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Homebuyers with non-home assets of more than $50,000 (after down <br />payment and closing costs have been applied) are ineligible for <br />assistance. Exceptions to this policy may be considered on a case-by- <br />case basis. <br /> <br />Other Loan Terms <br />The County requires that HOME Awardees providing direct <br />homebuyer assistance examine the terms of all other loans a <br />homebuyer will receive, particularly any private mortgages, to ensure <br />the terms are reasonable and sustainable. <br /> <br />Loans containing terms and conditions that are predatory or harmful <br />to the homebuyer, including excessive fees or interest rates and <br />balloon payments, are not eligible to be paired with HOME assistance <br />from the County. Interest rates must be competitive and must not be a <br />“higher priced” loan as defined by Consumer Financial Protection <br />Bureau. Higher priced loan are those that exceed the Average Prime <br />Offer Rate by more than 1.5% as of the date of the loan’s rate lock. <br />Loans can be checked against the Average Prime Offer Rate by <br />visiting the following website: <br />http://www.ffiec.gov/ratespread/newcalc.aspx. <br /> <br />Lending products should be fully amortizing 30‐year fixed rate loans. <br />While some buyers may prefer shorter (e.g. 15 year) loan terms, the <br />County will only consider such loans if it is determined that the <br />buyer’s payment is sustainable and that the use of a shorter‐term <br />product does not require significant additional HOME assistance <br />compared to a 30‐year loan. Approval by the County is also required <br />for adjustable interest rate mortgages. <br /> <br />Subsidy Limits <br />Per 24 CFR 92.205(c), a minimum of $1,000 in HOME funds must be <br />invested per unit. The Orange County HOME program maximum <br />amount of subsidy per unit for direct homebuyer assistance is <br />$40,000. <br /> <br />Homebuyer Home Price and Value Limits <br />Section 215(b) of the National Affordable Housing Act (NAHA) <br />requires that the initial purchase price or after-rehabilitation value of <br />homeownership units assisted with HOME funds not exceed 95% of <br />the area median purchase price for single-family housing, as <br />determined by HUD. Separate limits are provided for both existing <br />housing and new construction. Current and past limits are available <br />on the HUD Exchange at: <br />https://www.hudexchange.info/resource/2312/home-maximum- <br />purchase-price-after-rehab-value/. Homeownership value limits are <br />updated and published regularly by HUD. <br /> <br /> <br />Docusign Envelope ID: 9307EECF-67A0-42F5-A601-DB137FFD8FA3