2006.03.20 EDA Packet - Laserfiche WebLink

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SECTION V1 REFINANCING Washington County may subordinate the FirstHOME Buyer Assistance loan if refinancing results in greater housing affordability for the participants. Subordinations may be made on a case-by-case basis; however no cash may be taken out as a result of refinancing. Borrowers may need to document continuing income eligibility for the program. The following documentation should be submitted to the FirstHOME Administrator along with a copy of the lender 1003, appraisal, title report, and estimated closing statement. SECTION V11 CONTINUING AFFORDABILITY The aforementioned guidelines will ensure that all borrowers receiving down payment assistance through the Downpayment Assistance Program meet the applicable HOME Program rules and regulations. The HOME Program has established periods of affordability. Properties purchased with assistance from the Washington County FirstHOME program must remain affordable for a period of no less than five years. Properties with FHA insured, VA guaranteed, or Fannie Mae conventional mortgages must remain affordable for the longer of the length of the mortgage or FirstHOME affordability period. Because the use of HOME Program funds as described in these policies requires that borrowers using FirstHOME down payment assistance repay that assistance upon sale or transfer of the property, all HOME Program funds utilized for FirstHOME down payment assistance will be returned to the FirstHOME Administrator, thereby nullifying the continued affordability requirement. Funds repaid/recaptured during the period of affordability will be used to fund the FirstHOME Program. SECTION VIII RE-USE OF HOME AND CDBG PROGRAM FUNDS Washington County will reinvest returned HOME Program funds for the purpose of assisting other low and moderate-income families to obtain decent and affordable housing within Washington County. 37