Utah Law Enforcement Officer Grant Training
TRAINING JULY 7, 2022
Law Enforcement
Officer Grant
www.utahhousingcorp.org
1
www.utahhousingcorp.org
2
Introduction
The Utah State Legislature has appropriated $5,000,000
to the Olene Walker Housing Loan Fund to recruit an
retain Utah Law Enforcement and Correctional Officers,
as defined in the Utah Code Sections
53-13-103
and
53-13-104
.
www.utahhousingcorp.org
3
Grant Reservation available on or after July 1, 2022.
The number of remaining grants will be posted on Utah Housing’s website.
Grants will be awarded to approximately 320 officers who are Utah first-time homebuyers on a
first come first serve basis.
A letter of grant participation will be sent to verify annual retention in the same line of work.
Scope
www.utahhousingcorp.org
4
Full-time employment as a law enforcement or correctional officer, as defined
in Utah Code Section
53-13-103
or Section
53-13-104.
Must be a first-time homebuyer
If relocating from out-of-state, the first-time homebuyer requirement is waived if the
purchase is completed within 6 months of the work-start date in Utah (up to 12 months if a
new home construction purchase contract is signed).
The home must be owner-occupied within 30 days of closing and remain owner-occupied during
the 5-year term of the Grant.
The First Mortgage must be a Utah Housing Loan,
funded and serviced
by Utah Housing.
Officer Eligibility
www.utahhousingcorp.org
5
The Officer must be a UTAH first-time homebuyer defined as:
Not having had an ownership interest in a primary residence in the past 3 years.
A single parent who has at least one dependent child, regardless of previous homeownership
interest.
Loss of spouse and party no longer occupies nor has an ownership interest in a previously
owned home.
First-time Homebuyer Definition
www.utahhousingcorp.org
6
The
First mortgage must be a Utah Housing Loan, funded and serviced by Utah Housing.
FirstHome
must comply with all income and purchase price limits
HFA Advantage
<80%, must comply with Freddie Mac Income limits.
When combined with the grant an HFA Advantage >80% does not have purchase price or income limit
restrictions.
Comply with FHA, VA, and Freddie Mac Guidelines.
Utah Housing Loan Programs
www.utahhousingcorp.org
7
Eligible Properties
:
Must be owner-occupied.
Single Family Home (can include a mother-in-law apartment or accessory dwelling.
Manufactured Home, placed on a permanent foundation.
Condominium, Town Home, or a home in a Planned Unity Development (PUD).
In a one-two-unit dwelling, the Officer must occupy one of the units as their primary
residence.
Ineligible properties:
Investment properties, vacation rentals, second homes, etc.
Property
No payment, no interest grant.
Grant amount: up to the lesser of 3.5% of the purchase price or $25,000.
May be combined with Utah Housing’s Second Mortgage.
If a Utah Housing second is:
used
concurrently with the grant the second mortgage interest rate will be reduced to 4%.
not used
concurrently with the first mortgage rate will be reduced by up to .5%, based on
current market conditions.
May be used for:
down payment.
closing costs.
Borrower-paid single or split premium Mortgage Insurance.
first mortgage interest rate buydown.
www.utahhousingcorp.org
8
Grant Terms
www.utahhousingcorp.org
9
Conventional
Sales Price
$443,000
FICO Score
700
Max Grant Amount
$15,505
Loan Amount
$425,000
Buydown rate 0.50%
Buydown cost $5,312 (1.25%)
Before Buydown
Interest Rate
6.625%
P&I
$2721.32
Monthly MI
$239.00
Total Payment
$2960.32
MI Single Premium $6,971.00
New Payment
$2721.32
TOTAL Savings
$239.00
After Buydown
Interest Rate
6.125%
P&I
$2582.34
Monthly MI
$239.00
Payment
$2821.34
Savings
$138.98
MI Single Premium
$6,971.00
New Payment
$2582.34
TOTAL Savings
$377.98
Utah Housing Corp interest rates can change throughout the day without advance notice. The interest rates in calculating the monthly mortgage may not
reflect recent interest changes.
