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2013-10-04 09:31:43
OWN IN OGDEN PROGRAM GUIDELINES & MAP

OWN IN OGDEN PROGRAM GUIDELINES

 


I. PROGRAM SUMMARY
Own in Ogden is an Ogden City program designed to increase home ownership in specific target neighborhoods. Persons purchasing their primary residence in the overall target area (see map) can receive a $3,000 zero interest, deferred payment, declining loan. Specified Target Neighborhoods receive $5,000 loans (see page 2). Income qualified, sworn Ogden City Police Officers and Ogden City Fire Fighters can receive a $10,000 loan when buying their primary residence within the overall target area. Own in Ogden loans can only be used at the time of closing for down payment, closing costs, or principal reduction toward the first mortgage loan. Own in Ogden funds are available on a first come first serve basis. In accordance with specific HUD requirements regarding HOME funding period of affordability and recapture policies, Own in Ogden loans are due on sale or transfer, secured against the property for five years and repayment is required should default occur during the loan term.

II. UNIFORM RELOCATION ACT (URA) AND ANIT-DISPLACEMENT POLICY
Tenant occupied properties are not eligible, except in the instance of a tenant purchase application. HUD URA guidelines prohibit the displacement of tenants in conjunction with any federally assisted sale. Sellers must complete and submit the Seller Affidavit of Occupancy and Uniform Relocation Act Buyers/Sellers Certification (attached) prior to any Own in Ogden application approval.

III. APPLICATION PROCEDURE
When Buyers complete negotiations using a Real Estate Purchase Contract, they submit for assistance with the following initial requirements; (1) Own in Ogden Application, (2) Own in Ogden Commitment Letter, (3) Real Estate Purchase Contract, (4) Picture Identification, (5) Income information (most recent tax returns and pay-stubs for all household members over the age of 18), (6) Seller Permission for housing safety inspection, (7) Seller Affidavit of Occupancy and (8) URA Certification (see forms). Non US citizens must also provide documentation of legal residency. Applicants are required to attend and submit a Certificate of Completion from a HUD-approved home buyer class prior to closing. On line certificates cannot be accepted.

IV. PROJECTED HOUSEHOLD INCOME REQUIREMENTS
Income documentation in the form of most recent pay-stubs and tax returns are required to qualify for the Own in Ogden Program. Every member of the household over the age of eighteen must submit income information regardless of their participation in the real estate purchase. The annual household income (all members over the age of 18) cannot exceed 80% of the area-wide median income. Own in Ogden utilizes the HUD adjusted gross income definition for determining the projected household annual income. These yearly household income limits, based on household size, are listed below:
Persons in Household Maximum Income
1 $38,350
2 $43,850
3 $49,300
4 $54,800
5 $59,200
6 $63,550
7 $67,950
8 $72,350
CITY OF OGDEN, UTAH

COMMUNITY AND ECONOMIC DEVELOPMENT
Effective 103009
2

Property Location: (Target Neighborhoods) Properties must be located within the Own in Ogden target area. The current target area is from the south side of Twelfth Street (north boundary) to the Ogden River and from the west side of Monroe to the east side of Wall Avenue, then from the Ogden River to the north side of 36th Street (which is the south boundary) and from Harrison Blvd. (both sides) west to the City limits (please refer to map). The loan amount in the overall target area is $3,000.

