City of Lima, Ohio Department of Community Development 50 Town Square Lima, Ohio Tel: 419/ Fax: 419/

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1 City of Lima, Ohio Department of Community Development 50 Town Square Lima, Ohio Tel: 419/ Fax: 419/ APPLICATION PACKET FOR THE CITY OF LIMA HOUSING REPAIR LOAN PROGRAMS Dear Applicant: This packet includes the following: The Housing Program Flyer lists the programs currently available through the Department of Community Development. It briefly describes the programs as well as lists the current household income limits (yearly gross). The Checklist for the City of Lima Housing Repair Loan Programs lists all the steps included in the loan process. Step A - The Application Process outlines all the items and criteria required when submitting the application. Steps B through F lists the steps that occur after the application is submitted. The Application for the City of Lima Housing Loan Programs will need to be completely filled out. Income from all sources and from all household members 18 years and older will need to be included. If you need additional forms or have any questions please contact the Housing Loan Originator at the number listed below. PLEASE NOTE: Due to limited funding, the Home Update program will be focusing on serious life and safety repairs such as applications for furnace, water line, sewer line or gas line repairs. The Housing Rehabilitation Inspector will determine if it is a serious life or safety repair during the preliminary inspection. Please call if you have any questions. Donna Kahler Housing Loan Originator Phone: Office Hours: Monday - Friday 12:00pm to 5:00pm donna.kahler@cityhall.lima.oh.us

2 HOUSING PROGRAMS - LIMA, OHIO The following programs are available through the Department of Community Development (DCD) HOME Update - a repair loan program designed to assist resident homeowners by repairing major health and safety violations, up to a maximum of 24,000. The home must meet City of Lima Property Maintenance Code Standards at completion of repairs. Household income cannot exceed the amounts listed on the chart below. The amount of existing mortgage plus repair mortgage cannot exceed the value of your home. Repayment amount for the repair loan reduces at the rate of 20% per year if the homeowner maintains insurance coverage, retains ownership, and resides in the home for a period of 5 years. To determine eligibility for the loan, you must complete the Loan Application with supporting documents including: Recorded deed to the property and mortgage information Current homeowner s insurance policy Household income documentation - employer information - benefit information - bank account information You must also complete the 6 hour Wealth Prep class on budget and finance. Household Income 1 Person 2 Persons 3 Persons 4 Persons 5 Persons 6 Persons 7 Persons 50% of Median 20,450 23,400 26,300 29,200 31,550 33,900 36,250 First Home Lima - A down payment loan program for households buying their first home in Lima with income below 80% of the median income. Household income cannot exceed the amounts listed on the chart below. Homebuyers may earn up to 6,000 toward down payment and closing costs by participating in the First Home Lima Housing Counseling Program. Repayment amount of the down payment loan reduces at the rate of 20% per year if the homeowner maintains insurance coverage, retains ownership, and resides in the home for a period of 5 years. To determine eligibility for the loan, you must complete the Loan Application with supporting documents including: - household income documentation - personal credit documentation - employer information - benefit information - bank account information You must also complete the First Home Lima Housing Counseling Classes. Household Income 1 Person 2 Persons 3 Persons 4 Persons 5 Persons 6 Persons 7 Persons 80% of Median 32,700 37,400 42,050 46,700 50,450 54,200 57,950 For further details concerning these programs, call , or stop by the DCD offices at the Lima Municipal Center, 50 Town Square, Lima, Ohio. J:HOUSING/DOCUMENTS/HOUSING APPLICATION FORMS Rev. 6/6/2016

