Neighborhood Housing Services of Baltimore

Neighborhood Housing Services of Baltimore, Inc. is a private, non-profit organization whose ongoing mission is to revitalize neighborhoods of the Baltimore metropolitan area for the benefit of their residents. NHS is based on the idea that a partnership of residents, business, local government and state government can work together – each contributing particular resources – to reverse a neighborhood’s decline and restore a stable, active community.

The partnership recognizes that every neighborhood we serve is unique and requires different approaches and solutions. However, we do set four basic goals for each community:

Strengthen and expand community leadership,

Increase home ownership levels,

Improve the physical appearance of neighborhoods, and

Stabilize the local real estate market.

NHS of Coppin Heights

2601 West North Avenue

Baltimore, Maryland 21216

Serving the neighborhoods of ...

Coppin Heights, Greater Rosemont

Coppin Heights

410-669-2634

NHS of Greater Hillendale

1055 Taylor Avenue

Baltimore, Maryland 21286

Serving the neighborhoods of ...

Ashlar Hill, Hillendale, Northbrook, Olde

Hillendale, Pelham Wood

NHS Greater Hillendale

410-769-8820

Patterson Park Neighborhoods Initiative

244 North Patterson Park Avenue

Baltimore, Maryland 21231

Serving the neighborhoods of ...

Baltimore-Linwood, Butchers’ Hill, McElderry

Park, Patterson Place, Upper Fells Point

Patterson Park

410-327-1200

410-522-6966

Southwest Seven NHS

4107 Frederick Avenue

Baltimore, Maryland 21229

Serving the neighborhoods of ...

Allendale, Carroll, Irvington, St. Joseph’s,

Tremont, Uplands, Yale Heights

Frederick Road

410-664-1904

NeighborhorWorks member

NEIGHBORHOOD HOUSING SERVICES OF BALTIMORE

CLOSING COST LOAN PROGRAM

Program Highlights

PURPOSE

The Closing Cost Loan Program (CCLP) is a program of Neighborhood Housing Services of Baltimore. It is intended to provide low interest loans to home buyers who do not have sufficient assets to pay settlement expenses.

WHO IS ELIGIBLE

To be eligible for a CCLP loan, a borrower must:

Be 18 years of age or older;

Have a total gross income within the program income limits, as applicable.

Intend to occupy as a primary residence the property being purchased with the assistance of the CCLP program.

Be able to afford to repy the CCLP loan;

Receive a commitment for a first mortgage on the property from a participating lender.

INCOME LIMITS

None

MINIMUM CASH CONTRIBUTION

The borrower’s minimum cash contribution required by NHS is $1,000. First mortgages insured by FHA must also meet a minimum cash contribution of three (3) percent of sales price.

NHS of Baltimore CCLP Program Highlights

TERMS OF THE LOAN

Interest rate: 5%;

As amortized payment for up to 10 years;

A maximum loan of $5,000;

A minimum loan of $500;

Recordation as a second mortgage lien on the property being financed; or promissory note, when applicable;

Underwriting shall use a first ratio, including the CCLP loan, of no more than 29%. The second ratio shall not exceed 41%.

ELIGIBLE PROPERTIES

Properties must be in the geographical areas established by NHS;

Properties must contain only one dwelling unit; and

Mixed-use properties (commercial and residential in one structure) are not eligible.

SETTLEMENT EXPENSES INCLUDED IN CCLP

Fees or premiums for title examination, title insurance or similar expenses;

Fees for preparation of a deed, settlement statement or other documents;

Payments owned at the time for settlement for property taxes or hazardous insurance coverage;

Escrows for future payments of taxes and hazard insurance;

Notary fees;

Credit report fees;

Appraisal fees;

Transfer and recordation taxes and fees;

Fees or premiums for mortgage insurance;

Loan discount points and origination fees; and

Down payments once required minimum cash contribution is met.

APPLICATION PROCESS

Borrower applies for purchase mortgage with participating lender.

Participating lender identifies need for CCLP funds, reviews borrower’s status for eligibility, then faxes completed Tracking Form, with mortgage application and credit report, to NHS.

Tracking form reviewed by NHS for completeness and eligibility.

Upon approval of 1^st mortgage, participating lender faxes to NHS completed and signed Approval Form. (CDA loans require a slightly modified approval process. Contact NHS for details).

NHS of Baltimore CCLP Program Highlights

Upon receipt of completed approval form, NHS issues its approval for CCLP loan and faxes approval signature to participating lender.

Upon approval and issuance of commitments for the first mortgage and CCLP loan, settlement is scheduled.

NHS will prepare and send to participating lender or title company the documents required for closing the CCLP loan (simultaneous with first mortgage).

Participating lenders will be responsible for processing and closing both loans.

Participating lenders will be responsible for coordinating and sending post-closing package to NHS in a timely manner to facilitate proper servicing of the CCLP loan.

ACCEPTABLE LOAN PRODUCTS

If the first mortgage is FHA, CDA or portfolio loan, the CCLP loan will be in the form of a secured second mortgage.

If the first mortgage is through the VA or underwritten through conventional Fannie Mae or Freddie Mac products, the CCLP loan will be in the form of an unsecured note.

Loans will be processed in accordance with the underwriting guidelines applicable to the aforementioned loan products. Downpayment and minimum cash requirements in excess of the $1,000 minimum cash requirement of NHS are allowed as established by the first mortgage loan product the borrower utilizes.

NHS must approve innovative loan products utilizing non-traditional underwriting standards in advance of CCLP application. Ratios in excess of 29% and 41% are not acceptable.

Adjustable rate mortgages (ARMs) are not allowed with CCLP loans.

Transactions involving purchase and rehabilitation funding, such as 203(k) loans, are not allowed with CCLP loans unless the transaction is conducted as a standard NHS purchase/rehabilitation transaction involving the NHS Revolving Loan Fund or a special NHS NeighborWorks mortgage product.

CCLPPROG. Rev. 3/98