News Release 
| FOR IMMEDIATE RELEASE March 26, 2007 |
Media Contact: Erin Biehl, ebiehl@ohiohome.org Phone: 614.387.2863 |
OHIO HOUSING FINANCE AGENCY UNVEILS REFINANCE PROGRAM
COLUMBUS — On April 2, 2007, the Ohio Housing Finance Agency (OHFA), the state's affordable housing entity, will unveil a refinancing program designed to help burdened borrowers in the State of Ohio.
“We are aware of the detrimental effect of unaffordable monthly mortgage payments on the people of the State of Ohio,” said Doug Garver, executive director. “The Agency has worked diligently with our partners to develop a refinancing program that will address this issue. After helping over 100,000 families purchase their first residence, OHFA is determined to help other families continue to afford the place they call home.”
The refinance program offers 30-year, fixed-rate loans designed to help borrowers burdened by a change in circumstance, such as a divorce or change in employment, or by a lending product that no longer meets their needs, such as interest-only mortgages or adjustable rate mortgage loans which have entered or will soon enter the adjustable stage.
To assist families with closing costs, the refinance program also offers a 20-year, fixed-rate second mortgage option at an amount up to four percent of the appraised value of the home. The second mortgage may be used for other similar financing charges such as payoff of the first mortgage, including late fees or attorney fees. Interest rates on this option will be two percent above the rate of the first mortgage.
Education is a key component of the program designed to help prevent borrowers from making decisions that could lead to foreclosure in the future. A total of four hours of face-to-face counseling is required. Typically, this includes two hours during the initial interview, and an additional two hours of one-on-one counseling. Proof of education must be provided prior to closing. For a list of available counselors, visit www.hud.gov. OHFA also requires post-purchase counseling in the event a mortgage payment is 30 or more days late.
“Purchasing a home can be a very overwhelming experience for many people, said Joel Ghitman,” director of homeownership. “It is extremely important that buyers are educated about the process so that they can make informed decisions in the best interest of their family.”
OHFA's network of over 185 lending partners throughout the state will be able to offer the refinance program to clients beginning Monday. This program is available in all 88 counties. Unlike OHFA's First-Time Homebuyer Program, the refinancing program does not impose limits on the loan amount. However, participants must have a household income that does not exceed 125 percent of the area median gross income in order to qualify. These limits vary by county and range from approximately $73,000 to $84,000 with an average of $74,600. This condition will ensure that the program serves moderate and low-income Ohioans. Income limits and a list of participating lenders will be available at www.ohiohome.org April 2.
In addition to income qualifications, applicants must live in the residence. Eligible owner-occupied properties include single-family detached housing, condominiums or townhouses. No two to four-unit properties or manufactured homes are currently permitted. No minimum credit score is required. Certain credit bumps on the underlying mortgage payment history in the last 12 months are acceptable without a loan-level price adjustment.
Initially, the refinance program will be made possible by the issuance of taxable bonds. OHFA's initial taxable bond issue will enable the Agency to serve approximately 1,000 families with the program presuming an average loan amount of $100,000 per home. This is just an approximation. If demand is sufficient, the Agency will issue additional bonds or other forms of financing. OHFA hopes that up to $500 million each year could be provided if the demand exists. Funding obtained from these sources will allow OHFA to not only offer refinancing options, but also to fund additional homeownership programs in the future to meet the housing needs of Ohioans.
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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