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Exhibit 2 <br />• Loans are not assumable. <br />• A Borrower may pay the Loan amount, in part or in whole, at any time without penalty. <br />• College Graduate, Veteran and Active Military Incentive. <br />■ Prospective homebuyer that graduated from a high school located in Santa Ana and <br />has a 4-year college or trade school degree is eligible for a loan forgiveness up to <br />$40,000 ($10,000 will be forgiven every five (5) years up to a twentyyear period) <br />■ Prospective homebuyer who is a U. S. Military Veteran or on Active Military Duty <br />will be eligible for a loan forgiveness up to $40,000 ($10,000 will be forgiven every <br />five (5) years up to a twenty-year period) <br />Application and Approval Process <br />• Prospective homebuyer completes a HUD approved 8-hour homebuyer class. <br />• Homebuyer chooses a local lender and gets pre -qualified for a First Mortgage <br />• Homebuyer signs a Purchase Contract and opens escrow. <br />• Homebuyer and or Lender provides a complete My First Home Program Applicant Packet <br />to the City of Santa Ana Housing Division for review and pre -approval with all required <br />documents and forms. All applications must contain the documents indicated in the <br />attached Document Checklist. <br />• Lender Packet must be submitted which includes: <br />■ Purchase Contract <br />■ 1003 Application <br />■ First Mortgage Loan Approval letter with terms <br />■ DU Summary/AUS Findings <br />■ Copy of the Credit report <br />■ Estimated Closing Statement <br />■ Copy of Appraisal and Home Inspection to be provided when available <br />■ Realtor and Title & Escrow company contact information <br />■ Wire Instructions <br />• In addition to the City loan approval, the property must pass an inspection by City Staff for <br />lead -based paint hazards and building/health and safety code deficiencies. <br />• If homebuyer is eligible and home passes inspection, City of Santa Ana reserves funds and <br />notifies the Homebuyer and Realtor. <br />• Realtor notifies the City of Santa Ana of scheduled closing date ten (10) business days prior <br />to close of escrow date. <br />• Any cash out of escrow to Borrowers is prohibited. <br />• Total process can take 30-45 days. <br />• Recipients must obtain title insurance at close of escrow. <br />• Fire insurance (and flood insurance where applicable) requirements are as <br />follows: <br />0 Recipient must require Borrowers to maintain insurance on the <br />