20 - Laserfiche WebLink

7. Borrower may use a cosigner when qualifying for the first mortgage. 1 lowever, the cosigner's total household income shall be included as part of the household's total income when determining the borrower's income eligibility. 8. "Total down payment assistance shall not csceed 20% of the purchase price of the home. Eligible closing cost, including points shall not csceed ?% of the purchase price. Borrower must contribute a minimum 3% down payment (the minimum down payment may be reduced to 1 % if the buyer uses other CaIHFA down payment assistance secondary financing products). 9. In the event ofa competing interest for funding, a priority will be given to persons who live and or work in the City of Pleasanton. The homebuyer will be required to enter into a Promissory Note and Deed of "frost with the City. 10. The homes are required to meet all home inspections including termite and roof clearances. 1 I. Buyer must obtain a written property inspection report from a qualitied home inspection company prior to the close of escrow. "I his report must cover all major systems in the house including but not limited to electrical, plumbing, foundations, drainage systems, paint, and all built-in appliances. Buyer must show evidence that City permits have been issued for all work requiring such a permit. 12. Buyer must purchase aone-year home warranty covering all major systems in the home including built-in appliances, air conditioners, and water heating systems. 13. Borrower shall enter into a loan agreement with the City of Pleasanton covering the total amount of funds lent by the City. A Promissory Nute between the buyer and the City describing the loan terms shall be executed as well as a Deed of Trust with Resale Restrictions. Failure by borrower to make timely loan payments to the City may result in the default of the City's loan and forfeiture ofownership by the borrower. • Funds may be used as down payment assistance and/or to pay for nonrecurring closing costs. • "Total down payment assistance shall not csceed 20% of the purchase price of the home. • Gligible closing costs including points shall not csceed ?% of the purchase price. loan funds may be used only to purchase a house and to pay for any nonrecurring closing costs associated with purchasing the home. Buyer shall not use loan funds to finance repairs, room additions or to purchase any non-real property. Cash-out transactions arc not eligible. 14. Borrower must have sufficient creditworthiness to qualify for a trst mortgage from a City-approved lender. First mortgages must be lined rate loans with no negative amortiratiun. balloon payments or adjustable rate features. 1 ~. Execution of the City's second mortgage documents shall be performed at close of escrow by the Escrow Company.