Nov 5, 2014 14-42
HERO and Payment$aver Policy Revision
In an effort to streamline the HERO and Payment$aver Programs, MFA has made the following revisions. The new revised Program Policies as of October 2014 have been posted on MFA’s web for your reference. These revisions are in effect with any new Compliance Packages that are received on or after November 6, 2014.
HERO Policy Revisions
The Health Care Worker definition has been revised to be aligned with the other definitions:
- Old Definition: One of the borrowers must be a certified, accredited, or licensed health care worker who is a medical resident or fellow; a nurse, nursing assistant, pharmacist, pharmacy technician, physician's assistant, or medical technician, technologist or therapist.
- New Definition: One of the borrowers must be an employee of a certified, accredited, or licensed health care facility, hospital, clinic or agency responsible for providing or administering health care services.
The definition regarding owning property has been revised as follows:
- Old Definition: The borrower may not own any other Real Property at the time of loan closing.
- New Definition: The HERO program may only be used to purchase a primary residence and the borrower must occupy the property within 60 days of closing.
The revisions to the documentation submitted for Compliance Approval regarding the ownership of property has been revised as follows:
- Old Definition: Verification of no other real property is owned by borrower at loan closing
- New Definition: Verification that the property financed will be the borrower’s primary residence
Payment$aver Policy Revisions
The eligible use of Payment$aver funds has been revised as follows:
- Old Definition: The Payment$aver loan may only be used to finance down payment, closing costs, temporary interest rate buy-down and principal reduction (additional down payment); no pre-paid items may be included.
- New Definition: The Payment$aver loan may only be used to finance down payment, closing costs, temporary interest rate buy-down and principal reduction (additional down payment). Pre-paid items may now be included in the Payment$aver loan to mirror the Helping Hand Program.
Thank you for participating in MFA’s program. Should you have any questions, please contact an MFA Homeownership Representative.