Cook County Neighborhood Stabilization Program

Bureau of Economic Development 69 West Washington, Suite 2900 Chicago Illinois 60602
Single Family Homebuyer Development Sale Application All elements of the NSP application package must be complete at the time of submission. Incomplete application packages will not be reviewed and will be returned to the developer. Questions or concerns about the application should be directed to Patricia Wilson, NSP Project Manager, at Cook County. Contents Homebuyer Assistance Application ......................................................................................................... Page 5-7 Homebuyer Counseling Agreement............................................................................................................ Page 8 Eligibility Verification / IRS Release Forms ............................................................................................. Page 9-11 NSP Sales Contract Addendum ................................................................................................................. Page 12 NSP Notice to Seller .................................................................................................................................. Page 13 Income Worksheet ............................................................................................................ Excel Workbook, Tab 1 Underwriting Analysis Tool ............................................................................................... Excel Workbook, Tab 2 Required Attachments Purchase Contract with Developer Commitment letter from Bank for First Mortgage Appraisal Income Verification Source Documents

Homebuyer Assistance Application This application is the official request for assistance from a potential homebuyer. The application for homebuyer assistance must be completed by the homebuyer and submitted by the developer with the required documents attached. Failure to disclose complete information may result in denial of homebuyer assistance through the NSP program. (Eligibility Verification and IRS release forms included as attachments). Homebuyer Counseling Agreement NSP requires homebuyer counseling for all applicants receiving NSP assistance. NSP staff must see documentation that the applicant attended 8 hours of homebuyer counseling by a HUD certified housing counseling agency. This agreement must be signed. This is a personal certification that the required counseling has been or will be completed before closing. This is a binding agreement. Failure to complete counseling hours will result in loss of NSP assistance. NSP Contract Addendum This addendum to the sales contract is to establish that the property is vacant and that the transaction is a voluntary sale of the property. This addendum is required to evidence compliance with the relocation and voluntary sale rules associated with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA).

Cook County Neighborhood Stabilization Program

NSP Notice to Seller This notice is a statement that establishes that the transaction is voluntary and that the seller will not be entitled to relocation benefits; it also dictates that the property must be vacant at the time of contract. This notice is required to evidence compliance with the relocation and voluntary sale rules associated with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA). Income Worksheet This Excel tool is to be used by the developer to determine initial income eligibility of applicants. The income thresholds are established by HUD annually. The current limits are listed in the homebuyer application. The worksheet covers, assets (checking, savings, real estate, stocks, bonds, annuities, etc.) wages and salaries, child support, benefits, pensions, social security income, public assistance, and any other income. This tool will help to establish program eligibility and ability to maintain a mortgage. Underwriting Analysis Tool This tool is to be used by the developer to determine the amount of subsidy that required from the NSP program to make the mortgage affordable for the applicant. The total subsidy amount shall not exceed $50,000 per application. Purchase Contract with Developer Only applicants who have a purchase contract with the developer may submit applications for assistance. A copy of this purchase contract will be included with the package. The down payment minimum is $1,000 that must be provided is cash as earnest money from the buyer (no gifts are permitted). Commitment letter from Bank for First Mortgage Only homebuyers with an approved first mortgage are eligible to apply for assistance under Cook Countys NSP program. The mortgage approval does not have to be for the full amount of the sales price. Mortgage commitment letter is required to establish the amount of subsidy needed by the home buyer through the program. First mortgage must be a conventional 30 year term loan and the interest rate may not exceed the current FHA rate by more than two percent. Appraisal The sales price for an NSP assisted unit is the lower of total NSP investment or market value of the unit. Market value is established by an appraisal. The appraisal is a required part of the application to ensure that the sales price of the unit has been established according to NSP regulations. Income Verification Source Documents The income verification source documents checklist is included as part of the homebuyer application. Source documents need to be collected and used for initial income determination by the developer. These documents need to be submitted with the developer application package and will be used by the Cook County as part of the official NSP income verification.

