Special Announcement- February 24, 2000
To: VHDA Originating Agents
From: Michele G. Watson Assistant Director of Single-Family Origination
Date: February 24, 2000
Re: New Flexible Alternative 100 loan program
The Virginia Housing Development Authority is pleased to announce the Flexible Alternative 100 loan program. As an enhancement to the Flex Alt 97 loan, the Flex Alt 100 provides financing of 100% of the lessor of Sales Price or Appraised Value. The interest rate and point structure for the Flex Alt 100 will be the same previously charged for the Flexible Alternative 97 loan and continues to require no mortgage insurance.
The Flexible Alternative 100 loan is a delegated loan and should be underwritten to the same credit standards and documentation requirements as previously required for the Flex Alt 97. In the coming months, VHDA will amend the processing documents and pricing worksheet to reflect 100% financing. In the meantime, please continue to use the processing documents developed for the Flex Alt 97 loan. Loans will continue to be reserved through the VHDA Voice Response System. Although Homeownership Education is strongly encouraged for all first time homeowners, VHDA will no longer require first time borrowers having a credit score of 700 or above to attend an educational course.
In January, VHDA announced the acceptability of DU/LP approvals for all VHDA loan programs. Please note that the DU and LP approvals will not be acceptable for LTV’s exceeding 97%. VHDA has developed and is currently beta testing an automated underwriting system "FasTrak". Once beta testing is complete, FasTrak will be available to VHDA lenders and will accommodate the Flex Alt 100 loan program. It is anticipated the release date will be on or about April 1st. In addition, we are also in the process of testing our on-line reservation system. The target release date of the new system will be May 1st.
Thank you for your continued support of VHDA and should you have any questions about this new and exciting program, please feel free to call me, Toni Ostrowski or Janice Burgess.
Michele G. Watson
Assistant Director of Single-Family Origination