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					         FIRST TIME HOMEBUYER
         PROGRAM HIGHLIGHTS &
              APPLICATION




City of Durham
Department of Community Development
Revised February 2012


Mailing Address:
P.O. Box 25494
Durham, NC 27701
919-560-4570

Homeownership Hotline
919-560-4000
Web Address:
http://durhamnc.gov/ich/cb/cdd/Pages/Homeownership.aspx
Notice Under the Americans with Disabilities Act – A person with a disability may
receive an auxiliary aid or service to effectively participate in city government
activities by contacting the ADA Coordinator, voice 919-560-4197, fax 919-560-4196,
TTY 919-560-1200, or ADA@durhamnc.gov, as soon as possible but no later than 48
hours before the event or deadline date.
                              City of Durham
                       Highlights of Homeownership
                           Purchase Programs

                              CDBG/HOME/Bond Funds
The homeownership purchase assistance programs are designed by the City of Durham,
Department of Community Development to assist prospective homebuyers in purchasing their
primary residence and becoming first time homebuyers. The following information depicts
highlights of the City of Durham Reference Guide:

    Applicants must “read”, “sign” and “date” the Highlights of the Homeownership Purchase
     Programs before submission to the City of Durham.

    Applicant must submit the original Pre-Application for homeownership. Copies are not
     acceptable.
    Total household income cannot exceed 80% of the median family income for the
     Durham MSA as published by HUD.
      Must be a first time homebuyer (have not owned a home in the past 3 years).

    Maximum City Second Mortgage assistance is up to $20,000 or 20%, whichever is less.

    Interest rate on all first time homebuyer second mortgage loans is 2%.

    Must contribute at least $500.

    Must attend a Homeownership Education Workshop that is approved by the City of
     Durham, Department of Community Development and obtain a certificate of completion.
    Sworn Police Officers/Sheriffs must complete all phases of training prior to loan
     closing.

    Property must meet minimum housing code and HUD Housing Quality Standards.

    The borrower is responsible for securing first mortgage financing and any purchase
     expense not provided by the City.

    Sales price cannot exceed 95% of area median purchase price. Limits can be found at:
     http://www.hud.gov/offices/cpd/affordablehousing/library/homefires/index.cfm#2009
     or in the Department of Community Development

    Applicants must be a U.S. Citizen or a Legal Alien of the United States.

    Applicants must receive one-on-one housing counseling with a City selected housing
     counseling agency prior to loan closing and obtain a certificate of completion.

    Subordination Agreements for residential mortgage loans will only be executed by the
     City Manager for the purpose of lowering the first mortgage interest rates.

    During the affordability period, in the event that the property is sold or title is transferred
     by conveyance, will, operation of law or otherwise, voluntarily or involuntarily, when the
     first mortgage is refinanced, or no longer the principal residence of the homebuyer, the
     City of Durham shall recapture all or portion of the subsidy to the homebuyer to include
     interest.
    The period of affordability for First Time Homebuyer 2nd mortgages up to $20,000, is ten
     (10) years and the term of the loan is 30 years.

The use of HOME funds requires that a period of affordability be determined as it relates to the
resale of the property. The affordability period is based on the amount of HOME funds
provided.

                 HOME Funds Provided                                Affordability Period
                        <$15,000                                          5 years
                    $15,000 - $40,000                                    10 years
                        >$40,000                                         15 years

    Household income will not be re-verified at the time of closing unless more than six
     months has elapsed since income eligibility was determined.

    Most recent check stubs for applicant and co-applicant must be attached to the
     completed application when submitted for processing.

    If applicant is 18 years old and unemployed, please request an Income Affidavit verifying
     no income for that person.

    Must submit with the application the source of income documentation such as:
     Paycheck stub, social security, pension, supplemental security income (SSI), and child
     support. If you receive multiple sources of income, please submit all sources. If you are
     self employed, you must submit two (2) years of tax returns.

    If there is anyone in the applicant’s household 18 years old or older and employed,
     verification of income must be provided. Please attach to the application the most recent
     check stubs. If the person is a student, verification of this information must be provided.
     Individuals receiving social security, disability, retirement or other sources of income are
     required to provide proof of this income at the time of application.

    Applicants must meet all the requirements stated in the City of Durham’s Reference
     Guide as amended and updated from time to time.

