NIACOG HOMEBUYER ASSISTANCE PROGRAM

 

Assistance Level:              Maximum assistance of $5000 or 5% of the purchase price, whichever amount is greater

                                                                     

Assistance Type:               Second Mortgage at 3% interest - payments begin 2 years after closing
                (no interest accrual or payments required during the first 2 years)

Amortization Term:           48 months or 60 months 

Fees:                                  $100.00 processing fee in addition to $22.00 fee for recording NIACOGSecond Mortgage


Income Limits:                   See Attached  ANNUAL GROSS INCOME LIMITS

 

Borrower Equity Rqm:       Maximum 98% CLTV is generally required (other subordinate financing is allowed as long as it is behind NIACOG’s second mortgage position).

                                                                                    OR 

                                           2% Equity stake (up front cash) – can come from earnest money deposit, from cash due from buyer at closing, or any combination of the two.

 

 

REQUIRED DOCUMENTS FROM THE FIRST MORTGAGE LENDER


  • First Mortgage Lender’s Uniform Residential Loan Application (Form 1003) fully completed and signed along with verifications (pay stubs, deposits, etc.) collected by First Mortgage Lender during application processing
  • Funding commitment letter from First Mortgage lender
  • Purchase Agreement

LOAN PROCESS


  • Second Mortgage Commitment letter is sent to Borrower (Copy to First Mortgage Lender)
  • NIACOG sends its loan documents to First Mortgage lender (for execution at closing) along with assistance payment.
  • NIACOG $100.00 processing fee and $22.00 mortgage fee is usually rolled into First Mortgage Lender’s HUD-1 closing statement for disbursement at a later date.
  • First Mortgage Lender mails NIACOG’s executed promissory note for its 2nd mortgages back to NIACOG (along with $100 processing fee disbursed from the loan proceeds), along with a copy of the HUD-1.      

 

NIACOG REGION HOMEBUYER ASSISTANCE PROGRAM
ANNUAL GROSS INCOME LIMITS (110% of MEDIAN LEVELS)
(APRIL 2017)

 

Family Size

      1

     2

    3

    4

      5

      6

     7

      8

Cerro Gordo Co

 

49,610

56,760

63,800

70,840

76,560

82,280

87,890

93,610

Floyd Co

49,280

56,320

63,360

70,290

76,010

81,620

87,230

92,840

Franklin Co

49,280

56,320

63,360

70,290

76,010

81,620

87,230

92,840

Hancock Co

51,370

58,630

 

66,000

73,260

79,200

85,030

90,860

96,800

Kossuth Co

52,910

60,500

68,090

75,570

81,620

87,670

93,720

99,770

Mitchell Co

50,380

57,530

64,680

71,830

77,660

83,380

89,100

94,820

Winnebago Co

49,830

56,980

64,130

71,170

76,890

82,610

88,330

94,050

Worth Co

49,280

56,320

63,360

70,290

76,010

81,620

87,230

92,840


The above  limits refer to annual gross income that the entire family or household anticipates receiving over the next 12 months, based on current circumstances or known upcoming income changes.  Income from the following sources must be included:

  • Wages and salaries, overtime pay, commissions, fees, tips and bonuses (calculated before any payroll deductions - in other words  “Gross Income” must be included and not just “take home pay”)  
       
  • Social Security Benefits
  • Annuities and Pensions, IRA Distributions, Periodic payments from insurance policies
  • Company disability or death benefits, unemployment, and worker’s compensation
  • Net Income from Self-Employment
  • Interest and Dividends
  • Unemployment Compensation
  • Net Income from the Rent of Real Estate or other property
  • Alimony and Child Support payments
  • Department of Human Services Cash Assistance (FIP,  Title 19 Waiver, etc)

NOTE: Income from employment of family or household members under the age of 18 is excluded from the annual gross income calculation.   In addition, earned income of full-time students in excess of $480 is excluded, except head of household or spouse.   NOTE: Children who are away from school but who live in the home being purchased during school recess are included as a member of the family, unless they have established residency at the school location as evidence by a lease.