What is a Bank Overlay on a Mortgage and why should I care?

Ever hear the term "bank overlay" and wonder what it means?

Loan products all have their own guidelines.  Government loan guidelines are put into place by the agencies guaranteeing or insuring the loan. Conventional guidelines are from Fannie Mae or Freddie Mac.

These are the basic or minimum requirements.  In addition to these there can be additional requirements set forth by mortgage insurance companies or the banks who will be purchasing the loan.  An analogy would be as if the minimum guideline requirements are the national guidelines and the "overlays" are the local guidelines.

For example, to receive a conventional loan for anything above 80% loan to value you will be required to have mortgage insurance.  The lender may have a minimum FICO score requirement of 620 but to receive the mortgage insurance you may need a FICO score of 700.   So the loan must be underwritten to the most stringent of the two which would be the mortgage insurance company.

In another example, say the VA regulations have no minimum credit score requirement but the lender is requiring a minimum FICO score of 640, this is a bank overlay. Bank overlays exist on many things such as reserve requirements, credit profile, condition of the property, etc.

When a situation arises and there is a problem with meeting a guideline always ask if this is a bank overlay.  If so, the loan could be moved to another bank that doesn't have that particular overlay.

Always work with a knowledgeable loan officer that is aware of the bank overlays for the investors they sell their loans to. These overlays can change overnight and one must keep abreast of these changes.

Tips when applying for a Mortgage

Here are a few quick tips to remember when applying for a mortgage.

• Do NOT make any deposits over $1000 into your checking or savings account for the two months prior to applying for a mortgage unless they are payroll and retirement funds OR you can document where the money came from. Large deposits are a "red flag".  If unable to verify where the funds came from this can disqualify all the funds in the account.

• Do NOT move money between accounts.

• Do NOT open new bank accounts during the mortgage process.

• DO be honest with your loan officer about the source of all funds. The loan officer can't help if they don't have all the information. This could pop up as a real problem later in the transaction and potentially kill the deal.

• Do NOT run up charge accounts or open new credit during the mortgage process.

• DO explain to your loan officer any negative credit you have.  If you had a bankruptcy, explain what happened same with judgments, collections, etc.  These items don't necessarily make you ineligible for a loan if there were extenuating circumstances such as the death of a wage earning spouse, etc.

• Do NOT change employers during the mortgage process (this means until the loan is funded and recorded).

• Round up all the following items and have them ready:
• W-2's for the past two years for all parties on the loan
• Pay stubs covering the last 30 days for all parties on the loan
• Bank statements for the last 2 months for all accounts you will be using.  We need all the pages, even if they are blank. Statement pages are numbered so we know if a page is missing.
• Federal tax returns for the last 2 years for all parties on the loan

• Do NOT write notes on any documentation provided.  If you're trying to explain something, take a copy of the original and then write on the copy when you submit it.  The originals provided need to be clear concise, unadulterated.

• DO get together employment history (including address & phone no.) and address history for the past 2 years. Be prepared to explain any gaps in employment of more than 30 days.

• DO respond to requests from your loan officer or their processor within the same day.  Your file is "suspended" until you respond. Which means it's just sitting on the corner of a desk waiting for you to get back with the requested information.

• COMMUNICATE !!! This is the biggest key to a successful result.  Let your loan officer know of anything going on that could create a "snafu". 

How Do You Calculate Qualifying Income for a W-2'd Employee?

Hmmm... this could be complicated.

As a loan officer, I'm responsible to calculate income for the borrower to ascertain whether he/she will have enough income to service new and existing debt on the loan (also known as calculating the DTI) so we can let the borrower know their purchasing power.

The borrower provides a copy of the W-2's for the last two years and paystubs covering the last 30 day period. Also, I will ask for tax returns for the last two years.

I first figure out if the employee is salaried or hourly and how often they are paid. For this I use the following worksheet.

