Lenders can begin closing Opportunity Loans today

COLUMBUS — The Ohio Housing Finance Agency (OHFA) today became the first state housing finance agency in the nation to release a comprehensive refinance mortgage product. Through partnerships with the Federal National mortgage Association (Fannie Mae) and U.S. Bank, OHFA can now begin closing loans for the Opportunity Loan Refinance Program.

“The partnerships with Fannie Mae and U.S. Bank allow our program to operate at its full potential,” said Executive Director Doug Garver. “The program is being driven by high demand, and we expect to help hundreds of Ohio families keep the home they have worked so hard to attain.”

On April 2, 2007, OHFA unveiled the Opportunity Loan Refinance Program, which offers a 30-year, fixed-rate refinancing alternative to borrowers throughout the state of Ohio. The program is designed to assist homeowners who have a mortgage product that may no longer be suitable for their financial situation. Borrowers who have an adjustable rate or interest-only mortgage will benefit from the program. The Opportunity Loan will also assist those who face an unforeseen circumstance such as divorce, medical emergency or loss of employment.

OHFA has taken over 80 loan reservations to date for an approximate total of $11 million in reserved funds. Over the past nine weeks, the Agency has worked with its network of lenders to train loan officers on the program guidelines and provide homeowners with refinancing information.

“The Opportunity Loan Refinance Program is definitely a step in the right direction,” said Joel Ghitman, director of homeownership. “And while it is not the sole answer to Ohio's foreclosure problem, it serves as a critical piece to the overall solution.”

Fannie Mae, a government sponsored enterprise (GSE), will serve as the guarantor of the loans for the Opportunity Loan Refinance Program. U.S. Bank will act as the master servicer of the loans and collect the monthly mortgage payments made by the borrower.

The Opportunity Loan also offers additional financial assistance in the form of a 20-year, fixed-rate second mortgage option funded with OHFA reserves. This second mortgage is available at an amount up to four percent of the appraised value of the home, and can cover expenses such as closing costs, escrow payments or other similar financing charges.

To help the borrower make informed decisions regarding their mortgage in the future, OHFA requires a total of four hours of homebuyer education with an agency approved by the U.S. Department of Housing and Urban Development (HUD). OHFA also requires post-purchase counseling in the event a mortgage payment is 30 or more days late.

Participants must have a household income that does not exceed 125 percent of the area median income. These limits vary by county and range from approximately $73,000 to $84,000. This condition will ensure that the program serves moderate- and low-income Ohioans. Income limits are available at www.ohiohome.org.

OHFA utilizes federal and state resources to provide housing opportunities for families and individuals through programs designed to create, preserve, and manage affordable housing throughout the State of Ohio. The Agency is a self-supporting quasi-public agency governed by an eleven-member board, nine of whom are appointed by the Governor and confirmed by the Senate. Two additional seats on the board, by statute, are reserved for the Director of Development and the Director of Commerce or their designees, and both serve as ex officio voting members