City of Woonsocket First Home Down Payment Assistance Program

Transcription

1 City of Woonsocket First Home Down Payment Assistance Program Table of Contents Program Summary... 1 Contact Information... 2 Eligibility Criteria... 3 Household Size Maximum Yearly Income... 3 FHA Mortgage Limits... 3 ACKNOWLEDGE OF PROGRAM REQUIREMENTS (Signature Required)... 3 Applicant Instructions... 4 Application (Signature Required)... 6 Eligibility Release Form (2 PGS) (Signature Required)... 7 Lead Based Paint Procedures ATTACHMENT A... 9 WATCH OUT FOR LEAD BASED PAINT POISONING NOTIFICATION (Signature Required)... 9 HUD Approved Home Buyer Education Courses AFFIDAVIT OF FIRST-TIME HOME BUYER (Signature Required) LENDER AFFIDAVIT (Signature Required) PRELIMINARY CREDIT APPROVAL (Signature Required) LETTER OF COMMITMENT (2 pages) (Signature Required) VISUAL ASSESSMENT & HQS Indemnification (Signature Required) Application Checklist Program Summary The City of Woonsocket (the City) is administering a Down Payment Assistance Program to assist qualified first-time Woonsocket home buyers with a loan in the amount of up to $15,000 to assist with down payment. The no-interest loan will be partially forgiven ($5,000 after 5 years) and partially deferred ($10,150 deferred loan which includes a $150 program-required visual assessment/inspection fee). Repayment is made at the time of sale, exchange or transfer of title. Applicants who meet the necessary qualifications will receive their loan on a first come, first serve basis. There are limited funds available, and the City reserves the right to expand or terminate the program depending on the availability of funds. In order to qualify, the applicant must complete all requirements as outlined in the application instructions. BE A 1 ST TIME HOME BUYER AND MEET INCOME LIMITS Applicants must be at or below the applicable income limits and be first-time home buyers. Definition of a first-time home buyer is an individual, and his or her spouse who have not owned a home during the 3-year period ending on the date of purchase of property. The term first-time home buyer also includes a displaced homemaker or a single parent who has only owned a home with a spouse. COMPLETE A HOME BUYER EDUCATION CLASS The applicant must complete a Housing and Urban Development (HUD) approved agency home buyer education class and provide a certificate of completion. City of Woonsocket First Home Down Payment Assistance Program July 2012 Page 1 of 21

2 RECEIVE AN APPROVED LOAN An applicant must receive an approved FHA, VA, or conventional loan. The applicant s Title Company or closing agent must be willing to execute and provide the City with all the real estate documents (detailed within this package). A list of instructions will be provided to the agency responsible for conducting the closing transaction. It is the applicant's responsibility to ensure that all documents are properly prepared and forwarded to the City in a timely manner. PASS A VISUAL ASSESSMENT & HQS INSPECTION A Visual Assessment must be completed by the City on all homes for health and safety concerns and for Lead Based Paint concerns for homes built prior to 1978 as outlined in Attachment A. If the home was built prior to 1978, a representative from the City will determine whether there are deteriorated paint surfaces present that could be a potential hazard to occupants. If potential hazardous Lead Based Paint conditions exist, the Seller and/or Buyer must take actions to remove the hazardous conditions, pursuant to HUD guidelines and prior to occupancy. A $150 inspection fee will be added to the Deferred Loan Amount. The City Visual Assessment and Housing Quality Standards (HQS) Inspection are required by the federal government in order to alert home buyers to potential health and safety concerns as well as potential lead-based paint dangers prior to the closing. Federal funds may be withheld if certain problems exist and the seller and/or buyer do not wish to, or cannot demonstrate the ability to, mitigate them. The seller or buyer, however, is free to complete the transaction without federal assistance. The home buyer is encouraged to have a professional inspection regardless of the visual assessment and HQS inspection conducted by the City. The visual assessment and HQS inspection are not intended to determine the nature and extent of health and safety problems, nor do they determine if unseen problems exist in the home. PRIOR TO OCCUPANCY and within 6 months of closing: All lead safety and housing quality standards must be met. Buyer is responsible for obtaining and providing the City with an Acceptable Clearance Certificate by a licensed lead inspector. Certification by the City that code compliance is met is also required. PAY LOAN PROCESSING FEE Applicants must submit a $ loan-processing fee, payable to the City of Woonsocket. Payment must be in the form of a certified check or money order. The fee is refundable if assistance is not provided. REPAY UPON SALE OR TRANSFER The loan provided by the City as the lender shall be repaid by the buyer(s), in full, if the buyer(s) sell, exchange or transfer title. If borrower decides to refinance, the City has the right to refuse loan subordination. Copies of the loan subordination requirements and application are available from the Woonsocket Housing Division. Contact Information Deliver application materials to: Housing Division / First Home Down Payment Assistance Program Department of Planning & Development City of Woonsocket 169 Main Street, PO Box B Woonsocket, RI (PH) (FX) [email protected] City of Woonsocket First Home Down Payment Assistance Program July 2012 Page 2 of 21