3 APPLICATION FOR CITY OF LIMA HOUSING LOAN PROGRAMS GENERAL INFORMATION FOR OFFICE USE ONLY REC'D # INSPECTION DATE D U E DATE 1st APPLICANT 2nd APPLICANT LAST NAME FIRST NAME INITIAL SOCIAL SECUTITY # BIRTH DATE LAST NAME FIRST NAME INITIAL SOCIAL SECURITY # BIRTH DATE MARITAL STATUS ADDRESS ZIP PHONE (home) (work) (cell) ADDRESS Other occupants and ages in household - DEPENDENTS FULL NAME AGE RELATIONSHIP Other occupants and ages in household - NON-DEPENDENTS FULL NAME AGE RELATIONSHIP Do you own the home at the address shown above? How long have you occupied the home? Is this a single family dwelling? If not single family, how many units? Number of bedrooms Give the name and address of the person, institution or bank who holds the mortgage, note or contract on the home: ( ) YES ( ) NO YEARS ( ) YES ( ) NO DEMOGRAPHICS Ethnicity (Choose One) ( ) Hispanic or Latino ( ) Not Hispanic or Latino Race (Choose those that apply) ( ) American Indian or Alaskan Native ( ) Asian ( ) Black or African American ( ) Native Ahwaiian or Pacific Islander ( ) White Present Balance: Estimate of Value: List repairs or improvements which may be necssary to update or correct health or safety hazards:

4 1st APPLICANT EMPLOYMENT INFORMATION 2nd APPLCANT OCCUPATION OCCUPATION EMPLOYER'S NAME EMPLOYER'S NAME EMPLOYER'S ADDRESS EMPLOYER'S ADDRESS GROSS PAY PER MONTH GROSS PAY PER MONTH HOW LONG EMPLOYED YEARS HOW LONG EMPLOYED YEARS MONTHLY INCOME INFORMATION ASSETS Gross wages for 1st Applicant Checking Gross wages for 2nd Applicant Savings Pensions or Annuities Automobiles Social Security U.S. Savings Bonds Child Support Other Real Estate (Present Market Value) Income from Other Adults Rental Income (gross) Stocks, Bonds, Other Other Income (Explain) TOTAL Gross Monthly Income TOTAL Assets MONTHLY HOUSING EXPENSE OTHER MONTHLY EXPENSES Mortgage Payment Name of Account Monthly Pmt. Balance House Insurance Automobiles Property Taxes Utility Costs: Loans or Other Notes Gas/Heat Electric Water/Garbage Charge/Installent accounts TOTAL Housing Costs Other Monthly Expenses TOTAL Other Monthly Expenses If more room is needed, please place additional information on the back of the application form.

5 Recipients of SSA & SSI need to attach your most recent award letter, which states that their monthly benefits are for the current year. If you do not have one, you will need to contact Social Security and ask them to send you one. For Child Support verification, please provide payment records for at least the past 3 months by accessing your account at If you are unable to access your account, please call ALONG WITH THE APPLICATION AND VERIFICATION FORMS, PLEASE SUBMIT: 1. Copy of the Deed to your property 2. Proof of Homeowners Insurance 3. Property taxes must be current. The City of Lima will verify if Property Taxes are current through the Allen County Auditor s website. If recent payments have been made, please provide a copy of your paid receipt. 4. Mortgage payments must be current. The City of Lima will verify using the Mortgage Verification form. I understand the information contained on this form will be used in determining my/our eligibility for my/our request for a loan under Home Update/Home ReNew and hereby certify the information is true and correct to the best of my knowledge and belief. I understand that I may be required to complete other forms and supply additional information in the processing of this application. I authorize the City of Lima to obtain verifications, employment verification, account balances and credit reports. I authorize the City of Lima official to enter onto my property and inspect the interior and/or exterior of structures for purposes of processing this application. SIGNATURE OF APPLICANT(S) DATE How did you hear about the City of Lima Housing Programs? DATE (circle) Newspaper - TV - Radio - Word of Mouth - Other If you have questions when filling out this application, call

6 AUTHORIZATION FOR CREDIT REPORT I authorize the City of Lima to request my credit report for use in the City of Lima Update Repair Loan Program. NAME ADDRESS SOCIAL SECURITY # DATE OF BIRTH SIGNATURE DATE NAME ADDRESS SOCIAL SECURITY # DATE OF BIRTH SIGNATURE DATE

