13 Agreement - Laserfiche WebLink

Home Browse Search

All loans to assisted homebuvers must be evidenced by loan documents provided by Department. Each loan to an assisted homebuver must be payable to Department. Each loan for rehabilitation shall be evidenced by a construction loai1 agreement, note, deed of trust, mechanic" s lien note, and mechanic's lien contract secured by the property and must be fully executed before any construction activities commence. If at any time prior to the full loan period there occurs a resale of the property, a refinance of any superior lien, a repayment of any superior lien, or if the unit ceases to be the assisted homebuyer's principal residence, the loan shall become due and payable. Forgiveness of the loan balance is calculated based on a pro-rata annual share of the loan term. The anniversary date of the loan shall constitute completion of the year. Any partial year shall not be waived. The amount due will be based on the pro-rata share number of years of the remaining loan term. In the event the home is sold (voluntary or involuntary), the assisted homebuyer will pay the loan balance from the net proceeds of the sale. The net proceeds are the sales price minus superior loan repayment (other than HOME funds) and any closing costs. A copy of the HUD closing statement must be provided. In the event of refinance of any superior lien, at Department's discretion one of the following options will apply_ 1. re-subordination of the Note if the assisted homebuyer can provide documentation, acceptable to the Department, showing that no funds are due the assisted homebuyer as a result of the refinance; or 2. the assisted homebuyer will pay off the Department's note from loan proceeds from the refinanced superior lien. In the event of payoff of any superior note, the assisted homebuyer will have the option of: 1. repaying the balance of the Department's Note in full; or 2. repaying the balance of the Department's Note in equal monthly installments over a five (5) year period. ZERO (0) of the TWENTY (20) assisted homebuyers shall have incomes that are less than or equal to thirty percent (30%) of the AMFI, as defined by HUD. In addition to the number of assisted homebuyers that have incomes less than or equal to 30% of the AMFI as required above, ZERO (0) of the TWENTY (20) assisted homebuyers shall have incomes that are less than or equal to fifty percent (50°io) of the AIVIFI, as defined by HUD. HOME Contract # 1000930 Page 17 of 21 o' 000122