STATION DIST DDA WITH CRA - Laserfiche WebLink

Home Browse Search

11. Married rried of and Separate Property. An individual taking title to the Property as contemplated by this Agreement is subject to special requirements because of California community property laws and Federal tax laws. If the Hom buy r is legally separated, or has filed for divorce and a legal property disposition agreement exists be green the H meb u firer and the Homebuyer's spouse, a quitclaim deed from the Homebuyers spouse and a copy of the property disposition agreement may be required by the Agency. In the absence of an existing legal property disposition agreement between the Homebu er and the Hom buy is spouse* as a condition f approval of the Homeb u er Assistance Loan, a quitclaim deed, a special agreement and a release of interest signed by both the Homebu er and the Homebuyer's spouse, after consultation with an attorney, may be required by the Agency. Additionally, if the Homeb u er * spouse is to reside in the Prop ert x the combined income of the H meb u er and the Hoare b u er's spouse gnu s t be included in the income test for eligibility under the Program. 12. Loan Servicing. The Agency may contract with an outside organization to originate and service the Homebuyer Assistance Loan. 13. Homebu er Financing. The Homeb u }per shall obtain First Lien purchase mo n mortgage financing which is a fed rate and fully amorti in g loan for its acquisition of the Property from a reputable institutional lender reasonably acceptable to the Agency the ".Under"). The Homebuyer shall at all times during the term of Homebuyer Assistance Loan comply with all requirements of the Lender, including ithou t limitation, loan underwriting standards, minimum down payment requirements, private mortgage. insurance requirements, ho rnebuye r education requirements, and tax and insurance impound requirements. In addition, not less than three percent (3%) of the purchase price of the Property shall be paid in cash from the Homeb u er' s own resources and not from the proceeds of a loan secured b y a lien ors the Property, and gifts and seller concessions may not be used to meet this requirement, except as otherwise permitted by the Lender. The total amount of the First Dien mortgage loan and Homebuyer Assistance Loan in addition to other affordable housing loans or grants described in Section 3. 1 shall not exceed the sum of the fair market et value of the Property at the time of the Homebuyer's purchase of the Property and non- recurring closing costs. 14o Subordination. Except as provided otherwise herein, the provisions of this Agreement, the Notice of Affordability Restrictions, the Agency Deed of Trust} and the Affordable Housing Resale restriction, and the obligations therein, shall be ubordi nat only to the First Lien on the Property held by the Lender and, if applicable, other loan as approved by the Executive Dir c tor, including lien instruments that secure o tber homebu er purchase money and/or downpa men t assistance, including without limitation City, Mate of California, or federal affordable housing programs* which liens shall not impair the rights of the Lender, or the Fend er' s as s igne a or su c ces s or in interes t or the Agene y, if applic able* to o erei se th i r re m ed i under the First Dien in the event of default under the First Dien by the Homebu firer. Such remedies un der the First Lien include the right of foreclosure or acceptance of a deed or assignment i n lieu of foreclosure. If title to the Property is transferred by foreclosure or acceptance of a deed in lieu of foreclosure, or assignment of the Fiat Lien to the Secretary of the Department of Housing and Urban Development, this Agreement and the Agency Deed of Trust shall be automatically terminated and shall have n o further effect as to the Property or an transferee thereafter. However, in no event shall this Agreement, the Agency Deed of Trust, and the Affordable Housing Resale restriction, be subordinate to any First Lien on the Property ATTACHMENT ISO. 11 -1 Form of Homebu firer Loan Agreement Do 1 673 v 141200272 -0001