Principal & Interest and Mortgage Insurance is approximate and may not reflect recent premiums based on Credit Scores and other factors.
www.utahhousingcorp.org
10
FHA
Sales Price
$443,000
FICO Score
700
Max Grant Amount
$15,505
Loan Amount (w/UFMIP)
$434,976
Buydown rate 0.50%
Buydown cost $5,437.20 (1.25%)
Before Buydown
Interest Rate
6.125%
P&I
$2642.96
Monthly MI
$306.31
Total Payment
$2949.27
After Buydown
Interest Rate
5.625%
P&I
$2503.97
Monthly MI
$306.31
Total Payment
$2810.28
Savings
$139.00
Utah Housing Corp interest rates can change throughout the day without advance notice. The interest rates used in calculating the monthly mortgage
payment may not reflect recent interest changes.
Principal & Interest and Mortgage Insurance is approximate and may not reflect recent premiums based on Credit Scores and other factors.
www.utahhousingcorp.org
11
Grant forgiven (a pro-rata share) over 5 years
(60 months).
Pro-rata portion of grant is forgiven each year the individual is employed in Utah as
an officer and occupies the home as their primary residence.
The grant
may be taxable
on the amount forgiven. Officers should consult with their tax
professional.
UTAH HOUSING will verify employment each December in order to determine forgiveness or
repayment amount.
An
IRS-1099
form will be issued annually, to each recipient, indicating the amount of the
grant forgiven the previous year.
Grant Forgiveness
www.utahhousingcorp.org
12
Example:
Grant issued in the amount of $18,000 in September, 2022.
1099 will be sent in January for approximately $1,000.
$300 (per month) x 4 months = $1,200
IRS-1099
www.utahhousingcorp.org
13
Only Utah Housing approved Participating Lenders are eligible to participate in the Grant
Program.
The loan must be a Utah Housing First Mortgage.
Lender must reserve the grant funds for the officer
.
One grant per property. If two officers are purchasing a home together, both cannot use
the grant.
One officer grant per lifetime, per officer.
Guidelines
www.utahhousingcorp.org
14
Repayment of some or the entire grant may apply if:
The home is sold before 5 years elapse, from the closing date of the First Mortgage.
The individual receiving the grant leaves employment as an officer.
The home is not owner-occupied within 30 days of closing.
The officer no longer occupies the residence.
The officer must occupy the home as their primary residence as long as the officer owns
the home.
Repayment of Grant
www.utahhousingcorp.org
15
Obtaining the Grant
DO NOT DELAY REQUESTING
A GRANT RESERVATION
www.utahhousingcorp.org
16
Review of Grant Reservation Requests is 2-3 business days.
The lender may pre-qualify the Officer for a Utah Housing loan program.
Verification of Employment must be specific to Officer.
Request a Reservation through Utah Housing’s PowerLender System
Must have a Utah Housing Loan Number (assigned when entering borrower
information into the system).
Documents are uploaded through the Utah Housing Document Delivery Portal, or by
sending documents securely to
grantprograms@uthc.org
.
Obtaining the Grant
www.utahhousingcorp.org
17
Reserving a grant is similar to requesting an MPA.
Once the required documents have been received by Utah Housing and been approved,
Utah Housing will send an approval, or suspension email to the lender.
The Reservation (Agreement) Commitment Letter will be issued with the terms to close.
The Letter will be sent to:
the lender, and
the Officer
The officer must receive a Commitment Letter from Utah Housing stating the grant has
been approved.
Reservation Agreement
www.utahhousingcorp.org
18
The Reservation Commitment is valid for 120 days after it has been issued.
Extension requests can be made after 120 days have expired.
Extension requests will be considered upon receipt of an updated pre-qualification
letter and explanation from the officer regarding the delay in purchasing a home.
If the reservation expired the lender must contact Utah Housing for an extension.
Once a Reservation Commitment has been issued the officer will have 4 months on existing
construction and 12 months for new construction to purchase and close.
Commitment Letter
www.utahhousingcorp.org
19
Fees
No fees can be charged to the officer for
requesting closing or recording the grant.
www.utahhousingcorp.org
20
Grant Agreement / Rider to the Deed of Trust.
The Deed should be marked “Rider is attached”.