3 Eligibility Criteria 1. Follow the application instructions, complete and submit all required forms and documents. 2. Applicant must meet income eligibility for his/her household size. Applicant must have yearly combined household annual adjusted gross income equal to or less than the following: Household Size Maximum Yearly Income (effective and subject to change) Household Size 1 PERSON 2 PERSON 3 PERSON 4 PERSON 5 PERSON 6 PERSON 7 PERSON 8 PERSON $42,350 $48,400 $54,450 $60,500 $65,350 $70,200 $75,050 $79,900 (The above figures represent 80% Area Median Income Limits (AMI) FY 2011 and are subject to change) FHA Mortgage Limits 3. Real property must not exceed FHA mortgage limits for Providence County (pre-economic Stimulus Act and subject to change): 1 unit - $316,350; 2 unit - $359,397; 3 unit - $434, Applicant must be 18 years of age or older. 5. Must be a first-time home buyer. A first-time home buyer is an individual, and his or her spouse who have not owned a home during the 3-year period ending on the date of purchase of property. The term first-time home buyer also includes a displaced homemaker or a single parent who has only owned a home with a spouse. 6. Eligible properties must be zoned for residential use only and are limited to Single Family (1-4 units). 7. The $15,000 loan must be targeted toward down payment (and later indicated as such on the HUD-1 Settlement Statement). 8. The purchase of said property must not lead to the displacement of any individual other than the seller and his/her immediate family. 9. Applicant must secure FHA, VA, or conventional financing for property purchase. 10. A Visual Assessment and Housing Quality Standards (HQS) Inspection must be completed by the City on all homes for health and safety concerns and for Lead Based Paint concerns for homes built prior to Applicant must complete a HUD approved agency home buyer education course and obtain a home buyer certificate of course completion. 12. HOME-Assisted property owners are mandated to purchase and maintain flood insurance for structures located within the Special Flood Hazard Area or 100-year floodplain and submit policy documentation, as requested. ACKNOWLEDGE OF PROGRAM REQUIREMENTS (Signature Required) Applicants, please sign below to certify that your household income is below the designated limit, the property sale price does not exceed the above limits, and that you have read and understood the previous program summary: SIGNATURES Home Buyer(s) Buyer Signature Date Buyer Name (Please Print) Buyer Signature Date Buyer Name (Please Print) Address of Woonsocket Property to be Purchased: City of Woonsocket First Home Down Payment Assistance Program July 2012 Page 3 of 21

4 Applicant Instructions 1. An applicant will be considered for the Down Payment Assistance Program once they have entered into a contract with the seller and have submitted the following to the City: a. City Application b. Release Form c. Copy of applicant's Real Estate Purchase & Sales Contract with Seller d. Copy of previous year's tax return (IRS Form 1040 and Form 4506) and four most current pay stubs and verification for any other source of income for applicant/co-applicant and any family member 18 years or older. If an applicant/co-applicant did not file a previous year's tax return, they must submit a letter stating why there was no tax return filed for the previous year, as well as an original letter from current employer, on company letterhead, stating expected rate of pay and expected number of scheduled hours for the upcoming year e. First-time Home Buyer's Affidavit f. Identification Documentation: a valid RI driver s license or identification card g. Program Summary Page h. Seller s Signed Disclosure of Information on Lead-Based Paint form i. Completed Visual Assessment form 2. Upon receipt, review and approval of the above, the City upon request, will issue a Letter of Commitment. The applicant must also submit the following documents: a. A copy of the Preliminary Title Report stating property appears free and clear for sale to applicant b. Lender Affidavit which states the lender agrees to the terms of the City c. Preliminary Credit Approval form from the Lender, stating that the applicant has received preliminary credit approval and information regarding verification of current income d. Copy of Real Estate Appraisal e. Home Buyer Education Certificate from a HUD approved course or counseling agency f. Copy of Bank Loan Application NOTE: The City must be informed of any participation by a co-owner, co-borrower or cosigner that will be participating in the purchase of the home whose name does not appear on the initial City application. This must be done in writing, including name, relationship to applicant, and in what capacity they will be participating in the purchase. The City must be informed and approve of their participation before closing. A representative of the City must perform a Visual Assessment and Housing Quality Standards Inspection for the presence of health and safety concerns, and the presence of potential lead-based paint dangers in homes built prior to If any potentially hazardous lead-based paint conditions exist, they must be mitigated (responsibility of Seller and/or Buyer) before the City can approve. The procedure, outlined in Attachment A, must be followed. 3. Upon acceptance of the required documents, the City will issue a check made payable to the escrow agent, to be disbursed according to a letter of instruction. The City must be notified at least 10 working days prior to the date of closing. After closing, the escrow agent is to return to the City all the completed documents described in the Letter of Instruction to the escrow agent. These documents include: a. Promissory Note - This document states that the Applicant agrees to pay the City the loan amount if they should move, sell or refinance the HOME-Assisted Property. Please note that the City will not subordinate to second mortgages or refinances. Criteria for subordination and application are available from the Woonsocket Housing Division. City of Woonsocket First Home Down Payment Assistance Program July 2012 Page 4 of 21

