HOUSING FINANCE AUTHORITY OF MANATEE COUNTY EIN SINGLE FAMILY MORTGAGE PROGRAM - DPA FUNDING REQUEST

Transcription

1 HOUSING FINANCE AUTHORITY OF MANATEE COUNTY EIN SINGLE FAMILY MORTGAGE PROGRAM - DPA FUNDING REQUEST This form cannot be handwritten. You may only submit a form that was generated from the ehousingplus Lender Portal AFTER an Underwriter Certification has been submitted online. DPA Funding Request forms must be submitted 3 business days prior to funding to assure timely processing. WIRE TRANSFER/FUNDING REQUEST FORM Participating Lender Name: Underwriter Certified Date: Lender Contact: Lender Contact /phone Date of Request: Loan Closing Date: A minimum three (3) business day notice to allow for the timely transfer of funds. Wire Request Amount: Bank: Wiring Instructions Loan Amount Bank Address: Bank Phone: ABA # Closing Agent/Title Company: ATTN: Phone Number / Account #: Borrower(s) Name: Reference/GF #/File Number: Property Address: US Bank Loan Number: NOTE If the Loan does not close on the Loan Closing Date indicated on the Request Form, Lender agrees to cause the funds to be returned to (US Bank, NA) for the credit of the Authority s account not later than the close of business on the business day following the Loan Closing Date. Wiring instructions for the return of funds are as follows: U.S. Bank 777 E. Wisconsin Avenue, Milwaukee, WI ABA A/C US Bank Trust Wire Clearing A/C Ref Manatee HFA/ Attn James Audette/ Wire Transfer /Funding Request Form print, sign, scan and to:. Angela Abbott angelaabbott@cfl.rr.com Participating Lender shown above and that all of the above information is true and correct Date: Signature of Authorized Officer Printed Name Title: Rev

2 MRB/MCC COMPLIANCE FILE CHECKLIST 6(59,&(5 /2$1180%(5 0&& 180%(5 0257*$*25 6 /(1'(5 1$0( /(1'(5 &217$&7 1$0( BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB $& 3+21( 180%(5 BBBBBBBBBBBBBBBBBBBBBB (0$,/ 2) &217$&7 3(5621 TO ASSURE THE FASTEST REVIEW OF YOUR FILE, PLEASE PROVIDE THE FOLLOWING IN THE ORDER SHOWN. PLEASE DO NOT SEND INCOMPLETE FILES. COMPLANCE REVIEW FEES Check # $225 First Mortgage Fee Amt.$ BBBBBB$350 Combo First Mortgage and MCC Fee $75 Second Mortgage Application Fee Corporate Checks only made payable to ehousingplus. Please include name of Mortgagor and Servicer Loan Number/MCC Number (If shipping multiple files, one check is acceptable for a shipment of multiple files. Please ID loan numbers and borrower names on remittance advice). THIS CHECKLIST ORIGINAL SIGNED or Certified Copy - Notice to Buyers ORIGINAL SIGNED or Certified Copy - Affidavit-Mortgagor & Seller/Builder Affidavit & Lender Certificate (Mortgagor and Seller/Builder Affidavits must be Notarized) COPIES of IRS TAX TRANSCRIPTS FOR PAST 3 YRS (Borrowers & Spouses) (not for Targeted Areas or Vets Exception Buyers) COPY of REAL ESTATE PURCHASE CONTRACT COPY of FINAL EXECUTED LOAN APPLICATION COPY of EXECUTED SETTLEMENT STATEMENT - HUD1 COPY OF WARRANTY DEED,f Qualified Veteran, copy of Discharge/Release papers THE COMPLETE COMPLIANCE FILE IS SUBMITTED TO ehousingplus : ehousingplus, 3050 Universal Blvd., Suite 190, Weston, FL PLEASE NOTE: THE COMPLETE FIRST MORTGAGE FILE IS SUBMITTED TO U S Bank. Please use the U S Bank Checklists found on their website to submit the Mortgage File.

