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What it means for Lenders

Benefits to lenders

bullet Good Source of Income.  For each loan sold to MHDC, lenders receive a 1.5% Servicing Release Premium. For example, on a $125,000 loan, the lender will earn a total of $1,875
bullet Non-Recourse sales. All loans are sold "servicing released" to our Master Servicer, currently ServiSolutions
bullet No forward placement risk. When these loans are originated, the rate and fees paid are guaranteed, provided delivery takes place within the reservation period
bullet CRA. Participation in the First Place program constitutes a CRA eligible activity, in most cases


Borrower advantages


bullet Only one application to be taken
bullet Borrower applies at local lender
bullet Allows lenders the opportunity to establish relationships with real estate sales staff
bullet No worries about predatory lending. MHDC regulates fees and audits each loan file for excessive fees


Program restrictions

bullet IRS regulations limit the maximum sales price for properties
bullet No properties in 100-Year Flood Plains are eligible for financing
bullet All applicants must be first time buyers, with some exceptions
bullet Some restrictions may apply to the sale of the home
bullet IRS regulations limit the maximum income of applicants