Own in Ogden

CITY OF OGDEN, UTAH

Own in Ogden is an Ogden City, a Utah Municipal Corporation program designed to increase home ownership in specific targeted neighborhoods. Persons buying primary residence homes in the overall Own in Ogden Target Area (see map) can qualify for a $3,000 zero interest, deferred payment, declining loan to assist with that purchase. Specified Target Neighborhoods receive $5,000 loans (see page 2). Income qualified, sworn Ogden City Police Officers and Ogden City Fire Fighters receive $10,000 loans when buying a primary residence within the overall target area.

Own in Ogden loans can only be used at the time of closing for down payment, closing costs, or, if funds are remaining, a principal reduction toward the first mortgage loan. Own in Ogden funds are available on a first come first serve basis.

II. PROCEDURE

When Buyers find a home and complete negotiations using a Real Estate Purchase Contract, they submit for assistance with the following initial requirements; (1) Own in Ogden Application, (2) Own in Ogden Commitment Letter, (3) Real Estate Purchase Contract, (4) Picture Identification and (5) Income information (most recent tax returns and pay-stubs for all household members over the age of 18).

Non US citizens must also provide documentation of legal residency at the time of application. Buyers will also be required to provide a completion certificate from the HUD-approved home buyer class prior to closing. After the application is received, the Program Administrator coordinates the finalization of file requirements, approvals and funding.

III. REQUIREMENTS

Household Income Qualifications:

Income information in the form of pay-stubs and recent tax returns are required to qualify for the Own in Ogden Program. Every member of the household over the age of eighteen must submit income information regardless of their participation in the real estate purchase. The annual household income (all members over the age of 18) cannot exceed 80% of the area-wide median income. These income limits, based on household size, are listed below:

Persons in Household Maximum Income

1 $36,400

2 $41,600

3 $46,800

4 $52,000

5 $56,150

6 $60,300

7 $64,500

8 $68,650

Effective 070108

2

Property Location: (Target Neighborhoods)

Properties must be located within the Own in Ogden target area. The current target area is from the south side of Twelfth Street (north boundary) to the Ogden River and from the west side of Monroe to the east side of Wall Avenue, then from the Ogden River to the north side of 36th Street (which is the south boundary) and from Harrison Blvd. (both sides) west to the City limits (please refer to map).

The loan amount in the overall target area is $3,000.

Specified Target Neighborhoods: (where $5,000 loans are available):

East Central, the city blocks from 20th Street on the north to 30th Street on the south between Washington Boulevard and Harrison Boulevard, including both sides of those four streets.

Ownership/Residency:

Buyers must be taking fee simple title to the property upon closing, and using the property as their primary residence throughout the term of the Own in Ogden loan. Ownership in title of persons who do not primarily reside in the property is not allowed.

Purchase Price:

Dependant on the source of funding, the initial purchase price of the property cannot exceed $397,500 for single unit, $508,850 for a duplex, $615,100 for a triplex, and $764,400 for a four-plex. Multi-unit dwellings are allowed only if the Buyer(s) intent is to reside in one of the units and an existing tenant is not evicted without just cause or through mutual written agreement with their current landlord (Seller). Property values will be confirmed by an appraisal submitted to the Own in Ogden Administrator.

Zoning:

The home must be located in an area that is zoned residential, allowing the use of the property as a primary residence. Non-conforming uses or other types of property zoning will not be allowed. Buyers purchasing properties with unresolved code enforcement citations will not be eligible to receive Own in Ogden assistance until after all citations have been resolved.

Manufactured Housing:

Manufactured housing must be located on a permanent foundation, connected to utility hookups and in compliance with Ogden City Code requirements.

IV. PROPERTY STANDARDS

Housing habitability and safety issues

: Own in Ogden requires that homes being purchased using down payment assistance meet basic HUD/FHA requirements for habitability, with no major structural damage or negative conditions representing a threat to resident health and safety.

Permission to conduct an Ogden City Housing Safety Inspection:

Permission to conduct a housing safety inspection is required from the property owner of record (enclosed). This housing safety inspection addresses safety issues, and must be conducted, and any required repairs completed, prior to Own in Ogden funding. To address any other property concerns, a formal property inspection conducted by a private inspection firm may be conducted at Buyers' expense.

Minimal FHA 203K escrowed repairs:

Repairs that will be completed after closing may be allowed, provided the repairs that are specified in the Ogden City Housing Safety Inspection are included in the approved outline of repairs, and that all work is conducted by a licensed contractor. Funds for approved repairs must be held in escrow and disbursed only to the licensed contractor upon satisfactory completion.