The Closer should include their closing instructions to the Title Company
Attach Grant Rider to First Mortgage Deed and Record.
The purchase price at closing must match the purchase price on the Grant Commitment Letter.
If the prices do not match the lender must request a correction on the Commitment
Letter.
Closing
www.utahhousingcorp.org
21
Closing
DO NOT CLOSE
If the purchase price on the
Grant Commitment is different
from the closing purchase price
www.utahhousingcorp.org
22
A week before closing send to the Title Company:
Lender Closing Instructions.
Title Company Required Wire Request Forms:
Title Company Checklist
Wire Fund Request
Copy of the Reservation Commitment
Closing
www.utahhousingcorp.org
23
The Title Company must send the required documents to Utah Housing 3 business days
before closing.
Utah Housing will review and approve or decline the grant funding.
If approved Utah Housing will send to the Title Company:
An email letting title know the wire will be sent within 2 business days.
The Grant Agreement and Repayment Notice and Rider to the Deed (prepared by
Utah Housing).
The officer will sign.
Escrow Officer will Notarize it.
Attach to the First Deed of Trust and Record.
Funding
www.utahhousingcorp.org
24
Forms
All grant documents
will be available on the
Utah Housing Grants Webpage
July 1, 2022
utahhousingcorp.org/lenders/grants
www.utahhousingcorp.org
25
Forms are available on the Utah Housing Webpage
The officer should start filling out forms as soon as possible.
Verification of Employment could take longer to process.
Forms
www.utahhousingcorp.org
26
IRS-1099
Forms are available on the Utah Housing Webpage:
The officer should start filling out forms as soon as possible.
Verification of Employment could take longer to process.
www.utahhousingcorp.org
27
Flyer
Lender Name
Phone Number
Lender Website
www.utahhousingcorp.org
28
Officer
“O
fficer
”
Defined per Utah
Classifications
Choose # that best fits the
Officers job
Refer to Officer VOE
www.utahhousingcorp.org
29
Forms
Enter # here “Principal Duties”
www.utahhousingcorp.org
30
Did You Know
Watch for Did You Know emails
We will keep you updated
www.utahhousingcorp.org
31
Contact Us
Questions
grantprograms@uthc.org
The Utah State Legislature has allocated funds to recruit and retain Utah law enforcement and correctional officers through the Olene Walker Housing Loan Fund. Eligible officers can apply for grants to assist in purchasing their first home, subject to various criteria and requirements outlined on the Utah Housing Corporation website.
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Presentation Transcript
Law Enforcement Officer Grant TRAINING JULY 7, 2022 www.utahhousingcorp.org 1
Introduction The Utah State Legislature has appropriated $5,000,000 to the Olene Walker Housing Loan Fund to recruit an retain Utah Law Enforcement and Correctional Officers, as defined in the Utah Code Sections 53-13-103 and 53-13-104. 2 www.utahhousingcorp.org
Scope Grant Reservation available on or after July 1, 2022. The number of remaining grants will be posted on Utah Housing s website. Grants will be awarded to approximately 320 officers who are Utah first-time homebuyers on a first come first serve basis. A letter of grant participation will be sent to verify annual retention in the same line of work. 3 www.utahhousingcorp.org
Officer Eligibility Full-time employment as a law enforcement or correctional officer, as defined in Utah Code Section 53-13-103 or Section 53-13-104. Must be a first-time homebuyer If relocating from out-of-state, the first-time homebuyer requirement is waived if the purchase is completed within 6 months of the work-start date in Utah (up to 12 months if a new home construction purchase contract is signed). The home must be owner-occupied within 30 days of closing and remain owner-occupied during the 5-year term of the Grant. The First Mortgage must be a Utah Housing Loan, funded and serviced by Utah Housing. 4 www.utahhousingcorp.org
First-time Homebuyer Definition The Officer must be a UTAH first-time homebuyer defined as: Not having had an ownership interest in a primary residence in the past 3 years. A single parent who has at least one dependent child, regardless of previous homeownership interest. Loss of spouse and party no longer occupies nor has an ownership interest in a previously owned home. 5 www.utahhousingcorp.org
