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Exhibit 2 <br />CITY OF SANTA ANA <br />COMMUNITY DEVELOPMENT AGENCY <br />HOUSING AND NEIGHBORHOOD DEVELOPMENT DEVISION <br />HOMEBUYER DOWN PAYMENT ASSISTANCE LOAN PROGRAM <br />The Community Development Agency of the City of Santa Ana seeks to promote neighborhood stability <br />and home ownership of low - income people. To achieve this goal, the Agency has designed the <br />Downpayment Assistance Loan Program (Program) to encourage long -term homeownership. The <br />Program will be funded by HOME Investment Partnerships Program (HOME) and Community <br />Development Block Grant Program (CDBG). <br />Elieibility Requirements <br />The borrowers must be a first time homebuyer (a person with no ownership interest in, or who has not <br />held `title' to a principal residence during the three -year period preceding the purchase of the property). <br />Total annual income of the household, meaning all persons residing in the home as their principal place of <br />residence, cannot exceed 80 percent of the Orange County area median income as determined by HUD, <br />adjusted annually. The following table identifies the Orange County limits effective ,December 11, 2012. <br />Household Size <br />Maximum Income <br />Household Size <br />Maximum Income <br />1 person <br />$ 51,250 <br />5 persons <br />$ 79,100 <br />2 persons <br />$ 58,600 <br />6 persons <br />$ 84,950 <br />3 persons <br />$ 65,900 <br />7 persons <br />$ 90,800 <br />4 persons <br />$ 73,200 <br />S persons <br />$ 96,650 <br />To ensure successful homeownership, borrowers will be required to complete a minimum of eight (8) <br />hours of homeownership training offered by a counseling center approved by the U.S. Department of <br />Housing and Urban ,Development (HUD). A list of HUD - approved counseling centers in Orange County <br />is included below as Attachment A. <br />Borrowers will also be required to contribute a minimum of three percent (3 %) of the purchase price <br />towards down payment. The minimum contribution cannot be from gift funds. <br />The maximum purchase price must not exceed 95% of the area median purchase price, as determined by <br />the HUD on an annual basis. As of August 23, 2013, the maximum purchase prices are as follows: <br />Existing Home and/or Condominium <br />$ 394,000 <br />New Home and /or Condo <br />$ 443,000 <br />The maximum loan will be based on underwriting front -end ratios of not less than 28 %. The allowable <br />ratios will be 28% / 40 %. <br />29A -9 <br />