Res 2009-074 - Laserfiche WebLink

Home Browse Search

H. The applicant will formally apply for a loan to purchase the selected property with the • lender of their choice. 1. The Lender will provide a Good Faith Estimate (GFE) as outlined in Section 7 to the City. The City's date of receipt of a completed GFE will serve to establish the applicant's place in line for available funding. J. Once the City has received notice of home selection, it will prepare the environmental review for that location and will schedule a HQS Inspection of the home. The applicant will help coordinate the scheduling of this inspection with the seller. K. All repairs identified as necessary through the HQS inspection must be completed before the date of closing as a condition of participation in this program. Follow up inspections will be required to assure that necessary repairs identified in the initial HQS Inspection are completely satisfactory. The HQS inspection does not serve in lieu of a structural inspection of the property. The applicant is encouraged to obtain a separate inspection or report that addresses the structural integrity of the property. L. Once the property has been accepted, the City will notify the Lender that closing can be scheduled. The lending institute will submit all required documents to the City as outlined in Section 7 at least 10 working days prior to the expected date of closing to allow time for the City to review the submittals and prepare loan documents and process the payment request. • M. The City must review the final HUD-1 closing statement prior to funding. 11. CONVERSION OF LOANS MADE UNDER PREVIOUS GUIDELINES The City of San Marcos is servicing five (5) loans that were granted under the terms of previous program guidelines in the form of zero-interest, 30-year loans. The City will offer each loan recipient the opportunity to modify their existing loan to conform to the current program guidelines. Specifically, the City will make the following modifications: A. The City will reduce the term of the Note and Lien and forgive their remaining balance on a pro-rated basis provided the Borrower remains in compliance with the terms of the modified Note and Lien. B. The modified term of the note will be five years from the original closing date. This term shall be known as the "Affordability Period". C. The amount of the loan to be included in the Modified Note will be the unpaid balance of the original loan as of the effective date of the Modified Note and Deed of Trust. D. The Borrower will have the option of continuing with the existing loan or converting to the terms of the new program. • 4/09 Revised First-Time Homebuyer's Program Page 9