3 Servicer Loan # MCC # Housing Finance Authority (HFA) of Manatee County NOTICES TO BUYERS/AUTHORIZATION NOTICE OF POTENTIAL RECAPTURE TO MRB MORTGAGORS AND MCC APPLICANTS This mortgage loan is funded from the proceeds of a tax-exempt mortgage revenue bond (MRB) of the Issuer, and/or the Issuer is issuing a Mortgage Credit Certificate in name of the borrower. Therefore, the Mortgagor/MCC applicant is receiving the benefit of a lower interest rate than is customarily charged on other mortgage loans or a federal income tax credit. If the Mortgagor/Applicant sells or otherwise disposes of the residence during the next 9 years, this benefit may be recaptured. Such recapture is accomplished by an increase in the Mortgagor(s) federal income tax for the year in which the residence is sold or disposed. This recapture only applies if there is a gain resulting from the sale or disposition of the residence and the total annual household income increases above specified levels. You may wish to consult a tax advisor or the Internal Revenue Service at the time of sale or disposition of the residence to determine the amount, if any, of the recapture tax. Following loan closing, you will be provided additional information that will be needed to calculate the maximum recapture tax liability at the time you sell or dispose of the residence. NOTICE TO MRB BUYERS Your home is being financed with a mortgage made available with the assistance of the Issuer. This mortgage is made at a low interest rate below that also offers down payment assistance. Because of this, your mortgage provides that you cannot rent your home without the Mortgage Servicer s prior written consent (which consent can only be given in very limited, extreme circumstances) or have your home assumed by a person ineligible for assistance from the Issuer, unless you pay your loan in full. Otherwise, you must pay your loan in full or the Issuer may demand immediate full repayment of the loan. This could result in foreclosure of your mortgage and repossession of the property. In addition, if you rent the property or committed fraud or intentionally misrepresented yourself when you applied for the loan, the Lender may foreclose your mortgage and repossess the property. If the Lender takes your home through a foreclosure of the mortgage because of these reasons, HUD, FHA, VA, the Servicer and/or the Issuer (as applicable) will not be able to help you. In order for the mortgage to be assumed, you must sell your home at or below the federally designated maximum sales price in effect when you sell your home. If the money received from the foreclosure sale is not enough to pay the remaining amount of money you owe on the loan, the Servicer may obtain a deficiency judgment against you (a court ruling that you must pay whatever money is still owed on the loan after the foreclosure sale). Such judgment will be taken over by HUD, VA, or a private mortgage insurer (as applicable) because of the foreclosure, HUD, VA, or the private mortgage insurer (as applicable) may then bring an action against you to collect the judgment. NOTICE TO MRB/MCC BUYERS USING A SECOND MORTGAGE (if applicable) $ AMOUNT OF SECOND I/We have applied to the HFA of Manatee County ( HFA ) for a down payment assistance loan in the amount set forth above under the HFA s Second Mortgage Program to be used toward the down payment owed or closing costs incurred by me/us in connection with my/our purchase of the property being purchased in this program (the Property ). I/We understand that the second mortgage loan (if not already paid in full) must be repaid in full in the event that I/we sell, transfer or give away the Property (including any involuntary transfer by or as a result of foreclosure or judicial sale or operation of law) or I/we satisfy or refinance the first mortgage loan from the lender or if I/we rent the Property. I/We understand that the Loan cannot be assumed by any person acquiring the Property from me/us. Notice completed at Application; Original in Compliance File, Rev

4 Servicer Loan # MCC # MRB MORTGAGORS/MCC APPLICANTS DISCLOSURE OF MORTGAGOR INFORMATION The Mortgagor(s) hereby consent and agree that all information furnished by the MRB Mortgagors or MCC Applicants to the participating Lender, the Servicer, the Administrator and the Issuer, including but not limited to, non-public personal and financial information (the Information ), in connection with the application for mortgage loan(s) under this program, may be disclosed to any person or other third parties in connection with the processing of the Mortgagor(s) loan application, verification of information concerning the loan or the Mortgagor(s), and for any other purpose in furtherance of or connected with the Issuer s program. MRB MORTGAGORS: BORROWER AUTHORIZATION FOR COUNSELING If I fail to make any monthly mortgage payment as agreed, I understand that the servicer of my mortgagor loan may refer me to a third-party counseling organization or a mortgage insurer that will advise me about finding ways to meet my mortgage obligation. I hereby authorize the servicer to release certain information related to the servicer s own experience with me to such third-party counseling organization or mortgage insurer, and request that the counseling party contact me. I further hereby authorize the third-party counseling organization or mortgage insurer to make a recommendation about appropriate action to take with regard to my mortgage loan, which may assist the servicer in determining whether to restructure my loan or to offer other extraordinary services that could preserve my long-term home ownership. I/We have read and understand all the Notices and the Authorization shown above. Date SIGNATURE OF MORTGAGOR SIGNATURE OF MORTGAGOR Notice completed at Application; Original in Compliance File, Rev

