| PROGRAM OBJECTIVE |
To assist income-elegible persons households who qualify as first-time
homebuyers to become homeowners within the areas served by the Northern Panhandle HOME
Consortium. |
| MAX. COST OF PROPERTY |
The house may not exceed 95% of the Section 203 (B) limit as established
by the U.S. Department of HUD, which would presently be a maximum of $200,160. |
| MAX. SUBSIDY PROVIDED |
The maximum amount of down payment assistance to be provided shall not
exceed $10,000. Within the $10,000 assistance, the closing cost assistance cannot exceed
$2,500. |
| FIRST MORTGAGE |
This program is designed in conjunction with the local financial lending
institutions participating in providing a first mortgage, |
| HOMEBUYER EQUITY |
The homebuyer must provide at the closing, a minimum of 3% or $500,
whichever is greater, of the total down payment amount needed for the purchase of the
property. |
| RESALE / RECAPTURE |
The homebuyer must occupy the property as a principal residence for at
least five years, and the resale is subject to the Federal Regulations 24 CFR 92.254. |
| LIEN POSITION |
A lien will be placed on the property which will be forgiven after five
years of occupancy, and the lien will be subordinate to the first mortgage. |
| STRUCTURAL CONDITION |
The property must meet local Building Code and Department of Housing and
Urban Development Housing Quality Standards. |
| HOUSEHOLD EXPENSE |
The total amount of mortgage payment (principal, interest, taxes and
insurance) cannot exceed 30% of the total gross household income. |
| PRE-APPLICATION FEE |
A fee of $50 is due with the submission of the complete pre-application. |
| HOUSING COUNSELING |
Completion of a housing counseling course is mandatory. Evidence of
attendance and completion of such a course will be required with the submission of the
pre-application form. Courses are offered by CHIP at 304-233-0953, by Change, Inc. at
304-233-7812, and by Consumer Credit Counseling at 304-232-6733. |
| INCOME GUIDELINES |
These income guidelines are subject to change. Effective 2-06-04 they are
as follows: |
