The program
Closing
The documents that get signed, the money that moves, and who is holding what when it is over.
How the paperwork moves
Your offer is accepted
You negotiated it. Your name is on it. Nothing unusual yet.
The contract gets assigned to the agency
You and the seller sign an addendum assigning the purchase agreement to TRHEEA. Your earnest money transfers with it. A completed Seller's Disclosure is required, and Arrive Home recommends a Property Condition Disclosure on every transaction even where the state does not require one.
You endorse the initial cost disclosure
Arrive Home produces an initial Homebuyer Cost Disclosure for you to review and fully endorse. If a Program Participation Percentage fee is added after you endorsed it, an updated CCD has to be signed and dated by you before a Clear to Close is issued.
Your funds get wired
All funds to close the FHA transaction and the relationship with the agency are wired to TRHEEA or its affiliate closing agent before the closing date. They require a copy of the wire confirmation showing the money came from your account.
The file gets its final numbers
Closing funds are finalized after the final CD, the settlement statement from title, the closing request form, and the final Cost Disclosure that Arrive Home creates once it has the first two.
Everyone signs
The agency takes title. You sign the homeownership agreement and take possession. Your down payment funds, closing costs and first month's payment go to title in certified funds.
Where the money comes from
What you bring to closing
3.5% minimum down payment, closing costs, program fees, first payment
FHA 203(b) first mortgage
30-year term, fixed rate, full amortization. The agency is the borrower
Soft second
Reported at 1% of the loan. No payment, no interest
The agency buys the home
Title is recorded in the name of the agency
You move in
You sign the homeownership agreement and take possession
You are not the named insured
Arrive Home requests and selects the hazard insurance for the property before closing. TRHEEA is listed as the named insured, not you. The policy address has to match the appraisal, and no exclusions for the roof or any other portion of the home are allowed.
Your own renter's insurance is optional. If you take it, the deductible cannot exceed $1,000 and it has to be proven paid before closing. If you decline it, you sign a Renter's Insurance Coverage Waiver Disclosure.
Source: Matrix 4.18, 3.14, 3.14.1.
Who can be on the contract
Arrive Home allows people to be added to the contract and to title who are not on the loan, such as non-purchasing spouses, per agency and state guidelines.
Non-occupant homebuyers may be allowed. Their income cannot be all of the qualifying income, and they have to sign the seller financing agreement and otherwise meet program eligibility.
Source: Matrix 4.19.1, 3.10.
If it falls apart before closing
The contract is subject to you qualifying for and executing the seller financing agreement. If your circumstances change and you no longer qualify, or you refuse to execute the final contract, the purchase agreement is void.
The maximum liability for the agency's non-performance is forfeiture of the earnest money. Know that number going in.
Source: Matrix 3.17.1.
Get connected
Every application goes through a licensed loan originator.