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<br />6. The first mortgage obtained for the purchase of the residence must be a CalHFA-approved <br />mortgage (see vvvv"W.echfa.ca.gov/lenders) of a fixed interest rate vvith no negative amortization, <br />balloon payments or adjustable rate features. <br /> <br />7. Borrovver may use a cosigner vvhen qualifying for the first mortgage. Ho"W'ever, the <br />cosigner's total household income shall be included as part of the household's total income vvhen <br />determining the borrovver's income eligibility. <br /> <br />8. Total dovvn payment assistance shall not exceed 20% of the purchase price of the home. <br />Eligible closing cost, including points shall not exceed 2% of the purchase price. Borrovver must <br />contribute a minimum 3% dovvn payment (the minimum dovvn paVITIent may be reduced to 1 % if <br />the buyer uses other CalHFA dovvn paVITIent assistance secondary financing products). <br /> <br />9. In the event of a competing interest for funding, a priority vvill be given to persons vvho <br />live and or work in the City of Pleasant on. The homebuyer will be required to enter into a <br />Promissory Note and Deed of Trust vvith the City. <br /> <br />10. The homes are required to meet all home inspections including termite and roof <br />clearances. <br /> <br />II. Buyer must obtain a vvritten property inspection report from a qualified home inspection <br />company prior to the close ofescrovv. This report must cover all major systems in the house <br />including but not limited to electrical, plUlTIbing, foundations, drainage systems, paint, and all <br />built-in appliances. Buyer must sho"W evidence that City permits have been issued for all vvork <br />requiring such a permit. <br /> <br />12. Buyer must purchase a one-year home vvarranty covering all major systems in the home <br />including built-in appliances, air conditioners, and vvater heating systems. <br /> <br />13. Borrovver shall enter into a loan agreement vvith the City of Pleasanton covering the total <br />amount of funds lent by the City. A Promissory Note betvveen the buyer and the City describing <br />the loan terms shall be executed as vvell as a Deed of Trust vvith Resale Restrictions. Failure by <br />borrovver to make timely loan payments to the City may result in the default of the City's loan <br />and forfeiture of ovvnership by the borrovver. <br /> <br />. Funds may be used as dovvn payment assistance and/or to pay for nonrecurring closing costs. <br />. Total down payment assistance shall not exceed 20% of the purchase price of the home. <br />. Eligible closing costs including points shall not exceed 2% of the purchase price. <br /> <br />Loan funds may be used only to purchase a house and to pay for any nonrecurring closing costs <br />associated vvith purchasing the home. Buyer shall not use loan funds to finance repairs, room <br />additions or to purchase any non-real property. Cash-out transactions are not eligible. <br /> <br />14. Borrovver must have sufficient creditvvorthiness to qualify for a first mortgage from a <br />City-approved lender. First mortgages must be fixed rate loans vvith no negative amortization, <br />balloon payments or adjustable rate features. <br /> <br />15. Execution of the City's second mortgage documents shall be performed at close ofescrovv <br />by the Escro"W Company. <br /> <br />3 <br />