PROGRAM DESCRIPTION CITY OF AURORA - HOME OWNERSHIP ASSISTANCE PROGRAM
Founded in 1984, the City of Aurora’s Home Ownership Assistance Program (HOAP) is dedicated to making affordable housing a realization for low to moderate income families in Aurora.
Buyer Eligibility Buyer meets HUD maximum income restrictions by household size: (This is defined as the number of people residing in the home including, but not limited to, all minor children, spouses, fiancés, roommates, relatives.)
1……….$42,550 2……….$48,650 3……….$54,700 4……….$60,800 5……….$65,650	6……….$70,550 7……….$75,400 8……….$80,250 9……….$85,150 10……..$90,000
Buyer needs to qualify for the first mortgage according to the financial institutions guidelines. Buyer needs to be under 80% median income (as shown above). The City of Aurora projects out income for a 12 month period based on both pay stubs and VOE’s. We will project the income based on future raises if stated on the Verification of Employment. Please feel free to call us to go over specific situations. Borrowers are allowed to have limited reserves. Buyer may not have owned a home within the past (3) years, as evidenced by providing copies of at least three (3) years tax returns.
BORROWER REQUIREMENTS The borrower is required to attend a one on one counseling session with a housing counselor. The borrower needs to attend a MANDATORY two part free seminar held once a month. A counseling certificate is issued by the City of Aurora when the borrower has completed Parts I & II of the seminar. A certificate is required in order for the borrower to receive funds from the City of Aurora. HOAP reserves the right to refuse any loan based on any reason management deems appropriate. Written notice of loan denial will be provided. Property Eligibility/Seller Requirements Property must be located within the City of Aurora. Property must be a Single Family Residence, Condominium or Town home. A full written inspection report is required by an inspection company on all properties. We will review this inspection for all health and safety items. Proof of repairs is required (receipts, etc.) prior to closing. In other words, we are unable to accept inspection conditions at the closing table. Market value/purchase price is set through the financial institution’s appraisal. A lead hazard screen is required on all pre-1978 properties. Because of HUD Regulations, (Handbook 1378, Tenant Assistance, Relocation and Real Property Acquisition Chapters 2 and 3), the City of Aurora Home Ownership Assistance Program cannot assist if the purchase of the property is renter occupied. In other words, THE PROPERTY NEEDS TO BE OWNER OCCUPIED AT THE TIME THE CONTRACT IS WRITTEN, OR IF VACANT, SELLER MUST PROVIDE EVIDENCE THAT THE TENANT WAS NOT DISPLACED. The Voluntary Acquisition Letter must be signed and dated by all sellers 24 hours prior to closing. In other words, we are unable to accept the Acquisition letter at the closing table. In accordance with HUD Regulations Handbook 1378, Chapter 5, Section 1, the City of Aurora must inform the seller that the City of Aurora will not use its power of eminent domain to acquire the property if negotiations fail to result in an amicable agreement. Prior to the closing of the sale, the City of Aurora will provide the seller with a written estimate of the fair market value of the property.
Program Guidelines The program offers Financial Assistance for the minimum required down payment, depending on the loan program (a maximum of 5% for conventional loans), and all allowable closing costs under HOAP guidelines up to a maximum of $10,000. We do not pay for buy-downs or points. We will not reimburse nor advance appraisal or credit report fees. Please note that if borrower is able to put more than the minimum required down beyond allowable reserves, HOAP is unable to assist. Buyer participation in down payment/closing costs will be required based on the total loan package and buyers ability to pay own costs of 1% towards the transaction. HOAP can assist up to a maximum of 5% down payment. The term of the second mortgage is thirty years, with simple interest of three percent (3%) accruing for five years only. No monthly payments are required. Principal plus accrued interest is due and payable in full upon sale of the property, transfer of ownership, failure on the part of the borrower to maintain home as principal place of residence, or payment in full of the first mortgage. There is no prepayment penalty. We also do not accept monthly or partial payments. A document recording fee of $11-16 is charged, but there are no other discount points, origination fees or processing fees under this program. In order to reserve funds, the borrower must have had a one on one counseling sessions as well as a fully executed contract. ***Program subject to fund availability. Rates, interest, payback subject to change without notice.