Eligible Property:
            1. Applicants cannot purchase manufactured housing (a mobile home or trailer);
            2. Applicants can purchase a duplex, triplex or quadraplex in a dwelling where part of the
               property will be owner occupied and rental;
            3. The property must be in the City or County of Durham;
            4. The City will not finance a construction loan. The property must be an existing home;
               and;
            5. The City will not fund properties built prior to 1978 under the First-Time Home Buyer’s
               program unless lead hazards have been abated.
                     City of Durham
             Homeownership Purchase Programs

   Program         Mortgage   Subsidy Amount    Interest    Required       Residency
                     Type          Up to          Rate     Contribution   Requirement




 First Time
 Homebuyer           2nd         $20,000          2%          $500              No
 Individual
Development         Grant        $7,500          N/A          N/A               No
Account (IDA)
  Section 8           2nd        $20,000          2%          $500              No
Homeownership
   Eastway
   Village            2nd        $25,000          2%          $500              no




 I have read and understand the criteria of the City of Durham’s Homeownership
 Purchase Programs. Please submit this signed document with your application
 to City of Durham, Department of Community Development at 807 East Main
 Street, Building 2, 2nd Floor in Durham, or mail to P.O. Box 25494, Durham, NC
 27701




 ________________________                                     _______________
 Borrower Signature                                           Date


 ________________________                                     _______________
 C0-Borrower Signature                                        Date
                                                                     CITY OF DURHAM
                                               First-Time Home Buyer Program
                                                           (CDBG, HOME OR BOND FUNDED)
                                                                    PRE-APPLICATION
                                                                    Revised February 2012

Date:______________                      Lender:______________________________________                        Phone#: __________________________

                                                                BORROWER INFORMATION

Borrower:                                                                                                        _____________________________
                                                   Last                                     First                           Middle



Co-Borrower:                                                                                                     ____________________________
                                                   Last                                     First                           Middle

Current Address:                                                                   , ____________________________________, NC_______________

Phone Number: Home                                              Work______________________________ Cell ____________________________________

Number of years/months at Current Address:                   Yrs.      Mo.        Current Monthly Rent $_______________________

Are you an U.S. Citizen?       or a legal alien?               Race:                       Sex: _________________________

Marital Status:                 Single                    Married            Legally Separated

Who is the Head of Household?:                                                              Family Size:________________________________

                                      HOUSEHOLD INFORMATION: List all persons in the household

            NAME                      DOB (MM/DD/YY)                     RELATIONSHIP                           SOCIAL SECURITY #

                                                                               Applicant




                                                  EMPLOYMENT INFORMATION
                              LIST A MINIMUM OF TWO (2) YEARS OF FULL TIME EMPLOYMENT HISTORY
Borrower’s Current Employer:_________________________________________________________________________________________
Address: ____________________________________________________                     Phone:    ____________________________________________
Gross Monthly Wages/Salary:                        Length of Employment: _______Yrs _______Mo.                 Full Time       Part Time
Co-Borrower’s Current Employer:______________________________________________________________________________________
Address: ____________________________________________________                     Phone:      ___________________________________________
Gross Monthly Wages/Salary:                        Length of Employment: _______Yrs _______Mo.                 Full Time       Part Time
Borrower’s Previous Employer:_________________________________________________________________________________________
Address: ____________________________________________________                     Phone: ______________________________________________
Gross Monthly Wages/Salary:                        Length of Employment: _______Yrs _______Mo.                 Full Time       Part Time
Co-Borrower’s Previous Employer: ____________________________________________________________________________________
Address: ____________________________________________________                     Phone: ______________________________________________
Gross Monthly Wages/Salary:                        Length of Employment: _______Yrs _______Mo.                 Full Time       Part Time

              ATTACH A COPY OF APPLICANT’S AND/OR CO-APPLICANT’S LAST THIRTY (30) DAYS OF PAY STUB(S)
                          AND DOCUMENTATION OF ALL OTHER INCOME TO THE APPLICATION
                                                   INCOME and FIXED EXPENSES INFORMATION
Other Monthly Income:                                                   Monthly Fixed Expenses:
Social Security                       $              _                  Car Payment             $ __________
Public Assistance                     $                                 Installment Loans       $ __________
Child Support/Alimony                 $                                 Child Support           $ __________
Interest/Dividends                    $                                 Alimony                 $ __________
Other:                                $                                 Any Other Debts         $ __________
Gross monthly wages/salary
          from above:                 $
Total Monthly Income:                 $                                           Total Monthly Expenses:   $ __________
                              LIQUID ASSET INFORMATION: Checking & Savings accounts, stocks, bonds, etc.
   CHECKING/SAVINGS                               AMOUNT                                 BANK                                ACCOUNT #




