3 - PUBLIC HEARING ANNUAL ACTION PLAN

Home Browse Search

Administrative Plan 4/1/2016 Page 15-17 15-VII.H. FINANCING [24 CFR 982.632] SAHA may establish requirements for financing purchase of a home under the homeownership option. This may include requirements concerning qualification of lenders, terms of financing, restrictions concerning debt secured by the home, lender qualifications, loan terms, and affordability of the debt. SAHA must establish policies describing these requirements in the administrative plan. SAHA may not require that families acquire financing from one or more specified lenders, thereby restricting the family’s ability to secure favorable financing terms. 15-VII.I. CONTINUED ASSISTANCE REQUIREMENTS; FAMILY OBLIGATIONS [24 CFR 982.633] Homeownership assistance may only be paid while the family is residing in the home. If the family moves out of the home, SAHA may not continue homeownership assistance after the month when the family moves out. The family or lender is not required to refund to SAHA the homeownership assistance for the month when the family moves out. Before commencement of homeownership assistance, the family must execute a statement in which the family agrees to comply with all family obligations under the homeownership option. The family must comply with the following obligations: • The family must comply with the terms of the mortgage securing debt incurred to purchase the home, or any refinancing of such debt. • The family may not convey or transfer ownership of the home, except for purposes of financing, refinancing, or pending settlement of the estate of a deceased family member. Use and occupancy of the home are subject to 24 CFR 982.551 (h) and (i). • The family must supply information to SAHA or HUD as specified in 24 CFR 982.551(b). The family must further supply any information required by SAHA or HUD concerning mortgage financing or refinancing, sale or transfer of any interest in the home, or homeownership expenses. • The family must notify SAHA before moving out of the home. • The family must notify SAHA if the family defaults on the mortgage used to purchase the home. • No family member may have any ownership interest in any other residential property. • The family must comply with the obligations of a participant family described in 24 CFR 982.551, except for the following provisions which do not apply to assistance under the homeownership option: 24 CFR 982.551(c), (d), (e), (f), (g) and (j). 3-339