Specified Target Neighborhoods: (where $5,000 loans are available): East Central, the city blocks from 20th Street on the north to 30th Street on the south between Washington Boulevard and Harrison Boulevard, including both sides of those four streets.
Ownership/Residency: Buyers must be taking fee simple title to the property upon closing, and using the property as their primary residence throughout the term of the Own in Ogden loan. Ownership in title of persons who do not primarily reside in the property is not allowed.
Purchase Price: Dependant on the source of funding, the initial purchase price of the property cannot exceed $263,388 for single unit, $296,658 for a duplex, $360,425 for a triplex, and $415,875 for a four-plex. Multi-unit dwellings are allowed only if the Buyer(s) intent is to reside in one of the units and an existing tenant is not evicted without just cause or through mutual written agreement with their current landlord (Seller). Property values will be confirmed by an appraisal submitted to the Own in Ogden Administrator.
Zoning: The home being purchased must be zoned residential allowing the use of the property as a primary residence. Non-conforming uses or other types of property zoning will not be allowed. Buyers purchasing properties with unresolved code enforcement citations will not be eligible to receive Own in Ogden assistance until after all citations have been resolved.
Manufactured Housing: Manufactured housing must be located on a permanent foundation, connected to utility hookups and in compliance with Ogden City Code requirements.

V. PROPERTY STANDARDS
Housing habitability and safety issues: Own in Ogden requires that homes being purchased using down payment assistance meet basic HUD/FHA requirements for habitability with no major structural damage or negative conditions representing a threat to resident health and safety.
Permission to conduct an Ogden City Housing Safety Inspection: Permission to conduct a housing safety inspection is required from the property owner of record (enclosed). This housing safety inspection addresses safety issues and must be conducted, with any required repairs completed, prior to Own in Ogden funding. To address other property concerns, a formal property inspection conducted by a private inspection firm may be conducted at Buyers’ expense.
Minimal FHA 203K escrowed repairs: Repairs that will be completed after closing may be allowed, provided the repairs that are specified in the Ogden City Housing Safety Inspection are included in the approved outline of repairs, and that all work is conducted by a licensed contractor. Funds for approved repairs must be held in escrow and disbursed only to the licensed contractor upon satisfactory completion.
Lead Base Paint: Any deteriorated paint surfaces that are found during the Ogden City inspection will require testing, and need to be repaired prior to funding if the surfaces are found to be positive for lead. A licensed and certified lead base paint contractor must perform all work involving the stabilization of Lead Base Paint in compliance with HUD guidelines. After repairs, a certified Lead Base Paint Risk Assessor must provide all associated clearance reports.
Effective 103009
3

VI. FIRST MORTGAGE FINANCING / OWN IN OGDEN REPAYMENT TERMS:
Loan approval: Documentation from the Mortgage Lender regarding the mortgage loan must be
provided to the Own in Ogden administrator. Only fixed-rate FHA, VA, or conventional financing is
allowed. Purchases involving other down-payment assistance programs are not allowed. Rent to buy
and lease to buy contracts are not allowed. Adjustable rate mortgages, balloon payment mortgages and
interest only mortgages are not allowed. Seller carry financing is not allowed. 2/1 buy downs may be
accepted upon review, on a case-by-case basis, when used in conjunction with a fixed-rate mortgage,
and when the Lender provides written documentation stating loan qualification has been approved at the
highest rate of the mortgage buy down plan.
Expense to Income Ratio: Documentation from the Mortgage Lender regarding expense to income
ratios must be provided to the Own in Ogden administrator. Borrower(s) whose expense to income ratio
exceeds 45% will not qualify for Own in Ogden down payment assistance.
Buyer’s Cash Contribution: Borrower(s) must provide at least $500.00 of his/her own money toward
the purchase. This is usually in the form of earnest money. Fees paid for appraisals or termite
inspections may be submitted, provided a receipt confirming direct payment from the Buyer to the
vendor is provided. This $500.00 contribution is to be verified prior to the allocation of funds and
cannot be included in the mortgage loan or refunded to the buyer at closing.
Lien position: Own in Ogden Loans are secured by a Promissory Note and Trust Deed. The City
prefers that Own in Ogden loans occupy second position. Third position Own in Ogden loans may be
considered on a case by case basis.
Repayment Requirements: Effective August 28, 2002, all new Own in Ogden loans will be forgiven at
a declining rate over a five-year residency requirement period. During the required time of residency,
10% for each year of residency will be forgiven over a period of four years with the remaining 60%
balance credited after the full five years of residency is completed. To receive these credits, Buyer(s)
are required to provide proof of residency for each year on a yearly basis. This is to be in the form of
standard monthly billings that show mail delivery to the property address, in the name of the buyer.
Own in Ogden loan credits cannot be awarded without proof of residency.
Refinancing: The general policy of Ogden City Community & Economic Development is not to
subordinate loans. Subordinations will not be granted to provide cash out or assist with debt
consolidation or payment of personal debt. Loan subordinations will be considered strictly on a case by
case basis under certain circumstances. These circumstances include (1) streamline first mortgage
refinancing to lower monthly payments, (2) protection of Ogden City interests, or (3) escrowed funds
for property repairs being performed by a licensed contractor under a scope of work approved by Ogden
City. For further details please refer to Policies Regarding Loan Subordinations, page 12.
For more information about the Own-in-Ogden Program, call or write:
Ogden City, a Utah Municipal Corporation
2549 Washington Blvd., Suite 120
Ogden, UT 84401-1333
(801) 629-8906
TDD (801) 629-8949
Effective 103009
4