5 ABOUT RECAPTURE TAX When you receive a first-time homebuyer first mortgage loan and/or a Mortgage Credit Certificate (MCC), you are receiving the benefit of a lower mortgage interest rate with a first-time homebuyer first mortgage loan and/or the benefit of a federal income tax credit with a MCC. Both programs are governed by federal law. The law mandates a recapture of some of the benefit of the program that are not customarily available with other mortgage loans. Buyers who meet all three of the following criteria may pay Recapture Tax (1) the property ceases to be the principal residence in the first full nine years of ownership; (2) there is a profit on the sale of the home AND (3) the household income increases significantly (generally over the program limits in the first year and an additional 5% over the previous year every year thereafter). If Recapture Tax is owed, it s computed and paid to the IRS for the tax year in which the home is sold. For the average buyer in these programs, it s very unlikely that they ll be required to pay because their income is lower than that allowed. But if Recapture tax must be repaid it will never exceed the lesser of 6.25% of the original loan amount or one-half of the gain on the sale of the home. The most that you will ever be required to pay when you sell your home in the first nine years is 6.25% of the highest principal amount of the mortgage loan during the life of the loan. (i.e. If the highest loan amount during the course of the loan was $50,000 and you sold in the months of ownership, then multiply $50,000 x.0625 and the highest you would pay would be $3,125.) This amount is considered to be the federally subsidized amount. When you sell your home is as important as the amount you receive for the sale of your home and your income at the time you sell. The actual recapture tax, if any, can only be determined when you sell your home. Remember if you sell your home after nine years, there is no Recapture Tax due; if your don t receive a gain (net profit) on the sale of your home, there is no Recapture Tax due, or if your adjusted gross income does not increase significantly over the nine years, (usually that means more than 5% per year), there is no Recapture Tax due. To owe any Recapture Tax, you must sell your home within nine years, make a net profit on the sale of your home AND have a significant increase in income. All three criteria must be met in order for Recapture Tax to be due. You May Not Have to Pay Recapture Tax if your home is destroyed by fire, storm, flood or other casualty, there is generally no recapture tax if within two years you build or rehab for use as your principal residence on the site of the home financed with your original subsidized mortgage loan. You Are Not Subject to The Recapture Tax if you sell or give away or dispose of your home later than 9 full years after you close your mortgage loan. your home is disposed of as a result of your death. you transfer your home to your spouse or your former spouse as an agreement of your divorce and you have no gain or loss included in your income as a result of the transfer. INFORMATION YOU LL NEED IN THE FUTURE After you close your loan, you will receive a detailed letter from the Program Administrator or one that will be provided by your lender at closing. This letter should be kept with your other mortgage documents. It contains extremely important information that you will need to determine if you must pay recapture tax. The letter contains information that you ll need in order to complete Form 8828 such as The loan amount (the highest principal amount of the loan) Closing Date, Name of the Issuer of the Bonds, Name of the original lender that made the loan, and Chart that details data necessary to complete Form What about refinancing my home? If you refinance your home and stay in it for a full nine years, you won t pay Recapture Tax. Recapture kicks in when the property ceases to be your principal residence before the full nine years, then you may owe Recapture Tax. If you refinance in the first full four years and the property ceases to be your principal residence before the full nine years, there is a special calculation worksheet that must be used if you must pay Recapture Tax. See For More Information on the next page and instructions for Form 8828 for more detail Copyright Denihan and Associates. All Rights Reserved.

6 What does net profit on the sale of your home mean? Consult your tax advisor but generally you will be considering the amount you received for the sale of your home and deducting the expenses of selling your home (i.e. commission paid to a real estate agent, advertising, legal fees, etc.). This is the Amount Realized from the sale of the home. From the Amount Realized you will subtract your Adjusted Basis of your interest in the home. The Adjusted Basis will be increased by any sales commission you paid when you bought the home and decreased by depreciation. Your tax advisor will be helpful in determining the exact amount. If the total of the Amount Realized minus the Adjusted Basis is 0" or lower, you did not realize a gain (make a profit) when you sold the home and you DO NOT owe recapture tax. You will still need to complete a form 8828 and send it to the IRS with your federal income tax return in the year you sell or dispose of the home.. What about my income? If you did make a profit, then you may have to pay recapture. Now you must consider your income. There will be a chart on the letter you receive after closing that shows the maximum income allowable for each 12 month period following closing. The limits are the program limits for the first 12 months and then 5% more than the preceding year for each year thereafter. Example: If your income at the time you bought the home was $40,000 and the income limit is $50,000, the limit for the first 12 months after closing is $50,000. Then each 12 months it s 5% more than the previous year. If your modified adjusted gross income on your federal income tax return does not exceed the income limit for the 12-month period in which you sell your home, you DO NOT owe recapture tax. If your modified adjusted gross income does exceed the income limit, you DO owe recapture tax. How much do I owe? The amount you owe will be the LESSER of 50% of the gain realized from the sale of your home OR the amount resulting from a calculation that uses The income percentage (Consider the amount by which your income exceeds the limit in the year that you sell. If the amount is $5,000 or more, then your income percentage is 100%. If less than $5,000 then divide the amount by which your income exceeds the limit by $5,000 and round to the nearest whole percentage.) The maximum recapture tax or federally subsidized amount (this is.0625 x the highest principal amount of your loan). The holding period percentage as shown on the chart below: Disposition Within # Months of C Holding Period Perce Income 1-2 person HH Income 3 + per % $Amt shown for 1-12 Months represent the program limits % Balance will be completed on % personalized form you receive % following closing. The limits for each % successive 12 mos. is approx. 5% % higher than the preceding 12 mos % % % 109 or More No Recapture Tax FOR MORE INFORMATION Contact the IRS and request Form 8828 and the instructions for Form 8828 (both available on the IRS Website: In the Forms and Publications search box, type 8828" and click). Review the form and instructions now. Consult your tax advisor. In the year that you sell your home, you are required to complete Form 8828 and submit it with your federal income tax return (even after the full 9 years). The income that will be considered in that year will be your modified adjusted gross income from your federal income tax return.

