Res 2009-074 - Laserfiche WebLink

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City of San Marcos First-Time Homebuyer Program POLICIES AND PROCEDURES 2009 PURPOSE AND ADMINISTRATION City of San Marcos provides financial assistance to eligible low income, first time homebuyers with the purchase of decent, safe and sanitary homes in San Marcos. The funding source for the First-Time Homebuyer Program (FTH) is the City's Community Development Block Grant (CDBG) Program. FTH assistance is subject to the availability of the above funds. The FTH is administered by the City's Development Services Department. Subject to concurrence from the City Manager and the City Council as appropriate, the CDBG Administrator shall have the authority to make exceptions with any provision of the Policy Guidelines if he/she determines that to do so does not violate any Federal, State or local law or regulation, and is in the best interest of the City. The FTH program can be combined with other funding assistance programs offered by the . City or other private or government programs. 2. AMOUNT OF ASSISTANCE The maximum FTH assistance shall be $8,000 per applicant and may be used to pay all of the allowed closing costs including pre-paid items as identified in this document and up to 50% of the required down-payment. Eligible closing costs include: • Origination/application fees (not to exceed 2% of sales price) • Document preparation / attorney fee • Title policy/insurance • Appraisal • Survey • Buyer's home inspection fee / termite inspection • Recording fees • Escrow fees Pre-paid items that are eligible for funding include: • Hazard insurance (maximum 12 months) • Flood insurance (maximum 12 months) where required • Property taxes (maximum 12 months) 0 The combined amount shall be provided as a zero interest, deferred forgivable loan for a home to be purchased under fee simple title provisions. The loan will be forgiven at a rate