OGDEN CITY COMMUNITY AND ECONOMIC DEVELOPMENT
OWN IN OGDEN LOAN COMMITMENT
Borrower(s)
Property Address
Ogden City, a Utah Municipal Corporation (Ogden City) hereby commits an Own in Ogden Loan of $ to the undersigned Borrower(s), provided that requirements and procedures as specified in the Own in Ogden Program Guidelines are followed.
These funds for down payment and closing cost expenses are to be delivered at the time of closing on the above-described property to the Title Company conducting the transaction.
This reservation of funds expires
BORROWER AGREEMENT
The undersigned Borrower acknowledges submitting an application for an Own in Ogden Loan of $ and agrees to adhere to the requirements of the Own in Ogden Program.
Buyer agrees that the property being purchased is intended to be used as their primary residence and that they are in compliance with program specifications regarding the terms and qualifying status of their mortgage loan (see Own in Ogden Program Guidelines).
Buyer(s) agree to attend, complete and provide the Own in Ogden Program Administrator with a Certificate of Completion from a HUD approved Home Ownership class prior to closing date on the above-described property unless other arrangements are made with the program administrator.
Ogden City, a Utah Municipal Corporation
BY: Ogden City Representative Date
BY:
Buyer Date
Buyer Date
Return to Ogden City Community Development, 2549 Washington Blvd. Suite 120, Ogden, Utah 84401
CITY OF OGDEN, UTAH
COMMUNITY AND ECONOMIC DEVELOPMENT
Effective 103009
6

 

SELLER PERMISSION TO CONDUCT HOUSING SAFETY INSPECTION
(A Requirement of the Own In Ogden Down Payment Assistance Program)
I certify that I am the legal owner, or the owners’ legal representative, and hereby authorize a code and safety inspection of the property listed below. I am aware that a safety inspection will be performed on the property by an Ogden City Housing Inspector to determine compliance with safety issues within the International Property Maintenance Code as adopted by Ogden City, which is used to identify life and safety housing code violations. I also understand that after this inspection, I shall be responsible for correcting any hazardous conditions or safety violations that are identified, regardless of the outcome of any Own in Ogden application that is currently underway for this property.
Property Address
Owner Phone Date
Co-Owner Phone Date
STATE OF UTAH
COUNTY OF WEBER
On the day of 2009, personally appeared before me the signer(s) of the above instrument, who duly acknowledged to me that _he_ executed the same.
NOTARY PUBLIC
Return to Ogden City Community Development, 2549 Washington Blvd. Suite 120, Ogden, Utah 84401
CITY OF OGDEN, UTAH
COMMUNITY AND ECONOMIC DEVELOPMENT
Effective 103009
7

 

OWN IN OGDEN PROGRAM

See where the grant is available in Ogden as well as how much is provided.

 
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