7 SERVICER LOAN # MCC # Housing Finance Authority of Manatee County 2012 SINGLE FAMILY AFFIDAVIT/CERTIFICATION There are important legal consequences to this Affidavit. Read carefully before signing. MRB MORTGAGOR/MCC RECIPIENT AFFIDAVIT STATE OF FLORIDA COUNTY OF The undersigned, as part of my (our) application for a Housing Finance Authority of Manatee County Mortgage Revenue Bond (MRB) program loan that under special circumstances may also include a Mortgage Credit Certificate (MCC) from a participating lender of my (our) choice for a single-family residence that will become my (our) permanent, primary residence, being first duly sworn state the following information to be true and correct: MORTGAGOR LAST NAME, FIRST, MIDDLE MORTGAGOR LAST NAME, FIRST, MIDDLE ADDRESS BEING PURCHASED CITY, ZIP CODE MANATEE COUNTY, FLORIDA CHECK AS APPLICABLE: New Construction Existing Non-Targeted Area Targeted Area CHECK IF APPLICABLE: Mortgagor (Comortgagor) meets the requirements to qualify as a veteran as defined in 38 U.S.C. Section 101 and has not previously obtained a loan financed by single family mortgage revenue bonds utilizing the veterans exception to the first-time homebuyer requirement for Residences to Veterans under Section 143 (d)(2)(d). Attached hereto are true and correct copies of my discharge or release papers, which demonstrate that such discharge or release was other than dishonorable. Copies of Federal Income Tax Returns filed with the IRS for the past three (3) years for all resident adults are submitted herewith or the reasons for exemption from filing are stated as follows: Total Persons in Household Number of Income Recipients Number of Minors MID CREDIT SCORE Household Income includes the anticipated gross income from all sources of all persons in the household 18 years of age or older including but not limited to Annual Wages, bonuses, commissions, overtime, part-time earnings, dividends, interest, royalties, pensions, VA compensation and net rental income, other income (such as alimony, child support, public assistance, sick pay, social security benefits, unemployment compensation, income received from trusts, and income received from business activities or investments and other income). Borrower Type Borrower Name Income Type Income Amount Grand Total Annual Household Income (add all amounts above) $ The TOTAL ACQUISITION COST $ TOTAL ACQUISITION COST of the property includes all amounts paid previously or in the future, in cash or in kind by the Mortgagor(s) or any other person(s) to or for the benefit of the seller(s); points paid by the seller(s) excluding usual and reasonable settlement and financing costs, additional amounts paid for fixtures under state law (i.e. light fixtures, window treatments, floor carpeting; capitalized value using discount rate established by the Issuer of ground rent, (leasehold estate); additional amounts to be paid if dwelling is incomplete or unfinished for which a written estimate of AFFIDAVIT, ORIGINAL WITH COMPLIANCE FILE REV

8 SERVICER LOAN # MCC # completion cost is attached; additional amounts for land purchased separately and not owned by the mortgagor(s) for at least two (2) years prior to the commencement of construction of the residence; and other amounts including any agreements, whether oral or written, property taxes in excess of the mortgagor(s) pro-rata share and settlement and financing costs in excess of the usual and reasonable costs, hook-up, tap-in, site improvements, architectural and builder fees, permits, subcontracted items, construction loan interest and commissions. Apart from any normal real estate agents commissions, no money is being paid, no promissory note is being delivered, nor is anything else of value (including, without limitation, personal property) being exchanged for or transferred to the seller of the residence or any other persons by me, or to my knowledge, by any other person in connections with the residence except as itemized with the amount of their purchase price that does not exceed their fair market value and attached hereto and incorporated into the Affidavit. AND THAT (a) the residence will be occupied as my (our) principal residence within a reasonable time not to exceed 60 days of loan closing, will not be used as investment property, vacation, or recreational home, or in conjunction with business activities (as evidenced by the use of more than fifteen percent [15%] of the total floor space in a trade or business) except for the rental of one to three of the units respectively in a two-to-four family residence; and I (we) will immediately notify the Servicer in writing if the residence ceases to be my (our) principal, permanent residence; (b) this is not a refinancing of an existing, previously occupied residence for which this mortgage loan is being requested and will not replace my (our) existing mortgage or land contract or a newly constructed residence has not and will not be occupied prior to loan commitment and the proceeds of the mortgage loan will not be used to replace my (our) existing mortgage, unless such loan is a construction, bridge or temporary initial financing of 24 months or less; (c) unless the residence is located in a targeted area or is for a qualified veteran, all mortgagors and spouses have submitted the most recent 3 years federal income tax returns or reasons exempted by law to do so, and individually or together have not had an ownership interest in a principal residence within 3 years of loan closing (principal residence includes single family detached, condominium, shares in housing cooperative, occupancy in an owned multi-family housing unit, factory made housing affixed to real property; ownership includes full or partial ownership interest, fee simple, joint ownership interest by joint tenancy, tenancy in common or tenancy in entirety, in interest of a tenant-stockholder in a cooperative, a land contract under which possession and the burdens and benefits of ownership are transferred, even if legal title is until some later date, ownership interest in trust or life estate interest); (d) if the first mortgage becomes a tax exempt MRB program loan, no portion of the financing of the residence will receive a Mortgage Credit Certificate; (e) I (we) do not have an application in process nor have I (we) received a commitment for a mortgage loan under any other single family mortgage revenue bond program; (f) no person related to me (us) has or is expected to have an interest as a creditor in the mortgage loan; (g) I (we) must meet all federally and locally mandated requirements to qualify for the mortgage loan; (h) this Affidavit will be relied upon for the purposes of determining my (our) eligibility and if any information contained in this certification contains a material misstatement which is due to fraud or intentionally made, I (we) are subject to criminal penalty. Further, I/We state not SIGNATURE OF MORTGAGOR SIGNATURE OF COMORTGAGOR PRINTED NAME OF MORTGAGOR PRINTED NAME OF COMORTGAGOR Sworn to and subscribed before me on the day of,. PERSONALIZED SEAL Notary Public Signature AFFIDAVIT, ORIGINAL WITH COMPLIANCE FILE REV

