Manna CityLIFT
What is City LIFT?
The City LIFT Program provides $20,000 in funding to eligible homebuyers for the purchase of a new or existing home. Funding will be used to pay all or a portion of the closing costs and/or the downpayment associated with purchasing a home. It is fully forgivable after you live in the home for five years. AND...The $20,000 from Manna's City LIFT program can be used in combination with most other down payment assistance programs, such as HPAP, My Home, or CDA. "Let's Invest For Tomorrow" with City LIFT! ﾠ
*** Note: All CityLIFT Borrowers who have received a Commitment Letter, following submission of Contract and Reconfirmation documents, will be extended to January 5 for Expiration if not settled by December 5. ***
SEE BELOW FOR MORE INFORMATION
Click here for Frequently Asked Questions (FAQs)
Who Qualifies? Homebuyer Requirements:
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Repayment Requirements
Program offers a 0% interest rate and is forgivable 20% each year for five years.
How to access CityLIFTSM down payment assistance funds in District of Columbia and Prince Georges County.ﾠ
*No funds are available at this time. There was an overwhelming and unexpected success rate with people that reserved funds at the October 5 and 6 event! For those who registered interest between November 12 and December 5, Manna sent you an email on December 10. Your interest will remain, unless you cancel. If funds become available, we will contact you.
**Manna is not accepting further interest at this point; if this changes, we will note the process on this webpage**
STEP 1: Applicant is preapproved for a primary mortgage loan:ﾠ Customers work with their CityLIFT approved first trust lender to secure preapproval for the primary mortgage loan (FHA, VA or Conventional).ﾠ First trust lenders should correctly set the expectation with the borrower that the preapproval is subject to CityLIFT funding.ﾠ That means the borrower has to meet the CityLIFT income eligibility requirements, property location requirements, time requirements, etc., and that CityLIFT funding remains available at the time the borrower meets with Manna, Inc. with a signed purchase contract (see Step 6).ﾠ The availability of CityLIFT funds at preapproval does not imply that the funds will be available when a purchase contract is signed.ﾠ Borrowers must use a CityLIFT approved lender to access CityLIFT funds. Lenders interested in approval and follow instructions in the approved lender package.
STEP 2: Borrower searches for property:ﾠ Customers begin looking for a property, which has to be within the District of Columbia or Prince Georges County, MD limits to be eligible for CityLIFT financing.ﾠThe property can be a single-family, townhome, condo, 2-4 unit home or co-op (if a co-op, make sure your lender accepts downpayment assistance for co-op loans).
To verify that a property is in Prince Georges County, MD:ﾠ
http://taxinquiry.princegeorgescountymd.gov/ﾠ
Property restrictions:
- REO properties managed by Wells Fargo Premiere Asset Services are NOT eligible for CityLIFTfunding.ﾠ Search by zip code on reo.wellsfargo.com to see if a property is managed by Premiere Asset Services.ﾠ
- CityLIFT funding cannot be used on a short sale where Wells Fargo Home Mortgage is the existing lender no matter whether WFHM or another lender is funding the new loan.
STEP 3: Borrower signs purchase contract:ﾠ The customer presents a signed purchase contract to their first trust lender, and signs the consent form allowing lender to share loan information with Manna, Inc., which is handling CityLIFT financing.ﾠ The first trust lender notifies Manna, Inc. of transactions involving CityLIFTfinancing by email.ﾠ First trust lender takes the usual loan processing steps (inspections and appraisal are ordered, title search conducted, etc.). ﾠ
Close within 60 days:ﾠ When negotiating a purchase contract, borrowers and their real estate agents should expect that closing on a loan with CityLIFT financing will take longer than standard processing. First trust lenders should set the proper expectations about the time needed to meet all counseling and loan processing requirements.ﾠ
STEP 4: Borrower completes homebuyer education:ﾠ To close with CityLIFT funding, customers must complete 8 hours of homebuyer education from a CityLIFT accepted HUD-approved counseling agency. Valid certificates of completion issued within the year preceding the home purchase settlement date will be honored,including HPAP and First Home homebuyer education certificates. If you would like to sign up for an in-person course, you can contact Manna at 202-832-1845 x 252. For those who signed up for homebuyer education at the October 5 and 6 event, the $50 payment should be made to Manna, either by mailing a check or paying online. You will receive your Certificate of completion after you have paid.
