Laserfiche WebLink
J <br /> 5. Employment or other income verification; and <br /> 6. Purpose of the loan, including a summary of work to be done for <br /> improvement of the property, and estimated costs. <br /> III. Guaranteed Loans _ <br /> A. Guaranteed loans require the prior approval of the Housing Rehabilitation <br /> Official in writing. <br /> B. If, upon default of a loan, the City reimburses the Lender for 90% of the <br /> unpaid balance of the principal of the loan, the Lender shall forthwith <br /> endorse, transfer, and assign to the City the borrower's note, deed of trust (or <br /> other security instrument), and all other documents indicating the <br /> indebtedness of the borrower incurred as a result of the loan. <br /> C. Because of the reduced loan risk created by the loan guarantee, the Lender <br /> agrees to grant such loans as CHIP may request which meet the terms of this <br /> contract subject to the Lender's loan portfolio considerations. <br /> D. Guaranteed loans shall be made to borrowers at interest rates not to exceed <br /> ten percent (10%_) per annum.The interest_.ratecharged shallbedetermined <br /> on the date of loan commitment at one-half percent (.5%) above the yield of <br /> U.S. Government securities of comparable maturity (rounded up to the <br /> nearest 1/8 point), however, in no instance over ten percent 10%. The floor <br /> of the Owner-Occupied interest rate shall be 3.50% for a five year term and <br /> 4.50% for a ten year term. <br /> E. Loan fees shall not be in excess of the Lender's out-of-pocket expenses for <br /> the loan. No origination fee or discount points shall be charged. (i.e. Title <br /> Policy, Recording Fees, Flood Determination, Drive-By, and Tax Change <br /> Notice). <br /> F. Nothing in this agreement shall prohibit the City from granting, in conjunction <br /> with a Lender Guaranteed loan, a Deferred Payment loan in a junior position. <br /> IV. Terms and Conditions of Loans <br /> The City and Lender agree that all income provided to eligible homeowners <br /> pursuant to this agreement shall be subject to the following terms and conditions: <br /> A. Terms of loan shall not exceed 180 months. <br /> B. The maximum loan for a single family residence shall be $50,000.00. For <br /> Owner occupied multiple units, up to a maximum of four units, the maximum <br /> loan shall be $20,000.00 per unit; <br /> 40 3 <br />