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<br />Pre-Purchase Homebuyer Counseling <br />Pre-purchase homebuyer counseling, conducted with a HUD-certified <br />agency and counselor, is required for all homebuyers assisted with <br />HOME funds. All eligible applicants will need to provide proof of <br />completion of homebuyer counseling from a HUD-certified agency <br />and counselor prior to the commitment of HOME funding. <br /> <br />Subordination of HOME-funded Liens <br />After providing assistance to eligible homebuyers, the County has <br />ongoing interests in the success of those buyers. To help prevent <br />future foreclosures and to protect the County’s financial investment in <br />assisted units, subordination of HOME‐funded liens to future <br />refinancing by assisted buyers will be considered on a case-by-case <br />basis. In general, subordinations will only be considered under the <br />following circumstances: <br />• The new loan is for the purpose of improving the rate and/or <br />extending the term of the existing loan and must result in a low <br />monthly payment for the homeowner. The County (including <br />any of its HOME Awardees who hold secondary liens securing <br />direct assistance provided to buyers) will not typically <br />subordinate for “cash out” refinancing. <br />• The proposed new loan must meet all requirements in the Other <br />Loan Terms section above. <br />The proposed new loan must result in a lower monthly payment <br />for the assisted owner. <br /> <br />5. Before the HOME Awardee provides HOME assistance to a homebuyer, <br />the County must verify that the family is low-income and must inspect <br />the housing for compliance with the property standards in 24 CFR <br />92.251. For homebuyer assistance, the applicable property standard is the <br />North Carolina Building Code. <br /> <br />6.No fees (e.g., servicing fees, origination fees or points) may be charged <br />to a homebuyer for the HOME homeownership assistance provided, <br />except nominal housing counseling fees to homebuyers, in accordance <br />with 24 CFR 92.254(e), 24 CFR 92.504(c) and 92.214(b)(1)(iii). As <br />described in the Orange County Homebuyer Underwriting Standards and <br />pursuant to 24 CFR 92.254(e), the County must determine that the fees <br />and other amounts charged to the homebuyer by the lender for the first <br />mortgage financing are reasonable. <br /> <br />B. Said funds shall be disbursed by the County to the HOME Awardee for <br />performance of the services described in Exhibit A. <br /> <br />III. LIEN POSITION <br /> <br />Orange County hereby acknowledges that the terms and conditions of its (i) HOME <br />Program Development Agreement, (ii) Promissory Note, (iii) Deed of Trust and Security <br />Docusign Envelope ID: 9307EECF-67A0-42F5-A601-DB137FFD8FA3