5 b. Mortgage (recorded copy) - This document states the City is a beneficiary whereby the City has a lien on the purchased property until the loan is repaid. c. Copy of the final Title Report or copy of Title Insurance policy issued to Buyer. d. Copy of home owner s insurance certificate listing the City as a named insured, as well as a certificate of flood insurance, if property is in a designated flood plain. If you have any questions or concerns regarding the application process, please call the Program Manager at MAIL OR DELIVER DOCUMENTS TO: City of Woonsocket, 169 Main Street, PO Box B Housing Division Department of Planning and Development Woonsocket, RI FAX (401) [email protected] City of Woonsocket First Home Down Payment Assistance Program July 2012 Page 5 of 21

6 Application (Signature Required) City of Woonsocket First HOME Down Payment Assistance - Information is considered confidential Applicant Name(s): Present Address: Street Address City Zip Code Home Phone: Work Phone: Address: List names and information of all person(s) in the household beginning with the head of household Name Date of Birth Social Security Number Annual Income (if over 18) The following information is for survey purposes only, and does not affect an Applicant s eligibility. Is the head of household: [ ] Male [ ] Female Is any member of the household disabled [ ] Yes [ ] No Ethnicity: [ ] Hispanic or Latino [ ] Not Hispanic or Latino Race: [ ] White [ ] Black/African American [ ] Asian [ ] American Indian/Alaskan Native [ ] Native Hawaiian/Other Pacific Islander [ ] American Indian/Alaskan Native & White [ ] American Indian/Alaskan Native & Black/African American [ ] Other multi-racial The following information pertains to the property to be purchased. Property, to be purchased, Street Address: # of units Purchase Price: $ Appraised Value: $ Year home was built Down Payment Amount from buyer(s): $ Name of Mortgage Company: Name of Loan Officer: Name of Closing Attorney: Phone Number: Estimated Closing Date: Phone: I hereby apply for a $15,000 loan with the City of Woonsocket to assist with the down payment. I agree to comply with all terms and conditions related to the loan. I understand the submission of false or misleading information may result in the rejection of this application. Buyer Signature Date Co-Buyer Signature Date WARNING: Title 18, Section 1001 of the US Code states that a person is guilty of a felony for knowingly and willingly making false or fraudulent statements to any department of the United States Government. City of Woonsocket First Home Down Payment Assistance Program July 2012 Page 6 of 21

7 Eligibility Release Form (2 PGS) (Signature Required) CITY OF WOONSOCKET 169 MAIN STREET, PO BOX B, WOONSOCKET, RI (P) (F). PURPOSE: Your signature on this HOME Program Eligibility Release Form, and the signatures of each member of your household who is 18 years of age or older, authorizes the above-named organization to obtain information from a third party relative to your eligibility and continued participation in the: HOME TBRA Program. HOME Homebuyer Program HOME Rental Rehabilitation Program. HOME Homeowner Rehabilitation Program Privacy Act Notice Statement: The Department of Housing and Urban Development (HUD) is requiring the collection of the information derived from this form to determine an applicant s eligibility in a HOME Program and the amount of assistance necessary using HOME funds. This information will be used to establish level of benefit on the HOME Program; to protect the Government s financial interest; and to verify the accuracy of the information furnished. It may be released to appropriate Federal, State, and local agencies when relevant, to civil, criminal, or regulatory investigators, and to prosecutors. Failure to provide any information may result in a delay or rejection of your eligibility approval. The Department is authorized to ask for this information by the National Affordable Housing Act of Instructions: Each adult member of the household must sign a HOME Program Eligibility Release form prior to the receipt of benefit. NOTE: THIS GENERAL CONSENT MAY NOT BE USED TO REQUEST A COPY OF A TAX RETURN. IF A COPY OF A TAX RETURN IS NEEDED, IRS FORM 4506, REQUEST FOR COPY OF TAX FORM MUST BE PREPARED AND SIGNED SEPARATELY. INFORMATION COVERED: INQUIRIES MAY BE MADE ABOUT ITEMS INITIALED BY APPLICANT/TENANT. INCOME (ALL SOURCES) ASSETS (ALL SOURCES) CHILD CARE EXPENSE HANDICAP ASSISTANCE EXPENSE (IF APPLICABLE) MEDICAL EXPENSE (IF APPLICABLE) OTHER (LIST) VERIFICATION REQUIRED INITIALS DEPENDENT DEDUCTION FULL-TIME STUDENT HANDICAP/DISABLED FAMILY MEMBER MINOR CHILDREN City of Woonsocket First Home Down Payment Assistance Program July 2012 Page 7 of 21