7 REQUEST FOR VERIFICATION OF BENEFITS APPLICANT BENEFIT SUPPLIER NAME ADDRESS CITY, STATE, ZIP NAME ADDRESS CITY, STATE, ZIP SOCIAL SECURITY # I understand that the City of Lima will need to verify the information provided in the Housing Repair Loan application in order to ascertain my/our eligibility to participate in the program. I hereby authorize the release of information, including employment history, credit history and other appropriate information necessary for the processing of my/our application. SIGNATURE OF APPLICANT DATE **********************APPLICANT - DO NOT WRITE BELOW THIS LINE*********************** RETURN IT WITH THE APPLICATION TO THE CITY OF LIMA DEPARTMENT OF COMMUNITY DEVELOPMENT The requested information in this Verification of Benefits is for the confidential use of the City of Lima and its Agents in processing the Housing Repair Loan Application. We will appreciate your cooperation in supplying the information requested below. Sincerely, City of Lima Department of Community Development 50 Town Square Lima, OH Donna Kahler Phone: Fax Housing Loan Originator donna.kahler@cityhall.lima.oh.us A. Welfare Assistance (per month) B. Social Security Income: Gross Amount Medicare Deduction Net Amount C. Supplemental Security Income (per month) D. Military or Veteran Pension (per month) E. Pension (per month) F. Other Income (per month) SIGNATURE TITLE DATE

8 REQUEST FOR VERIFICATION OF EMPLOYMENT APPLICANT EMPLOYER Name Address City, State, Zip Social Security # Name Address City, State, Zip I understand that the City of Lima will need to verify the information provided in the Housing Repair Loan application in order to ascertain my/our eligibility to participate in the program. I hereby authorize the release of information, including employment history, credit history and other appropriate information necessary for the processing of my/our application. Signature of Applicant Date *************************** APPLICANT - DO NOT WRITE BELOW THIS LINE************************************* RETURN IT WITH THE APPLICATION TO THE CITY OF LIMA DEPARTMENT OF COMMUNITY DEVELOPMENT The requested information in this Verification of Employment is for the confidential use of the City of Lima, Ohio, and its Agents in processing the Housing Repair Loan Application. We will appreciate your cooperation in supplying the information requested below. Sincerely, Donna Kahler Housing Loan Originator City of Lima Department of Community Development 50 Town Square Lima, Ohio Phone: Fax: donna.kahler@cityhall.lima.oh.us Position Held Compensation: (Actual amounts received past 12 mos.) Dates of Emplyment Base Salary or Wages Hourly Rate of Pay Overtime Approximate Hours Per Week Commissions If seasonal employment, please indicate layoff period. Probability of Continued Employment Bonus TOTAL Information provided by: Signature Title Date

9 REQUEST FOR VERIFICATION OF MORTGAGE APPLICANT MORTGAGOR NAME ADDRESS CITY, STATE, ZIP NAME ADDRESS CITY, STATE, ZIP SOCIAL SECURITY # I understand that the City of Lima will need to verify the information provided in the Housing Repair Loan application in order to ascertain my/our eligibility to participate in the program. I hereby authorize the release of information, including employment history, credit history and other appropriate information necessary for the processing of my/our application. SIGNATURE OF APPLICANT DATE *********************APPLICANT - DO NOT WRITE BELOW THIS LINE******************** RETURN IT WITH THE APPLICATION TO THE CITY OF LIMA DEPARTMENT OF COMMUNITY DEVELOPMENT The requested information in this Verification of Mortgage is for the confidential use of the City of Lima, Ohio and its Agents in processing the Housing Repair Loan Application. We will appreciate your cooperation in supplying the information requested below. Sincerely, City of Lima Department of Community Development 50 Town Square Lima, OH Donna Kahler Phone: Fax: Housing Loan Originator donna.kahler@cityhall.lima.oh.us ***IF THERE IS A FEE TO BE CHARGED FOR THIS DATA, PLEASE CONTACT DONNA KAHLER AT BEFORE PROCESSING. THANK YOU! PRPPERTY ADDRESS MORTGAGE DATE ORIGINAL AMOUNT MATURITY DATE PRESENT BALANCE TYPE OF MORTGAGE: CONVENTIONAL FHA VA MONTHLY PAYMENT: Principal & Interest Mortgage & Insurance Real Estate Tax Escrow TOTAL ARE PAYMENTS CURRENT? YES NO IF NO, AMOUNT IN ARREARS HAS THIS ACCOUNT BEEN SATISFACTORY? YES NO INFORMATION PROVIDED BY: MORTGAGE DATA SIGNATURE TITLE DATE

