TOWN of DANVERS Department of Planning And Human Services

TOWN of DANVERS Department of Planning And Human Services Town Hall One Sylvan Street Danvers, Massachusetts 01970 Tel: 978-777-0001 ext. 3027 Fax: 978-762-0215 FIRST TIME HOMEBUYER DOWN PAYMENT ASSISTANCE PROGRAM APPLICATION The Town of Danvers, through the Department of Planning and Human Services, offers a First Time Homebuyer (FTHB) Down Payment Assistance Program that provides funds to assist first time homebuyers with the purchase of their first home. In order to determine your eligibility for the program, you must submit copies (not originals) of the documentation listed below. Applications will not be processed without copies of the necessary documentation. Should you have any questions regarding the application, please contact Susan Fletcher at 978-777-0001 ext. 3027. PLEASE SUBMIT COPIES OF THE FOLLOWING DOCUMENTS: Completed Application for First Time Homebuyer Down Payment Assistance Social Security cards and licenses for all household members Income Documentation: Employed: Self-employed: Unemployed: Social Security: Public Assistance: Pension/Disability: Rental Income: Full Time Students: Twelve (12) weeks of pay stubs for all members of the household over the age of eighteen, who are working. Most recent certified tax returns. Copy of unemployment checks or letter from unemployment office stating start date and amount of assistance. Copy of most recent check or letter from Social Security Office stating amount of benefits. Copy of check as well as letter from welfare office stating amount of assistance. Copy of latest check and letter from company or Social Security stating amount of benefits. Copy of 2 months rent receipts. Letter from school stating current enrollment status. All Savings Passbook or Savings Statement for the past 6 months All Checking Account Statements for the past 6 months Contract to Purchase Fully executed Purchase and Sales Agreement Pre-qualification/Commitment letter from your Lending Institution Down Payment Check(s) or letter from Realtor documenting same Property Appraisal Inspection Report

INSTRUCTIONS: Please complete all items on this application. If the information requested does not apply to you, please write not applicable or n/a. APPLICANT(S) INFORMATION Applicant Name: Co-Applicant Name: Social Security #: Social Security #: Address: Address: Home Phone: Marital Status: Are you a first time homebuyer? Are you a United States citizen? Have you owned a home in the last three years? Number of persons in household Yes No Yes No Yes No Home Phone: Marital Status: Are you a first time homebuyer? Are you a United States citizen? Have you owned a home in the last three years? (List names, ages and relationship below) Name: Age: Relationship: Yes No Yes No Yes No INCOME INFORMATION: Gross Annual Household Income includes all wages, prior to deductions, net income from the operation of a business or profession, SSI, AFDC, pensions, rental income, interest income, alimony and child support and other earnings. Include the total of all adult (over the age of 18) household members, excluding dependents who are full-time students. Please provide 16 consecutive weeks of pay stubs from both full and part time employment. Self-employed individuals may submit copies of previous year s tax returns. This office may verify all other income sources, such as SSI, AFDC, Pensions, etc. Estimated Yearly Gross Household Income: $

SOURCES OF INCOME A. EMPLOYMENT INFORMATION Please complete this section for ALL household members age 18 and over. You must include both full and part time employment. (Please list additional employers on a separate sheet.) 1. Name: Employer: Employer Telephone: Employer Address: Employer Fax: Start Date of Employment: Hourly Wage: $ Annual Earnings (including overtime, bonuses & tips): 2. Name: Employer: Employer Telephone: Employer Address: Employer Fax: Start Date of Employment: Hourly Wage: $ Annual Earnings (including overtime, bonuses & tips): 3. Name: Employer: Employer Telephone: Employer Address: Employer Fax: Start Date of Employment: Hourly Wage: $ Annual Earnings (including overtime, bonuses & tips): B. OTHER SOURCES OF INCOME Include the total monthly gross income for all adult household members, excluding dependents who are full time students. SOURCE AMOUNT RECEIVED PER MONTH AMOUNT RECEIVED PER YEAR Social Security: $ $ S.S.I. Benefits: $ $ Pension: $ $ V.A. Benefits: $ $ Retirement: $ $ Disability: $ $ Welfare: $ $ Worker s Compensation: $ $ Unemployment: $ $ Alimony: $ $ Child Support: $ $ Rental Income: $ $

