Res 2009-074 - Laserfiche WebLink

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A. The applicant must obtain their own mortgage financing for the purchase. • B. Any accreditable lending institute may be used for the first-lien mortgage. The lender will provide to the City a copy of their appropriate approval letter based on the type of first-lien loan to be made (FHA, VA, Rural Housing, Conventional, etc.) C. The first-lien loan must be a fully amortized loan for up to 30 years with an interest rate that does not exceed the prevailing market rates for conforming loans. D. Adjustable rate mortgages (ARMS), sub-prime mortgages, balloon payments, wraparounds, graduated mortgage, negative amortization or other non- traditional financing is not allowed under this program. E. The applicant will not be permitted to receive a reimbursement or cash back at closing. F. The Lender will provide a pre-approval letter to applicants that wish to participate in the FTH program. G. Lender will provide the City a copy of the Lender's Good Faith Estimate, signed by both the buyer and loan officer. The GFE must show the property address being purchased, interest rate, and type of loan. In addition it must show an itemized breakdown of the estimated closing costs and the total amount of down payment that will be required. The itemization should clearly show the items and amounts that will be funded through the FTH program. • H. The Lender's underwriting of the loan application will include calculations of compliance with the program's maximum allowable top and bottom qualifying ratios which are established at 33% and 43% respectively. Documentation of compliance will be provided to the City prior to closing. 1. The Lender will also provide the following documents to the City: • A copy of the lenders Uniform Loan Application that has been executed by the loan officer and the lender; • A copy of the MCAW or Transmittal Summary signed by the underwriter; • A copy of the fully executed Sales Contract signed by both the buyer and seller. • A copy of the appraisal of the property; • A copy of any home inspection reports performed as a part of the sales process; J. The Lender will immediately report to the City any information which it may receive which indicates that a misrepresentation may have been made in applying for a Program loan or that may affect the applicant's continued eligibility for a Program loan. • 4/09 Revised First-Time Homebuyer's Program Page 6