Fillable Form 61 - Needs Assessment Template (Page 2 of 2) in pdf

February 2016

Form 61

Instructions for Completing the Needs Assessment Form

ACCESS DOWNPAYMENT/AND CLOSING COST ASSISTANCE PROGRAM

ASSETS

Enter all liquid assets (see Seller's Guide for definition) of the Borrower(s) according to categories listed on the form.

Refers to earnest deposit or hand money paid by the Borrower apart from funds shown on VOD.'s or gift letters in file.

Defined as funds in checking and savings accounts, gifts, CD’s, money market, stock and bonds (regardless of maturity dates).

These accounts are included only if they can be withdrawn without a penalty.

Include prepayment of the Participation Fee, Qualifying Fee, and any other closing costs.

Assets necessary for the minimum downpayment must be deducted from the total assets to determine the balance of assets available for

closing costs.

• For Conventional and FHA loans, show the amount equal to the required investment (borrowers need to contribute the lesser of

$1000 or 1% of the loan amount).

• For VA, and RD Loans, -0- is to be listed on this line.

A) Total Assets are used to determine the total amount of assistance needed. (Assets exceeding $5,000.00 must be used toward the purchase of

the home). In all cases, we will require verification that the borrower(s) have sufficient funds to cover their minimum required investment.

Eligible down Payment and Closing Cost Assistance

B) Enter the total closing costs from the “Loan Estimate”.

Eligible closing costs include the following:

Origination Fee

Notary Fees

Recording Fees

Application Fee or Credit/Appraisal Fees

Transfer Tax

Survey

Interest to First of the month

Realtor Fees

Tax Escrow

First Year Mortgage Insurance Premium

Insurance Escrow

Document Preparation

First Year Hazard Insurance Premium

Title Insurance

Mortgage Insurance Escrow

Pro-rata Tax Reimbursement

Any other costs other than those listed above must be approved by the Agency prior to inclusion.

* Please note: The VA Funding Fee, the RD Guarantee Fee and the FHA Upfront MIP are NOT eligible closing cost because they

can be financed in the Mortgage.

C) Deduct closing costs paid by seller or other entity.

D) Subtract C (if applicable) from B for the “Total Cash Requirement”.

DETERMINATION

The steps to determine estimated assistance are

- List Total Assets from Line A.

- Borrower’s Asset Allowance is $5,000.

- Total Assets Available - (Line 1 minus Line 2)

- Enter the total Cash Requirement amount from line “D” above.

*5)

- Enter additional amount to make the loan affordable for the borrower.

- Subtotal.

- Deduct Assets Available (from Line 3).

- Enter total Amount of Assistance Needed. (May not exceed $15,000 nor be less than $1,000)

If assistance needed is less than $1,000, no assistance will be granted.

Preliminary Lender Certification

Enter the amount of assistance needed (if the amount exceeds the maximum only enter the maximum amount) on the appropriate line. Please

properly complete all other sections as designated.

* This program is designed to make the home purchase more affordable for homebuyers. Borrowers may experience payment shock; Line 5 is

to be used to determine an amount that will help make the first mortgage more affordable for the homebuyer. The amount on line 5 will depend

on the factors in the balance of the file. This amount represents the difference between the affordable loan amount and the loan amount based on

97% of the sales price.

Page 2 of 2

Form 61 - Needs Assessment Template Page 2

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