WOODBURY FIRST-TIME HOMEOWNERSHIP PROGRAM

 

PROGRAM GUIDELINES

Program Overview: The City of Woodbury, in partnership with the Greater Metropolitan Housing

Corporation (GMHC), has made down payment and closing cost assistance loans available to

encourage homeownership in the City of Woodbury. Current available dollars for loans are based

upon the fund balance for any given period.

Loan Amount: The maximum loan amount is $25,000.

Interest Rate & Deferred Loan Term: The interest rate will be fixed at 3% simple annual interest,

with monthly installment payments of interest only. Payment of principle will be deferred until sale,

transfer of title, when the primary mortgage is paid off, or when the property ceases to be owneroccupied.

Loan term shall not exceed 30 years.

Eligible Use of Funds: The loan funds can be used for downpayment and closing costs. The

borrower cannot receive any portion of these funds as cash.

Applicant Eligibility:

a. First-Time Homebuyer Status: Applicant(s) must be a first-time homebuyer (a person or

household that has not owned a home within the last three years).

b. Debt-to-Income Ratio: Applicant “debt-to-income” ratio cannot exceed 50%.

c. Current on Debt Payments: Applicant(s) must be current on any ongoing debt payments.

d. Homebuyer Contribution: The applicant(s) must contribute a minimum of 5% of the total cost

of purchasing the property, including the purchase price and closing costs.

e. Income Limit: Applicant total gross annual household income cannot exceed 80% of the

current area median household income as defined by HUD per household size, not to exceed

$90,000:

Household Size Income Limit

1 $45,100

2 $51,550

3 $58,000

4 $64,400

5 $69,600

6 $74,750

7 $79,900

8 $85,050

Property Eligibility:

Purchase price cannot currently exceed $256,500.

Single family homes, townhomes, twin homes, or condominiums in the City of Woodbury to be

used as the buyer’s principle place of residence.

The first mortgage must be a prime/A-rated fixed rate mortgage loan.

Properties may not be within the flood plain as identified by FEMA

WoodburyForeclosurePurchase\ProgramGuidelines

GMHC Rev. June 9, 2010

Loan Security: All loans will be secured by a mortgage in favor of the City. The loan may be secured

in a subordinate lien position behind other loans. Applicant will be required to obtain title insurance

on this loan for the City of Woodbury.

Loan Costs: Mortgage registration tax, filing fees, title policy, and credit report will be paid by the

borrower(s).

Disbursement Process: After receiving the application and all of the documentation listed in

sections A and B of the Application Process Sheet, the following procedures shall apply:

a.) If the application meets the program requirements, GMHC will send a check (not to

exceed $25,000) and the Woodbury loan documents to the loan closing or title

insurance company prior to the loan closing.

b.) The purchaser must sign the deferred loan note and mortgage at the loan closing. The

loan closing or title insurance company conducting the loan closing will be responsible

for recording the mortgage. Documentation of the recording must be sent to GMHC.

The purchaser will pay the filing fee.

c.) After the loan closing, the title company must provide GMHC with the original signed

Woodbury documents including the Note and Truth in Lending prepared by GMHC, the

City of Woodbury Title Policy, and a copy of the executed HUD 1 prepared by the 1st

mortgage lender.

Subordination of Deferred Loan: No subordinations will be allowed.

For more information please call Cory Kingbay at (651) 735-1350 or email, this is a great program the City of Woodbury has made available to Woodbury first time home buyers.

 

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