Question 1

What are the terms of the NeighborhoodLIFT funding?

Accepted Answer

NeighborhoodLIFT funds are provided as a five-year forgivable loan program for owner-occupied properties. As long as the borrower resides in the home, the loan will be forgiven at 20 percent each year on the anniversary date of settlement. If the house is no longer a principal residence or the property is transferred, repayment of the balance of funds will be immediately due. If you qualify for the military benefit, check with NeighborWorks Columbus on repayment terms.

Question 2

Are there income restrictions for eligible borrowers?

Accepted Answer

Yes. Income limits are set for each market for NeighborhoodLIFT funds. The income limits are calculated based on borrower(s)’s income in connection with household size. Income limits are higher for military service members, veterans, law enforcement officers, Pre-K-12th grade teachers, firefighters and emergency medical technicians.

View Income LimitsView First Responder, Military & Teacher Benefit Information(https://docs.wixstatic.com/ugd/9bcf20_6f6a6d74e6ea4342aa4d72538958c5c7.pdf)

Question 3

If a person living in the home is not included on the loan to purchase the home does their income count in the calculation of household income?

Accepted Answer

No. Only borrower income is calculated. View income limits.(https://docs.wixstatic.com/ugd/9bcf20_6f6a6d74e6ea4342aa4d72538958c5c7.pdf)

Question 4

Are there other financial requirements to participate in the program?

Accepted Answer

You may be required to make an additional down payment contribution from your own funds if your ‘remaining liquid assets’ at the time of your eligibility determination session will exceed $20,000.

Question 5

How are liquid assets determined?

Accepted Answer

‘Remaining liquid assets’ are defined as your available funds in bank accounts such as checking, savings or money market accounts that are readily accessible without withdrawal restrictions or penalties after you have met any out-of-pocket settlement requirements from your own funds.
Liquid assets do not include Retirement Accounts (such as 401(k), IRA or pension accounts), Investment Accounts (such as stock, bond or mutual funds), Certificates of Deposit (CDs), Business Checking or Savings Accounts.
 
Liquid asset determinations and contribution requirement estimates are made at the time of your Eligibility Determination Session. Liquid asset funds that are subsequently transferred to restricted accounts 
after
 your Eligibility Determination Session will not be excluded from contribution calculation requirements.

Question 6

Is there a way to participate in NeighborhoodLIFT since I did not attend the event on May 4-5?

Accepted Answer

Not at this time. The NeighborhoodLIFT funds were allocated at the event on May 4-5. Please check this website after July 6 to see if funds have become available. If so, funds will be made available on a first-come, first-served basis for eligible buyers who have completed the required steps.

Question 7

What first mortgage lenders are eligible to participate in the NeighborhoodLIFT program?

Accepted Answer

See a list of participating lenders here.(https://docs.wixstatic.com/ugd/9bcf20_67ad0dd6ce904ed9992e5d63d440e346.pdf)

Question 8

What is homebuyer education and how do I get it?

Accepted Answer

Homebuyer education is an eight-hour class that teaches about the home buying process. Homebuyer education must be provided by a HUD-Approved Housing Counseling Agency that has adopted the National Industry Standards for Homeownership Education and Counseling. More information and a list of approved providers can be found here.(https://docs.wixstatic.com/ugd/9bcf20_3b3e7807e1da44ba88ce93a49573fadc.pdf)

Question 9

I have a homebuyer education certificate from an agency that is not HUD Approved. Will that be accepted?

Accepted Answer

No. Only homebuyer education certificates from HUD-Approved Housing Counseling Agencies that have adopted the National Industry Standards are eligible for NeighborhoodLIFT funds. View Homebuyer Education providers.(https://docs.wixstatic.com/ugd/9bcf20_3b3e7807e1da44ba88ce93a49573fadc.pdf)

Question 10

Can I own another home and still qualify for the NeighborhoodLIFT program?

Accepted Answer

Yes, if you currently own a home but will be selling it prior to closing on the NeighborhoodLIFT property, you can still be eligible for the program. At the time of closing you may not own any additional properties including investment properties.

Question 11

Are short sale properties eligible for NeighborhoodLIFT funds?

Accepted Answer

Short sale properties are eligible for the program. The purchase agreement for the short sale property must be signed by the buyer and the seller to apply for NeighborhoodLIFT funds. The lender (lien holder of short sale property) must ratify the agreement prior to closing. NeighborhoodLIFT funds CAN be used in connection with the financing of a Wells Fargo short sale but only if Wells Fargo is not the new first mortgage lender on the short sale purchase. Another lender must originate the new first mortgage loan.

