Since 1985, HOAP has been dedicated to making home ownership a reality for Aurora’s low and moderate-income families. As a HUD-approved counseling agency, the HOAP program offers free pre-purchase, foreclosure, pre-foreclosure sale, and reverse equity mortgage counseling, as well as financial assistance to homebuyers. The HOAP staff conducts educational seminars to first-time homebuyers (in English and Spanish), which covers the process of buying and owning a home. It is mandatory to attend a HUD-approved homebuyer seminar prior to applying for finanancial downpayment assistance. HOAP staff also acts as a referral service for residents to other service providers within the community.
2016 HOAP Income Guidelines - Revised March 2016
HOAP Guidelines for Lenders
HOAP Guidelines for Realtors
2016 Home Buyer Educational Seminar Schedule
2016 Spanish Home Buyer Educational Seminar Schedule
To attend a seminar call: 303-739-7966. To book a one-on-one appointment call: 303-739-7900; or 303-739-7914.
* 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. This is a one-time assistance per family program.
NEW REQUIREMENTS FOR CLOSINGS OCCURING ON/AFTER 04-01-2016:
• TO RESERVE HOAP FUNDING BUYER MUST PRESENT A FULLY SIGNED CONTRACT ALONG WITH A SIGNED COPY OF THE SELLER’S OCCUPANCY CERTIFICATION FORM.
• BUYER MUST HAVE VERIFIABLE SAVINGS EQUAL TO 2 MONTHS ESTIMATED PITI + HOA SHOWING ON 2 MOST RECENT CONSECUTIVE BANK STATEMENTS. SEASONED FUNDS MAY INCLUDE
EARNEST MONEY DEPOSIT, CREDIT REPORT, APPRAISAL AND INSPECTION FEES.
• BUYER MUST HAVE VERIFIABLE AND CONTINUOUS 2 YEAR WORK HISTORY.
• BUYER MUST PROVIDE 2 MONTHS BANK STATEMENTS AT APPLICATION WITH NO INSUFFICIENT FUNDS CHARGES EVIDENT.
• CREDIT REPORTS WILL BE USED TO VERIFY BUYER’S DEBT OBLIGATIONS.
• DEBT TO INCOME RATIOS: 31% (P+I ONLY) FRONT AND 50% BACK END WILL BE ENFORCED.
• ALL INSPECTION CONDITIONS / REPAIRS MUST BE COMPLETED PRIOR TO LOAN CLOSING - NO FHA 203K LOANS ACCEPTED.
• The program will follow the above underwriting criteria for all prospective home buyers in accordance with the 2013 HOME Final Rule. Program underwriting will include Debt Ratios, Monthly Budget, Seasoned Savings and Sustainable Income Sources.
• 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.)
2................... $51,150 6....................$74,150
• Buyer needs to qualify for the first mortgage according to the financial institutions guidelines. Purchase price limit currently $228,000.
• Buyer must be under 80% of 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 ($15,000).
• Buyer may not have owned a home within the past (3) years, as evidenced by providing copies of at least three (3) years tax return transcripts.
• The borrower is required to attend a one on one counseling session with housing counselor.
• The borrower needs to attend a MANDATORY free seminar held once a month. A counseling certificate is issued by the City of Aurora when the borrower has completed 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 Townhome.
A full written inspection report is required 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. Community Development will ensure a 5 year certification of major systems through checking the AMANDA building permit system for the subject property along with a determination of the age of the furnace, water heater, plumbing, electrical and windows. If the major system cannot be certified as safe or is too old, Community Development will require replacement.
• Market value/purchase price is set through the financial institution’s appraisal.
• A lead hazard screen is required on all pre-1978 properties.
• Due to 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 property is renter occupied. In other words, THE PROPERTY NEEDS TO BE OWNER OCCUPIED OR VACANT AT THE TIME THE CONTRACT IS WRITTEN. IF VACANT, SELLER MUST PROVIDE EVIDENCE THAT THE TENANT WAS NOT DISPLACED. HOAP CANNOT ASSIST IF THE PROPERTY IS CURRENTLY TENANT OCCUPIED BECAUSE OF HIGH TENANT RELOCATION COSTS.
• The Voluntary Acquisition Letter must be signed and dated by all sellers at least 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.
• 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 their contribution of 1% of the purchase price towards the transaction. HOAP will assist up to a maximum of 5% down payment.
• The term of the second mortgage is thirty years, with simple interest of zero percent (0%). No monthly payments are required.
• Principal is due and payable in full upon sale of the property, with cash out refinance, 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 $21 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 funding availability and conditions are subject to change without notice.
It is unlawful to discriminate in housing based on Race, Color, National Origin, Religion, Sex, Familial Status or Handicap.
HOW TO RECOGNIZE HOUSING DISCRIMINATION
Under the Fair Housing Act, it is against the law to: