Home Buyers Assistance Agreement

Home Buyers Assistance Agreement

This Home Buyers Assistance Agreement (the Agreement) is made and entered into as of Effective Date: by and between Assistance Provider: with principal address and Home Buyer: with principal address (each a Party and collectively the Parties).

RECITALS

WHEREAS, Buyer has entered into or will enter into a contract to purchase the residential property located at (the Property); and

WHEREAS, Provider administers a program to assist qualified home buyers by providing financial assistance on the terms set forth in this Agreement; and

WHEREAS, Buyer desires to obtain such assistance and Provider is willing to provide assistance to Buyer subject to the terms and conditions below.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties agree as follows:

1. DEFINITIONS

For purposes of this Agreement, the following terms have the meanings set forth below:

"Assistance Amount" means the total financial assistance provided by Provider to Buyer under this Agreement in the amount of $ .

"Purchase Price" means the agreed purchase price for the Property of $ .

2. ASSISTANCE PROVIDED

Provider agrees to provide Buyer with the Assistance Amount to be applied to costs associated with Buyer's acquisition of the Property, subject to the terms and conditions of this Agreement. The form of assistance shall be:

Type of Assistance: Grant Deferred Loan Forgivable Loan Shared Equity

The Assistance Amount shall be disbursed in accordance with the Disbursement Schedule set forth in Section 3, and only upon Provider's receipt of documentation evidencing closing, lien priority, and such other items reasonably required by Provider.

3. DISBURSEMENT AND CONDITIONS

Disbursement shall occur as follows: Provider shall pay to Buyer or Buyer's closing agent the Assistance Amount in a single disbursement at closing upon Provider's receipt of a copy of the fully executed closing statement and evidence that the first mortgage (if any) will have priority over any security interest securing Provider's assistance. Provider's obligation to disburse is expressly conditioned upon Buyer meeting all program eligibility requirements and delivering the documentation reasonably requested by Provider.

If disbursement will be made in installments, describe schedule and conditions:

4. REPAYMENT, SECURITY, AND FORGIVENESS

Unless the Assistance Amount is designated in writing as a non-repayable grant, the Assistance Amount shall be repayable as set forth below. The Assistance Amount shall be secured by a recorded promissory note and deed of trust or mortgage on the Property in favor of Provider, subordinate only as expressly approved by Provider in writing.

Repayment terms (if applicable): Interest rate ; amortization period ; monthly payment or deferred until .

Forgiveness conditions (if any): assistance shall be forgiven in whole or in part upon Buyer's continuous occupancy of the Property as primary residence for a period of years, subject to reduction schedule and other conditions set by Provider.

5. BUYER REPRESENTATIONS, WARRANTIES AND COVENANTS

Buyer represents and warrants that Buyer meets all eligibility requirements for assistance, that the information provided to Provider is true, complete and correct, and Buyer covenants to: (a) occupy the Property as Buyer's principal residence for the period required by Provider; (b) comply with all program requirements and restrictions; and (c) not encumber, transfer, or convey the Property without Provider's prior written consent except as permitted under this Agreement.

6. PROVIDER REPRESENTATIONS AND COVENANTS

Provider represents that it has the authority to enter into this Agreement and will, at closing, take all actions reasonably necessary to effectuate the security instruments required by this Agreement and to disburse funds in accordance with Section 3.

7. DEFAULT

Buyer shall be in default if Buyer fails to comply with any material term of this Agreement, including failure to occupy the Property as required or failure to make payments when due. Upon an Event of Default, Provider may declare the unpaid Assistance Amount and accrued interest immediately due and payable, foreclose any security interest, and pursue any other remedies available at law or equity. Provider shall provide written notice of default and a reasonable opportunity to cure where cure is practicable and as required by applicable law.

8. TRANSFER, SALE, AND REFINANCING

Buyer shall not transfer, sell, or refinance the Property without the prior written consent of Provider. In the event of a transfer or sale of the Property during any period of affordability or forgiveness, the outstanding Assistance Amount may become immediately due and payable, or other remedies may be imposed, as determined in Provider's discretion consistent with the program terms set forth in this Agreement.

9. NOTICES

All notices, requests, consents and other communications required or permitted under this Agreement shall be in writing and shall be delivered by hand, certified mail (return receipt requested), or nationally recognized overnight courier to the addresses below or such other address as a Party may designate in writing.

10. AMENDMENT; WAIVER; COUNTERPARTS

This Agreement may be amended only by a written instrument executed by both Parties. No waiver of any breach or default shall be effective unless in writing and signed by the waiving Party, and no waiver shall constitute a waiver of any other or subsequent breach. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

11. GOVERNING LAW; ENTIRE AGREEMENT; SEVERABILITY

This Agreement shall be governed by and construed in accordance with the laws of the State selected by Provider and Buyer at the time of execution. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral. If any provision of this Agreement is held invalid or unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

12. MISCELLANEOUS

Buyer authorizes Provider to share information provided in connection with this Agreement with lenders, title companies, and other parties as necessary to effectuate the assistance and to verify compliance with the terms of this Agreement. Any costs incurred by Provider to enforce its rights under this Agreement, including reasonable attorneys' fees and costs, shall be borne by the defaulting Party to the extent permitted by law.

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