9 SERVICER LOAN # MCC # SELLER/BUILDER AFFIDAVIT I/We the undersigned, as an essential participant in an application for a single family mortgage revenue bond (MRB) program loan or a Mortgage Credit Certificate (MCC) being submitted in connection with the Mortgagor s(s ) purchase from the undersigned of a single family, residence (the Residence ) located at being first duly sworn hereby state the following: I (We) certify that I (we) are the Seller (or Builder) of the Residence and that the Residence is a single-family residence located at the above address. I (We) certify that (1) the total amount to be paid to me (us), or to anyone related to me (us), or acting on my (our) behalf (such as a real estate agent) in connection with the purchase of the residence is $ as total acquisition cost. This amount includes all amounts being paid by or on behalf of the Borrower. I (We) have not entered into any other contract or agreement with the Mortgagor(s), either expressed or implied, to perform additional construction on the residence or to transfer any additional property at additional cost other than personal property contained in the residence which are listed by item and amount and attached hereto and incorporated into this Affidavit. I (We) acknowledge and understand that this Affidavit will be relied upon for purposes of determining the Mortgagor(s) eligibility. Dated Signature of Seller or Signature or Builder Representative Printed Name of Seller of Builder Representative Dated Signature of Seller If Seller is not an individual, type/print Name and Title and Name of Selling Entity. If Signator is not the Owner, type/print Name and Title. Attach copy of Power of Attorney. Printed Name of Seller Sworn to and subscribed before me on the day of,. PERSONALIZED SEAL Notary Public Signature LENDER CERTIFICATION The Lender, certifies that as of the date of closing it has (1) reviewed the foregoing certifications of the Mortgagor(s) and the Seller/Builder and found them to be true and correct; (2) has charged the Mortgagor(s) only reasonable and customary fees of processing the financing and no more than charged to buyers of other products we originate; and (3) after completion of all underwriting, verifications and investigations has approved the mortgage loan. The Lender hereby agrees that it will immediately forward to the Servicer all information which it may receive during the life of the mortgage loan which (1) may indicate that the mortgagor(s) may have made a misrepresentation in applying or (2) may affect the mortgagor s continued eligibility. Lender also certifies that if new construction, Certificate of Occupancy Date is and if Homebuyer Education is required that an approved provider actually conducted the training. Dated Telephone Number of Authorized Officer Signature of Authorized Officer Printed Name & Title of Authorized Officer AFFIDAVIT, ORIGINAL WITH COMPLIANCE FILE REV

10 Housing Finance Authority of Manatee County 6150 State Road 70 East Bradenton, FL Phone: (877) EIN: DOWNPAYMENT ASSISTANCE PROGRAM AWARD LETTER Date: Lender: Please be advised that the Housing Finance Authority of Manatee County, a governmental entity, is providing down payment/closing cost assistance loan to be used in conjunction with their Single Family Program. The terms of the assistance loan are as follows: The Second Mortgage Loan provides funds to homebuyers in Manatee County to persons who qualify. The mortgage can only be originated in conjunction with the first mortgage loan. The Second Mortgage Loan shall be evidenced by a promissory note and secured by a second mortgage encumbering the residence being financed with the related first mortgage loan. The Second Mortgage Loan shall be subordinate only to the first mortgage made to the borrower by participating lender under the single family program. The Second Mortgage is a loan up to $7,500 loan at 0% interest and must be repaid in full on the earlier of 30 years (final repayment date of the First Mortgage), or upon sale, refinance, transfer of title, or rental of the home. This loan is never forgiven. Amount of Assistance:$ Property Address : USS Loan #: First Mortgage Loan Amount: $ _ Borrower: Date: ---- Borrower : Date: Original: Lender Copies to: Borrower(s), FHA Case Binder, US Bank

11 DAP CERTIFICATE The undersigned Lender, in compliance with Resolution of the Housing Finance Authority of Manatee County, Florida (herein the HFA ), adopted August 14, 2012, creating a Down Payment Assistance Program (herein the DAP ) in connection with the Single Family Home Ownership Mortgage Loan Program, Series 2012 (herein the Program ), hereby certifies to the HFA, with the intent that the HFA may rely thereon, that: 1. _, the Borrower, complied with all of the requirements for participation in a First Mortgage under the Program and DAP, and the Borrower and Lender simultaneously closed the loans for both programs. 2. The Lender submits, together with the original of this Certificate, (1) a photocopy of the executed Closing Statement or HUD-1 Settlement Statements for the first and second mortgages evidencing this transaction; (2) the original Promissory Note in the amount of $ for said DAP loan; (3) the original mortgage securing payment of said Promissory Note filed for record and recorded among the public records of Manatee County, Florida; and (4) the processing fee of $ payable to the Housing Finance Authority of Manatee County. The Lender properly distributed the amount thereof and is entitled to reimbursement of said amount by the HFA. DATED NAME OF LENDER: ADDRESS: Telephone No. Signature: Title:

