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C. Downpayment/Closing Cost/Principal Reduction Loans a. Summary of the Strategy: To assist eligible persons with down payment and closing costs as well as principal reduction associated with the purchase of a home. b. Fiscal Years Covered FY 2006-2007, FY 2007-2008, FY 2008-2009 c. Income Categories to be served: Very Low -Income Persons (Not to exceed 50% of median income) Low -Income Persons (between 51-80% of median income) Moderate -Income Persons (between 81-120% of median income) d. Maximum award: 1. Very Low -Income Person -$50,000.00 2. Low -Income Person -$30,000.00 3. Moderate -Income Person -$20,000.00 e. Terms, Recapture, Default: Down payment/closing cost loans are deferred payment loans whereby repayment of the entire loan amount occurs at the time that the eligible housing unit is sold, refinanced with a cash out, or occupied by someone other than the original loan recipient. There will be no interest rate for down payment/closing cost loans. Recaptured funds will be deposited in the county's affordable housing trust fund Eligible persons may repay the entire amount of the loan at any time. f. Recipient Selection Criteria: Applications will be reviewed based on a first come first reviewed basis, and applicants will be chosen per the following criteria • Income Eligibility • Employment Verification • Asset Verification • Homebuyer Status • Credit Verification and/or approval from the financial institution that is granting the first mortgage • Approval of first mortgage by a financial institution • Attendance of County's Homebuyer's Educational Workshop g. Sponsor Selection Criteria: N/A h. Additional Information: i. Geographic Area Down payment/closing cost loans may be made anywhere in the county, including all municipalities located within the county. 10