|
Cape Coral Housing is currently NOT accepting any applications for the Down Payment Assistance Program!
Description of Program
For applicants who would like to purchase a single family home/condo located in Cape Coral, FL.
Cape Coral Housing Development Corporation (CCHDC) will provide down payment assistance to first-time HUD income qualified homebuyers purchasing eligible housing. CCHDC will provide $23,000 for LOW and $25,000 for VERY LOW income candidates. The funds can be applied to closing costs and/or downpayment for individuals who can qualify for 95%-97% mortgage financing (loan-value or loan-cost mortgage loans).
The amount of assistance is secured by a 15-year, no payment, zero interest second mortgage on the property. At the end of the 15 year term, the loan is forgiven and becomes a grant.
Repayment is required if you sell the property, transfer title, refinance, or if the property stops being your main residence prior to the 15 year term.
The purchase price of the home cannot exceed $ 258,691 for an existing home or a newly constructed home, in accordance with 90% of the median area purchase price as established by the United States Treasury Department.
Applicants must contribute their own funds toward the purchase of the property in the amount of no less than $2,000.00.
If the applicant meets the basic eligibility criteria the lender will complete a Lender Referral Form and forward a complete credit package to Cape Coral Housing Development Corporation. A complete credit package will include the following:
A. The lender agrees to provide a written commitment to Cape Coral Housing Development Corporation.
The commitment will state that the applicant qualifies for a first mortgage subject to receipt of Homeownership
Assistance funds (a specific dollar amount to be provided by the lender).
B. The applicant’s gross household income as verified through third party sources and as noted on the application
does not exceed the maximum allowable loan application along with all applicable verifications (including cash
available to close) to the Cape Coral Housing Development Corporation.
C. The lender agrees to provide the Cape Coral Housing Development Corporation with a good faith estimate of
closing costs in conjunction with the transaction.
D. If all requested information is not provided at time of application for the Direct Homeownership Assistance the credit package will be returned to the lender for completion.
Upon receipt of all required items by the Cape Coral Housing Development Corporation, the Cape Coral Housing Development Loan Committee will meet bi-weekly who will approve/deny application requests.
The Cape Coral Housing Development Loan Committee will provide the lender with a written confirmation of the applicant’s eligibility for assistance through the program. The approval letter shall indicate that the amount of assistance provided will be the minimum amount necessary to close the transaction. Approval letters will be sent to the lenders following each bi-weekly loan committee meeting.
Disbursement/Closing Process
Upon receipt of the approval letter, the lender will be required to provide the Cape Coral Housing Development Corporation with the following items:
A. A firm closing date. The Cape Coral Housing Development Corporation will need approximately ten (10) working days notice prior to closing in order to have the funds available.
B. A copy of joint Mortgagee Title Insurance Policy listing the Cape Coral Housing Development Corporation, a Nonprofit Corporation, as second mortgagee.
C. A copy of the settlement statement indicating cash to close including all fees for documents to be recorded in conjunction with the homeownership program.
Upon receipt of all the above items, the Closing Agent will be instructed to complete the mortgage and promissory note. A check for the necessary amount will be payable to the title insurance company or closing agent.
Application Process
Select your home, apply to a lender, obtain a commitment letter and secure a closing date.
- Bring your sales contract, loan commitment letter and lender information to the Cape Coral Housing Development Corporation (HDC). Complete an application and preliminary screening to determine eligibility.
- Provide necessary documentation as requested and sign assurances.
- Cape Coral Housing Development Corporation will issue a letter of determination and award. The award letter is valid for 120 days after date of issue. Upon expiration, re-certification of eligibility is required.
- Attend and complete a “First Time Homebuyers Workshop” (required)
- Prior to closing, provide a HUD-1 form, title commitment for the preparation of the 2 nd mortgage.
- At closing, the HDC will provide a check, in accordance with your eligibility determination to be used towards your closing costs. A second mortgage, no-payment, no-interest loan will be issued to the City of Cape Coral and HDC.
The Cape Coral Housing Development Corporation reserves the right to refuse mortgage assistance to persons who contract with lenders, mortgage brokers and/or others who engage in abusive lending practices, commonly referred to as predatory lending.
Funds are limited.
|