8 AUTHORIZATION: I authorize the above-named HOME Participating Jurisdiction and HUD to obtain information about me and my household that is pertinent to eligibility for participation in the HOME Program. I acknowledge that: (1) A photocopy of this form is as valid as the original. (2) I have the right to review the file and the information received using this form (with a person of my choosing to accompany me). (3) I have the right to copy information from this file and to request correction of information I believe inaccurate. (4) All adult household members will sign this form and cooperate with the owner in this process. HEAD OF HOUSEHOLD SIGNATURE, PRINTED NAME, AND DATE: FAMILY MEMBER HEAD #1 X OTHER ADULT MEMBER OF THE HOUSEHOLD SIGNATURE, PRINTED NAME, AND DATE: FAMILY MEMBER #2 X OTHER ADULT MEMBER OF THE HOUSEHOLD SIGNATURE, PRINTED NAME, AND DATE: FAMILY MEMBER #3 X OTHER ADULT MEMBER OF THE HOUSEHOLD SIGNATURE, PRINTED NAME, AND DATE: FAMILY MEMBER #4 X City of Woonsocket First Home Down Payment Assistance Program July 2012 Page 8 of 21

9 Lead Based Paint Procedures ATTACHMENT A Regulations from the Department of Housing and Urban Development (HUD: 24 CFR Part 35 subpart K) require increased activities concerning possible lead-based paint hazards in homes built before The primary reason why HUD and its grantees are addressing lead-based paint hazards is to protect families and children. When deteriorated leadbased paint surfaces are present, children under the age of 6 are in danger of being poisoned through the ingestion or inhalation of lead-based paint dust, paint chips and/or lead-based paint contaminated soil around the exterior of the home. The following procedures are required for all homes built prior to 1978 before down payment assistance to a family purchasing such a home can be approved. 1. Notification a. Pamphlet and Disclosure. b. Notice of Lead Hazard Evaluation or Presumption, if applicable. c. Notice of Lead Hazard Reduction Activity. This printed information will be part of the initial application packet. 2. Lead Hazard Evaluation - A visual assessment will be performed by City personnel to determine whether there are deteriorated paint surfaces that could constitute a hazard to the occupants. Potentially hazardous paint surfaces are defined as more than 2 square feet of deteriorated surface on the interior of a home and more than 20 square feet of deteriorated surface on the exterior of a home. The cost to mitigate lead-based paint problems will be the responsibility of the seller and/or buyer. 3. Lead Hazard Reduction a. Paint Stabilization b. Safe Work Practices c. Clearance Exam d. Certification of Acceptable Clearance Status, Certification of Lead Free Status, or Certification of Lead-Safe Status If a home fails the Visual Assessment, the deteriorated surfaces must be repaired and stabilized prior to occupancy. This work must be performed by a State of RI Certified Lead Based Paint Contractor using Safe Work Practices as required by HUD, the EPA and OSHA. Following the completion of Paint Stabilization, a Clearance Test must be completed by a Certified Lead Based Paint Inspector or Risk Assessor to verify that the stabilization work has been successful and that the home is clean of hazardous residues. The home seller could choose to have the home tested to determine whether leadbased paint is present. The City will accept this test report if it is performed by a Certified Lead Based Paint Inspector or Risk Assessor following HUD guidelines. The cost for private testing will be solely the responsibility of the seller. U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT WATCH OUT FOR LEAD BASED PAINT POISONING NOTIFICATION (Signature Required) TO: OWNERS AND TENANTS OF HOUSING CONSTRUCTED BEFORE 1978 If a property was constructed before 1978, there is a possibility it contains lead-based paint. PLEASE READ THE FOLLOWING INFORMATION CONCERNING LEAD PAINT POISONING. Sources of Lead Based Paint The interiors of older homes and apartments often have layers of lead-based paint on the walls, ceilings, windowsills and doorframes. Lead-based paint and primers may also have been used on outside porches, railings, garages, fire escapes and lampposts. When the paint chips, flakes or peels off, there may be a real danger for babies and young children. Children may eat paint chips or chew on painted railings, windowsills or other items when parents are not around. Children can also ingest lead even if they do not specifically eat paint chips. For example, when children play in an area where there are City of Woonsocket First Home Down Payment Assistance Program July 2012 Page 9 of 21

