CALIJA, ANGELA D. - Laserfiche WebLink

4.0 The loan to Borrower which is evidenced by this Note is made as part of the City of Pleasanton Homeownership Assistance Program (PHAP). The Borrower's income under the Program shall be reviewed by the Lender after two years and five years following execution of this Note and each year thereafter. Except as stated in Section 4.2, all monthly payments of principal and interest shall be waived until five (5) years after the date of this Note was executed. 4.1 At the conclusion of the fifth year after the execution of this Note, Borrower shall begin principal and interest payments on the Note as specified in Section 1.0. Any payment of principal and /or interest shall not result in the proportion of the Borrower's income applied toward monthly housing costs, which include principal and interest on any first mortgage loan, private mortgage insurance, homeowner insurance, homeowners association fees and property taxes, exceed 38 percent of the Borrower's annual income. In the event that the required principal and /or interest payment due results in monthly housing costs in excess of 38% of the Buyer's annual income, the principal and /or interest payment due will be adjusted to an amount that will result in an income to housing cost ratio of 38 percent. However, Lender shall have the option to allow deferral of interest and /or principal payments or to allow partial payment of interest and /or principal payments as specified in Section 1.0 beyond the initial waiver period if necessary to address a financial hardship as determined by the City Manager. The method and amount of partial payment or length of additional deferment shall be determined by the Lender. 4.2 If, as determined by the initial two year review as stated in Section 4.0, the Borrower has acquired residential real property in addition to the Property or if the ratio of the Borrower's current housing costs to the Borrower's current gross monthly income has decreased by more than ten (10) percentage points below that ratio of housing costs to gross income which existed at execution of the Note, the Borrower shall be required to commence interest payments on the Note. At the time of the execution of this Note, the Borrower's monthly gross income is $2,926.00 and Borrower's monthly housing expenses in accordance with Section 5 Program Eligibility are $955.77. Housing expense as a percentage of Borrower's monthly income is 32.66 %. As part of this review, Borrower shall provide documentation of income including the most recent year's tax returns and pay stubs from the three months preceding the review within thirty (30) days after the two and five year period as stated above. Failure to provide documentation with the thirty (30) day period will, at the discretion of the City Manager, result in an acceleration of payments due. - 4 -