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Borrowers must not be a current homeowner, have a positive credit history, and must obtain a fixed - <br />interest rate loan. Cosigners and variable rate loans are not allowed. Gross household income of all adults <br />who will make the home their principal residence will be used for underwriting purposes. Borrowers must <br />agree to maintain the home as their principal residence for the term of affordability, which is 45 years. <br />Purchase of the property must result in fee simple title of the property, a 99 -year leasehold interest in the <br />property, or ownership of a condominium. Condominium complexes must be FHA approved. Purchase of <br />manufactured homes will not be allowed under this program unless the lot where the home is to be <br />permanently fixed will be owned by the borrower. <br />All properties built before 1978 are required to have a Visual Lead Based Paint Inspection and must pass <br />the inspection before loan approval. Inspections will be made to ensure that there are no code related <br />issues, including the common areas in condominium complexes. <br />Eligible applicants will be accepted on a first come first serve basis as funds are available. Applications <br />packages will be available on the City of Santa Ana's website and at the Housing Division (3`d Floor), <br />Santa Ana City Hall. <br />Use of Loan Proceeds <br />Downpayment Assistance loan proceeds may only be used to help meet downpayment requirements <br />associated with the purchase of an eligible home by an eligible buyer. Maximum loan amounts will be <br />$40,000. <br />Interest Rates and Repayment <br />Loan proceeds are not subject to forgiveness, but are offered as a deferred loan with a zero percent (0 %) <br />rate. Repayment of the City loan will be required when any of the following events take place: At the end <br />of the term of affordability, when the property is sold, or when the property is no longer the borrower's <br />principal residence. <br />29A -10 <br />