10 loose paint chips or dust particles containing lead, they may get these particles on their hands, put their hands into their mouths, and ingests a dangerous amount of lead. Hazards of Lead-Based Paint poisoning are dangerous--especially to children under the age of seven (7). It can eventually cause mental retardation, blindness and even death. Symptoms of Lead-Based Paint Poisoning Has your child been especially cranky or irritable? Is he or she eating normally? Does your child have stomachaches and vomiting? Does he or she complain about headaches? Is your child unwilling to play? These may be signs of lead poisoning. Many times though, there are no symptoms at all. Because there are no symptoms does not mean that you should not be concerned if you believe your child has been exposed to lead-based paint. Advisability and Availability of Blood Lead Level Screening If you suspect that your child has eaten chips of paint or someone told you this, you should take your child to the doctor or clinic for testing. If the test shows that your child has an elevated blood lead level, treatment is available Contact your doctor or local health department for help or more information. Lead screening and treatment are available through the Medicaid Program for those who are eligible. If your child is identified as having an elevated blood lead level, you should immediately notify the Community Development or other agency to which you or your landlord is applying for rehabilitation assistance so the necessary steps can be taken to test your unit for lead based paint hazards. If your unit does have lead-based paint, you may be eligible for assistance to abate that hazard. Precautions to Take to Prevent Lead-Based Paint Poisoning You can avoid lead-based paint poisoning by performing some preventive maintenance. Look at your walls, ceilings, doorframes and windowsills. Are there places where the paint is peeling, flaking, chipping, or powdering? If so, there are some things you can do immediately to protect your child: (a) Cover all furniture and appliances; (b) Get a broom or stiff brush and remove all loose pieces of paint from walls woodwork, window wells and ceilings; (c) Sweep up all pieces of paint and plaster and put them in a paper bag or wrap them in newspaper. Put these packages in the trash can. DO NOT BURN THEM. (d) Do not leave paint chips on the floor or in window wells. Damp mop floors and windowsills in and around the work area to remove all dust and paint particles. Keeping these areas clear of paint chips, dust and dirt is easy and very important; and (e) Do not allow loose paint to remain within your children's reach since children may pick loose paint off the lower part of the walls. Homeowner Maintenance and Treatment of Lead-Based Paint Hazards As a homeowner, you should take the necessary steps to keep your home in good shape. Water leaks from faulty plumbing, defective roofs and exterior holes or breaks may admit rain and dampness into the interior of your home. These conditions damage walls and ceilings and cause paint to peel, crack or flake. These conditions should be corrected immediately. Before repainting, all surfaces that are peeling, cracking, chipping or loose should be thoroughly cleaned by scraping or brushing the loose paint from the surface, then repainted with two (2) coats of non-leaded paint. Instead of scraping and repainting, the surface may be covered with other material such as wallboard, gypsum or paneling. Beware that when lead-based paint is removed by scraping or sanding, a dust is created, which may be hazardous. The dust can enter the body either by breathing or swallowing it. The use of heat or paint removers could create a vapor or fume which may cause poisoning if inhaled over a long period of time. Whenever possible, the removal of lead-based paint should take place when there are no children or pregnant women on the premises. SIMPLY PAINTING OVER DEFECTIVE LEAD-BASED PAINT SURFACES DOES NOT ELIMINATE THE HAZARD. REMEMBER THAT YOU CAN AS AN ADULT PLAY A MAJOR ROLE IN THE PREVENTION OF LEAD POISONING. YOUR ACTIONS AND AWARENESS ABOUT THE LEAD PROBLEM CAN MAKE A BIG DIFFERENCE. City of Woonsocket First Home Down Payment Assistance Program July 2012 Page 10 of 21

11 Tenant and Homebuyer Responsibilities You should immediately notify the management office or the agency through which you are purchasing your home if the unit has flaking, chipping, powdering or peeling paint, water leaks from plumbing, or a defective roof. You should cooperate with that office's effort to repair the unit. I have received a copy of the Notice entitled "Watch Out for Lead Paint Poisoning." Print Full Name Date Signature Print Full Name Date Signature City of Woonsocket First Home Down Payment Assistance Program July 2012 Page 11 of 21