Utah Housing Loan Programs The First mortgage must be a Utah Housing Loan, funded and serviced by Utah Housing. FirstHome must comply with all income and purchase price limits HFA Advantage <80%, must comply with Freddie Mac Income limits. When combined with the grant an HFA Advantage >80% does not have purchase price or income limit restrictions. Comply with FHA, VA, and Freddie Mac Guidelines. 6 www.utahhousingcorp.org
Property Eligible Properties: Must be owner-occupied. Single Family Home (can include a mother-in-law apartment or accessory dwelling. Manufactured Home, placed on a permanent foundation. Condominium, Town Home, or a home in a Planned Unity Development (PUD). In a one-two-unit dwelling, the Officer must occupy one of the units as their primary residence. Ineligible properties: Investment properties, vacation rentals, second homes, etc. 7 www.utahhousingcorp.org
Grant Terms No payment, no interest grant. Grant amount: up to the lesser of 3.5% of the purchase price or $25,000. May be combined with Utah Housing s Second Mortgage. If a Utah Housing second is: used concurrently with the grant the second mortgage interest rate will be reduced to 4%. not used concurrently with the first mortgage rate will be reduced by up to .5%, based on current market conditions. May be used for: down payment. closing costs. Borrower-paid single or split premium Mortgage Insurance. first mortgage interest rate buydown. 8 www.utahhousingcorp.org
Conventional Sales Price FICO Score Max Grant Amount Loan Amount $425,000 $443,000 700 $15,505 Before Buydown After Buydown Interest Rate 6.625% P&I Monthly MI Total Payment $2960.32 Interest Rate 6.125% P&I Monthly MI Payment $2721.32 $239.00 $2582.34 $239.00 $2821.34 Buydown rate 0.50% Buydown cost $5,312 (1.25%) Savings $138.98 MI Single Premium $6,971.00 New Payment $2721.32 MI Single Premium New Payment $2582.34 $6,971.00 TOTAL Savings $239.00 TOTAL Savings $377.98 Utah Housing Corp interest rates can change throughout the day without advance notice. The interest rates in calculating the monthly mortgage may not reflect recent interest changes. Principal & Interest and Mortgage Insurance is approximate and may not reflect recent premiums based on Credit Scores and other factors. 9 www.utahhousingcorp.org
FHA Sales Price FICO Score Max Grant Amount Loan Amount (w/UFMIP) $443,000 700 $15,505 $434,976 Before Buydown After Buydown Interest Rate 6.125% P&I Interest Rate 5.625% P&I $2642.96 $2503.97 Buydown rate 0.50% Buydown cost $5,437.20 (1.25%) Monthly MI $306.31 Monthly MI $306.31 Total Payment $2949.27 Total Payment $2810.28 Savings $139.00 Utah Housing Corp interest rates can change throughout the day without advance notice. The interest rates used in calculating the monthly mortgage payment may not reflect recent interest changes. Principal & Interest and Mortgage Insurance is approximate and may not reflect recent premiums based on Credit Scores and other factors. 10 www.utahhousingcorp.org
Grant Forgiveness Grant forgiven (a pro-rata share) over 5 years (60 months). Pro-rata portion of grant is forgiven each year the individual is employed in Utah as an officer and occupies the home as their primary residence. The grant may be taxable on the amount forgiven. Officers should consult with their tax professional. UTAH HOUSING will verify employment each December in order to determine forgiveness or repayment amount. An IRS-1099 form will be issued annually, to each recipient, indicating the amount of the grant forgiven the previous year. 11 www.utahhousingcorp.org
IRS-1099 Example: Grant issued in the amount of $18,000 in September, 2022. 1099 will be sent in January for approximately $1,000. $300 (per month) x 4 months = $1,200 12 www.utahhousingcorp.org
Guidelines Only Utah Housing approved Participating Lenders are eligible to participate in the Grant Program. The loan must be a Utah Housing First Mortgage. Lender must reserve the grant funds for the officer. One grant per property. If two officers are purchasing a home together, both cannot use the grant. One officer grant per lifetime, per officer. 13 www.utahhousingcorp.org
Repayment of Grant Repayment of some or the entire grant may apply if: The home is sold before 5 years elapse, from the closing date of the First Mortgage. The individual receiving the grant leaves employment as an officer. The home is not owner-occupied within 30 days of closing. The officer no longer occupies the residence. The officer must occupy the home as their primary residence as long as the officer owns the home. 14 www.utahhousingcorp.org
