FOR A PDF VERSION OF THE SMAP TERMSHEET, CLICK HERE.
Program Description:
Competitive 30-year fixed rate, fully amortizing mortgage with 3% or 4% assistance grant for either down payment and/or closing costs. Calculated as a percentage of the loan amount to qualifying home buyers for an FHA, VA or RHS loan.
Grant Terms:
No repayment/No recapture/No 2nd lien.
Eligible Loan Areas:
The SMAP program is currently available for the purchase of a residence located within Jefferson, St. Charles, St. Tammany, St. Bernard and Plaquemines Parishes.
Loan Servicing:
Loan is serviced by Standard Mortgage Corporation, the program master servicer.
Mortgage Loan Rates:
The loan rate will change periodically to stay competitive with the market rate. Please note that the loan rate will change depending on the % DPA option. Borrowers should contact a participating lender for the current mortgage rate.
Eligible Loans:
Program offers a 30–year fixed rate mortgage. Lender will discuss with the borrower the various loan requirements and loan eligibility which is subject to Master Servicer approval. Loan refinancing is not eligible and interim construction loan financing is not provided.
Eligible Borrowers and Occupancy:
Borrower eligible to purchase a residence under SMAP anywhere in the Eligible Loan Area. Borrower permitted to have or previously have had an ownership interest in another residence. The home purchased must be occupied as the borrower(s) principal residence within (60) days following the closing of the mortgage loan.
Income Restrictions:
The borrower’s annual income cannot exceed $98,140 which is 140% of HUD median income.
Minimum Credit Score:
640
Maximum Loan Amounts:
FHA-$356,362, VA-$548,250 and RHS $265,400.
Eligible Properties:
The residence must be a single family home, which may include a condominium unit, or townhouse and can be either a new or existing residence. Duplex, multi-unit, recreational, seasonal, vacation, or investment homes are not permitted.
Participating Lenders:
A list of approved participating lenders can be obtained from the Jefferson Parish Finance Authority office or here on our website by clicking here.
Only approved banks or mortgage companies can reserve funds for and close a SMAP loan.
Contact JPFA if you would like to become a participating lender.
Manual Underwriting:
Not permitted with this program.
Program Costs:
No program related fees. Lender may collect from the borrower its usual and customary costs, but the lender may not charge the borrower any origination and/or discount fees.
Seller Contributions:
Permitted subject to agency and/or mortgage insurer guidelines.
Homeownership Education:
Homeownership education is not required for a FHA, VA, or RHS loans.
Combining With Other Assistance Programs:
Subject to Lender, servicer and/or mortgage insurer requirements, the Southern Mortgage Assistance Program may be combined with other forms of assistance. Examples include but are not limited to CDBG, HOME funds, and Mortgage Credit Certificates (MCCs), etc.
In all cases, the most conservative guidelines for each program will apply.
Loan Pricing and Delivery:
JPFA will post rates daily and distribute to lenders via email and/or posting on their webpage. Loan registrations are made via the servicer, Standard Mortgage Corporation, website during the posted lock periods. Loans are to be delivered in a fundable condition as instructed by the servicer.
Completion of Exhibits:
In connection with each loan closing, Exhibit C - Down Payment Assistance Letter must be completed and submitted to the JPFAfor signature. Prior to closing, Exhibit D - Down Payment Assistance Funding Request must be completed and submitted to the JPFA with the required documents.
Timelines:
The requirements and timelines set forth in Section 2.01 of the Mortgage Origination, Sale and Servicing Agreement are critical.
**JPFA GUIDELINES DO NOT SUPERSEDE, NOR ARE THEY A SUBSTITUTE FOR, AGENCY, MORTGAGE INSURER AND/OR LENDER GUIDELINES IN PLACE AT THE TIME THE LOAN IS UNDERWRITTEN.**