12 HUD Approved Agency Home Buyer Education Courses Offered by WNDC/NeighborWorks 719 Front Street, Suite 103 Woonsocket, RI x 208 Housing Network of RI 1070 Main Street Pawtucket, RI RI Housing 44 Washington Street Providence, RI City of Woonsocket First Home Down Payment Assistance Program July 2012 Page 12 of 21

13 AFFIDAVIT OF FIRST-TIME HOME BUYER (Signature Required) STATE OF Rhode Island COUNTY OF Providence City OF Woonsocket AFFIANT, being first duly sworn, states and represents that: Affiant is a first-time home buyer* and has signed a Real Estate Purchase Contract to purchase the property located at: Street Address City *Definition of a first-time home buyer is an individual, and his or her spouse who have not owned a home during the 3-year period ending on the date of purchase of property. The term first-time home buyer also includes a displaced homemaker or a single parent who has only owned a home with a spouse. Signature of Affiant (Home Buyer) Date Printed Name of Affiant (Home Buyer) Signature of Affiant (Home Buyer) Printed Name of Affiant (Home Buyer) SUBSCRIBED and sworn to before me on this day of, 20. (Stamp) Notary Public City of Woonsocket First Home Down Payment Assistance Program July 2012 Page 13 of 21

14 LENDER AFFIDAVIT (Signature Required) STATE OF Rhode Island COUNTY OF Providence City OF Woonsocket THE UNDERSIGNED OFFICER, BEING FIRST DULY SWORN, DEPOSES AND SAYS THAT: 1. The Undersigned represents the Lender responsible for issuing the purchase money loan (in first position) for the purchase of the residence located at: Street Address City State Zip and issued to as Buyer (s). 2. The Undersigned has read the "City of Woonsocket Down Payment Assistance Program Summary" and Letter of Commitment executed between the City of Woonsocket and the Buyer(s), with respect to the loan being made to help finance the down payment associated with the above residence. Name of Lending Institution Address Phone Number Signature of Lender's Representative Name of Lender's Representative Title On this day of, 20, before me personally appeared, who being first duly sworn says that they executed the above instrument and that said person was authorized to make the representations by the above lending institution, and that said instrument was signed on behalf of the above lending institution. Subscribed and sworn to before me this day of, 20. Notary Public My commission expires: (Stamp) City of Woonsocket First Home Down Payment Assistance Program July 2012 Page 14 of 21

15 PRELIMINARY CREDIT APPROVAL (Signature Required) To: Housing Division, Department of Planning & Development City of Woonsocket, RI 169 Main Street, PO Box B Woonsocket, RI Re: Date: Buyer's Name(s) The above named individual(s) has/have received preliminary credit approval to purchase a home located at: Street Address City State Zip The appraised value of the home is: $ Not Available at this time The current household income for the above referenced Buyer(s), has been verified and the total gross annual household income has been calculated to be: $ The buyer (s) will provide $ of his/her own money toward the purchase of the above home. This preliminary credit approval is contingent on the Buyer(s) meeting all requirements of our lending institution for closing. The anticipated closing date is. The buyer(s) above will be receiving the following type of loan: FHA VA Conventional Loan Interest rate Buyer s Title Company: Phone Address City State Zip Seller s Title Company: Phone Lending Officer Signature Name of Lending Institution Lending Officer - Print Name Address Telephone City Zip City of Woonsocket First Home Down Payment Assistance Program July 2012 Page 15 of 21

16 City of Woonsocket. Down Payment Assistance LETTER OF COMMITMENT (2 pages) (Signature Required) Whereas Buyer(s) Have/has provided the following: 1. A completed City of Woonsocket loan application. 2. A copy of an executed purchase agreement for the purchase of a single family (1-4 units) residential real property located within the eligible area. 3. A copy of applicant's previous year s tax return and current pay stubs. 4. A signed and notarized First-Time Home Buyer Affidavit. And whereas the City of Woonsocket has reviewed the application and found it to meet all program requirements, the Grantee hereby acknowledges application for a loan of $15,000.00, and agrees to adhere to the requirements and procedures specified in this letter. Signature of the closing documents for the purchase, including the Mortgage, Agreement, and Note, will constitute the Grantee's acceptance of the loan on the terms specified in this Letter of Commitment. COMMITMENT Subject to the Grantee's following all procedures described in this Letter of Commitment and fulfilling all requirements described herein and upon the execution of the Mortgage, Agreement, Note and obtaining the execution of the Lender's Affidavit, the Grantor hereby agrees to provide a loan of $15, to the undersigned Grantee(s), and acknowledges that said property is located at: Street Address City State Zip This commitment of loan funds shall terminate ninety (90) days from the date of the Letter of Commitment. REQUIREMENTS 1. Buyer shall have a period of ninety (90) days from the date of the Letter of Commitment to close on the property. FHA, VA or other conventional first mortgage financing shall be allowed. There shall be no seller financing. 2. After receiving this Letter of Commitment and before any funds can be released, the buyer(s) shall provide to the City: a. A copy of a preliminary title report covering the property listed above. IF THIS IS TO BE A SPLIT CLOSING WITH TITLE COMPANIES, THE City of Woonsocket MUST BE GIVEN THE INFORMATION FOR BOTH THE SELLER S AND THE BUYER S TITLE COMPANIES. b. Preliminary credit approval from the lender and verification of current household income reflecting applicant's total household income does not exceed eligibility criteria. c. An executed Lender's Affidavit. d. A copy of the appraisal for the property to be purchased. e. A copy of the bank loan application. 3. After receipt of the above listed documents, our office will require 10 business days before funds can be issued. City of Woonsocket First Home Down Payment Assistance Program July 2012 Page 16 of 21

