in the last 12 months on their existing mortgage payment history. The maximum combined loan-to-value ratio permitted is 105 percent. The Opportunity Loan Refinance Program is administered through a network of participating lenders throughout Ohio. A list of participating lenders is available at www.ohiohome.org.
On April 2, 2007, OHFA unveiled the Opportunity Loan Refinance Program, which offers a 30-year, fixed-rate refinancing alternative to borrowers throughout the state of Ohio. The program is designed to assist homeowners who have a mortgage that is no longer suitable for their financial situation. Borrowers who have an adjustable rate mortgage (ARM), Option ARM, interest-only mortgage or high-rate loan may benefit from the program. The Opportunity Loan may assist those borrowers who have experienced an unforeseen circumstance such as divorce, medical emergency or loss of employment.
OHFA has taken approximately $14 million in reservations and closed 25 loans for approximately $3 million. During the final week of August, lenders were notified of the program change.
The Opportunity Loan also offers additional financial assistance in the form of a 20-year, fixed-rate second mortgage option funded with OHFA reserves. This second mortgage is available at an amount up to five percent of the appraised value of the home, and can cover expenses such as closing costs, escrow payments, pre-payment penalties or other financing charges associated with the existing mortgage.
To help borrowers make informed decisions regarding their mortgage in the future, OHFA requires a total of four hours of homebuyer education with an agency approved by the U.S. Department of Housing and Urban Development (HUD). OHFA also requires post-purchase counseling in the event a mortgage payment is 30 or more days late.
Participants must have a household income that does not exceed 125 percent of the area median income. These limits vary by county and range from approximately $73,000 to $84,000. This condition will ensure that the program serves low- and moderate-income Ohioans. Income limits are available at www.ohiohome.org.
OHFA utilizes federal and state resources to provide housing opportunities for families and individuals through programs designed to create, preserve, and manage affordable housing throughout the State of Ohio. The Agency is a self-supporting quasi-public agency governed by an eleven-member board, nine of whom are appointed by the Governor and confirmed by the Senate. Two additional seats on the board, by statute, are reserved for the Director of Development and the Director of Commerce, or their designees, and both serve as ex officio voting members.
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