NIFA's network of approved Participating Lenders will process and close first mortgage loans in their name. If the homeowner received the down payment and closing cost assistance from NIFA, the approved Participating Lender will process and close the second mortgage loan in our name.
The Master Servicer is U.S. Bank for loans closed on and after June 1, 2005. The Master Servicer is Wells Fargo for loans closed prior to June 1, 2005.
Collecting Loan Payments
The Participating Lender is responsible for collecting loan payments on the first mortgage loan and second mortgage loan (if applicable) until both loans are purchased by the Master Servicer. Once purchased, the homeowner will receive a welcome packet from the Master Servicer providing payment and other instructions.
Loan Payoffs Requests/Releases
NIFA loans do not have any prepayment penalties. All first mortgage loan and second mortgage loan (if applicable) payoff quotes are provided by the Master Servicer. The Master Servicer prepares all releases for execution and sends them to the register of deeds office for recording.
NIFA first mortgage loans may be assumed subject to certain requirements. NIFA's first-time homebuyer, maximum household income limits and maximum purchase price limits apply. Certain credit underwriting requirements also apply. The Master Servicer has the authority to approve loan assumption requests. Please note NIFA second mortgage loans are not assumable and must be paid in full prior to closing an assumption loan transaction.