TOTAL LIQUID ASSET(S):$ _________________________________________________________________________________ ______

                                                                      INCOME LIMITS
Family
Size             1                   2                    3                    4                   5                   6               7               8
80%            38,500              44,000               49,500               54,950              59,350               63,750         68,150          72,550

                                                  FIRST-TIME HOME BUYER PROGRAM
                                                 20% SECOND MORTGAGE PROGRAM
                                Maximum Sales Price cannot exceed 95% of FHA area median purchase price
                                                nd
                                  Maximum City 2 Mortgage: $20,000 or 20% of the sales price of the house
                                               Maximum Income: 80% of the median income
                                                          Interest Rate: 2% fixed
                                                       Term 30 years, Non-deferred
                                                 Underwriting Ratios: 20-35 and 43
                                                        PROGRAM HIGHLIGHTS
You may not qualify for this program if you have substantial late payments, past due accounts, or judgments/collections on any credit in the last twelve (12)
months. Must have a good rental history, and/or good utility credit history. Liquid assets cannot exceed $20,000. Outstanding medical collections totaling up
to $1,500 are forgiven, any medical judgments, and any other outstanding past due accounts, collections, or judgments will disqualify you from the Program.
Outstanding medical collections greater than $1,500 must be paid prior to loan closing. Applicant(s) must be a first time home buyer (have not owned home
within the past 3 years). Participants must complete an eight hour homeownership education workshop and a one hour individual counseling session.

The home to be purchased can be within Durham City and County limits. The house to be purchased must meet the Department of Community Development
Housing Quality Standards and the City of Durham Minimum Housing Code and have a certificate of compliance at the time of closing. Applicant(s) do not
have to be a resident of Durham at the time of application. Applicant(s) must be a citizen or legal alien of the United States, and meet all requirements stated
in the City’s Reference Guide.

The City of Durham’s First-Time Home Buyer Program is a subsidy program designed to assist very low to moderate income individuals/families in purchasing
their primary residence and becoming homeowners. This program is funded with federal HOME, CDBG, or Bond funds. Under this program the borrower will
be responsible for securing a first mortgage to finance any purchase expense not provided by the City. The borrower is required to contribute a minimum of
$500 to the purchase of the property and to pay all closing costs that are not financed. The First Time Homebuyer Program loans have a 2% interest rate.
These loans must be repaid over a 30-year term.

Subordination Agreements for the City of Durham’s residential mortgage loans will only be executed by the City Manager for the purpose of
lowering interest rates.
                                                CREDIT REPORT AND COUNSELING INFORMATION
 Participants in these Programs must meet minimum credit requirements. A credit report is necessary in order for the City of Durham to assist you. The three
  nationwide consumer reporting companies have set up a central website, a toll-free telephone number, and a mailing address through which you can order
your free annual report. To order, visit www.annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form which can be
                     found at ftc.gov/credit and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

 I/We, the undersigned, do hereby certify that all information given in this application is true and accurate to the best of my/our knowledge. I/We understand
    that the City of Durham and/or its agent may rely on the accuracy thereof in acting on this application and that any fraudulent information may result in
disqualification from the program. I/We give my/our permission for the City of Durham and/or its agent to review my/our credit report(s) and make inquiries as
     to my/our credit, income, assets, and employment. I/We also give my/our permission for the City of Durham and/or its agent to share my application
                              information with City selected counseling agencies in order for me/us to receive housing counseling.

                                                                                  _________________________________
Signature of Borrower                                                             Signature of Co-Borrower

                                                                                                                _________
Date                                                                              Date


                          THE CITY OF DURHAM DEPARTMENT OF COMMUNITY DEVELOPMENT IS AN EQUAL OPPORTUNITY LENDER
    Please submit your application and the signed Highlights of Homeownership to the City of Durham, Department of Community Development
                   located at 807 East Main Street, Building 2, 2nd Floor in Durham, or mail to P.O. Box 25494, Durham, NC 27701

				
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