ASSETS An asset is a cash or non-cash item that can be converted to cash. Assets that must be reported include: savings accounts and the average six months balance of checking accounts; stocks, bonds, savings certificates, money market funds and other investment accounts (IRA, Keogh, etc.); contributions to company retirement or pension funds that can be withdrawn without retiring or terminating employment; lump-sum receipts such as inheritances, capital gains, lottery winnings, insurance settlements and other claims; personal property held as an investment; cash value of life insurance policies. A. SAVINGS ACCOUNT (S): Institutions(s): Account Number (s): Amount: B. CHECKING ACCOUNT (S): Institutions(s): Account Number (s): Amount: C. AUTOMOBILE Automobile (s): Make: Model: Year: Value: $ Make: Model: Year: Value: $ D. REAL ESTATE Real Estate: Location: Value: $ Location: Value: $ E. OTHER ASSETS (Please list any additional assets on a separate sheet) Household Member Asset Description Cash Value Income from Assets TOTALS $ $

LIABILITIES Please list all installment loans, credit accounts, auto loans, school loans, personal loans, etc. Household Member Name of Creditor Account Number Current Balance Monthly Payment PROPERTY INFORMATION: Address of property to be purchased: Property type: Single Family Condominium Multi-family # of units Number of bedrooms in each unit: Unit 1 Unit 2 Unit 3 Unit 4 Will this be your primary residence? Yes No Purchase price of property: $ Home built before 1977: Yes No Have you been pre-qualified by a lending institution? Yes No Name of Lending Institution: Amount: $ Name(s) that will be included on Deed: Source and amount of down payment match: $ Source and amount of closing costs: $ Anticipated Closing Date: MULTI-UNIT PROPERTIES (1-4 UNITS) INFORMATION Are there currently tenants in the unit(s) that you will not occupy? Yes No Will any tenants be displaced when the property is purchased by you? Yes No If yes, please complete the following information: Unit # Name of Tenant Current Monthly Rent List Utilities Included in Rent Proposed Monthly Rent

FIRST TIME HOMEBUYER DOWN PAYMENT ASSISTANCE PROGRAM HOUSING QUALITY STANDARD (HQS) INSPECTION DISCLOSURE The Town of Danvers, through the Planning and Human Services, will conduct a visual hands off inspection of the readily accessible areas of the property to determine compliance with the Housing Quality Standards (HQS) as adopted by the Department of Housing and Urban Development (HUD). The HQS inspection will be performed by the Town of Danvers prior to FTHB loan closing at no cost to the buyer or seller. If the house does not pass HQS, the Housing Rehabilitation Inspector will create a list of necessary work and a cost estimate. If it is determined that the buyer can reasonably undertake the work necessary to meet HQS, the buyer can sign a statement of their intention to complete the work within six months. If more substantial work is needed, the buyer must either apply to the Housing Rehabilitation Program or select another home. The HQS inspection is not intended to be a replacement for any other property inspection required by the lender or requested by the buyer. The HQS inspection will be made of readily accessible areas of the building and is limited to visual observation or apparent conditions existing at the time of the inspection only. Latent and concealed defects and deficiencies are excluded from the inspection: equipment and systems will not be dismantled. The HQS inspection is not a guarantee or warranty of the adequacy, performance or condition of any structure, item or system at the property address. The Town of Danvers is not responsible for the cost of repairing or replacing any reported or unreported defect or deficiency and for any consequential damage, property damage or personal injury of any nature. Acceptance and understanding of this discloser are hereby acknowledged: SIGNATURES: Applicant: Date: Co-Applicant: Date:

CONFLICT OF INTEREST STATEMENT Applicant Name: Co-Applicant Name: Address: Address: I/We certify that my/our answers to the following questions are true and accurate to the best of my/our knowledge and belief and I/we understand that the word you includes the undersigned and the applicant for the grant, loan or other assistance and any principal thereof: 1. Are you presently or have you been in the last twelve months, an employee, agent, consultant, or elected appointed official of any agency (including the The Town of Danvers or the Danvers Department of Planning and Human Services) receiving CDBG and/or HOME funds directly or indirectly? Applicant: No Yes Co-Applicant: No Yes If you answered No, you do not need to answer the remaining questions. Please sign below. 2. Applicant: Name of the agency? Position: Co-Applicant Name of the agency? Position: 3. Do you presently, or have you in the last twelve (12) months, exercised any functions or responsibilities with respect to CDBG and/or HOME activities? Applicant: No Yes Co-Applicant: No Yes 4. Do you presently, or have you in the last twelve (12) months, been in a position to participate in a decision making process to gain inside information regarding CDBG and/or HOME activities? Applicant: No Yes Co-Applicant: No Yes 5. If you answered yes to either question #3 or #4, are there factors that justify an exception to the conflict of interest provision? Applicant: No Yes (Please explain below) Co-Applicant: No Yes (Please explain below) SIGNATURES: Applicant: Date: Co-Applicant: Date:

