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EXHIBIT 1 <br />CITY OF SANTA ANA <br />HOMEBUYER ASSISTANCE LOAN PROGRAM <br />PROGRAM GUIDELINES <br />The Program offers zero percent, deferred payment loans of up to $80,000 for Low Income <br />Households and up to $40,000 for Moderate Income Households based on need. Homebuyer <br />Assistance funds can help meet both a borrower's down payment and closing cost requirements. <br />FUNDS ARE LIMITED - FIRST COME. FIRST SERVE <br />Eligibility Requirements <br />o Borrower(s) must be a first time homebuyer (a person with no ownership interest in, or <br />who has not held `title' to a principal residence during the three-year period preceding the <br />purchase of the property). <br />o Borrower(s) must be a resident of Santa Ana and/or work in Santa Ana at least 32 hours <br />per week for at least the last 6 months. <br />o Total Annual Income of the household, meaning all persons residing in the home as their <br />principal place of residence, cannot exceed the income limits established below: <br />Household Size <br />Low Income <br />Moderate Income <br />1 <br />$ <br />58,450 <br />$ <br />73,900 <br />2 <br />$ <br />66,800 <br />$ <br />84,500 <br />3 <br />$ <br />75,150 <br />$ <br />95,050 <br />4 <br />$ <br />83,450 <br />$ <br />105,600 <br />5 <br />$ <br />90,150 <br />$ <br />114,050 <br />6 <br />$ <br />96,850 <br />$ <br />122,500 <br />7$ <br />103,500 <br />$ <br />130,950 <br />8 <br />1 $ <br />110,200 <br />$ <br />139,400 <br />o Complete a minimum of eight (8) hours of in-person homeownership training offered by a <br />counseling center approved by the U.S. Department of Housing and Urban Development <br />(HUD). <br />o Must have at least three percent (3%) of the purchase price for a down payment from <br />buyer's own funds (at least 90 days seasoned). Three most -recent bank statements are <br />required to verify seasoned funds. Seasoned funds cannot be from gift funds. Gift funds <br />may contribute towards the purchase; gift funds may not exceed 3% of purchase price. <br />o Must have a positive credit history and obtain a fixed-rate first mortgage. Co-signers and <br />variable rate loans are not allowed. <br />Use of Loan Proceeds <br />o Loans of up to $80,000 for Low Income Households and up to $40,000 for Moderate <br />Income Households will be approved based on need. Loan amounts will be based on <br />underwriting front -end ratios of not less than 28 percent. Maximum debt -to -income ratios <br />cannot exceed 38/43. <br />o City of Santa Ana loan proceeds may be applied to down payment and closing costs <br />associated with the purchase of a home in Santa Ana. <br />25C-5 <br />