| |
HOME-BUY DOWNPAYMENT PROGRAM |
MADISON AMERICAN DREAM DOWNPAYMENT PROGRAM |
| Program Administrator |
Terri Goldbin 266-4223 ext.
302
City of Madison CED Office |
Pam Rood
266-1053
City of Madison CDBG Office |
| Funding source |
HCRI/HODAP – State General Purpose Revenue Funds |
HUD Home Funds |
| Loan Amount |
$5,000 |
6% of the purchase price, not to exceed
$10,000 |
| Loan Terms |
Repaid upon future sale, refinance or non-owner occupancy |
Repaid upon future sale, transfer or non-owner occupancy |
| Borrower Income Requirement |
Income
may not exceed 80% of the area median income |
Income
may not exceed 80% of the area median income |
First-Time Homebuyer Requirement
(defined as not having owned a home in the past 3 years) |
Yes,
except in the case of divorce |
Yes;
displaced homemakers and single parents also qualify (see Underwriting
Guidelines for definitions) |
| Location |
City
of Madison |
City of Madison |
| Eligible Property |
Single family owner occupied, condominium or ½ duplex |
Single family owner occupied, condominium or ½ duplex |
| Maximum Purchase Price |
Income based |
$223,250 |
| Minimum Downpayment |
1%
of own funds;
exception for disabled borrowers |
0% |
| Qualifying ratios |
33%/38%; 38%/45% with strong compensating factors |
Combined
ratio of 36%; 40% with strong compensating factors; maximum of 45%
with a credit score of 720 and strong compensating factors |
| Loan to Value |
105% |
100% |
| Application fee |
None |
None |
| Asset limit for Eligibility |
6 months PITI after closing |
None |
| Eligible Costs |
Appraisal fee
Credit report
Title closing fee
Title insurance
Recording fee
Survey
Property inspection
Flood certification
Legal fee
Loan origination fee up to the equivalent of one point
Initial private mortgage insurance premium
Tax service
Prepaid escrows
WHEDA's Mortgage Guardian Insurance Premium |
Appraisal fee
Credit reports
Title closing fee
Title insurance
Recording fee
Survey
Property inspection
Lead paint inspection fee
Flood certification
Legal fee
Loan origination fee up to the equivalent of one point |
| Ineligible Costs |
The program allows up to 2 points for loan origination and/or discount. Will pay up to 1 point of an origination fee and no discount points. Loans with more than 2 points origination and/or discount are ineligible under this program. |
The program allows up to 2 points for loan origination and/or discount. Will pay up to 1 point of an origination fee and no discount points. Loans with more than 2 points origination and/or discount are ineligible under this program. |
| Stacking of funds |
Yes |
Stacking of funds is allowed. The Madison American Dream loan will be the second mortgage.
Exceptions will be allowed for the Madison American Dream loan to
be the third mortgage in the case of Inclusionary Zoning Units or
when used in conjunction with other Community Development Office
funds, where the total limit of assistance does not exceed the
limit specified in the annual Program Framework. |
| Loan Amount to be Repaid |
The loan
amount |
The loan amount
or the loan amount plus a proportional share of appreciation based on the percent of funds initially
invested, whichever is greater |
| Home Inspection Requirement |
Property inspection showing the property meets the City of Madison Minimum Housing Code |
Property inspection showing the property meets the City of Madison Minimum Housing Code |
| Lead Based Paint Inspection Requirement |
Not applicable |
Required for homes built prior to 1978. |
| Homebuyer education |
Required |
Required |
| Process Time |
Minimum 10 business days |
15 business days |
| Required Documents |
See handbook |
See
Underwriting
Guidelines |
| Website information |
www.cityofmadison.com/homeloans |
www.cityofmadison.com/cdbg/addi |
| Other |
|
Madison
American Dream Downpayment Initiative funds cannot be used with
the WHEDA Home Plus program. |