INCOME CALCULATIONS WORKSHEET

Borrower: Employer: 

Start Date: Position: 


___ Borrower is an Hourly Wage Earner 

Hourly rate of pay = $______ x _____ hours per week x 52 weeks divided by 12 months

= $_____________ qualifying income

___ Borrower is Weekly Salaried

Weekly salary rate $________ x 52 weeks divided by 12 months

= $_____________ qualifying income


___ Borrower is Bi-Weekly Salaried (paid every other week or 26 pay periods per year)

Bi-weekly salary rate $______ x 26 pay periods divided by 12 months

= $_____________ qualifying income


___ Borrower is semi-monthly salaried (paid twice monthly such as on the 1st and 15th
or 15th and last day of the month or 24 pay periods per year)

Semi-monthly salary rate $_______ x 24 pay periods divided by 12 months

= $_____________ qualifying income


___ Borrower is Monthly Salaried (paid once per month)
= $_____________ qualifying income

We cannot use more than 40 hours per week unless we can document this is normal, has occurred in the past 24 months and can get a verification from the employer indicating it will continue.  The same is true of bonuses and overtime.

Paystubs show more than just income.  They also show garnishments, child support, court ordered payments, loan payments and 401k contributions among other things.

The tax returns are used to see if there are reoccurring write offs.  For example if you are a sales person and write off unreimbursed expenses such as mileage, meals, etc on a form 2106.  This amount is deducted from the income.  You are now using less income to qualify.

Of course there are as many different scenarios as there are borrowers but this is a short version of the way it's done. With this information in hand you can now have fun and calculate your income to see the difference between what shows on your W-2 and what we consider "qualifying income".

What is an FHA 203k loan?

There are two loan types that are commonly referred to as FHA 203k's.  There is the full 203k and then the 203k streamline.  These loans are both rehabilitation loans used when purchasing or refinancing a property that needs repairs, updating or rehabilitation.  Since this is an FHA program the property must be used as a primary residence.


The difference between the two types of loans is in the scope of work that needs to be done.  For example, if you were purchasing or refinancing a property and wanted to replace counter tops, flooring and cabinets it would be a 203K streamline. The dollar amount of contracted work is $5000-$35,000.


If you were to purchase or refinance a property that you wanted to knock down a couple of walls or add a room that would be a full 203k loan.


Luxury items and improvements are not eligible as a cost rehabilitation. However, the homeowner can use the 203(k) program to finance such items as painting, room additions, decks and other items even if the home does not need any other improvements. All health, safety and energy conservation items must be addressed prior to completing general home improvements.


The loan amount is calculated by the lower of purchase or appraised value + the bids for work to be completed. The down payment for a purchase is 3.5% of the above total.  There is usually a 10% contingency amount added to the bids to cover cost overruns and uncompleted work.  If the contingency funds are not used they are applied to the outstanding principal balance of the loan.


Work does not begin before you close the loan on the property.  After closing, work begins and the contractor(s) are paid in draws by the bank.  There are required field inspections to be sure the work was completed in a professional manner before the funds are released to the contractor.


The above was meant as a quick overview. These are loan programs with many variables which can't easily be covered here.  Contact me with specific questions you may have.

How to Chose A Mortgage Professional

Among the many daunting aspects of buying a home — especially for the first time — and one of the most confusing is figuring out the mortgage process. How do you choose a mortgage professional? Where do you look for one? And what questions do you ask?

A mortgage professional pairs up borrowers (you) with lenders and products by scouring available loans to find the one that best fits your needs. The nationwide mortgage debacle has largely swept the market clean of the variety of mortgages once available and has left banks and mortgage brokers to sell essentially the same, fewer kinds of products.

The first place to begin searching for a trusted mortgage advisor is to ask family, friends, co-workers and your real estate professional for referrals. Anyone can advertise but when asked, others aren't going to send you to someone they weren't happy with. Also be sure you're working with a licensed mortgage professional who was required to pass National and State testing.

Don't shop for rate alone. Mortgage rates are important but more important is using a professional that will analyze your credit situation and recommend the best product for you and your financial goals. The professional should be familiar with current market trends and guidelines to be sure you don't hit any "bumps" along the way. The professional will know about the overlays for each particular bank's offerings and steer you to the right place.  Remember, the rate only counts if the loan closes. 

Ask the mortgage person when they are available, what are their work hours, when do they take calls. How long does it take them to respond to emails or voice mails. Can you call on the weekend? Can they give you names of happy customers?  Service matters, it is a large part of the transaction.  The mortgage professional has to be able to stay in contact with you, the realtors and the title company so the process flows fluidly.

Remember, this is going to be one of the biggest financial transactions of your life. You want to be sure you are having your questions answered and are comfortable.