10 REQUEST FOR VERIFICATION OF ACCOUNTS APPLICANT FINANCIAL INSTITUTION NAME ADDRESS CITY, STATE, ZIP NAME ADDRESS CITY, STATE, ZIP SOCIAL SECURITY # I understatnd that the City of Lima will need to verify the information provided in the Housing Repair Loan Application in order to ascertain my/or eligibility to participate in the program. I hereby authorize the release of information, including employment history, credit history and other appropriate information necessary for the processing of my/our application SIGNATURE OF APPLICANT DATE ********************APPLICANT DO NOT WRITE BELOW THIS LINE****************************** RETURN IT WITH THE APPLICATION TO THE CITY OF LIMA DEPARTMENT OF COMMUNITY DEVELOPMENT The requested information in this Verification of Accounts is for the confidential use of the City of Lima, Ohio and its Agents in processing the Housing Repair Loan Application. We will appreciate your cooperation in supplying the information requested below. Sincerely, City of Lima Department of Community Development 50 Town Square Lima, OH Donna Kahler Phone: Fax: Housing Loan Originator donna.kahler@cityhall.lima.oh.us SAVINGS ACCOUNT CERTIFICATE OF DEPOSIT Account # Account # Balance Balance Maturity Date Account # Account # Balance Balance Maturity Date CHECKING ACCOUNT Account # Balance Account # Balance INFORMATION PROVIDED BY: SIGNATURE TITLE DATE

11 CHECKLIST City of Lima HOME Update Repair Loan Program A. The Application Process. Applicant Must: The applicant must own the home, live in the home and the home must be located in the City limits of Lima. Fill out the application packet. Income for all household members will be counted including employment, social security, child support, pension benefits, etc. Any questions please call the Housing Loan Originator at Provide a copy of the recorded deed to the property with the application. All persons recorded on the deed must be income qualified and living in the home. Provide proof of homeowner s insurance with the application or have your insurance agent fax a declaration page to fax number: to the attention of Housing Loan Originator. Provide a copy of a current award/benefits letter if receiving Social Security (SSA or SSI) Provide child support payment records for the past 3 months. Property taxes must be current. If recent payments have been made, please provide a copy of paid receipt. Mortgage must be current if you have one. The balance of your mortgage plus repairs cannot exceed the value of your home. B. The Verification Process. The City Will: Confirm the deed, proof of insurance, award letters, child support payments are included with application and the application is complete. Send the requests for verification of employment, if applicable. Send the requests for verification of benefit suppliers, if applicable. Send the requests for verification of mortgage, if applicable. Send the requests for verification of banking accounts, if applicable. Upon receipt of all verification documents calculate projected gross income for next 12 months. Determine if income eligible for the Home Update (50% of area median income). Refer to Housing Program flyer for current income limits. Run a credit report to evaluate credit history. C. The Inspection/Bid Process for Home Update. City and Applicant Will: The Housing Rehabilitation Inspector calls the applicant to set up appointment to do a preliminary inspection of the home. The entire home is inspected including roof, electrical, plumbing, foundation, etc. The home will need to be brought up to current housing building standards. The repairs cannot exceed 24,000 and only those with major health or safety issues will be assisted. If the repairs exceed the limits of the program or it is determined by the Housing Rehabilitation Inspector that the repairs for Home Update are not major health or safety repairs the applicant is sent an ineligibility letter. It is put out to bid. Contractors have 2 weeks to submit their bids.

