Home Buyer Assistance Agreement

HOME BUYER ASSISTANCE AGREEMENT

This Home Buyer Assistance Agreement (the Agreement) is made between Assistance Provider Name: and Buyer Name: . The parties agree to the terms set forth below relating to assistance provided in connection with the acquisition of the residential property identified herein.

Property Identification

Parties and Contact Information

Transaction and Financial Terms

Purchase Price: $    Earnest Money: $    Scheduled Closing Date:

Grant — no repayment required provided Buyer complies with covenants and occupancy requirements.
Deferred Payment Loan — repayment or reconveyance obligation arises on sale, refinance, transfer, or breach as set forth below.
Forgivable Loan — forgiven pro rata over years of continuous owner-occupancy.

Interest Rate (if loan): . Term (if amortized): years.

Eligibility, Use and Covenants

Buyer represents and warrants that Buyer meets income, occupancy and other eligibility requirements of the Assistance Provider and that assistance proceeds will be used solely for permitted acquisition costs including down payment and closing costs unless otherwise approved in writing by the Assistance Provider.

Owner-Occupancy Requirement: Buyer shall occupy the Property as Buyer’s principal residence for a period of years from the date of closing unless otherwise approved in writing by Assistance Provider.

Buyer shall maintain homeowner’s insurance with loss payable clause naming Assistance Provider as specified in recorded security instrument if required, and shall promptly notify Assistance Provider of any event materially affecting the condition, habitability or insurability of the Property.

Security; Recordation; Subordination

If assistance is provided as a loan, Buyer acknowledges that assistance shall be evidenced by a promissory note and secured by a deed of trust or mortgage recorded against the Property in favor of Assistance Provider as lender. Buyer consents to recordation of such instruments and agrees to execute all documents necessary to effect such security.

Any subordination of the assistance lien to a primary mortgage is subject to Assistance Provider’s written approval and execution of a formal subordination agreement in Provider’s sole discretion and upon terms required by Provider.

Repayment, Forgiveness and Remedies

Repayment Events: Unless fully forgiven in accordance with this Agreement, the outstanding principal and accrued interest shall be immediately due and payable in full upon (a) sale or transfer of title, (b) refinancing of the primary mortgage in a manner that extracts equity or pays off the assistance lien without Provider’s prior written consent, or (c) Buyer’s failure to comply with material covenants including owner-occupancy requirements.

Forgiveness Schedule (if applicable): Assistance in the amount of $ shall be forgiven pro rata over years at the rate of per year of continuous occupancy and compliance.

Default Remedies: In the event of default, Assistance Provider may accelerate the debt, record notices, seek judicial remedies to enforce the obligations, collect reasonable attorney’s fees, costs and expenses, and exercise all rights under the recorded security instrument. Interest on overdue amounts shall accrue at a rate of per annum from the date of default.

Disclosures

Lead-Based Paint (for dwellings constructed prior to 1978): Built before 1978? Yes No

Mold or Prior Water Damage Known to Buyer? Yes No

Material Structural or Fire Damage Previously Repaired? Yes No

Inspections and Right of Entry

Buyer grants Assistance Provider the right to inspect the Property upon reasonable notice to verify occupancy and condition. Inspections shall be conducted during normal business hours and in a manner designed to minimize disruption to Buyer.

Representations, Warranties and Certifications

Buyer certifies under penalty of perjury that all information provided to Assistance Provider is true, correct and complete. Buyer agrees to provide documentation requested by Assistance Provider to verify income, assets, residency and use of assistance funds.

General Provisions

Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of .

Entire Agreement: This Agreement, together with the promissory note, deed of trust or mortgage and any recorded covenants, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings.

Severability: If any provision of this Agreement is held invalid or unenforceable, the remainder shall remain in full force and effect.

Notices

Notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth in this Agreement by personal delivery, nationally recognized overnight courier, or first-class certified mail, return receipt requested, and shall be effective upon receipt.

Escrow and Closing Certification

Escrow Agent Name:

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