HomeMy WebLinkAbout20081551.tiff RESOLUTION
RE: APPROVE PROGRAM DESCRIPTION FOR DOWN PAYMENT AND CLOSING COST
ASSISTANCE PROGRAM THROUGH HIGH PLAINS HOUSING DEVELOPMENT
CORPORATION
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS, the Board has been presented with a Program Description for the Down
Payment and Closing Cost Assistance Program through the High Plains Housing Development
Corporation,from the Greeley/Weld County Housing Authority, effective May 28, 2008,with terms
and conditions being as stated in said Program Description, and
WHEREAS, after review, the Board deems it advisable to approve said Program
Description, a copy of which is attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, ex-officio Housing Authority Board, that the Program Description for the Down
Payment and Closing Cost Assistance Program through the High Plains Housing Development
Corporation, from the Greeley/Weld County Housing Authority, be, and hereby is, approved.
The above and foregoing Resolution was, on motion duly made and seconded, adopted by
the following vote on the 28th day of May, A.D., 2008.
BOARD OF COUNTY COMMISSIONERS
j' WELD COUNTY, COLORADO
ATTEST: 4,441
LZ L i
,s,, m H. Jerke, Chair
Weld County Clerk to the oa1� ~ .
® ,\ Robert p. Masdtn o-Tern
BY- ` /,J
eputy Clerk o the Board ` L
William F. Garcia
APPROVED AS TO F EXCUSED
David E. Long
/Cot g-Attorney EXCUSED
Douglas Rademacher
Date of signature:
2008-1551
07 X'?" HA0028
PROGRAM DESCRIPTION
HIGH PLAINS HOUSING DEVELOPMENT CORPORATION
WELD COUNTY HOUSING AUTHORITY
Down Payment and Closing Cost Assistance Program
May 28, 2008
To provide homeownership opportunity in Weld County to low income families.
Buyer Eligibility (2008)
Buyer must meet HUD maximum income restrictions by household size:
1. $35,850 5. $55,300
2. $40,950 6. $59,400
3. $46,100 7. $63,500
4. $51,200 8. $67,600
Buyer must qualify for the first mortgage according to financial institutions
guidelines.
The income level used to qualify the first mortgage is also the income that will be
used to qualify for the assistance loan.
Buyer may not have owned a home within the last three (3) years.
PROPERTY ELIGIBILITY
Property must be located in Weld County (outside of the City of Greeley).
Property location will determine the fund source.
Market value /purchase price set through financial institution appraisal.
Maximum purchase price of house is $130,000.
The contract property must not be occupied by renters who will be displaced upon
sale.
Sale must be a voluntary acquisition.
Seller should be informed that the funding source Weld County Housing
Authority will not use their power of imminent domain or condemnation to
acquire the property. This is to assure the seller if negotiations break down.
2008-1551
Prior to closing the sale the seller must be provided an estimate of the Fair Market
Value of the Property.
PROGRAM GUIDELINES
The program offers Financial Assistance up to $5,000 of the minimum down
payment and all allowable closing cost. We do not pay for buy-downs or points.
We will not advance appraisal or credit report fees. Prepaids, i.e. tax and
insurance, escrows interim interest and loan application fees are acceptable cost.
Reference F HA-HUD Wavier: HUD Handbook 4155.1 Rev-4 Waiver of 24 CFR
203.32 (c) (3) Secondary financing provided by a Non-Profit agency. The
Housing Development Corporation has a waiver from FHA that allows Housing
Development Corporation second mortgage financing to be used in conjunction
with FHA insured First Mortgages if:
1. The second mortgage payment must be calculated in the borrowers
housing (front) ratio.
2. The Base loan (first mortgage) plus the second mortgage cannot
exceed 100% of the Value of the Property, (Value=(Sales Price or
appraisal) + Closing Cost.
Buyer must make a contribution to the sale of at least $1,000.00
Term of second mortgage is ten years, with simple interest of Three percent. A
minimum monthly payment of$30.00 is required.
Principal plus accrued interest is due and payable upon sale of the property, transfer of
the property, or payment in full of the first mortgage.
There is no prepayment penalty.
A document recording fee of$11.00 and a document preparation fee of$70.00 are
charged. There are no other originating fees or processing fees under this program.
We need 5 days notice after loan is approved to prepare documents for closing.
The loan will be serviced by the Weld County Housing Authority.
These funds are on a "First Come, First Serve "basis.
Resolution to approve changes to the Weld County Housing Authority "first time home
buyers program" Down payment assistance program. These changes set the interest rate
to 3% increase the loan limit to $5,000 and sets the maximum purchase price to
$130,000.
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