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EXHIBIT 1 <br />o City of Santa Ana down payment assistance loan proceeds may not be applied to down <br />payment and closing costs associated with the purchase of an Inclusionary home made <br />available through the City's Housing Opportunity Ordinance. <br />Interest Rates and Repayment <br />o Loan proceeds are offered as a deferred loan with a zero percent interest rate. Repayment of <br />the City loan principle balance will be required at the end of the 45 year term of affordability. <br />• Santa Ana Student Incentive: Prospective homebuyers that graduated from a high <br />school located in Santa Ana and have a 4 -year college degree are eligible for a loan <br />forgiveness up to $40,000 ($10,000 will be forgiven every five (5) years up to a twenty <br />(20) year period) <br />Application and Approval Process <br />o Prospective homebuyer completes a HUD approved 8 -hour homebuyer class. <br />o Homebuyer chooses a local lender and gets pre -qualified. <br />o Homebuyer provides a complete Homebuyer Assistance Loan Application Packet to the City <br />of Santa Ana Housing Division for review and pre -approval with all required documents and <br />forms. All applications must contain the documents indicated in the attached Document <br />Checklist. <br />o Once pre -approved, homebuyers will have 60 days to find a qualified home within Santa <br />Ana to purchase. Pre -approval does not guarantee City funds. <br />o Homebuyer shops for home based on Lender's pre -qualification amount. <br />o When presenting an offer, Homebuyer and Realtor provide Seller's Statement for the Seller <br />to sign. <br />o Within three (3) business days, Homebuyer must contact the City of Santa Ana to schedule <br />an inspection by City Staff for lead-based paint hazards and building/health and safety code <br />deficiencies once a purchase contract has been executed. <br />o If homebuyer is eligible and home passes inspection, City of Santa Ana reserves funds and <br />notifies the Homebuyer and Realtor. <br />o A minimum of two (2) weeks prior to close of escrow, the City of Santa Ana needs the <br />lender's packet for final loan approval. <br />o Realtor notifies the City of Santa Ana of scheduled closing date ten (10) business days prior <br />to close of escrow date. <br />25C-6 <br />