25C - AGMT HOMEBUYER ASSISTANCE - Laserfiche WebLink

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or involuntary, except that any transfer by gift, devise or inheritance to an existing spouse surviving joint tenants or other co-owner, or a spouse as part of a dissolution proceeding or in connection with marriage, or by devise or inheritance to children, shall not be considered a Sale for the purposes of this Loan Agreement. "Term of Affordability", shall be forty-five (45) years from close of escrow. 1. City Loan. The City agrees to lend to Borrower, and Borrower agrees to borrow from the City, the City Promissory Note Amount, at zero percent. (0%) interest• as provided in Section 2 of this Agreement, subject to the conditions -and restrictions set. forth in this Agreement, in the Promissory Note and in the City Deed of Trust. When all conditions to the close of escrow other than payment of the Purchase Price 1iave been satisfied, the City shall deposit the Loan Amount with the -Escrow Agent. The City shall direct the Escrow Agent to apply the proceeds of the City L'oan`on.behalf of Borrower to the Purchase Price of the Property for the down payment Boirowei'shall execute and deliver to the Escrow Agent the City Promissory Note, the City,.DeW, of _Trust and the Affordability Covenants. 2. Authorized Use of City Loan. The City Loan proceeds may only be used for the down payment associated with the purchase of the:Property. w 3. Conditions Precedent. Borrower must complete eight (8) hours of homeownership training offered by a counseling center approved by HUD, and open an impound account for property.tazes and insurance cost's. Borrower must have a positive credit history and must obtain a fixed rate loan (co -signors and variable rate loans are not allowed). Borrower will be required` to. provide payment of at least three percent (3%) of the purchase price towaid�the down payment. All properties built before 1978 must have a Visual Lead Based Paint Inspection and must pass the inspection before loan approval. Inspections;will be made to ensure that there are not code related issues, including common areas in condominium complexes. 4. Interest Rate and Repayment /Acceleration Terms. . , - (a) Interest Rate. The City is making the City Loan to Borrower at zero percent (0%) interest. (b) Service Charge. Borrower shall be required to pay any and all service charges associated with the City Loan. (c) Repayment/Acceleration. The unpaid outstanding principal balance of the City Loan and any penalties thereon shall all be due and payable when any of the following events take place: i. at the end of the 45 year Term of Affordability; ii. when the Property is sold; 25C-10