INFORMATION FOR GOVERNMENT MONITORING PURPOSES The following information is requested by the Federal Government for certain types of loans in order to monitor the Town of Danvers compliance with equal credit opportunity and fair housing laws. While you are not required to supply this information, you are encouraged to do so. The law provides that a lender may neither discriminate on the basis of the information, nor on whether you chose to supply it. Under Federal regulations, the Town of Danvers is required to note race and sex on the basis of visual observation or surname. If you do not wish to furnish this information, please check the box below. APPLICANT: CO-APPLICANT: I do not wish to provide this information. I do not wish to provide this information. Ethnicity: Ethnicity: Hispanic or Latino Hispanic or Latino Race: Race: White White Black/African American Black/African American Asian Asian American Indian/Alaskan Native American Indian/Alaskan Native Native Hawaiian/Pacific Islander Native Hawaiian/Pacific Islander Multi-Race: Multi-Race: American Indian/Alaskan Native & White American Indian/Alaskan Native & White Asian & White Asian & White Black/African American & White Black/African American & White American Indian/ Alaskan Native & American Indian/ Alaskan Native & Black/ Black/African American African American Other Multi-Racial: Other Multi-Racial: Sex: Male Female Sex: Male Female PLEASE FILL IN APPROPRIATE NUMBER FOR EACH QUESTION BELOW: A. Number of persons B. Number of children under 6 C. Number of elderly (over 62 years of age) D. Number of handicapped E. Number of elderly handicapped F. Number of minorities* G. Female head of household? *Minority, as defined by HUD, is one of the following: Hispanic or Latino, Black/African American (not Hispanic), American Indian/Alaskan Native, Asian or Native Hawaiian/Pacific Islander.

Town of Danvers Eligibility Release Form DEPARTMENT OF PLANNING AND HUMAN SERVICES ONE SYLVAN STREET DANVERS, MASSACHUSETTS 01923 TEL: 978-777-0001 EXT. 3027 / FAX: 978-762-0215 Purpose: Your signature on this 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: First Time Homebuyer Down Payment Assistance Program Housing 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 HUD funded Program and the amount of assistance necessary using HUD funds. This information will be used to establish level of benefit on the HUD 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. Instructions: Each adult member of the household must sign an Eligibility Release Form prior to the receipt of benefit and on an annual basis to establish continued eligibility. Additional signatures must be obtained from new adult members whenever they join the household or whenever members of the household become 18 years of age. 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) Dependent Deduction Full-Time Student Handicap/Disabled Family Member Minor Children Verification Required Initials Authorization: I authorize the Town of Danvers, through the Department of Planning and Human Services and HUD to obtain information about me and my household that is pertinent to eligibility for participation in the HUD funded 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. Applicant Signature Co-Applicant Signature Print Name Print Name Date Date

PLEASE NOTE: You must notify the Town of Danvers Department of Planning and Human Services at least three weeks in advance of your closing date to allow time for funds to be drawn and a check to be processed through the Town s financial management system. If you do not provide the information at least three (3) weeks in advance, we can not guarantee that funds will be available in time for your closing and you will forfeit your down payment assistance. ACKNOWLEDGEMENT AND AGREEMENT The applicant(s) certifies that all information provided in this application is true to the best of his/her knowledge and belief and no information has been excluded, which might reasonably affect a judgment regarding the applicant's eligibility. Signing this application will give the Town of Danvers s Community Development Department the right to obtain verification from any sourced named herein. ALL APPLICANTS MUST SIGN BELOW. PENALTY FOR FALSE OR FRAUDULENT STATEMENT U.S.C. TITLE 18, SECTION 1001, PROVIDES Whoever, in any matter, within the jurisdiction of any department or agency of the United States knowingly and willfully falsifies or makes any false, fictitious or fraudulent statements or representations, or makes or uses any false writing or document knowing the same to contain any false, fictitious or fraudulent statements or entry, shall be fined not more than $10,000 or imprisoned not more than five (5) years or both. Applicant s Signature Date Co- Applicant s Signature Date

