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determining the borrower's income eligibility except in cases where the DPA program is used in conjunction with specific below-market priced homes that are sold through the Pleasanton Homeownership Assistance Program (PHAP). 7. Total down payment assistance shall not exceed 20% of the purchase price of the home. • - Formatted: Boosts and Numbering ISEE COMMENT UNDER #3 ABOVE ~ Eligible closing costs, including points, shall not exceed 2% 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 Ca1HFA down payment assistance and/or secondary financing products). ~. In the event of a competing interest for funding, a priority will be given to persons who „_-- Deleted: 9 live and or work in the City of Pleasanton. 'The homebuyer will be required to enter into a Promissory Note and Deed of Trust with the City. 9. The homes are required to pass pica) home inspections including termite and roof •~. ,.-- Deleted: meet clearances. - Deleted: all Formatted: Bullets and Numbering 10. Buyer must obtain a written property inspection report from a qualified home inspection Deleted: l l E- - - company prior to the close of escrow. This 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 where permits are re uire Deleted: requiringsaehapermit 11. Buyer must purchase pone-year home warranty covering all major systems in the home - - Formatted: Boosts and Numbering including built-in appliances, air conditioners, and water heating systems. 12. Assistance provided through the DPA proerarn shall enerally be in the form of two separate loans of swop) amount one of which runs for the first ten years (using CaIHFA HELP funds) and another which runs for the second ten years (using City funds) Payments on both loans are eenerally amortized over the entire ten-vear period However the City may consider on a case-bv-case bases deferrin:? pavments on the first loan for up to the first three (3Z, ey ars if deemed necessary to improve the borrower's initial qualifyins~ ratio [n this case payments shall be amortized over the remainin:? period (e ~ seven years) so that the loan is completerrepaid wrthln the ten year term. 13. Borrower shall enter into a loan agreement with the City of Pleasanton covering the total ~-- _ - - - - amount of funds owned by the City via a romissory Note~ecured by a Deed of Trust for each - = - - loan, Failure by borrower to make timely loan payments to the Ci ma result in the default of the City's loan(s~ and forfeiture of ownership by the borrower.tLoan 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 are not eligible. i Deleted: 13 t Deleted: lent Deleted:. A Deleted: between the buyer and the City describing the loan terms shall be executed as well as {Deleted: with Resale Restrictions 14. Borrower must have sufficient creditworthiness to_qualify for a first mortgage from a CaCa HFA-approved lender. First mortgages must be fixed rate loans with no negative - - - - - amortization, balloon payments or adjustable rate features and must be approved by the Ciri~ Deleted: ¶ Funds may be used as down payment assistance and/or to pay for nonrecurring closing costs.¶ <#>Total down payment assistance shall not exceed 20% of the purchase price of the home.¶ <#>Eligible closing costs including points shall not exceed 2 % of the purchase price.¶ ^ ~ Deleted: 1a 15. Execution of the City's second mortgage documents shall be performed at close of escrow Deleted` pry ~-- - - - ' . - - - Deleted:. y the Escrow Company. Deleted: l5