Deferred Payment Loan Plus (DPL+) Targeting Criteria Update
- In an effort to align with the URLA and findings, effective December 4, lenders must factor in all applicable DPA funds when calculating the housing ratio of 28% or higher.
- Before this update, the calculation was done without factoring in all applicable DPA funds into the housing ratio.
- The DPL+ Eligibility Worksheet has been updated with the revised calculation guidance.
Start Up Manual Updates
We made the following changes to Chapter 7 of the Start Up Program Procedural Manual, effective December 4, 2023:
- Clarified the lien position requirements:
- Monthly Payment Loan must occupy a second mortgage lien position.
- DPL/DPL+ must be placed in second lien position, except when the borrower is using a non-Minnesota Housing downpayment loan that requires second lien position.
- Added language around eligible and ineligible use of Minnesota Housing's downpayment and closing cost loan funds. Ineligible use of funds include:
- Value gap between the purchase price and the appraised value
- Seller’s closing costs
- Paying off debts
- Consolidated the guidance common to all Minnesota Housing downpayment and closing cost loans.
- Changed the DPL+ housing ratio targeting criteria calculation method factor in all DPA funds (as described in the eNews story above).
Monthly Training Webinars
Join Minnesota Housing for our monthly webinar series. These trainings lay out the basics of Start Up, Step Up, and our three Downpayment and Closing Cost loan options. We also offer Navigating Conventional Loans and a training specific to Income Essentials. These webinars also provide tips and best practices to help you successfully originate and close Minnesota Housing loans.
Monthly Update & Hot Topics Call
The Monthly Update & Hot Topics Call is open for everyone to attend, not just underwriters. During these calls we review recent Minnesota Housing updates and important information to help you originate and process our loans. Lenders are welcome to submit questions or topics to discuss on the call. This is a great venue to have more in-depth discussion on advanced topics.
Register for the upcoming calls.
When you register, you will be signed up for all sessions in the series but can attend the sessions that work for you. Calls occur on the second Thursday of the month from 9 a.m. - 10 a.m. Central time.
Upcoming Sessions:
eLearning Training Courses
Are you interested in learning more about Minnesota Housing loan programs, requirements, and how they work? The eLearning training courses are a great place to start. These self-paced training modules lay out the basics of the Start Up and Step Up programs, eligibility and income requirements, down payment and closing cost loans, and much more! To view a complete list of courses, visit the Homeownership Training page and select eLearning Courses.
Questions?
You can reach the Partner Solutions Team at 651.296.8215 or 800.710.8871 between 8 a.m. and 5 p.m. on business days.
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