Question 12

What expenses can I use the NeighborhoodLIFT DPA Funds to cover as part of my purchase of a home?

Accepted Answer

NeighborhoodLIFT down payment assistance funds may be used for any eligible purpose including closing cost assistance, down payment assistance, or borrower minimum out-of-pocket investment if allowed by the first mortgage loan program. NeighborhoodLIFT funds may cover the closing costs or out-of-pocket requirements of a FHA first mortgage or other type of first mortgage loan, however for a FHA mortgage the borrower must still provide their own 3.5% down payment.  You should consult directly with your first mortgage lender and NeighborWorks Columbus to determine how NeighborhoodLIFT program funds may be used in connection with your home purchase.

Question 13

Can I qualify for additional incentives along with NeighborhoodLIFT funds?

Accepted Answer

Yes. There may be several programs eligible for layering incentives together with NeighborhoodLIFT funding. Programs sponsored by local municipalities or the state of Georgia could potentially be included. For information on other incentive programs, contact ANDP.

Question 14

How do I know if I am eligible for additional incentive programs?

Accepted Answer

Eligibility for each program is determined by the program administrators. Contact them directly to participate in their programs.

Question 15

Are there any properties that are not eligible for NeighborhoodLIFT funds?

Accepted Answer

Yes. Wells Fargo REO (real estate owned) properties are not eligible for NeighborhoodLIFT funds. To learn if a property is a Wells Fargo REO click here https://reo.wellsfargo.com/Home-Search.aspx.(https://reo.wellsfargo.com/Home-Search.aspx) In addition, properties outside of the defined geographic area are not eligible. VIEW MAP(https://docs.wixstatic.com/ugd/9bcf20_35f50df3e2a047a194e1842ec6a30c5f.pdf)

Question 16

What do I need to do following the NeighborhoodLIFT event?

Accepted Answer

Following the NeighborhoodLIFT event, clients who receive an allocation of funds will have 60 days to obtain a contract on a home and submit the required documents to ANDP/NeighborWorks Columbus. Clients who do not complete all of these steps will lose their NeighborhoodLIFT allocation. Clients are encouraged to submit the documents following the NeighborhoodLIFT event as soon as they are available. Please note successful completion of the eight-hour HBE course is required prior to closing.

Question 17

Once a buyer is determined to be eligible for NeighborhoodLIFT, how quickly will the process move forward?"

Accepted Answer

Once a buyer has an executed contract, they should request an Eligibility Determination Session. Borrowers should complete their Eligibility Determination Session no less than 21 days prior to the closing date listed on their purchase and sale agreement. Even if a borrower has a purchase and sale agreement, no closings may take place before June 5, 2018. Once a borrower is determined to be eligible, a commitment letter will be issued with a copy sent to the first mortgage lender. The first mortgage lender will then prepare documents for closing and provide copies of the required documents to NeighborWorks Columbus at least 14 calendar days prior to closing. NeighborWorks Columbus will then have all documents prepared for the closing.

Question 18

What documents do my lender and I have to submit to NeighborWorks Columbus so that I can settle on my home using NeighborhoodLIFT funds?

Accepted Answer

Your first mortgage lender is required to submit documents to NeighborWorks Columbus 14 days prior to closing. Please have your lender consult NeighborWorks Columbus for details by emailing liftlending@nwcolumbus.org.(mailto:liftlending@nwcolumbus.org)

Question 19

Will extensions be allowed for clients who do not have a contract on a home within 60 days of the event?

Accepted Answer

No. Extensions are only available for clients who have met the program requirements and are preparing for settlement.

Question 20

If a contract falls through can the client change to another property?

Accepted Answer

It depends on which step the client is in the process. If this happens the client should follow up with NeighborWorks Columbus directly.

Question 21

What happens if I can’t become pre-approved for a first mortgage?

Accepted Answer

Clients who are not able to qualify for a loan will be offered financial fitness classes and counseling. The classes and counseling are designed to help prepare clients to get approved for a first mortgage. Financial fitness classes provide information on how to manage income and create a budget based on that income, how to save, how to obtain a credit report, as well as how to apply for and use credit. View list of approved financial fitness providers.(https://docs.wixstatic.com/ugd/9bcf20_063373081404454f82d60e78cc4d40db.pdf)

Greater Atlanta NeighborhoodLIFT

Frequently Asked Questions