THE CITY OF MIDDLETOWN, OHIO
Middletown
Homeownership Partnership
HOME Program-Funded Down Payment/Closing Cost Assistance
Applicant Eligibility - Adjusted Gross Annual Income
One Person Households $39,450 *
Two Person Households $45,050
Three
Person Households $50,700 * Four Person Households $56,300
Five Person Households $60,850 *
Six Person Households $65,350
Seven
Person Households $69,850 * Eight Person Households $74,350
Note: these household income limits were established by HUD on
May 31, 2011.
Note:
These guidelines are subject to change at any point in time
Eligible Residential Properties
Single family residences (including condominium units) are eligible. These dwellings shall be located
within the incorporated limits of the City of Middletown, Ohio.
Financial Assistance
Qualified
home buyers are eligible to receive up to 6% of the contract purchase price toward the down payment and/or closing costs of
the purchase of the home up to a maximum total of $5,000. For eligible properties located in those neighborhoods indicated
as a "Target Neighborhood" in the City's 5 year HUD Consolidated Plan, assistance in an amount of up to 10% of the
contract purchase price, not to exceed $10,000 is available.
The "Target Neighborhoods" can be found by reviewing the link on the City's website at:
http://www.cityofmiddletown.org/community/comdev.html
Program participants shall not receive
ANY funds back at closing with the exception of returned earnest money or other personal funds, providing the equity requirements
below have been adhered. Any tax pro-rations must be applied to principle, additional closing costs, zeroed out, or subtracted
from the amount of down payment assistance needed.
Eligible Purchasers
Assistance
is available to any homebuyer who meets the qualifications listed in these guidelines and providing the dwelling purchased
will be the buyer's primary owner occupied residence.
Equity Requirements
Participants
must invest a minimum of $500 into the purchase transaction. The equity requirement can include: earnest money (if applied
to the home purchase and not returned), homeowners insurance, application fee, appraisal fee or independent home inspection,
etc. This equity requirement must be applied to typical purchase transaction costs or down payment and can not be used to
pay off personal debt.
Pre-Purchase
Education
Participants shall complete
at least 6 hours of a Pre-Purchase Homebuyer Education class provided by LifeSpan, Inc or Neighborhood Housing Services of
Hamilton, Inc. (NHS) prior to loan closing. ALL owner occupants of the property that will be purchased (except for dependents)
must attend this class. Participants will receive a certificate when the classes are completed. For the purposes of this program,
the certificate is valid for one (1) year from the time of issuance. One on one classes will only be provided in emergency
closing situations and at the discretion of the class provider*.
*An emergency closing is defined as a household that is contractually set to close the loan on the
new home purchase prior to the final homebuyer class of the upcoming class session.
Program Administration
Each year, through a consortium with Butler County, the City of Middletown receives HUD Home Investment
Partnership (HOME) Program dollars to fund this program. Guideline updates and procedural changes are completed through the
Community Revitalization Department. However, while the program is funded through the City of Middletown, it will be administered
through Neighborhood Housing Services of Hamilton, Inc. (NHS).
Participating Lenders & Other Requirements
Purchasers may obtain mortgage financing through lenders of their choice.
Said financing shall meet the following underwriting criteria: monthly principle, interest, mortgage insurance, taxes and
insurance costs shall not exceed 35% of adjusted gross monthly household income; and, these costs plus other long-term fixed
obligations (remaining terms greater than 10 months) shall not exceed 45% of adjusted gross monthly household income. Property
taxes and homeowners insurance must be escrowed.
All purchaser(s) must have sufficient creditworthiness. This is left
to the discretion of the mortgage lender.
This
program is not applicable for cash purchases. Bank financing is required for the majority of the purchase price (at least
80%). Any other Federal, State, or Local assistance for the purchase may subject this program to decline or limited funding.
All first mortgages shall be fixed
rate loans with no negative amortization, balloon payments, or adjustable rate features. Although the lender may use a non-occupant
co-signer or guarantor to qualify for the bank loan, the non-occupant's income may not be utilized to help qualify for this
down payment assistance.
Execution
of a restrictive covenant shall be performed at closing and recorded at the Butler County Recorder's Office since this is
a five (5) year forgivable loan. Purchaser(s) must remain in the premises as their primary residence for a period of five
(5) years. If the purchaser(s) sells prior to the expiration of the five (5) year period, they will be required by the City
of Middletown to reimburse a prorated portion of the loan. If the property is foreclosed upon, or if the owner vacates/utilizes
the property for rental purposes prior to the expiration of the five (5) year period, they will be required to move back in
the property or owe the entire amount of assistance back to the City of Middletown.
