ORD 2285 - Laserfiche WebLink

5. The Applicant household must not own another home at the time of the Application or if a home is owned, it must be actively marketed for sale with the intent of selling such home prior to purchase of the BMR home. 6. The City will implement a Below Market Rate (BMR) Exchange Program that will allow a current BMR homeowner to be eligible to purchase one of the BMR homes in this development prior to selling their existing BMR home. 7. Applicants must be a U.S. citizen or lawfully permitted for permanent residence. CrediVOther Requirements 8. Applicants must have sufficient creditworthiness to qualify for a first mortgage. Creditworthiness includes: a) not having filed bankruptcy in the last three years; and b) minimum FICO credit rating of 660 points. At the discretion of the City/City's Program Agent, this minimum rating may be adjusted if the buyer's down payment exceeds the 3% minimum requirement. The applicant may not have any outstanding judgements or accounts in collections. 9 The Applicant's total Frontend Housing ratio may not be less than a 28% floor of the Applicant's total gross monthly income. 10. If the Applicant has not previously owned a home, the Applicant must successfully complete a City -approved first-time homebuyer training program prior to the close of escrow. First Mortgage Requirements 11. Applicants are required to demonstrate ability to obtain mortgage financing within a specific time frame established by the City. The City's Agent will review the Loan application and supporting documentation for program eligibility and will forward the loan package to the First Mortgage Lender. Failure to provide required financial information within the time frames established by the City will result in the household forfeiting its current application ranking number and being removed from further consideration. 12. Applicants are responsible for all closing costs related to the purchase which may include title fees, escrow fees, loan origination fees, etc. (approximately 2-3 percent of the purchase price). Applicants may be "gifted" funds to be used toward closing costs. 13. First mortgages must have a fixed interest rate for the term of the loan. First mortgages with negative amortization, interest only payments, or balloon payments are not acceptable. 14. The Applicant's total Backend Debt to Income ratio may not exceed a 45% ceiling of the Applicant's total gross monthly income. 15. The Applicant will participate in a lender sponsored Impound Account for property taxes on the BMR unit. Property taxes shall be based on the affordable sales price at time of sale to the Applicant. Down Payment & Secondary Financing 16. The Applicant must provide a minimum of three percent (3%) of the purchase price, in their own funds, for use as a down payment: 3 of 6