If you're the type of person who dreads shopping and waits until the last minute to buy a gift, a good mortgage professional can probably help you and save you money. An experienced mortgage professional will have more options for people who have less well-established, or blemished, credit.

Is it Really a Second Home??

A second home is a single unit property that the buyer occupies in addition to a principal residence.

Location is a factor in determining whether a property is a second home. The property designated as a second home must be in a different metropolitan area or remote in distance from the applicant’s primary residence. The property:

• Must be suitable for year round occupancy;
• Must be for the borrower’s exclusive use and enjoyment; and
• Must not be subject to any rental pools or agreements that require the borrower to rent the property or to  give a management firm control over the occupancy of the property.

If it is not reasonable, based upon a review of circumstances and available documentation,  to conclude that
the property to be financed is or will be a primary or second home, then the transaction will be treated as
investment property.

Tip to the buyer:  Write a short letter of explanation for the loan officer. Explain why you would like to purchase the 2nd home in that location.  For example, visiting relatives, enjoying sports not available within reasonable distance of your primary residence, different weather, different topography, different lifestyle, etc...

FHA Annual Mortgage Insurance to Increase on April 18, 2011

The FHA's monthly mortgage insurance premium is due to increase in April by .25 basis points across the board for all loan to values.  This means the mortgage insurance premium currently charged on a 30 year mortgage with a loan to value of 95% or above will increase from 90 basis points to 115 basis points.  On the example below it shows the difference in monthly payment on a sales price of $163,000 to be $33 a month.  This means the borrower needs to have an additional $33 in income after the new premium goes into effect for the debt to income ratio to remain the same.

                                                October 2010                                April 2011
                                                      90 bps                                       115 bps

Sales Price                                    163,000                                      163,000
3.5% Down                                      5,705                                          5,705
Loan Amount w/o UFMIP            157,295                                      157,295
Monthly MIP                                       118                                             151

If you have been pre-qualifed by a lender for an FHA loan, please contact the lender to be sure this rate increase isn't going to impact your approval.

Does My Spouse Need To Go On The Loan?

The determination of whether or not your spouse goes on the mortgage with you depends on a couple of things such as whether you reside in a community property state and the type of loan you are applying for.

Below are the guidelines for community property states:

FHA/VA - One spouse may obtain a loan without the other spouse being a party to the loan.  However, in community property states both parties are responsible for debt.  Therefore, the debt of the non-borrowing spouse must be considered and factored in to the debt to income ratio for the borrowing party. To do this a credit report is pulled for both parties to be sure all debt is considered.

Conventional - There are no specific requirements but may be bank overlays.  The non-borrowing spouse's debt is not used. This type of loan is typically used where the non-borrowing spouse may have a high debt ratio, outstanding collections or a poor credit profile.

Mortgages and the Self Employed Borrower

For loan purposes we consider a self employed borrower to be someone who holds 25% or more interest in the company regardless of how much the business contributes to their total income.

• Federal tax returns for the last 2 years including all schedules are used to calculate income.
• The existence of the business must be verified by a third party source 

For the self employed borrower, write offs on taxes although beneficial for minimizing taxes owed can also minimize income to qualify.

The following tax deductions are allowed to be added back into the net income.

• Depreciation
• Depletion
• Amortization
• Documented non recurring losses, such as casualty losses or loss-carryovers from previous years

A two year average is established using the tax returns.  However, if the income is declining the lowest annual income will be used and the underwriter will want an explanation for the declining income.

Buying after a Short Sale

Can I get a loan after a short sale on my home?

Each loan program has different guidelines regarding loaning after a short sale.  Banks also have their own overlays.  In addition, a lot will depend on how the original lender reported the short sale results to the credit bureaus.  If there were 120+ day late payments on the mortgage this will most likely be reported as a foreclosure and not a short sale.

Below are brief guides for eligibility for new financing if the transaction was reported as a short sale:

FHA  - All three of the following criteria must be met.

• Current on mortgage payments and other debt at time of the short sale
• Lender took proceeds as payment in full
• Short sale was in a different market area than where you are trying to buy

Note: If the borrower was in default on the mortgage at the time of the sale there is a waiting period of 3 years from the time of the sale.

VA

• VA considers short sale same as foreclosure so follows VA foreclosure guidelines.

