COUNTY OF FLAGLER

MEMORANDUM OF UNDERSTANDING

Prospective Flagler County SHIP Program Homebuyer’s please read the following information, it is important that you understand the Flagler County SHIP Program.

1. The Flagler County Housing Partnership will determine your eligibility for receipt of assistance from the government funded SHIP Program.

2. If eligible, you are required to complete a Homebuyer Education Course which consists of an eight hour session and attend at least one session of Credit Counseling. When the course is completed and you are deemed mortgage ready, the Partnership will refer to the SHIP Administration for application processing.

3. Prior to SHIP loan assistance, Flagler County must receive proof that the following have been done:

• A completed and signed application
• A verification of employment/income
• A verification of assets
• A credit report check
• A contract for purchase
• A course completion certificate
• A lender final approval letter
• A lender’s control sheet
• An appraisal

4. The home you have selected for purchase must be affordable under the County definition of affordability under the County definition of affordability. The payments may not exceed 30% of an amount representing the percentage of the median adjusted gross income limits adjusted for family size.

5. For all loans, except USDA, when all program guidelines have been met, the County will provide downpayment/closing costs up to (or less, whichever is required at closing) the amount allowed by your income category based on financial need. However, the County’s financial assistance will not cover the following: appraisal fees, application fees, cost of credit reports, homeowners insurance, any deposits or binders for the purchase and sale agreement for real estate.

6. For USDA Loans, when all program guidelines have been met, the County will provide closing costs up to the amount allowed by your income category. However, the County’s financial assistance will not cover the following: cost of credit reports, homeowners insurance and any deposits or binders for the purchase and sale agreement for the real estate.

7. Downpayment/Closing Costs assistance will be secured with a second mortgage for 180 months at 0% interest. There is no forgiveness period between year one (1) and year five (5). There will be a reduction of 10% per year for each year of ownership between years six (6) and years fifteen (15). If the applicant remains in the home for fifteen years, the second mortgage due is zero.

8. Your closing agent must provide at least ten (10) working days notice of your loan closing date. The County must receive an invoice and a HUD Settlement at least three to five days (3-5) working days before the date of closing.

9. Your completion of requirements does not assure you of homeownership.

What is the SHIP Program?
State Housing Initiatives Partnership Program provides funds to local governments as an incentive to create partnerships to produce and preserve affordable home ownership. Assistance is secured with a

SECOND MORTGAGE, having a twenty (20) year term with O% interest. Should the property be sold during the first ten years of the second mortgage, or the homeowner should refinance the first mortgage to use equity in the home within the first ten years, the full loan will become due and payable. If a person should sell or refinance the home between years six (6) to fifteen (15) there will be a reduction of 10% per year for each year of ownership between years six (6) and fifteen (15). There will be no forgiveness period between years one to ten.

Where can I buy a home?
Anywhere in Flagler County, including City of Beverly Beach, City of Bunnell, City of Flagler Beach, City of Marineland, and City of Palm Coast.

What type of home can be purchased with downpayment/closing cost assistance?
A newly constructed or existing single family home or condominium within the purchase price limits listed below.

How does someone apply for Downpayment/Closing Cost assistance?
Contact: (800) 644-6125 Ext. 301
Mid-Florida Housing Partnershp, Inc.
1834 Mason Avenue
Daytona Beach, FL 32117 or  Devrie K. Paradowski, Housing Program Coordinator, 386-586-2324 x3631

What are the program requirements?
Prequalify for income and credit worthiness
Successful completion of Homeowner Education course and consumer credit counseling
Minimum contribution levels (for ineligible costs) are as follows:  $1,500 for Moderate Income households, $1,000 for Low Income households and $500 for Very Low Income households

Who is eligible for assistance?
Eligible Households are first-time homebuyers or families that have not owned a home in the past three (3) years; and their household income is in the very low, low or moderate-income categories listed in this below. Preference is given to low and very-low income persons.

Eligible properties:

Newly constructed home, townhouse or condominium (less than one year old, not previously owned/occupied) priced at or below $200,000.00

Existing home, townhouse or condominium (over one year old) priced at or below $200,000.00

Maximum Award:

Very Low-Income – up to $40,000.00
Low-income families – up to $30,000.00
Moderate income families – up to $20,000.00

FLAGLER COUNTY PROGRAM:

H.U.D. Section 8 Income Limits/AMI