17 4. Before funds can be released, the City must complete a Visual Assessment of the home for health and safety concerns and the presence of lead-based paint dangers in homes built prior to At the time of closing the Buyer will be required to sign a Visual Assessment Disclaimer acknowledging that the City accepts no responsibility for any problems disclosed or not disclosed in their Visual Assessment Report. 6. At the time of closing, title must be vested in fee simple interest of the buyer(s), and the Trust Mortgage securing the interest of the City is properly recorded. 7. The $15, loan provided by the City to the buyer(s) must be used by the buyer(s) for down payment only. 8. The $15, loan funds provided by the City will be in the form of a partially forgivable, partially deferred nointerest loan. $5,000 will be forgiven after a 5-year period and the remainder shall be repaid by the buyer(s) if the buyer(s) sell, exchange, or transfer title, or cease using the purchased, HOME-Assisted property as their primary residence. 9. The $15, loan shall be disbursed at time of closing and duly recorded on the closing settlement statement. These funds shall only be disbursed after the Note, Mortgage, Agreement, and Visual Assessment Disclaimer Affidavit are executed and notarized. 10. The residence to be purchased must be zoned for residential use only and is limited to Single Family Residences (1-4 units). 11. The buyer(s) must occupy the property to be acquired as the buyer(s)' primary personal residence. 12. No staff member of the Planning Department for the City shall have any interest in the transaction with the buyer(s). SIGNATURES City of Woonsocket Authorized Agent Date Program Manager Date Home Buyer(s) Buyer Signature Date Buyer (Print Name) Buyer Signature Date Buyer (Print Name) Property Street Address City of Woonsocket First Home Down Payment Assistance Program July 2012 Page 17 of 21

18 VISUAL ASSESSMENT & HQS Indemnification (Signature Required) Applicant: Please provide the information listed below. A representative of the City must perform a Visual Assessment & HQS Inspection for the presence of health and safety concerns, and the presence of potential lead-based paint dangers in homes built prior to Year home was built Applicant is aware that a City of Woonsocket representative will be contacting them or their realtor to make arrangements to inspect the home. The inspection should take place upon receipt of the P&S agreement and no later than one week prior to the closing date. Address of home to be purchased: Street City Estimated Closing Date: Applicant s Name: Telephone # s: Home Work Cell Name of Home Buyer s Realtor: Company Name: Telephone # s: Home Work Cell Name of Seller s Realtor: Company Name: Telephone # s: Home Work Cell City of Woonsocket First Home Down Payment Assistance Program July 2012 Page 18 of 21