The purchase price of the home may not exceed 95% of the median home value for the
area as determined by HUD which as of 1/01/2011 is $137,750 for a property located in Butler County and $177,413 for a property
located in Warren County.
HUD Housing
Quality Standards (HQS)
Once a purchase
contract has been executed and all initial documentation has been reviewed and approved by Neighborhood Housing Services of
Hamilton, Inc., all residential properties shall be verified by the Middletown Community Revitalization Department as fully
complying with HUD Housing Quality Standards (HQS), International Property Maintenance Code (IPMC), and all applicable local
codes and ordinances. Any property that does not pass these requirements must have ALL the violations corrected prior to loan
closing.
The City of Middletown
reserves the right to deny down payment / closing cost assistance for any property.
Required Purchaser(s) Documentation
In order to streamline processing of applications, Neighborhood Housing Services
of Hamilton, Inc. staff will require receipt of the following documents prior to the mandatory inspection by the City of Middletown
of the property to be acquired.*
Required
Documents:
1) Fully Executed
Purchase Contract
2) Correct 1003 Loan Application
3) Income Documentation:
- Signed Tax Returns (required)
- W-2's (required)
- Recent
Paystubs (within 30 days) (required)
- Employer Verification (If requested)
4) Correct Good Faith Estimate
5) Certificate of Completion -
Home Buyer Education Classes
6) Signed Down Payment Assistance Application (enclosed)
7) Appraisal*
8) HUD
Settlement statement*
10) Information on how to access the property (i.e. lockbox code, phone #, etc.)
11) Other
documents as needed/requested
*
Appraisal and Settlement statement are to be received prior to loan closing. Items 1 through 6 have to be submitted to the
City of Middletown prior to authorizing the inspection of the property.
Contact Information
Administrator & Alternating Home Buyer Classes:
Neighborhood Housing Services of Hamilton, Inc.
100 South Martin Luther King
Jr. Blvd
Hamilton, OH 45011
(513)737-9301
Alternating Home Buyer Classes:
LifeSpan, Inc.
1900 Fairgrove Ave
Hamilton, OH 45011
(513)868-3210
City of Middletown "Target Neighborhoods"
website link and updated down payment assistance guidelines:
http://www.cityofmiddletown.org/community/comdev.html
City of Middletown Down Payment Assistance Application
1.) Do you currently own a house?
Y / N (circle one)
a.) If Yes, please
provide address: ______________________________________
b.) If Yes, which will this new property be your principle residence? Explain:____
____________________________________________________________
2.) Are you currently delinquent in filing or
payment of Middletown City taxes? Y / N (circle one)
a.) If Yes, what years do you need to file? _________________
- How much are you in arrears? $________________
- Are you on a payment plan for back City taxes? Y / N (circle one)
- If Yes, when did the payment plan begin: ______________
- If Yes, how much are your payments: $_____________
3.) Are you planning on living in the property
for at least 5 years? Y / N (circle one)
4.)
Are you married? Y / N (circle one)
5.)
How many people (including yourself, spouse, children, significant other, roommates, etc.) will be
living in the household? _____
6.) Please list the names of ALL people (including yourself) that will be living
in the household along
with approximate
annual income:
Name: _________________________
Annual Income: _________________
Name:
_________________________ Annual Income: _________________
Name: _________________________ Annual Income: _________________
Name: _________________________ Annual Income: _________________
Name: _________________________ Annual Income:
_________________
Name: _________________________
Annual Income: _________________
Name:
_________________________ Annual Income: _________________
Name: _________________________ Annual Income: _________________
You also acknowledge that under no circumstances is the City of Middletown guaranteeing approval of this or
any future assistance and that the guidelines for the down payment assistance are subject to change at any time. The City
of Middletown reserves the right to decline any assistance for any reason.
By signing below, you certify to the City of Middletown and the Department of Housing
and Urban Development (HUD) that the above information is true and accurate to the best of your knowledge. Federal statutes
provide severe civil and criminal penalties for any person who knowingly makes false or fraudulent statements or representations
to a government agency or officer with the intention of influencing any action by such agency or officer.
Applicant Signature: ________________________________ Date: ___________________
Spouse / Applicant 2 Signature: ______________________ Date: ___________________