12 TAX EXEMPT FINANCING RIDER TO SECURITY INSTRUMENT THIS TAX-EXEMPT FINANCING RIDER is made this day of,, and is incorporated into and shall be deemed to amend and supplement the Mortgage or Security Deed ("Security Instrument") of the same date given by the undersigned ("Mortgagor") to secure Mortgagor's Note ("Note") to ("Lender") of the same date and covering the property described in the Security Instrument and located at : Property Address In addition to the covenants and agreements made in the Security Instrument, Mortgagor and Lender further covenant and agree as follows: Lender, or such of its successors or assigns as may by separate instrument assume responsibility for assuring compliance by the Mortgagor with the provisions of this Tax-Exempt Financing Rider, may require immediate payment in full of all sums secured by this Security Instrument if the loan is not paid in full and: (a) all or part of the property is sold or otherwise transferred by Mortgagor to a purchaser or other transferee: (I) who cannot reasonably be expected to occupy the property as a principal residence within a reasonable time after the sale or transfer, all as provided in Sections 143 (c) and (i) (2) of the Internal Revenue Code; or (ii) who has had a present ownership interest in a principal residence during any part of the three-year period ending on the date of the sale or transfer, all as provided in Sections 143 (d) and (i) (2) of the Internal Revenue Code (except that "100 percent" shall be substituted for "95 percent or more" where the latter appears in Section 143 (d) (1); or (iii) at an acquisition cost which is greater than 90 percent of the average area purchase price (greater than 110 percent for targeted area residences), all as provided in Section 143(e) and (i) (2) of the Internal Revenue Code; or (b) Mortgagor fails to occupy the property described in the mortgage without the prior written consent of the Mortgagee or its successors or assigns described at the beginning of this addendum; or (c) Mortgagor omits or misrepresents a fact which is material with respect to the provisions of Section 143 of the Internal Revenue Code of 1986 in an application for this mortgage. References are to the Internal Revenue Code as amended and in effect on the date of issuance of the Bonds, the proceeds of which will be used to finance the purchase of the Security Instrument and are deemed to include the implementing regulations. DATE: SIGNATURE OF MORTGAGOR Printed Name of MORTGAGOR SIGNATURE OF MORTGAGOR Printed Name of MORTGAGOR

13 PREPARED BY: SECOND MORTGAGE THIS SECOND MORTGAGE ( Mortgage ) is made on, 20. The Mortgagor is, whose address is ( Borrower ) and the Mortgagee is the Housing Finance Authority of Manatee County, Florida, whose address is 6150 State Road 70 East, Bradenton, Florida ( Lender ). Borrower owes Lender the principal sum of Dollars (U.S. $ ). This debt is evidenced by Borrower s note dated the same date as this Mortgage ( Promissory Note ). This Mortgage secures to Lender: (a) the repayment of the debt evidenced by the Promissory Note, and all renewals, extensions and modifications of this Mortgage; (b) the payment of all other sums, advanced under Paragraph 5 to protect the security of this Mortgage; and (c) the performance of Borrower s covenants and agreements under this Mortgage and the Promissory Note. For this purpose, Borrower irrevocably grants and conveys to Lender, in trust, with power of sale, the following described property located in Manatee County, Florida which has the address of, Florida ( Property Address ) Legal Description follows TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, rights, appurtenances, grants, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Mortgage. All of the foregoing is referred to in this Mortgage as the Property. THIS MORTGAGE IS EXEMPT FROM FLORIDA DOCUMENTARY STAMP TAX UNDER , F.S. AND FLORIDA NONRECURRING INTANGIBLE TAX UNDER 199, F.S. PER FLORIDA STATUTES 1

14 BORROWER COVENANTS that Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Property and that the Property is unencumbered, except as otherwise herein stated and except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. Borrower and Lender covenant and agree as follows: 1. Payment. Borrower shall promptly pay when due the indebtedness evidenced by the Promissory Note. 2. Prior Mortgages; Charges; Liens. Borrower shall perform all of Borrower s obligations under the first mortgage of even date under the Single Family Mortgage Revenue Bond Program, Series 2009 (the First Mortgage ), and any other mortgage, or other security agreement with a lien which has priority over this Mortgage, including Borrower s covenants to make payments when due. Borrower shall pay or cause to be paid all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any. 3. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term extended coverage. All insurance policies and renewals thereof shall include a standard mortgage clause in favor of the Lender. In the event of loss, Borrower shall give prompt notice to the insurance carrier and to Lender. Lender may make proof of loss if not made promptly by Borrower. 4. Protection of Lender s Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender s interest in the Property, then Lender, at Lender s option, upon notice to Borrower, may make such appearances, disburse such sums, including reasonable attorneys fees, and take such action as is necessary to protect Lender s interest in the Property. If Lender required mortgage insurance as a condition of making the Loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower s and Lender s written agreement or applicable law. 5. Inspection. Lender may make or cause to be made reasonable entries upon and inspections of the Property; provided that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause therefore related to Lender s interest in the Property. 6. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Mortgage. 7. Borrower Not Released; Forbearance by Lender Not a Waiver. Extension of the time for payment or modification of the sums secured by this Mortgage granted by Lender to any successor in interest of Borrower shall not operate to release, in any manner, the liability of the original Borrower and Borrower s successors in interest. Lender shall not be required to commence proceedings against such successor or refuse to extend time for repayment or otherwise modify amortization of the sums secured by this Mortgage by reason of any demand made by the original Borrower and Borrower s successors in interest. Any forbearance by Lender in exercising any right or remedy hereunder, or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any such right or remedy. 8. Successors and Assigns Bound; Joint and Several Liability; Co-Signers. The covenants and agreements herein contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of Lender and Borrower. If more than one Borrower executes this Mortgage, all covenants, representations, warranties and agreements of Borrower shall be joint and several. Any Borrower who co-signs this Mortgage, but does not execute the Promissory Note; (a) is co-signing this Mortgage only to mortgage, grant and convey that Borrower s interest in the property to Lender under the terms of this Mortgage, (b) is not 2

