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DOWNPAYMENT EXPENSES
Owner Occupants Of 90 To 179 Days And Tenants Of 90 Days Or More
Owner-occupants of 90 to 179 days and tenants of 90 days or more may be eligible for a downpayment and incidental expenses, not to exceed $5,250. The Agency will determine the maximum downpayment you may be eligible to receive based on its computation for a rental assistance payment discussed earlier, or a maximum of $5,250. However, the payment for a displaced owner occupant cannot exceed the amount of the payment that would be received by a 180 day owner for the same property as explained earlier. The relocation counselor will be able to explain how the Agency determines the maximum downpayment assistance payment. Incidental expenses include the reasonable costs of a title search, recording fees, and certain other closing costs but do not include prepaid expenses such as real estate taxes and property insurance. You may also be eligible for the reimbursement of loan origination or assumption fees, if such fees are normal to real estate transactions in your area and they do not represent prepaid interest. The combined amount of the downpayment and incidental expenses cannot exceed the maximum payment of $ 5,250. Downpayment Computation
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Example 1 Example 2 Example 3
Required Downpayment $ 5,000 $ 5,000 $ 4,500
Closing And Incidental
Costs + 950 + 950 + 750
Total Amount Needed $ 5,950 $ 5,950 $ 5,250
Agency Downpayment
Payment - 4,800 - 5,250 - 5,250
Displaced Person
Pays $ l,l50 $ 700 $ 0.00
Explanation of Downpayment and Examples If you are a owner-occupant of 90-179 days or a tenant of 90 days or more, you may be eligible for a downpayment up to $5,250. the amount of a downpayment you will receive depends upon agency policy. Many agencies will limit such assistance to the amount of the computed rental assistance payment for a tenant or an eligible homeowner, however, the maximum payment cannot exceed $5,250. This explains the difference in the agency payments depicted in the examples earlier as detailed in the explanation of rental assistance computation. In example 1 above the total amount needed to purchase the property exceeded the Agency payment of $ 4,800, making it necessary for the displaced person to make up the difference of $1,150. In example 2, the displaced person must pay $700 in addition to the agency payment, but in example 3, the agency payment was sufficient to cover the total amount needed. It will not be unusual in today's inflated real estate market to need more for a downpayment and closing costs than the maximum payment established by law, however, the payment should be a great help if it enables a displaced tenant to become a homeowner. The computation of a downpayment for an owner occupant of 90 to 179 days is limited to the amount an owner would have received if the payment were computed on the basis of a purchase supplement for a 180 day owner. Displaced owner occupants of 180 days or more are not eligible for downpayment assistance. Next
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