Hello Affordable Home Buying Family!
With each day we are making more progress and building upon the work of past administrators to further improve the program and process. I can't thank the City of Morgan Hill, the City Staff, the City Council, and the BMR Home Buyer and BMR Home Owner community enough. Thank you so much for your patience and cooperation!
We typically have workshops every other Thursday - (all at 6:30 PM) and we will use the lessons learned from this first Release and Lottery which included 13 properties available for sale and 70 buyers (Lottery 1 was held on August 14th). We are also in the process of setting up a home page dedicated to BMR Applicants to provide more information on the application process at each major stage, including:
The illustration above is our first attempt at capturing the major steps on one slide
The loan officer will play a larger role in future property releases and lotteries. Certified loan officers and registered lenders will facilitate the BMR application process for all buyers utilizing mortgage financing and/or down payment assistance to complete their home purchase. The process to become an approved lender and loan officer is open to all who meet the requirements and we will be hosting orientations on October 29th and November 19th to introduce lending professionals to the program. We encourage all lending entities to register to be affordable lenders and originators. Note to Mortgage Brokers: The funding lender must be registered with the program and complete all of the paperwork and agreements.
Home Buyers! Please make sure to use the time between now and the next lottery to begin gathering your application information while we get lenders set up. Some key documents that will help you get started include (these forms can be found under the info pages tab for buyers):
- Part 1 BMR Application
- Part 2 BMR Application
- Part 3 BMR Application
- HouseKeys BMR Application Document Checklist
In the orientation, we talk about the "While You Wait To-Do List". This is a very important group of action items to pay attention to. There will be some down time before the next Lottery - which will most likely happen in the first quarter of 2016. The Lottery held on August 14th was intended to handle all 13 properties that were in the pipeline to be completed before December 31, 2015. Action items for potential applicants includes:
- Get with a lender and have a tri-merge credit report pulled (minimum 620 median credit score required)
- Check with your lender to make sure your debt-to-income ratios fall within the maximum ceilings of 40% for household expense (mortgage, property taxes, insurance payments and association dues) and 45% for all debt and household expenses (including credit cards, student loans and other loan payments).
- Check to make sure you have the 3% required funds for down payment. This should be from your own funds.
- Begin to line up the down payment assistance and closing cost assistance programs now. Each of those programs come with their own requirements and their own underwriting guidelines. This is an important point because you may meet the requirements of the Morgan Hill BMR Program, yet fail to meet the requirements of an assistance provider.
- Attend a live HUD Approved 8-Hour Pre-Purchase Class (typically costs $50, although some classes are free). A graduation certificate is good for one year. You must have valid certificate before closing escrow on a Morgan Hill BMR Purchase Transaction. It's a good idea to get this done while you wait for a lottery or opportunity because classes fill up fast and there are very few agencies that provide this class.
Please stay tuned for future updates
Again, thank you for your patience and cooperation
If you have any questions, please email firstname.lastname@example.org