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I. TERMS OF FINANCING <br /> <br /> 1. Repayment <br /> <br /> Financial assistance provided will be tailored to meet the needs of individual applicants <br /> and may be fully amortized or deferred for some period of time. Lower income groups <br /> being assisted under the HOME program may require.a longer deferred loan te~m to <br /> assure affordability. <br /> <br /> All financial assistance will require a repayment at some future date when the assisted <br /> buyer sells the property, or may become a grant if the assisted buyer continuousIy <br /> occupies the residence for 30 years. <br /> <br /> 2. Maximum Subsidy Per Buyer <br /> <br /> The maximum assistance to be awarded to any buyer shall not exceed the maximum <br /> subsidy limits per bedroom size as defined by HOME regulations; in no case shall the <br /> amount of First Time Home Buyer assistance exceed the amount of the borrowers <br /> Deed of Trust. <br /> <br /> The City and the Agency may establish maximum subsidy limits for each income group <br /> on a project by project basis. These subsidy limits will be based on the total amount <br /> of funds budgeted for the First Time Home Buyer Program and may change from <br /> project to project and vary in amounts for each targeted income group. <br /> <br /> 3. Security <br /> <br /> Cash Subsidies will be secured by a second Deed of Trust and may be fully amortized <br /> over a period not to exceed 30 years. <br /> <br /> 4. Interest Rates & Loan Types <br /> <br /> Loans will bear no interest for 4 years; the loans become fully amortized and payments <br /> could begin to the City or Agency in the fifth year over the following 10 years or <br /> longer, depending on the temx of the loan with payments of no more than 1/324 of the <br /> principal loan amount per month. <br /> <br /> l0 <br /> <br /> <br />