Cua Federal Truth In Lending Statement

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Page 4 The following example will assist you to understand how the Transfer Amount (Restricted Resale Amount) will apply. Formula for Deed Restricted Resale Price: The Principal Loan Amount (First Mortgage) plus the appreciation share, plus the Increased Down Payment (original down payment + increase in median income for a family of 4 the date of purchase and the date of sale = the appreciation share), plus sales price adjustment for improvements over $500 or less damages of any amount (sales price adjustment) equals the Deed Restricted Sales Price. The appreciation share is equal to the % increase in income for a family of 4 earning 80% of the median income for San Mateo County, per HUD income guidelines, from the date of purchase to the date of the sales times the first mortgage and down payment amounts, respectively, not to exceed the Fair Market Value of the unit on the date of transfer. *Shared appreciation is split 50:50 between the Seller and the Agency. DEED RESTRICTED RESALE CALCULATION CASE STUDY A TRANSFER AFTER 6 YEARS HOMEBUYER X purchases a two bedroom unit through the Agency's First Time Home Buyer Program for $125,000 in May 1995. HomeBuyer received a first mortgage of $85,000 and a second mortgage from City for $35,000, and made a downpayment of $5,000. In May 1995, the 80% median income for a family of 4 was $40,200. The HOMEBUYER X family installed all new carpets and painted the unit just prior to the date of transfer. These improvements are appraised at the date of the Notice of Transfer at $4,200 less $50.00 ($4,150) for a water line broken by the moving truck. In August 2001, HOMEBUYER X gave Notice of Transfer to the Agency of the first right to purchase. On the date of the Notice, 80% of median income for a family of four was $49,848, a 24% increase since the date HOMEBUYER X initially purchased the unit. 1. First Mortgage when first issued: +$85,000 2. Appreciation Share: +$10,200 (241/6 x 85,000 = $20,400) 3. Increased Down Payment (24% x $5,000 = $1,200) +$5,600 4. Agency/City Second Mortgage +$35,000 5. Sales Price Adjustment + 4J50 Deed Restricted Resale Price = $139,950 The Shared Appreciation to HOMEBUYER X and the Agency is $ 10,800 each. DISCWW"