12 D. The Closing of the Home Repair Loan. City and Applicant Will: The Housing Loan Originator calls and schedules the closing date. The clients will need to bring a photo ID and a money order (no cash, no checks) made payable to the Allen County Recorder s Office to record the mortgage(s). For the Home Update the amount is If the legal description is unusually long another 8.00 will be required. The closing takes approximately 30 minutes. After the closing the loan documents are completed (signed and notarized) and the mortgage is recorded. E. The Repair Work Process. City and Applicant Will: After the 3 day rescind period has passed (the client has 3 day to cancel the loan) the contractor will sign the contractor documents and contact the client to begin the work. After the work is complete the client signs for approval of project and for the contractor to be paid. The client is sent two Summary Statements in the mail a few weeks or more after completion of the work. It details the loan, showing the balance of the loan. One is for the client s records the other must be signed and returned to be filed with the original recorded mortgage and promissory note. F. The Loan Satisfied/Released. City Will: For the Home Update, five years from the date of closing, as long as all terms of the loan have been met, the loan will be released.

13 About the Consumer Financial Protection Bureau The Consumer Bureau is focused on making the consumer financial markets work for families by helping consumers to take more control over their financial lives. We are working to foster a marketplace: Where consumers can see prices and risks up front and can easily compare products Where financial service providers can t build a business model around unfair, deceptive, or abusive practices That works for all consumers, responsible lenders, and the economy as a whole Submit a complaint If you believe you have been discriminated against, you can file a complaint with the Consumer Bureau by visiting: consumerfinance.gov complaint line (855) 411-CFPB (2372) TTY/TDD (855) 729-CFPB (2372) Tell us your story Whether or not you file a complaint, you can help us protect consumers and create a fairer marketplace by telling us about your experience. Visit our website and look for Tell Your Story under the Participate tab. Join our social networks facebook.com/cfpb twitter.com/cfpb consumerfinance.gov Know Your Rights: Credit Discrimination is Illegal Dedicated to making markets work for American consumers

14 Credit discrimination is illegal The Equal Credit Opportunity Act makes it illegal to base credit decisions on: Race Religion Marital status Color National origin Exercising in good faith your rights under the Consumer Credit Protection Act Receipt of any sort of public assistance Sex Age (as long as you are old enough to enter into a contract) This law applies to all forms of credit including: Car loans Credit cards Home loans Protect yourself Do your research. Shop around. Learn about the various features and downsides of the financial product you want. Research the current interest rates. Compare products from several lenders. Know your credit history. Creditors will make decisions based on your credit history. Be sure there are no mistakes or missing items in your credit reports. Get a free copy of your credit report from each of the three biggest consumer reporting agencies every 12 months. Visit AnnualCreditReport.com for your free credit reports. Ask questions. Don t focus only on your monthly payment. Be sure you understand the rates and fees you will pay over the long run. Stay in control. Your lender shouldn t make you feel rushed, or unnecessarily delay action on your application. Don t sign until you re satisfied that the credit product works for you. Watch for warning signs Credit discrimination often happens behind closed doors, which makes it hard to spot. But there may be warning signs of discrimination or other illegal practices. Look for warning signs such as: You are treated differently in person than on the phone. You are discouraged from applying for credit. You hear the lender make negative comments about race, national origin, sex, and other protected groups. You are refused credit even though you qualify for it. You are offered credit with a higher rate than the one you applied for, even though you qualify for the lower rate. You are denied credit, but not given a reason why or told how to find out why. Your deal sounds too good to be true. You feel pushed or pressured to sign. Overdraft protection programs Student loans