CONVENTIONAL

• Waiting period of 2 years from time of sale 80% of the lower of appraised value or purchase price.
• Waiting period of 4 years from time of sale 90% of the lower of appraised value or purchase price.
• Waiting period of 7 years from time of sale maximum loan to value current guidelines will allow for your area.

Keep in mind, the determining factor is going to be how the short sale is reported by the credit bureaus.

Credit Collections, Judgments and the Mortgage Process

Can I still get a loan if I have collections on my credit?

Guidelines do not always require that collection accounts be paid off as a condition for loan approval. Most underwriters will also not consider medical collections  in their overall evaluation. Especially if the other credit of the borrower is satisfactory and the collections are not extremely large. When the lender runs an automated approval it will indicate collections that must be paid prior to closing.

That being said, individual banks may have "overlays" which require the collections be paid.

They will almost always require that court-ordered judgments be paid-off before the mortgage loan may fund.  Previous or current collections of judgments are considered when evaluating a borrower’s credit profile.

The "overlays" at specific banks will usually be the deciding factor as to whether the collections must be paid. I highly recommend using a licensed and experienced loan originator who deals with these situations on a regular basis and is familiar with which banks are the best fit for the borrower's profile.

Using Rental Income for Loan Qualifying

I have a rental property, can I use the income to qualify for a loan?

Below are general rules of thumb.

 Previous 2 years tax returns showing rental income/loss.  All schedules and pages.
Depreciation may be added back into income and the positive income is to be added to the borrowers income. Loss is added as a debt.

• Properties recently purchased may not show on the tax return and current leases* must be obtained from the Borrower to verify current income being received. The income from the lease must be reduced by a 25% vacancy factor before calculating final income to be used.
• Proof of rents received by canceled checks or banks statements.

If the tenant is a family member, a copy of the lease and evidence of receipt of the rental income for twelve months or period of the lease, if less than 12 months, is required. On a brand new lease, the evidence of the receipt of the initial deposit is required. If documentation cannot be provided, no rental income may be considered.

*VA & FHA loans require a minimum 12 month lease.  Conventional loans generally allow a month to month lease.

Why does the lender want a copy of my tax returns from the IRS?

I gave my lender a copy of tax returns for the last two years and now they're telling me they are waiting on a copy of the tax returns from the IRS.  What's up with that?

A requirement on all loans is the receipt of the actual tax transcripts from the IRS.  They are ordered using a form 4506T.  Often the lenders will just say "the 4506T isn't in yet".  That means they've ordered a copy of the transcripts from the IRS but haven't received them yet.

The requirement for IRS copies of the tax returns is to verify the returns submitted to the lender.  In unraveling the mortgage melt down many loans that defaulted were found to have inaccurate tax returns.  Some had schedules missing.

Information from the tax returns is used for calculating self employment income, history of bonuses and overtime, dividend income, capital gains and unreimbursed expenses... etc.

When the lender is calculating income off the tax returns for qualifying it's very important accurate information is available. This requirement assures the lender is using accurate information reported to the IRS.

How does Bankruptcy Affect Homebuyers?

Well, the guidelines are different for each loan product.  Below are just a few but be cautioned the bank may have more restrictive guidelines.


FHA 


Chapter 7 - Waiting period of two years from the date of the discharge provided the borrower has:

• Reestablished good credit, or
• Chosen not to incur new credit obligations

An elapsed period of less than two years, but not less than 12 months may be acceptable for an FHA-insured mortgage, if the borrower

• can show that the bankruptcy was caused by extenuating circumstances beyond his/her control such as a death of spouse, and
• has since exhibited a documented ability to manage his/her financial affairs in a responsible manner.

Note: The borrower must document that the current situation indicates that the events that led to the bankruptcy are not likely to recur.


Chapter 13 - A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an FHA-insured mortgage, provided that the borrower documents that

• one year of the payout period under the bankruptcy has elapsed, and
• the borrower's payment performance has been satisfactory and all required payments have been made on time.

The borrower must receive written permission from the court to enter into the mortgage transaction.


Conventional


Chapter  7 or Chapter 11 - A four year waiting period is required from the discharge or dismissal date of the bankruptcy.


Chapter 13 - There is a distinction between those that were discharged and those that were dismissed. The waiting period required is as follows:

• Two years from the discharge date, or
• Four years from the dismissal date.

A borrower who was unable to complete the Chapter 13 plan and received a dismissal will have a four year waiting period.