15 personally liable on the Promissory Note or under this Mortgage, and (c) agrees that Lender and any other Borrower hereunder may agree to extend, modify, forbear, or make any other accommodations with regard to the terms of this Mortgage or the Promissory Note without that Borrower s consent and without releasing that Borrower or modifying this Mortgage as to that Borrower s interest in the Property. 9. Notice. Except for any notice required under applicable law to be given in another manner, any and all notices, elections, demands, or requests permitted or required to be made under this Mortgage shall be in writing, signed by the party giving such notice, election, demand or request, and shall be delivered personally, or sent by registered, certified, or Express United States mail, postage prepaid, or by Federal Express or similar nationally recognized delivery service requiring a receipt, to the other party at the address stated above, or to such other party and at such other address within the United States of America as any party may designate in writing as provided herein. The date of receipt of such notice, election, demand or request shall be the earliest of (i) the date of actual receipt, (ii) three (3) business days after the date of mailing by registered or certified mail, (iii) one (1) business day after the date of sending via overnight delivery by Express Mail, Federal Express or another similar service requiring a receipt, or (iv) the date of personal delivery (or refusal by or on behalf of the addressee upon presentation for delivery of a properly addressed notice). 10. Governing Law; Severability; Costs. This Mortgage shall be governed by the laws of the state of Florida, and, to the extent applicable hereto, the laws and regulations of the United States of America. In the event that any provision or clause of this Mortgage or the Promissory Note conflicts with applicable law, such conflict shall not affect other provisions of this Mortgage or the Promissory Note which can be given effect without the conflicting provision, and to this end the provisions of this Mortgage and the Promissory Note are declared to be severable. As used herein, costs, expenses, and attorneys fees include all sums to the extent not prohibited by applicable law or limited herein. 11. Borrower s Copy. Borrower shall be furnished a conformed copy of the Promissory Note and of this Mortgage at the time of execution or after recordation thereof. 12. Transfer of the Property. If all or any part of the Property or any interest in it is sold, transferred, gifted or otherwise conveyed, whether by voluntary act, involuntarily, by operation of law or otherwise, or if Borrower is divested of title by judicial sale, levy or other proceeding, or if foreclosure action is instituted against the property, or if the First Mortgage is satisfied or refinanced, or if the Property is leased or rented all sums secured by this Mortgage shall immediately become due and payable as provided herein. 13. Acceleration; Remedies. Except as provided in Paragraph 12 hereof, each of the following shall be deemed an event of default by Borrower (each, an Event of Default ): (i) Borrower s breach of any covenant, condition, obligation or agreement of Borrower in this Mortgage, including the covenants to pay when due any sums secured by this Mortgage, (ii) Borrower shall have made material misrepresentations or material omissions in his/her/their application for a Down Payment Assistance Loan, (iii) Borrower s breach of any covenant, condition, obligation or agreement contained in the Promissory Note or any other loan document, and (iv) any default occurs under the Promissory Note or any other loan document. Upon the occurrence and during the continuance of an Event of Default, (a) Lender shall have all rights and remedies of a secured party in, to and against the Property available at law or in equity, including, without limitation: (i) the right to declare any or all payments due under this Mortgage, the Promissory Note, any other loan documents and all other documents evidencing the obligations immediately due and payable; (ii) the right to foreclose this Mortgage in accordance with applicable law; and (iii) the right to recover all fees and expenses (including reasonable attorney fees) in connection with the collection or enforcement of the obligations due under this Mortgage, the Promissory Note, and the other loan documents, which fees and expenses shall constitute additional obligations of Borrower hereunder. Provided, however, upon the occurrence of a monetary Event of Default, Lender shall not be entitled to exercise its rights and remedies set forth above unless and until Lender shall have given Borrower notice thereof and a period of thirty (30) days from the delivery of such notice shall have elapsed without such monetary Event of Default being cured. 3