Cook County Neighborhood Stabilization Program

Overview of Homebuyer Assistance Requirements The Neighborhood Stabilization Program (NSP) utilizes Federal stimulus funds to stabilize Cook County neighborhoods by acquiring vacant and foreclosed properties to rehabilitate or redevelop for income eligible homebuyers. Buyers will be required to meet a number of program requirements: First, your household must be income eligible. Household income is based on the number of people living in your house. For a family of four, for instance, the household income may not be greater than $88,300; You do not have to be a first-time homebuyer, but you cannot have owned a home in the last three years; You must to be able to qualify for a 30-year fixed rate mortgage from a lender. The NSP program will assist to reduce the cost of the home by assisting with closing costs and secondary loans based on each households needs. First mortgage interest rate may not exceed the current FHA rate by more than two percent; All buyers must complete 8 hours of homeownership counseling by a HUD certified housing counseling agency this is provided at no cost to the homebuyer; Homebuyers will be required to maintain the unit as their principal residence during an affordability period, affordability periods will range from 5-20 years based on the amount of assistance; If the home is sold during the affordability period a portion of the NSP assistance will need to be repaid if there are sufficient proceeds from the sale.

Income Eligibility Limits Applicants for NSP-funded homeownership assistance must be determined to be income eligible before being approved for assistance. The following chart provides the current Cook County household income limits. Household 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person Size 120% AMI
Area Median Income

$61,800

$70,650

$79,500

$88,300

$95,400

$102,450

$109,500

$116,600

HUD FY 2012 Income Limits

Sale Price of Homes and Buyer Subsidy All NSP homes will be newly constructed or fully rehabilitated and will be sold at the current market value. Buyers will need to qualify for a private mortgage for some portion of the purchase price and the NSP program will provide the balance of funding based on the assistance needed to make the home affordable for the individual buyer. The total maximum amount of assistance from the NSP program is $50,000.

Cook County Neighborhood Stabilization Program

SUMMARY CHECKLIST OF REQUIRED APPLICATION DOCUMENTS All household members should submit copies of each of the following items, if applicable: Identification _____ Copy of photo identification for applicant (IL Drivers License or State issued Identification Card) _____ If applicable, evidence of student status for all household members over 18 (i.e., statement from registrar for current year enrollment, plus student ID) Proof of income for all jobs: _____ Current check stubs (3 current consecutive) _____ Income tax returns for the last 2 years (IRS FORM 4506-T included as attachment) _____ Eligibility release form (Included as Attachment) Other Sources of Income (if applicable): _____ Social Security/Supplementary income _____ Pension income /Annuities _____ Investment Account Statements _____ Evidence of child support or alimony (If applicable) _____ Public Assistance / Unemployment Benefits _____ Military Service Benefits / Veterans Administration Benefits _____ Business/ other income Assets /Cash _____ Latest 6 months of checking account(s) statement(s) _____ Most recent savings account(s) statement(s) Financing _____ Purchase contract for NSP property _____ Pre-qualification letter from first mortgage lender _____ Copy of signed mortgage application _____ Copy of approved homebuyer counseling certificate indicating a minimum of 8 hours. (If applicant has not completed course, a copy of the certificate must be submitted to the Bureau of Economic Development at least 5 days prior to loan closing.) _____ Signed Application and Certification Forms
Received by Cook County Bureau of Economic Development: Project Manager Signature:___________________________________ Date: ______________________________ Reviewed and Certified:

Program Manager Signature:__________________________________

Date: ______________________________

Cook County Neighborhood Stabilization Program

NSP Homebuyer Assistance Application

Applicant Full Legal Name:__________________________________________________________________ Other Names Previously used: ______________________________________________________________ Home Phone:_______-________-________________ Cell Phone:________-_________-_____________

Email:___________________________________________________________________________________ Current Address:__________________________________________________________________________ City: __________________________________ Race : African American Native Hawaiian or Pacific Islander American Indian or Alaskan Native Asian White or Caucasian Other: ______________________ Ethnicity : Hispanic Non-Hispanic State:_________________ Zip:________________

Single Female Head of Household: Yes No Marital Status: Single Never Married Single-Divorced Widowed Married

Employer: _______________________________________________________________________________ Employer Address:________________________________________________________________________ Title/Postion:____________________________________________________________________________ Employment (years/months):____________________ Gross income per pay period: $___________________ Business Phone: _______-________-__________ Income per year: $_________________________

