(SHIP) - City of Daytona Beach

THE CITY OF DAYTONA BEACH

COMMUNITY DEVELOPMENT DEPARTMENT

Affordable Home Ownership Assistance Program

MEMORANDUMM OF UNDERSTANDING

To Prospective homebuyers: It is very important that you understand the requirements of the Affordable Home Ownership Assistance Program (AHOAP) before the qualification process. Therefore, please read the following information as you will be expected to complete and sign the Statement of Understanding.

1. Mid-Florida Housing Partnership, Inc. is an approved nonprofit who will determine your eligibility to apply for financial assistance under The City of Daytona Beach's Affordable Home Ownership Assistance Program (AHOAP). Assistance is available for : down payment, closing costs, inspection costs, and rehabilitation.

2. To be eligible to apply for financial assistance you must:

A. Not have owned a home in the past three years.

B. Not have filed bankruptcy in the last two (2) years.

C. Not have defaulted on a mortgage in the last 7 years

D. Not purchase property that is currently occupied by a tenant other than you.

E. Complete an approved Credit Counseling Clinic and receive a certificate of completion (within one year of submittal).

F. Complete an approved Homebuyer Education Training Classes and receive a certificate of completion (within one year of submittal).

G. Meet the eligibility requirements of the current HUD Section 8 Income Limits adjusted for family size.

H. Purchase property that meets applicable housing and building codes.

I. Utilize the home purchased as your principal residence.

J. Purchase a home that meets the City's definition of affordable:

1. Total monthly mortgage payment (principal, interest, taxes, and insurance (PITI) and homeowner's association fees, if applicable, may not exceed 30% of gross monthly household income (HOME) and 30 - 35% of gross monthly household income (SHIP).

2. Total monthly debt payments for all long-term debt (whose repayment period exceeds six months) including monthly housing expense, may not exceed 40% of gross monthly income.

3. Existing units-purchase a home for $237,031.20 or less.

4. New Construction-purchase a home for $237,031.20 or less (includes the cost of the lot).

K. Not have liquid assets that exceed $5,000.00. This does not include necessary personal property such as furniture, automobiles, clothing, etc.).

prepaid expenses

It should be noted that PMI insurance can be added to your monthly payment if your loan to value ratio exceeds 80%.

3. Financial assistance is provided on an as needed basis. Maximum amounts available are as follows:

A. Extremely low and Very low-income households may receive up to $40,000.00.

B. Low-income households may receive up to $30,000.00.

C. Moderate-income households may receive up to $20,000.00.

D. Rehabilitation assistance for existing housing up to $7,000.00.4. The Homebuyer(s) must obtain the maximum first mortgage for which they are eligible.

5. The awarded financial assistance will be secured by a soft second mortgage, recorded against the property, at 0% interest for the duration of the fifteen (15) year (180 month) affordability period. The property may be subject to a one-time random site visit for monitoring purposes.

6. The City of Daytona Beach may consider subordinating if the subordination is due to lowering interest rates/payments.

7. If the property ceases to be the Homebuyer's principal residence and/or upon sale, transfer, or death of the Homebuyer, during the fifteen (15) year affordability period, the deferred payment loan must be repaid in full (no prorations will be made). If the Homebuyer meets all of the requirements during the entire affordability period, no payment is required and the soft mortgage is satisfied.

8. Prior to reviewing your applicaton for financial assistance, The City of Daytona Beach must receive a complete application packet that includes but is not limited to the following:

A. A completed Housing Assistance Application

B. A SHIP Program Income Certification Form

C. All required third party verifications (income, deposit, assets, etc.)

D. A current Credit Report (Within 60 days of submittal)

E. A valid Contract for Purchase (Including any Addendum's)

F. Certificate of Completion for Homebuyer's Education Classes

G. Certificate of Completion for Credit Counseling Clinic

H. Lender Approval/Commitment Letter

I. Appraisal
9. After an Application Packet has been reviewed and approved, The City of Daytona Beach will issue a Letter of Commitment and schedule the date of closing.

10. If the applicant(s) is found to be ineligible they will be notified in writing of the reason for their ineligibility.

11. Your completion of the requirements does not assure you of homeownership under the AHOAP but enables you the opportunity to apply for assistance. The success of you owning your own home is fully your responsibility. Therefore, the City, its employees, advisory committee members, Non-Profits, partners, and agents are harmless from any loss or damage that may be related to your efforts in obtaining a home.

If you feel you have met all the requirements on this page
and on the S.H.I.P. Program Page.
Call (386) 274-4441 Ext. 301
or
E-mail: mfhp@bellsouth.net

NO APPOINTMENTS ARE TAKEN FROM THE WEB-SITE DUE TO HIGH VOLUME OF CLIENTS, PLEASE CALL THE OFFICE FOR AN APPOINTMENT. THANK YOU.

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