VA

Chapter 7 - Two year waiting period

Chapter 13 -  

• If the borrower has finished making all payments satisfactorily, the lender may conclude that the borrower has reestablished satisfactory credit.
• If the borrower has satisfactorily made at least 12 months worth of payments and the Trustee or the Bankruptcy Judge approves of the new credit, the borrower may be considered.

Contact me if you have individual questions at reneegerke@peoplesmortgage.com 

Buy and Retain Policies

What happens if you want to take advantage of the market by buying a new primary residence and rent out the current house?  That would depend on the type of loan you are applying for, each have their own applicable guidelines and individual banks may have more restrictive requirements.


Federal Housing Administration (FHA)


In most cases rental income from the property being vacated may not be used to qualify for the new mortgage.  The borrower must qualify using the full principal, interest, mortgage insurance, taxes, homeowners insurance and HOA fees of the vacated property, and the new property even if a lease is provided.


Exceptions: There are two circumstances when rental income from the property being vacated can be considered when qualifying for the new mortgage.  However, keep in mind you can only use 75% of the rental income.

1. Corporate relocations: The borrower is being relocated with a new or by a current, employer to an area not within reasonable and locally recognized commuting distance.  A minimum 12 month lease is mandatory and evidence of receipt of the security deposit and/or first month's rent is required.
2. Sufficient equity exists in the vacated property: The borrower has a minimum of 25% equity 

Conventional

Up to 75% of the rental income may be used to offset the mortgage payment in qualifying if there is documented equity of at least 30% in the existing property The rental income must be documented with:

1. A copy of the fully executed lease agreement, and
2. The receipt of the security deposit from the tenant and deposit into the borrower's account. If the 30% equity in the property cannot be documented, rental income may not be used to offset the mortgage payment.

When not able to meet the above guidelines, the borrower must qualify using the full principal, interest, mortgage insurance, taxes, homeowners insurance and HOA fees of the vacated property and the new property. Also the borrower must have six months reserves for both properties.

Veteran's Administration

VA doesn't currently have Buy and Retain guidelines, refer to individual bank's requirements.

It's always important to consult your mortgage professional and get pre-qualified before contacting a realtor or looking for a new property.

What Happens on a Veteran's Administration (VA) Foreclosure, Assumptions and Restoration of Benefits

Foreclosure of a Previous VA Guaranteed Home Loan
When a veteran’s previous VA guaranteed loan has been terminated by foreclosure, deed in lieu of foreclosure or compromise sale (short sale), VA may have sustained a loss because of a claim payment to the lender.


Even if the veteran was released from liability on the loan and/or the debt was waived, the Government may still have suffered a loss on the loan. The law does not permit restoration of the veteran’s eligibility until the Government’s loss has been repaid in full.



Previous VA Loan Was Assumed
Entitlement is not automatically restored with an approved Assumption/Release of Liability. A veteran’s entitlement can only be restored if the assumer is also an eligible veteran who will occupy the property as a personal residence and is willing to substitute his or her available entitlement for that of the original veteran. Otherwise, the original veteran cannot have entitlement restored until the assumer has paid the loan in full.



Restoration Of Previously Used Entitlement
Entitlement previously used in connection with a VA home loan may be restored under certain circumstances. Once restored it can be used again for another VA loan. Restoration of previously used entitlement is possible if:

• The property which secured the VA guaranteed loan has been sold, and the loan has been paid in full, or
•  An eligible veteran buyer has agreed to assume the outstanding balance on a VA loan and substitute his or her entitlement for the same amount originally used on the loan. The assuming veteran must also meet occupancy, income and credit requirements of the law.

Special Restoration. 
In addition to the basic restoration criteria outlined above, a veteran may
obtain restoration of the entitlement used on a previous VA loan under any of the following
circumstances:

• The previous VA loan has been paid in full and the veteran has made application for a loan to be secured by the same property which secured the previous VA loan, or

• The previous VA loan has been paid in full, but the veteran has not disposed of the property securing the loan. The veteran may obtain restoration of the entitlement used on the previous loan in order to purchase a different property one time only. Once such restoration is effected, the veteran’s COE will indicate the one-time restoration. It will also advise that any future restoration will require disposal of all property obtained with a VA loan.

How to Apply for Restoration
The veteran must complete and send VA Form 26-1880, Request for a Certificate of Eligibility, to the appropriate Eligibility Center. If the veteran has evidence of payment in full of any previous loans (HUD-1, settlement statement, etc.), a copy should be included. Additionally, any previously issued COE’s should be included.


If the veteran is applying for restoration in order to obtain another VA loan on the same property (as described above in “Special Restoration Cases”), the veteran should include a copy of the loan application submitted to the lender along with VA Form 26-1880. Unmarried surviving spouses applying for restoration of entitlement also need to complete VA Form 26-1880 supplying the deceased veteran’s military service data and VA claims file number.


VA Loans are a specialty, I highly recommend you use a licensed loan originator experienced in all the VA rules and regulations.

Military Personnel get a leg up during housing crisis.

Have you ever heard of the Homeowner's Assistance Program (HAP)?  This program was expanded with the American Recovery and Reinvestment Act of 2009.  The program assists members of the military and select civilian employees sell their houses during the declining housing market.  It's a great program aimed at helping the families move without having to go through the short sale process and therefore keeping their credit intact for their next assignment.

Benefits

Private Sale

Eligible applicants may be compensated for the difference between 95% of the appraised fair market value of the property prior to the announcement date, and the appraised value of the property at the time of sale, or the sales price, whichever is greater. Closing costs are reimbursed for private sales.

Government Purchase

The Government might purchase your property at 75% of your purchase price, or mortgage payoff. If this occurs, the government will sell the home to the buyer you and your realtor located and pay the realtor fees.

NOTE: It is a DOD policy to insure that HAP funding remain available to assist the maximum number of applicants as opposed to using the funds for administratve costs associated with maintenance and resale of a large housing inventory.

Foreclosure Assistance

If foreclosure proceedings have commenced, an applicant may elect to receive foreclosure benefits or private sale benefits. Foreclosure benefits may be paid directly to the applicant to reimburse for foreclosure costs paid by the applicant, or paid to third parties on the applicant’s behalf.

NOTE: Eligible HAP applicants who work at overseas installations announced for closure or realignment may receive only private sale benefits. Government purchase benefits are not available at overseas installations.

How HAP assists you

HAP provides assistance in four ways. For eligible applicants, the Government may:

1. Reimburse you for part of your loss from selling your home.
2. Assist you, if you don’t have funds from the sale of your home to pay-off your mortgage.
3. Purchase your home by paying off the mortgage.
4. Help, if you default on your mortgage.

Qualifying Criteria:

• Any member of the Armed Forces (including Coast Guard) in medical transition who:
• Incurred a wound, injury, or illness in the line of duty during a deployment on or after 11 Sep 2001; and is
• Disabled to a degree of 30 percent or more as a result of such wound, injury, or illness; and
• Reassigned in furtherance of medical treatment or rehabilitation, or due to medical retirement in connection with such disability, and
• Establish and adequate nexus between condition and decision to relocate from primary residence.
• Any civilian employee of the Department of Defense or the United States Coast Guard who:
• Suffer wound, injury, or illness on or after 11 Sep 2001,in the performance of his or her duties during a forward deployment occurring, in support of the Armed Forces; and
• Relocate from their primary residence in furtherance of medical treatment, rehabilitation, or due to medicalretirement resulting from the sustained disability, and.
• Establish and adequate nexus between condition and decision to relocate from primary residence
• Military Deployment: 
• Performing service in a training exercise or operation at a location or under circumstances that make it impossible or infeasible for the member to spend off-duty time in the housing in which the member resides when on garrison or installation duty at the member’s permanent duty station, or home port, as the case may be.
• Civilian Forward Deployment:
• Performing service in an area where the Secretary of Defense or the Secretary’s designee has determined that Service members are subject to hostile fire or imminent danger under Section 310(a)(2) of title 37, United States Code.
• Surviving Spouse:
• The spouse of a member of the Armed Forces or a civilian employee of the Department of Defense or the United States Coast Guard if:
• The member or employee dies as a result of a wound, injury, or illness while deployed (or forward deployed for civilian employees) on or after September 11, 2001, and
• The spouse relocates from the member’s or civilian employee’s primary residence within two years of the death of such spouse.

For more information on this program go to http://hap.usace.army.mil/ 

I recommend you use a real estate professional experienced in working with the Home Ownership Program.