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All loans to assisted homebuyers must be evidenced by loan documents provided by Department. <br />Each loan to an assisted homebuyer must be payable to Department. Each loan for rehabilitation <br />shall be evidenced by a constructioil loaii acreement, note, deed of trust, mechanic's lien note, <br />aild mechanic's lien contract secured by the property and must be fully e\ecuted before any <br />construetion activities commenee. <br />If at any time prior to the full loan period there occurs a resale of the property, a refinance of any <br />superior lien, a repayment of any superior lien, or if the unit ceases to be the assisted <br />homebuyer's principal residence, the loan shall become due and payable. <br />For~iveness of the loan balance is calculated based on a pro-rata annual share of the loan tern7. <br />The anniversary date of the loan shall constitute completion of the yeernbep of la ofhhe <br />not be waived. The amount due will be based on the pro-rata shar Yeas <br />remaining loan term. <br />the assisted homebuyer will pay the loan <br />In the event the home is sold (voluntary or involuntary), <br />balance from the net proceeds of the sale. The net proceeds are the sales price minus superior <br />loan repayment (other than HOME funds) and any closing costs. A copy of the HUD closing <br />statement must be provided. <br />In the event of refinance of any superior lien, at Department's discretion one of the following <br />options will apply: <br />1. re-subordination of the Note if the assisted homebuyer cthe aso stedd homebuyer a~ a <br />acceptable to the Department, showing that no funds are due <br />result of the refinance; or <br />2. the assisted homebuyer will pay off the Department's note from loan proceeds from the <br />refinanced superior lien. <br />In the event of payoff of any superior note, the assisted homebuyer will have the option of: <br />1. repaying the balance of the Department's Note in full; or <br />2. repaying the balai7ce of the Department's Note in equal monthly installments over a five (5) <br />year period. <br />ZERO(0) of the TWENTY (20) assisted hoinebuyers shall have incomes that are less than or <br />equal to thirty percent (30°%) of the .AMFI, as defined by HUD. <br />In addition to the number of assisted homebuyers that have incomes less t~es l shall have <br />the AMFI as required above, ZERO (0) of the TV~ ENTI' (,.0) assisted 1aomebu , <br />incomes that are less than or equal to fifty percent (50°%) of the AMFI, as defined by HUD. <br />HOlVIE Contract -4 1000930 <br />Paoe 17 of 21 <br />