Iowa Admin. Code r. 265-39.6 - Application requirements
To be considered for
(1)
The application shall propose a housing activity consistent with the HOME fund
purpose and eligibility requirements and the state consolidated plan .
(2) The application shall document the
applicant's capacity to administer the proposed activity . Such documentation
may include evidence of successful administration of prior housing activities.
IFA reserves sole discretion to deny funding to an applicant that has failed to
comply with federal or state requirements in the administration of a previous
project funded by the state of Iowa or that failed to comply with federal
requirements in the administration of a previous project funded in any other
state. Documentation of the ability of the applicant to provide technical
services and the availability of certified lead professionals and contractors
either trained in safe work practices or certified as abatement contractors may
also be required as applicable to the HOME fund activity .
(3) Recipients of a homebuyer assistance
activity must require the beneficiaries of the homebuyer assistance activity to
use a principal mortgage loan product that meets the following criteria:
a. With the exception of Habitat for Humanity
principal mortgage loan products, the principal mortgage loan must be the only
repayable loan in all individual homebuyer assistance projects.
b. The HOME assistance must be recorded in
second lien position to the principal mortgage loan, if one exists. Recipients
of HOME homebuyer assistance must maintain their assistance security agreements
in the above-stated recording position throughout the applicable period of
affordability and will not be allowed to subordinate the required recording
position to any other form of assistance, such as home equity loans. A
homebuyer search is required, and any collection/unpaid obligation that would
become a judgment or any judgments must be paid in full prior to
closing.
c. Any mortgage lending
entity's principal mortgage loan products may be used provided they meet all of
the following minimum requirements:
(1) The
loan must be a fully amortizing, fixed-rate loan with rate not to exceed Fannie
Mae 90-day yield+ 0.125%;
(2) No
less than a 15-year, fully amortized, fixed-rate mortgage shall be used;
and
(3) No adjustable rate
mortgages or balloon payment types of mortgages will be allowed.
Notes
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