Lead Base Paint:

Any deteriorated paint surfaces that are found during the Ogden City inspection will require testing, and need to be repaired prior to funding if the surfaces are found to be positive for lead. A licensed and certified lead base paint contractor must perform all work involving the stabilization of Lead Base Paint in compliance with HUD guidelines. After repairs, a certified Lead Base Paint Risk Assessor must provide all associated clearance reports. Effective 070108 3

V. FIRST MORTGAGE FINANCING / OWN IN OGDEN REPAYMENT TERMS:

Loan approval:

Documentation from the Mortgage Lender regarding the mortgage loan must be provided to the Own in Ogden administrator. Only fixed-rate FHA, VA, or conventional financing is allowed. Purchases involving other down-payment assistance programs are not allowed. Rent to buy and lease to buy contracts are not allowed. Adjustable rate mortgages, balloon payment mortgages and interest only mortgages are not allowed. Seller carry financing is not allowed. 2/1 buy downs may be accepted upon review, on a case-by-case basis, when used in conjunction with a fixed-rate mortgage, and when the Lender provides written documentation stating loan qualification has been approved at the highest rate of the mortgage buy down plan

Expense to Income Ratio:

Documentation from the Mortgage Lender regarding expense to income ratios must be provided to the Own in Ogden administrator. Borrower(s) whose expense to income ratio exceeds 45% will not qualify for Own in Ogden down payment assistance.

Buyer's Cash Contribution:

Borrower(s) must provide at least $500.00 of his/her own money toward the purchase. This is usually in the form of earnest money. Fees paid for appraisals or termite inspections may be submitted, provided a receipt confirming direct payment from the Buyer to the vendor is provided. This $500.00 contribution is to be verified prior to the allocation of funds and cannot be included in the mortgage loan.

Lien position:

Own in Ogden Loans are secured by a Promissory Note and Trust Deed. The City prefers that Own in Ogden loans occupy second position. Third position Own in Ogden loans may be considered on a case by case basis.

Repayment Requirements:

Effective August 28, 2002, all new Own in Ogden loans will be forgiven at a declining rate over a five-year residency requirement period. During the required time of residency, 10% for each year of residency will be forgiven over a period of four years with the remaining 60% balance credited after the full five years of residency is completed. To receive these credits, Buyer(s) are required to provide proof of residency for each year. This is to be in the form of standard monthly billings, mailed to the property address, in the name of the buyer. No Own in Ogden loan credits can be awarded without proof of residency.

Refinancing:

The general policy of Ogden City Community & Economic Development is not to subordinate loans. Subordinations will not be granted to assist with debt consolidation or payment of personal debt. Loan subordinations will be considered strictly on a case by case basis under certain circumstances. These circumstances may include (1) streamline first mortgage refinancing to lower monthly payments, (2) protection of Ogden City interests, or (3) escrowed funds for property repairs being performed by a licensed contractor under a scope of work approved by Ogden City. For further details please refer to Policies Regarding Loan Subordinations, page 12.

For more information about the Own-in-Ogden Program, call or write:

Ogden City, a Utah Municipal Corporation

2549 Washington Blvd., Suite 120

Ogden, UT 84401-1333

(801) 629-8906

TDD (801) 629-8949

Effective 070108

OWN IN OGDEN APPLICATION PROCESS

ITEMS NEEDED TO SUBMIT AN OWN IN OGDEN APPLICATION:

1. COMPLETED OWN IN OGDEN APPLICATION

2. SIGNED OWN IN OGDEN COMMITMENT LETTER

3. COMPLETE REAL ESTATE PURCHASE CONTRACT INCLUDING A LEAD BASE PAINT DISCLOSURE IF THE HOME WAS BUILT BEFORE 1978.

4. CURRENT TAX RETURN FOR ALL HOUSEHOLD MEMBERS OVER THE AGE OF 18.

5. CURRENT PAY STUB FOR ALL HOUSEHOLD MEMBERS OVER AGE 18.

6. PICTURE IDENTIFICATION (to be copied by Own in Ogden Administrator)

7. NON CITIZENS - DOCUMENTATION OF LEGAL RESIDENCY

8. PROOF OF $500 CONTRIBUTION TOWARD THE PURCHASE.

ADDITIONAL ITEMS NEEDED FOR FINAL APPROVAL:

9. HOUSING CODE INSPECTION PERMISSION FORM FROM SELLER.

10. HOUSING CODE INSPECTION COMPLETED (Ogden City)

11. LEAD BASE PAINT INSPECTION COMPLETED (Ogden City) Any defective and deteriorated paint surfaces will require testing, and will have to be repaired prior to funding if the surfaces are found to be positive for lead.

12. TITLE WORK FOR THE PROPERTY.

13. TERMITE INSPECTION FOR THE PROPERTY

14. LENDER'S LOAN APPROVAL LETTER - Indicating (1) loan approval status, (2) loan amount, (3) loan terms, (4) interest rate and (5) verification of debt to income ratio not exceeding 45%.

15. LENDER AFFIDAVIT

16. HUD APPROVED HOMEBUYER CLASS CERTIFICATE.

17. SELLER'S AFFADAVIT OF OCCUPANCY

18. APPRAISAL OF THE PROPERTY.

19. SETTLEMENT STATEMENTS.

Effective 070108

Submit subordination requests to: Cheryl Hurley / Project Coordinator

(Please allow five days for processing) Community Development Division

2549 Washington Boulevard Suite 120

Ogden, Utah 84401

Phone: 801-629-8906 Fax: 801-629-8996