The Loan Process
We are committed to making the loan process as straightforward for you and the home buyer as possible. Remember that our Online Lender Services system is available for your convenience in making reservations, locking in interest rates, checking the loan pipeline, and downloading forms pre-filled with certain information provided by you.
We offer 24-hour turnaround time on loan packages received by the Agency prior to the 15th of the month. We also offer 48-hour turnaround time on packages received on the 15th and after.
The processes for both the FirstHome Mortgage (also referred to as the MRB loan) and the Mortgage Credit Certificate (MCC) follow the same basic steps:
Some requirements and forms differ between the FirstHome Mortgage and MCC Program. Below, you will find explanations of each step, along with forms and references to the corresponding sections of the program guides where you can find detailed information.
Lender pre-qualifies buyer
You can work with the buyer directly to determine qualification.
FirstHome Mortgage Program Guide Section 3: Eligibility Guidelines
If a buyer is eligible, we may also be able to offer assistance through a Mortgage Credit Certificate.
Mortgage Credit Certificate Program Guide Section 3: Eligibility Guidelines
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Buyer submits loan application
After you have determined that the buyer is eligible for the FirstHome Mortgage or the MCC, take a formal application.
The loan application is similar to your normal process. One exception is that all adult occupants must supply the last three years’ federal tax returns (unless the property is in a Targeted Area. In that case, only last year’s tax return is necessary.)
In either case, you need to have the adult occupants sign the Request for Copy of Tax Form 4506 and Program Certifications (MRB/MCC-014).
You then provide the information packet for the FirstHome Mortgage or the MCC to the home occupants, including the Preliminary Recapture Notice (MRB/MCC-015). You will also need to have the adult occupants sign the Request for Conditional Commitment (MRB/MCC-012).
The seller must sign the Seller Affidavit (MRB/MCC-013) confirming ownership, occupancy status, costs, and other items.
Additional forms may need to be executed for contingencies such as marriage/divorce, request of downpayment assistance funds, and prior ownership of a mobile home. See Section 5.2 Loan Origination in either the FirstHome Mortgage Program Guide or the Mortgage Credit Certificate (MCC) Program Guide for further explanation.
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Lender request reservation of funds
The easiest way to request a reservation of loan funds is with our Online Lender Services. You can also lock-in an interest rate online if applicable.
The information that you enter into the system for the reservation will be replicated on all the application forms in the loan process, saving you time and ensuring accurate data entry.
The User Guide for the Online Lender Services gives detailed instructions for using the system.
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Lender processes and approves the loan
The loans are processed using standard industry underwriting guidelines. In addition to verifying all income sources, assets, credit history, property values, etc., you will need to complete applicable Agency forms as described in the buyer application section above.
We encourage the use of Fannie Mae's Desktop Underwriter or FHLMC's Loan Prospector automated underwriting systems. Once the processing function is complete, you should submit the loan to your underwriter for approval.
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Agency approval
Once your underwriter has approved the loan, send an underwriting submission package to us. Our submission package checklists will help you to ensure that you include everything needed. See MRB-011 or MCC-011.
If you are approved for QuickClose, you can underwrite and close the loan without waiting for the Conditional Commitment from us.
Otherwise, if the submission package meets our requirements, we will issue a Conditional Commitment. You will receive the Conditional Commitment within 24 hours for loan packages submitted before the 15th of the month and within 48 hours for packages submitted the 15th or after.
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Lender closes loan
After receiving our approval, you should use your normal closing procedures and submit your closing package to us within 30 days of the loan expiration date. Use the FirstHome Mortgage Closing Package Checklist or the MCC Closing Package Checklist to ensure that your package is complete.
Once the closing package has been reviewed and is acceptable, the Agency will purchase the loan from you.
Please see Section 5.4: Closing Package in either the FirstHome Mortgage Program Guide or the Mortgage Credit Certificate (MCC) Program Guide for further details and timelines for the closing package.
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