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What is a forgivable loan

City of Hamilton DPA Program Design and Requirements *Funds are available on a first come first serve basis and dependent upon the availibility of funds. Please note loans that are closed after February 13, 2014, the maximum amount of down payment assistance will be capped at $5,000.

• Applicants below 80% of the Area Median income will be eligible to receive up to $5,000 for down payment assistance for an eligible single family detached house, (defined as a one family residence for down payment assistance, condominiums DO NOT apply). Applicant may not receive funds back at closing.

• Applicants must purchase a qualified home in the City of Hamilton.

• Applicants will be required to provide 1% of the purchase price of the home as equity contribution to the house purchase. The equity contribution can be in the form of down payment, closing costs, homeowners insurance, earnest money, application fee, and/or the cost of a whole house inspection. The applicant's contribution to the program must be in the form of a cash contribution; it cannot be borrowed money or gifted.

• After Neighborhood Housing Services has verified the eligibility of a client for down payment assistance funds,

and a purchase contract has been executed, Neighborhood Housing Services will schedule a Housing Quality Standards (HQS) Inspection of the property. This inspection is to ensure that the property meets Minimum Quality Standards (CFR 982.401) and is not meant to substitute for a Whole House Inspection obtained by the buyer. Any property that does not pass HQS or where the seller in unwilling or unable to bring the property to HQS Standards, will be ineligible for the program. Buyer must submit $300.00 to a third party inspector for the cost of the inspection. Please be advised that if an inspection is performed and the house does not meet Minimum Quality Standards and the seller is unwilling to make the necessary repairs, the $300 fee is non-refundable. After the inspection has been performed, the City of Hamilton will send an inspector for a final inspection before the down payment assistance funds will be released for down payment assistance.

Fulfilling the above requirements is the sole responsibility of the homebuyer. Failure to fully satisfy the above Program requirements as determined by Neighborhood Housing Services of Hamilton, Inc. may result in a delay in funding or forgivable loan denial. Revised 09/13 Certificate #MB.803439.000

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