16 14. Release. Upon payment of all sums secured by this Mortgage, Lender shall release this Mortgage. Borrower shall pay all costs of preparation or recordation of the satisfaction, if any. 15. Attorneys Fees. As used in this Mortgage and in the Promissory Note, attorneys fees shall include attorneys fees, if any, incurred in connection with the collection or enforcement of this Mortgage or of the Promissory Note, whether or not suit is brought and whether incurred at trial, on appeal, in bankruptcy proceedings or otherwise. 16. Special Down Payment Assistance Program Covenants, Representations. Borrower covenants, represents and warrants to Lender that: (a) Borrower, along with his/her/their family, intends to reside as a household in the Property; (b) the Property is a singlefamily residence and (c) Borrower is eligible to participate in the Bond Program and the Down Payment Assistance Loan Program thereunder. 17. Subordination. Lender and Borrower acknowledge and agree that this Mortgage is subject and subordinate in all respects to the liens, terms, covenants and conditions of the First Mortgage of even date and to all advances heretofore made or which may hereafter be made pursuant to the First Mortgage including all sums advanced for the purpose of (a) protecting or further securing the lien of the First Mortgage, curing defaults by Borrower under the First Mortgage, or for any other purpose expressly permitted by the First Mortgage or (b) constructing, renovating, repairing, furnishing, fixturing or equipping the Property. The terms and provisions of the First Mortgage are paramount and controlling, and they supersede any other terms and provisions hereof in conflict therewith. In the event of a foreclosure or deed in lieu of foreclosure of the First Mortgage, any provisions herein or any provisions in any other collateral agreement restricting the use of the Property to low or moderate income households or otherwise restricting Borrower s ability to sell the Property shall have no further force or effect on subsequent owners or purchasers of the Property. Any person, including his successors or assigns (other than Borrower or a related entity of Borrower), receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Mortgage shall receive title to the property free and clear from such restrictions. Further, if the Senior Lien Holder acquires title to the Property pursuant to a deed in lieu of foreclosure, the lien of this Mortgage shall terminate at the discretion of Lender upon the Senior Lien Holder s acquisition of title, such termination will not be unreasonably withheld provided that (i) Lender has been given written notice of a default under the First Mortgage, (ii) Lender shall not have cured the default under the First Mortgage within the 30-day period provided in such notice sent to Lender, and (iii) there is not sufficient equity in the Property to satisfy the senior lien (assuming reasonable costs) and the lien of this Down Payment Assistance Loan. 18. Other Amounts Secured. At all times, this Mortgage secures, in addition to the Promissory Note, all other obligations, together with moneys advanced by Mortgagee to protect and preserve the lien of this Mortgage, as aforesaid. Any additional sum or sums advanced by the then holder of the Promissory Note to the then owner of the Property at any time within twenty (20) years from the date of this Mortgage, with interest thereon at the rate agreed upon at the time of each additional loan or advance, will constitute a portion of, be equally secured with, and have the same priority as the obligations and will be subject to all of the terms and provisions of this Mortgage, whether or not such additional loan or advance is evidenced by a promissory note of Borrower and whether or not identified by a recital that it is secured by this Mortgage; provided, however, that the aggregate amount of principal indebtedness outstanding at any one time and secured by this Mortgage shall not exceed two hundred percent of the original principal balance of the Promissory Note. The provisions of this Paragraph shall apply regardless of whether any such advance is characterized as obligatory or discretionary, but nothing contained in this Paragraph obligates Borrower to make any additional loans or advances. [REMAINDER OF PAGE INTENTIONALLY BLANK; EXECUTION AND ACKNOWLEDGEMENT PAGE FOLLOWS] 4

17 IN WITNESS WHEREOF, Borrower has executed this Mortgage. BORROWER: Print Name: Address: Print Name: Address: STATE OF ) ) SS. COUNTY OF ) The foregoing instrument was acknowledged before me this _, 20 by, who is personally known to me or who has produced as identification. My Commission Expires: Notary Public STATE OF ) ) SS. COUNTY OF ) The foregoing instrument was acknowledged before me this _, 20 by, who is personally known to me or who has produced as identification. My Commission Expires: Notary Public 5

18 PROMISSORY NOTE Loan Amount $ (Principal) 1. BORROWER S PROMISE TO PAY, 20, Florida [City] ( Borrower ), whose address is, for value received, hereby promises to pay to the order of the Housing Finance Authority of Manatee County, Florida ( Lender ); Lender and any subsequent holder of this Promissory Note (this Note ) being referred to herein as Note Holder ), at Lender s office at 6150 State Road 70 East, Bradenton, Florida 34203, or at such other address as Note Holder may from time to time designate in writing, the principal sum of $ (the Loan ), as herein provided. The Loan is secured by a certain Second Mortgage dated as of the date of this Note between Borrower and Lender (the Mortgage ) covering the real property and other assets (the Property ) described therein, and by certain other documents executed and delivered in connection herewith (this Note, the Mortgage and such other documents are collectively called the Loan Documents ). 2. PAYMENTS This Note shall be paid in its entirety by a single payment due upon one of the following events occurring: (a) the note to ( ), hereinafter the First Lien Note ( FLN ) is paid in full upon its maturity and according to its terms; or (b) the FLN is refinanced in whole or in part or is assumed by a new borrower without the consent of Housing Finance Authority of Manatee County, Florida; or (c) the unpaid balance of the FLN becomes due and payable in full for any reason (whether by acceleration or according to its terms, and including, without limitation, because any maker of the FLN is in default); or (d) all or any part of the Property, or any interest in it, is sold, leased, transferred, or foreclosed, except that this clause (d) will not apply to: (i) the creation of a lien subordinate to the Mortgage securing this Note, or (ii) a transfer (not upon death) between joint tenants in the Property who are also comakers, of this Note, or (iii) a transfer by devise, descent or operation of law upon the death of a joint tenant in the Property if at least one other joint tenant who is also a maker of this Note remains alive and continues to occupy the Property at his or he principal residence. 1