TOWN OF DANVERS DEPARTMENT OF PLANNING AND HUMAN SERVICES Town Hall One Sylvan Street Danvers, Massachusetts 01923 Tel. 978-777-0001 Fax 978-762-0215 FIRST TIME HOMEBUYER DOWN PAYMENT ASSISTANCE PROGRAM SUBORDINATION POLICY NOTIFICATION GENERAL: The primary purpose of both the First Time Homebuyer Down Payment Assistance Program and the Housing Rehabilitation Program is to assist income eligible households in the purchase of their first home and/or rehabilitation of their home in the Town of Danvers. The Town of Danvers allows program participants to subordinate Town of Danvers Liens to other mortgages when the primary purpose can still be met. Required Conditions: The Town of Danvers will approve those subordination requests that: Do not endanger the Town s equity position. New mortgage/loan is not a home equity line of credit. Provide funds for further home improvements to the borrower s property. Facilitate the refinancing of an existing first mortgage balances at a lower rate of interest. HOMEOWNER RESPONSIBILITIES: The homeowner must provide the following information to the Housing Program Manager when requesting a subordination: The position of the Town of Danvers mortgage before and after refinancing. The amount of the additional mortgage. The appraised value of the property. PROCEDURES: Requests for subordinations must be made in writing no less than two weeks prior to the need for such subordination and must contain the following information: Name and address of the Bank. Amount of money being placed in a superior mortgage. Copy of 1003 Form. Copy of the Appraisal. Purpose of the refinancing that necessitates the subordination. If applicable, estimates of the improvements to be made to the borrower s property. DENIAL: Requests for subordination for any reason other than those stated above, particularly cash out refinancing, will not be allowed. Applicants will be notified if a request is denied and the reason shall be noted and placed in the case file. LOAN TERMINATION: The original loan will be terminated and due in full, if a homeowner proceeds with the refinancing, after a request for subordination has been denied. PLEASE READ CAREFULLY BEFORE SIGNING: I/we have read and understand that if I/we decide to refinance the primary mortgage on the property, the Town s decision to subordinate will be based on the above policy. Should I/we decide to refinance after a subordination request has been denied, we must pay to the Town of Danvers, the total amount due on the loan. Signature of Borrower Date Signature of Borrower Date

ADDITIONAL HOUSING ASSISTANCE PROGRAMS AVAILABLE HOMEBUYER PROGRAMS TOWN OF DANVERS FIRST TIME HOMEBUYER DOWN PAYMENT ASSISTANCE PROGRAM Must be a first time homebuyer Property must be located in Danvers Must eligible according to HUD Income Guidelines No interest loan that must be paid in full when the home is sold The loan will match your contribution up to 10% of the purchase price or $10,000, whichever is less Funds may be used towards purchase price, legal expenses, appraisal fees and/or other closing costs Property must the homebuyer's principal residence Contact: Susan Fletcher 978 777-0001 ext. 3027 MASSACHUSETTS HOUSING PARTNERSHIP (MHP) SOFTSECOND LOAN PROGRAM Must be a first time homebuyer Complete an accepted homebuyer training course Be within the household income eligible guidelines Low Interest Rate No Points No Private Mortgage Insurance (PMI) Homebuyers must put down 3% Offered through your local lender Contact: Telephone: Website: Deborah Clarke, Outreach and Processing Coordinator 617-330-9944, x230 www.mhp.net MASSHOUSING MASSADVANTAGE Must be a first time homebuyer Must meet income and purchase price limits Must meet income and purchase price limits Complete and accepted homebuyer training course if making a down payment of less than 5% or if you are purchasing a 2-4 family home. Minimum down payment of 3% required, low interest rate Offered through your local lender Telephone: 888-627-7562 Website: www.masshousing.com MASSADVANTAGE 100 Must be a first time homebuyer Must meet income and purchase price limits May only be used to purchase condominium or single family home No down payment required, low interest rate Offered through your local lender Telephone: 888-627-7562 Website: www.masshousing.com

HOMEBUYER PROGRAMS TRANSIT ORIENTED HOME MORTGAGE LOANS Mortgage program for regular mass transit riders who buy homes near public transportation. Loans are 30-year, adjustable-rate mortgages Interest rates below those of fixed-rate mortgages Zero points Rates are locked for at least the first five years Interest rate caps restrict the amount by which rates may increase after the fixed portion of the loan is completed Offered through your local lender Telephone: 888-627-7562 Website: www.masshousing.com MUNICIPAL MORTGAGE PROGRAM Specifically designed to help our public servants buy a home in the city or town were they work Available to the following full-time salaried populations: Municipal employees, State and county employees in the fields of public safety, law enforcement, education, social services and health care, employees of non-profit organizations in the fields of public safety, law enforcement, education, social services and health care Homebuyers may purchase single-family homes and condominiums with no down payment 97% financing (a 3% down payment is required) Available for 2-, 3- and 4-family properties Telephone: 888-627-7562 Website: www.masshousing.com MassAdvantage PURCHASE AND REHABILITATION PROGRAM First-time home buyers purchasing a home in need of major repair Must meet income and purchase price restrictions May be used to cover both the purchase price of a home plus necessary rehabilitation costs Loans are available for 1- to 4-family properties and are made through approved lenders Maximum loan amount may not exceed 97% of the sales price plus rehabilitation cost or the estimated appraised value after rehabilitation, whichever is less Licensed contractors must complete all rehabilitation work Offered through your local lender Telephone: 888-627-7562 Website: www.masshousing.com