How often do you get paid? Weekly Bi-Weekly Twice a Month Monthly Do you expect your household composition to change in the next 6 months? (if yes please explain) ________________________________________________________________________________________ _______________________________________________________________________________________ ________________________________________________________________________________________

Cook County Neighborhood Stabilization Program

Total Number of Household Members (all persons residing in the home): _____________ Name Date of Birth __/__/___ __/__/___ __/__/___ __/__/___ __/__/___ __/__/___ __/__/___ Full Time Student Yes No Yes No Yes No Yes No Yes No Yes No Yes No Income Source Annual Income

__________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________

________________ ________________ ________________ ________________ ________________ ________________ ________________ Yes Own No

$_________________ $_________________ $_________________ $_________________ $_________________ $_________________ $_________________

Has your name appeared on a mortgage in the last 3 years? Do you currently own or rent a home? How much is your current monthly rent/mortgage? How much are your utilities per month? Total monthly expenses (excluding rent): Have you been pre-approved for a mortgage? If YES, amount of approval $ ____________________________ Do you have a signed Purchase Contract? Yes No

Rent

$ _____________ $ _____________ $ _____________ Yes No _____________% APR ___________________

INTEREST RATE: CLOSING DATE:

Bank Name:_______________________________________________________________________________ Lender/Brokers Name:_____________________________________________________________________ Lender Address: ___________________________________________________________________________ City :_______________________________ Work Phone: ________________________ State: ____________________ Alternate Phone:____________ Zip:___________________ Email:__________________

Cook County Neighborhood Stabilization Program

NSP Property Information NSP Property Address: __________________________________________________________________ Listed Purchase Price $__________________________ Are you currently working with a realtor? Yes No

Realtor Name:______________________________________________________________________________ Realtor Address: ____________________________________________________________________________ City :_______________________________ Phone:_____________________________ Do you know what your credit score is? Yes, My score is: ____________ No, but I would rate my credit as being: Poor Good Fair Excellent State: _____________________ Alt Phone:_________________ Zip:____________________ Email:__________________

Have you ever filed for Bankruptcy? No Yes Date Filed: ________________ Date Discharged: __________________

Amount of NSP Homebuyer Assistance Subsidy Requested (per attached developer underwriting analysis) $ __________________________ I/We understand the information provided above is collected to determine if I/we are eligible to receive NSP assistance. I/We hereby certify that all the information provided herein is true and correct. I/We understand that providing false statements or information is grounds for denial and termination of NSP assistance and is punishable under federal law. I/We authorize Cook County to verify all information provided on this application. The applicant further certifies that the property assisted by these Neighborhood Stabilization Program funds will serve as his/her/their principle residence.

Signature:___________________________________________________

Date: ______________________________

Signature:___________________________________________________

Date: ______________________________

Cook County Neighborhood Stabilization Program

Agreement for NSP Homebuyer Counseling Course Attendance NSP requires homebuyer counseling all applicants receiving NSP assistance. NSP staff must see documentation that the applicant attended 8 hours of homebuyer counseling training.
The grantee must require each NSP-assisted homebuyer to receive and complete at least 8 hours of homebuyer counseling from a HUD-approved housing counseling agency before obtaining a mortgage loan Grantees must design NSP programs to comply with this requirement and must document compliance in the records, for each homebuyer. (NSP 3 Notice FR-5447-N-01)

Have you participated in 8 hours of homebuyer counseling from a HUD-approved housing counseling agency over the previous year? A copy of a certificate or a letter from an approved counseling agency is adequate proof of attendance.

Yes
Completion certificate or letter attached

Homebuyer counseling completed prior to the previous year

Completion certificate attached (Some or all of the homebuyer counseling hours may be required to be completed again to meet program guidelines.)

No
I hereby attest that I will, as a condition to receiving assistance under the Cook County NSP program, complete the requisite 8 hours of homebuyer counseling from a HUD approved counseling agency prior to closing on an NSP assisted property. NSP Homebuyer Program Applicant(s):

Full Name (Please Print):_________________________________________________________________________

Signature: __________________________________________________ Date: _____________________________

Full Name (Please Print):_________________________________________________________________________

Signature: __________________________________________________ Date: _____________________________