2006.03.20 EDA Packet - Laserfiche WebLink

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SECTION IV FIRST TIME HOMEBUYER PROGRAM/ HOME INVESTMENT PARTNERSHIP ASSISTANCE FirstHOME assistance is available from the HRA on a first come, first served basis to households who meet the income, employment, property, homebuyer education and other criteria established in Section III (qualified borrowers). Washington County will work with any recognized lender; however, preference will be given to lenders who have attended the county-sponsored information program and those who have been designated as participating lenders through MHFA ECHO Program, which provides down payment assistance funds. DOWNPAYMENT ASSISTANCE QUALIFICATIONS 1. Income/Property Borrowers must be eligible and the property must meet criteria established under Section III. 2. Housing Quality Standards The property must minimally meet Section 8 Housing Quality Standards. First time homebuyer mortgages that are FHA insured, VA guaranteed, or Fannie Mae approved conventional and meet the property standards for those programs will also be presumed to meet FirstHOME standards. Lenders must provide evidence that the property has been inspected and meets housing quality and lead standards prior to closing. All properties constructed before 1978 must pass a visual inspection for lead hazards conducted by an individual trained in visual assessment. Training is available on-line at www.hud.gov/offices/lead/training/index.cfin. Upon successful completion of the hour-long course, the trainee can print out a completion certificate. A copy of the certificate should accompany the visual assessment forwarded to the FirstHOME Administrator (Ramsey County)prior to closing. 3. Minimum/Maximum Downpayment Assistance The borrower must contribute a minimum equity investment of one (1%) percent of the purchase price of the property or $2,000.00, whichever is greater. Washington County will fund a second mortgage in an amount equal to the difference between the maximum approvable mortgage based on the buyer paying at least 30% of household income and the current maximum purchase price. This amount includes any funds necessary to facilitate participation in the MHFA programs up to the maximum of$10,000. The buyer(s) is expected to pay at least 30% of adjusted income for principal, interest, taxes and insurance. 4. Repayment Agreements 34