Customers can also take the course online at www.ehomeamerica.org/manna. Those who take the online course will need to go through a short curriculum quiz when they meet with Manna, Inc. to ensure they are the person that took the course.
STEP 5: Borrower provides a copy of the purchase contract:ﾠ The borrower provides copies of the purchase contract to first trust lender and Manna, Inc.ﾠ The borrower also sends a copy of the first trust preapproval letter to Manna, Inc. A borrower can also present these copies as part of the reconfirmation session (see Step 6).
STEP 6: Manna, Inc. reconfirms CityLIFT eligibility:ﾠ Applicants with a reservation letter from the October 5th and 6th event who have completed steps 1 through 5, should contact Manna, Inc. at 202-832-1845 (press option 1) to schedule a reconfirmation session with Manna.
Manna, Inc. determines program eligibility for CityLIFT financing.ﾠ Because Manna, Inc. uses household income rather than borrower income, different income parameters than first trust lender uses may apply. The borrower sends the appropriate income documentation directly to Manna, Inc.ﾠ
If Manna, Inc. finds that the customer is eligible for CityLIFT financing, the loan approval process continues.
For applicants with unexpired Reservation Letters from the event, Manna, Inc. will issue a Commitment Letter.
If Manna, Inc. finds that the customer is ineligible for CityLIFT financing (or CityLIFT financing is no longer available), Manna, Inc. contacts the first trust lender as soon as possible.ﾠ
Manna, Inc., not the first trust lender, makes the eligibility determination and administers the down payment assistance funds.ﾠ This is treated as a source of mortgage financing for the home purchase, and Manna, Inc.'s underwriting and documentation processes must be followed to help ensure a smooth closing for the borrower.
Minimum borrower contribution: The total amount of liquid assets (all accounts with immediate access to funds: checking, savings, money markets) minus $7,500 or six months of total housing payment (Principal, Interest, taxes, Insurance, HOA fee).
STEP 7: First trust lender sends loan package to Manna, Inc.:ﾠ The CityLIFT underwriting and funding will be handled by Manna, Inc.ﾠ First Trust lender sends the loan package (see below) directly to Manna, Inc. for its review and approval and to assist in the preparation of settlement documents for the down payment assistance funds.ﾠ The loan package must include the items listed on the lender checklist below.ﾠ Manna, Inc. requires at least SEVEN business days before closing to process and approve the secondary financing portion of the loan.ﾠ
STEP 8: First Trust lender schedules closing:ﾠ Closing can be scheduled any time after the SEVEN business-day processing timeframe has concluded and approval has been granted.
Lender Loan Package Documentation Requirements
The following documents must be included in the first mortgage submission package which must be delivered to Manna at least 7 business days prior to transaction funding
Electronic submission to fdemarais@mannadc.org (pdf preferred, drop box or email):
- Title Commitment, with Insured Closing Letter - Manna, Inc. $20,000.
- Wire instructions for the title company
- Preliminary HUD-1
- Lender approval letter
- 1008 Underwriting Transmittal Summary or equivalent FHA MCAW, VA Loan Analysis etc.
- 1003 Uniform Residential Loan Application
- Income verifications (most recent 30 days of paystubs, Most Recent year’s tax return). A Year-to-Date Profit & Loss Statement for self-employed borrowers.
- Asset documentation – all liquid assets (checking, savings, money market) statements within 30 days
- Credit Report
- Reg Z – Truth-in-Lending Disclosure
- Good Faith Estimate
- Homebuyer Education Certificate
- Purchase Contract (with all addenda)
- Appraisal
- Property tax record documenting that the property is within the District of Columbia or Prince George’s County limits
- Borrower Authorization to Release Information
- Source of down payment funds documentation (if applicable)
- For FHA 203(k) – Maximum Mortgage Worksheet (Form 2700) (if applicable)
