HomeMy WebLinkAboutExhibit ADistrict 4
First -Time Homebuyer Expanded Program ("Expanded Program")
Program Guidelines
Program Objective: To assist in creating generational wealth; to provide long-term housing support;
and to encourage economic stability.
Income Limits: The Expanded Program's applicant ("Applicant" or "Borrower") must provide
documentation that shows that the Applicant's annual household income is equal
to or less than one hundred (100%) of area median income as provided by the City
of Miami's ("City") Department of Housing and Community Development and
adjusted for family size ("AMI").
Eligible Properties:
■ Single Family Residences
■ Townhomes
■ Condominiums
■ Must be a property developed by the City of Miami in District 4
Eligible ■ Must not have previously owned a home
Borrowers: ■ Household income complies with the `Income Limits' detailed above
■ Must be able to afford monthly payments based on debt to -income ratio calculation
■ Must contribute at least Five Hundred ($500.00) of personal funds towards down
payment/closing costs Mph AW
■ Must attend and successfully complete United States Department of Housing and
Urban Development approved housing counseling
Maximum Not to exceed maximum allowable by the City of Miami First Time Homebuyer
Sales Price: Program as determined annually by HUD for new construction or existing
properties
■ If the Applicant qualifies and is selected pursuant to the process established herein,
the City will then provide up to Two Hundred Thousand Dollars ($200,000.00) in
the form of a forgivable second or third mortgage with a thirty (30) year term.
Loan Terms: ■ 0% interest, non -amortizing
■ Deferred payment 30-year loan
■ Payment of principal will be forgiven at end of maturity period provided that the
homeowner resided in the home as their primary residence and complies with the
terms of the loan documents throughout the mortgage's term
■ The City shall have the right of first refusal for any encumbered property that is
sold or otherwise conveyed during the mortgage's term
Security: ■ The loan will be secured by a recorded mortgage on the property
First Mortgage
Restrictions: Term of the loan must be 30 years with a fixed interest rate and cannot exceed
more than 150 basis points over Freddie Mac's weekly average 30-year rate, as
published in the Primary Mortgage Market Survey ("PMMS"); no prepayment
penalties; total percentage charged for Discount, Origination & Broker fees must
not exceed 2 points; all other lending fees must be reasonable and cannot exceed
$500 or 0.5% of the loan amount, whichever is greater
■ The Applicant will be required to secure a first mortgage in an amount thatwould
result in a total payment, inclusive of principal, interest, taxes and insurance, equal
to thirty percent (30%) of the Applicant's total gross family income
Other Applicant must reside in purchased home, at all times. The loan will be due at sale,
Restrictions: transfer of property or if the home ceases to be the main residence of the Applicant.
The property must become their owner -occupied homesteaded property, and there
is to be only one application per household. The Applicant may not lease the
Property, or any portion thereof, during the term of the mortgage
Resale
Restrictions: If the Applicant sells and/ or transfers the home before the end of the City's
mortgage term, the following provisions will apply:
1) The Borrower will be required to repay the original amount given as
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District:
2)
assistance.
The City shall share in any `gain' realized, based on its pro -rated share of
participation in the original purchase. Furthermore, if the sale occurs within
the first 3 years of the purchase, the City shall keep 100% of its pro -rated share
of the `gain', from year 3 up to year 20, the City's share of its pro -rated `gain'
shall decrease by 5% every year, while in turn, the owner's share shall increase
by 50/_eac11 year. At year 20 up to the Cit' ys loan maturity, the owner shall
,tain 100% of the City's `gain.'
his above shared gain proposal terminates in the event of a foreclosure, with
ie lender required to provide the City the right of first refusal to purchase the
ian at a negotiated price. In the event of a foreclosure, the City will recapture
iy amount of net proceeds available from the sale of the property.
Is
District 4:
1) Funding for the program will be allocated as needed from available District 4
funds. Funding may be provided directly to a homebuyer from an identified
District 4 funding source and/or passed through from the invested construction
funding to a homebuyer purchasing a home built by the City of Miami in
District