No - the buyer may not receive any cash out at closing. The approved loan amount will be reduced in order to avoid cash out.
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If all required documentation has been received from the applicant, lender, and the title company, settlement can occur within about 15 business days. This is primarily because a minimum of 10 business days is required in order for the county to process a check in time for settlement.
No - costs related to country club memberships are not a permitted use of County funds and must be paid from borrower’s funds at settlement. Details of limits to common closing costs are in the Program Information document for lenders. All fees are subject to Loan Committee final approval.
Refinances will be considered if there is no cash out in the transaction. The county will not approve subordinations for Home Equity loans or a Home Equity Line of Credit. In these cases (or in the case of default), the remaining balance must be paid in full.
Should they (the owners) decide to sell their home prior to the 5-year residency requirement being met, the remaining unforgiven loan balance must be paid through the loan proceeds at settlement.If they move out of the home or if are no longer employed with the institution which qualified the buyer for participation in the program, the remaining unforgiven amount will be converted to a loan at an interest rate of 3.00%. Monthly payments will be required until the balance has been paid in full.