Housing Opportunities Commission (HOC) Mortgage Purchase Program

First-time buyer requirement (borrower and spouse including NPS) no homeownership in the past 3 years

• Must be principal residence
• Maximum Income Limits
• Maximum Sales Price Limits

Reservation to HOC Pre Closing Package 

• HOC will review within 48 hours
• Post-Closing Compliance Review- What is the timeline to delivery to HOC.
• Within 10 days of settlement, forward closed loan to US BANK. (HOC’s Master Servicer) follow their U.S. Bank FHA Loan Delivery Checklist.
• Within 10 days of settlement, forward a post compliance package to HOC (follow MBS Post-Closing Compliance Checklist) for pre purchase approval.
• Reservation to Lock expiration is 60 days

Reservation to US Bank Loan Purchase is 120 days

Settlement of loans MUST take place within 60 days from reservation data in eHP System.The interest rate reserved will be locked for 60 days only.  If Settlement occurs AFTER the 60 day Reservation to Purchase requirement period, the following applies:

• A one-time 15 Day Extension at the same interest rate can be granted; approval from HOC is requried PRIOR to the expiration of the lock.  Lenders MUST request this extension by using the EXTENSION FORM and submit timely.
• A second option is available for loans that cannot settle within this one-time 15 day extension period; please note that no more than a 30 day total extension period will be granted.  These loans will close at the HIGHER of the (1) interest rate of the original lock,  or (2) the interest rate at the time of the extension.

• Household income calculation (borrower + spouse (including NPS) + everyone 18 years of age or older)
• Assistance offered as a 0% Interest, 5-year deferred second mortgage
• Assistance is 3% of the sales price
• Maximum DTI 45% with 640-679 FICO
• Maximum DTI is 50% with 680 FICO
• Past 3 years signed federal income tax returns AND/OR tax transcripts for all borrowers and spouse (even NPS)
• Eligible area: Montgomery County