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subordinated to construction and/or permanent <br />mortgages applied to the same unit upon approval of <br />the IRCLHAProgram Review Committee. This <br />mortgage shall serve as the eligible recipient's <br />contractual commitment to comply with the <br />requirements of the IRCLHAProgram. <br />3. Downpayment/Closing Cost/Principal Reduction Loans <br />a. Description <br />The IRCLHAProgram anticipates providing low-interest <br />loans to eligible persons for downpaymentst ® the <br />payment of closing costs, and/or principal reduction <br />encountered for the purpose of acquiring an eligible <br />housing unit. <br />For the purchase of constructed housing units, either new <br />or existing, the funds for downpayment/closing cost loans <br />shall be delivered at the time of closing, whereby the <br />transaction transferring ownership of the eligible <br />housing unit to the eligible person is completed. For <br />the purchase of new housing units to be constructed, the <br />funds for downpayment/closing cost loans shall be <br />delivered to the financial institution providing the <br />construction loan for the housing unit for inclusion in <br />the individual construction disbursement account. <br />Downpayment/closing cost loans shall not be provided for <br />the acquisition of housing units requiring rehabilitation <br />prior to approval for occupancy by residents. <br />As structured, the LHAProgram does not require an <br />applicant to provide a minimum monetary contribution <br />towards the downpayment or closing costs. This <br />LHAProgram policy, however, does not exempt an applicant <br />from a financial institution's minimum monetary <br />contribution requirement, if applicable. <br />For purchase of a house financed by the owner, the <br />applicant, as part of the loan application process, will <br />be required to pay for a credit report. Based on the <br />county's affordable housing definition, the monthly <br />housing cost including mortgage principal, interest, <br />taxes, andinsurance shall not exceed 30% of the <br />household's gross income, and total debt shall not exceed <br />41% of the household's gross income. <br />Housing units acquired by eligible persons which are to <br />be constructed, or were constructed as new units or <br />substantially rehabilitated <br />within one (1) calendar year prior to the <br />21 <br />