Obtaining the Grant DO NOT DELAY REQUESTING A GRANT RESERVATION 15 www.utahhousingcorp.org
Obtaining the Grant Review of Grant Reservation Requests is 2-3 business days. The lender may pre-qualify the Officer for a Utah Housing loan program. Verification of Employment must be specific to Officer. Request a Reservation through Utah Housing s PowerLender System Must have a Utah Housing Loan Number (assigned when entering borrower information into the system). Documents are uploaded through the Utah Housing Document Delivery Portal, or by sending documents securely to grantprograms@uthc.org. 16 www.utahhousingcorp.org
Reservation Agreement Reserving a grant is similar to requesting an MPA. Once the required documents have been received by Utah Housing and been approved, Utah Housing will send an approval, or suspension email to the lender. The Reservation (Agreement) Commitment Letter will be issued with the terms to close. The Letter will be sent to: the lender, and the Officer The officer must receive a Commitment Letter from Utah Housing stating the grant has been approved. 17 www.utahhousingcorp.org
Commitment Letter The Reservation Commitment is valid for 120 days after it has been issued. Extension requests can be made after 120 days have expired. Extension requests will be considered upon receipt of an updated pre-qualification letter and explanation from the officer regarding the delay in purchasing a home. If the reservation expired the lender must contact Utah Housing for an extension. Once a Reservation Commitment has been issued the officer will have 4 months on existing construction and 12 months for new construction to purchase and close. 18 www.utahhousingcorp.org
Fees No fees can be charged to the officer for requesting closing or recording the grant. 19 www.utahhousingcorp.org
Closing Grant Agreement / Rider to the Deed of Trust. The Deed should be marked Rider is attached . The Closer should include their closing instructions to the Title Company Attach Grant Rider to First Mortgage Deed and Record. The purchase price at closing must match the purchase price on the Grant Commitment Letter. If the prices do not match the lender must request a correction on the Commitment Letter. 20 www.utahhousingcorp.org
Closing DO NOT CLOSE If the purchase price on the Grant Commitment is different from the closing purchase price 21 www.utahhousingcorp.org
Closing A week before closing send to the Title Company: Lender Closing Instructions. Title Company Required Wire Request Forms: Title Company Checklist Wire Fund Request Copy of the Reservation Commitment 22 www.utahhousingcorp.org
Funding The Title Company must send the required documents to Utah Housing 3 business days before closing. Utah Housing will review and approve or decline the grant funding. If approved Utah Housing will send to the Title Company: An email letting title know the wire will be sent within 2 business days. The Grant Agreement and Repayment Notice and Rider to the Deed (prepared by Utah Housing). The officer will sign. Escrow Officer will Notarize it. Attach to the First Deed of Trust and Record. 23 www.utahhousingcorp.org
Forms All grant documents will be available on the Utah Housing Grants Webpage July 1, 2022 utahhousingcorp.org/lenders/grants 24 www.utahhousingcorp.org
Forms Forms are available on the Utah Housing Webpage The officer should start filling out forms as soon as possible. Verification of Employment could take longer to process. 25 www.utahhousingcorp.org
IRS-1099 Forms are available on the Utah Housing Webpage: The officer should start filling out forms as soon as possible. Verification of Employment could take longer to process. 26 www.utahhousingcorp.org
Flyer Lender Name Email Phone Number Lender Website 27 www.utahhousingcorp.org
Officer Officer Defined per Utah Classifications Choose # that best fits the Officers job Refer to Officer VOE 28 www.utahhousingcorp.org
Forms Enter # here Principal Duties 29 www.utahhousingcorp.org
Did You Know Watch for Did You Know emails We will keep you updated 30 www.utahhousingcorp.org
Contact Us Questions Email grantprograms@uthc.org 31 www.utahhousingcorp.org