19 INCOME ELIGIBILITY: CITY OF WOONSOCKET HOME FUNDS INCOME ELIGIBILITY ***PLEASE READ THIS SECTION PRIOR TO COMPLETING FORM*** Indicate what your household expects to make over the next 12 months that is currently verifiable in writing & attach INCOME DOCUMENTATION CANNOT BE MORE THAN 6 MOS. OLD. (Attach 4 paystubs, 1040 long form, benefit award letters.) ALL HOUSEHOLD MEMBERS MUST BE REPRESENTED. IF NO INCOME, INDICATE 0 IN COLUMN FIELDS & SIGN AS CERTIFICATION OF NO INCOME. Each household member completes a column. If no income, please indicate a 0 in appropriate field(s) COMPUTING IRS 1040 SERIES ADJUSTED GROSS INCOME Subtotal (add a-d) CLIENT NAME: a. b. c. d. e. 1. Wages, salaries, tips 2. Taxable interest 3. Dividend income 4. Taxable refunds/ credits/offsets of state/ local income taxes 5. Alimony received 6. Business income (or loss) 7. Capital gain (or loss) 8. Other gains (or losses) 9. Taxable amount of IRA distributions 10. Taxable amount of pensions and annuities 11. Rental real estate, royalties, partnerships, trusts, etc. 12. Farm income (or loss) 13. Unemployment compensation 14. Taxable amount of Social Security benefits 15. Other income 16. Subtotal (lines 1-15) 17. IRA deduction 18. Medical savings account deduction 19. Moving expenses 20. One-half of self-employment tax 21. Self-employed health insurance deduction 22. Keogh and self-employed SEP and SIMPLE plans 23. Penalty on early withdrawal of savings 24. Paid alimony 25. Subtotal (lines 17-24) 26. Subtract line 25 from line 16. This is Adjusted Gross Income Your signature on this City of Woonsocket (HOME) SAFE at HOME Program form, and the signatures of each member of your household who is 18 years of age or older, certifies that all information presented above is complete and accurate. Signatures also authorize the City of Woonsocket to obtain information from a third party relative to your eligibility and continued participation in the (HOME) SAFE at HOME Program. Head of Household (print name) a. Head of Household Signature Date Other Adult Member of Household (print name) b. Other Adult Member of Household Signature Date Other Adult Member of Household (print name) c. Other Adult Member of Household Signature Date Other Adult Member of Household (print name) d. Other Adult Member of Household Signature Date Privacy Act Notice Statement: The Department of Housing and Urban Development (HUD) is requiring the collection of the information derived from this form to determine an applicant s eligibility in a HOME Program and the amount of assistance necessary using HOME funds. This information will be used to establish level of benefit on the HOME Program; to protect the Government s financial interest; and to verify the accuracy of the information furnished. It may be released to appropriate Federal, state, and local agencies when relevant to civil, criminal, or regulatory investigators, and to prosecutors. Failure to provide any information may result in a delay or rejection of your eligibility approval. The Department is authorized to ask for this information by the National Affordable Housing Act of 1990.WARNING: Title 18, Section 1001 of the U.S. Code states that a person is guilty of a felony for knowingly and willingly making false or fraudulent statements to any department of the United States Government City of Woonsocket First Home Down Payment Assistance Program July 2012 Page 19 of 21

20 City of Woonsocket FIRST HOME DOWNPAYMENT ASSISTANCE PROGRAM Application Checklist Application Package with all pages and fields fully completed, signed, dated and notarized as required. Co-signer/co-borrower Documentation Income Eligibility Form/Verification (Check Stubs, Latest Year Tax Return, Other Documentation see instructions) Copy of Driver s License (if license is unavailable, provide a picture ID) Real Estate Purchase & Sales Contract Seller s Lead Disclosure Bank Loan Application Home Buyer Education Certificate Preliminary Title Report Year Home Built (copy of field card) Insurance Certification naming City of Woonsocket as Mortgagee or Loss Payee(& flood insurance, if applicable) Copy of Appraisal Loan Processing Fee, $175 money order or cashier s check City of Woonsocket First Home Down Payment Assistance Program July 2012 Page 20 of 21

21 City of Woonsocket HOME Program Fees WOONSOCKET HOME PROGRAM FEE SCHEDULE OWNER OCCUPIED REHAB (Single & Multi Family) INVESTOR & NON-PROFIT REHAB HOME BUYER NON-REFUNDABLE APP FEE DUE WITH APPLICATION (APPLIED TO 3% PROCESSING FEE DUE AT CLOSING) $ % PROGRAM PROCESSING FEE DUE AT CLOSING 3% NON-REFUNDABLE APP FEE DUE WITH APPLICATION (APPLIED TO 3% PROCESSING FEE DUE AT CLOSING) $ % PROGRAM PROCESSING FEE DUE AT CLOSING 3% APP FEE DUE WITH APPLICATION $ INSPECTION FEE DEFERRED LOAN $ TITLE REPORT - FORGIVABLE LOAN $ TITLE REPORT Owner Provides SF LEAD INSPECTION FORGIVABLE LOAN $ LEAD SAFE CLEARANCE FEE (OWNER PROVIDES COMPREHENSIVE) DEFERRED $130 Per Unit SF SPEC WRITING AND INSPECTION FEE FORGIVABLE LOAN $ SPEC WRITING FEE DEFERRED $150 Per Unit MULTI-FAMILY LEAD INSPECTION (Comprehensive & Clearance) FORGIVABLE LOAN $300 Per Unit MATCH FEE 25% MF SPEC WRITING AND INSPECTION FEE FORGIVABLE LOAN $500 + $75 Per Unit CONTRACT MANAGEMENT AND INSPECTION FEE DEFERRED $500 City of Woonsocket First Home Down Payment Assistance Program July 2012 Page 21 of 21