Florida Housing Finance Corporation Sample of Program Forms

Transcription

1 Florida Housing Finance Corporation Sample of Program Forms Forms will auto fill with information provided at reservation/editing/uw Certification. There are FILL IN fields on these forms which we do not populate, most are dates or information not collected. While in the system, these FILL IN fields are denoted by light blue boxes where you can enter the information. Checklist ehp File Notices to Buyers and Recapture Brochure ehp File Affidavit (borrower, seller, lender) ehp File Tax Exempt Rider US Bank File FHFC Obligation Letter for both FL Assist & HAMI FL Assist Letter FL Assist Note FL Assist Mortgage HAMI Letter HAMI Note HAMI Mortgage

2 ehousingplus ~ 3050 Universal Blvd Ste 190, Weston FL ~ SERVICER LOAN # FLORIDA HOUSING COMPLIANCE CHECKLIST MORTGAGOR(S)... LENDER NAME... LENDER #... CONTACT NAME AC & Phone of Contact Person Please submit the following items in the order indicated and submit all items to assure the quickest processing. The Servicer requires Compliance Approval before purchase. THIS CHECKLIST ORIGINAL SIGNED Notice to Buyers ORIGINAL SIGNED Affidavit-Mortgagor & Seller/Builder Affidavit & Lender Certificate COPIES OF SIGNED INCOME TAX RETURNS FOR PAST 3 YEARS Required for ALL Borrower(s) and/or Spouses ** (For bond program purposes, tax returns not required for Targeted Areas, Veteran Exception Buyers, or for Cosigners-please see guidelines if not sure) COPY OF HOMEBUYER EDUCATION CERTIFICATE COPY OF CERTIFICATE OF OCCUPANCY (CO) - FOR ALL NEW PROPERTIES COPY OF REAL ESTATE PURCHASE CONTRACT COPY OF TYPED LOAN APPLICATION COPY OF EXECUTED SETTLEMENT STATEMENT - HUD1 DOCUMENT DETAILING BREAKDOWN of the Origination Fee (Florida max $750) COPY OF WARRANTY DEED COPY OF DISCHARGE PAPERS FOR QUALIFIED VETERANS The Compliance File is submitted with the Mortgage Loan file and Credit Package to the Servicer. Do not include a Compliance Fee. Fee will be netted from purchase.

3 Servicer Loan # FLORIDA HOUSING FINANCE CORPORATION ( Issuer) NOTICES TO BUYERS/AUTHORIZATION NOTICE OF POTENTIAL RECAPTURE EIN # This mortgage loan is funded from the proceeds of a tax-exempt mortgage revenue bond of the Issuer, therefore, the Mortgagor(s) is(are) receiving the benefits of a lower interest rate, other cash costs and/or down payment assistance than is available with other mortgage. If the Mortgagor(s) sell or otherwise dispose 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. Florida Housing will reimburse if Recapture Tax is paid. See for directions on how to apply for reimbursement. NOTICE TO BUYERS Your home is being financed with a mortgage made available with the assistance of the Issuer. This mortgage is made with benefits not available with other mortgage loans. 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 sell your home to a person ineligible for assistance from the Issuer, unless you pay your loan in full. In order for the loan to be assumed, you must sell your home to a person eligible for assistance from the Issuer, 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). If the Servicer files an insurance claim against HUD, VA, or the 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. Notices to Buyers 1 of 2 COMPLETED AT APPLICATION; ORIGINAL IN COMPLIANCE FILE; COPIES: ONE TO MORTGAGOR AND ONE TO LENDER; ATTACH RECAPTURE BROCHURE TO MORTGAGOR S COPY

4 Servicer Loan # NOTICE TO SECOND MORTGAGE BUYERS (If Applicable) $ AMOUNT OF SECOND I/We have applied to the Florida Housing Finance Corporation ( FHFC ) for a down payment assistance loan in the amount set forth above under a FHFC Second Mortgage Program to be used for the down payment owed or closing costs incurred by me/us in connection with my/our purchase of the property described above (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. DISCLOSURE OF MORTGAGOR INFORMATION The Mortgagor(s) hereby consent and agree that all information furnished by the Mortgagor(s) 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. BORROWER AUTHORIZATION FOR COUNSELING If I fail to make any monthly mortgage payment as agreed, I understand that the servicer of my mortgage 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 / / 2012 Signature of Mortgagor (no cosigners) Printed Name of Mortgagor Signature of Mortgagor (no cosigners) Printed Name of Mortgagor Printed Name and Signature for Spouse if ONLY on the Warranty Deed Notices to Buyers 2 of 2 COMPLETED AT APPLICATION; ORIGINAL IN COMPLIANCE FILE; COPIES: ONE TO MORTGAGOR AND ONE TO LENDER; ATTACH RECAPTURE BROCHURE TO MORTGAGOR S COPY

5 [Type text] ABOUT RECAPTURE TAX FOR FLORIDA HOUSING LOANS BEGINNING WITH 2007 SERIES 1 When you receive a first-time homebuyer loan, you are receiving the benefit of a lower mortgage interest rate and/or down payment / closing cost assistance that is not customarily available on other mortgage loans. The tax-exempt mortgage revenue bond program used to fund your mortgage loan is governed by federal law. The law mandates a recapture of some of the benefit of the program if buyers meet all three of the following criteria -- the property ceases to be the principal residence in the first full nine years of ownership; there is a profit on the sale of the home AND 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 the limits. If Recapture tax must be paid 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. HOWEVER, for first mortgage loans financed with Florida Housing s qualified mortgage revenue bonds beginning with the 2007 Series-1 bond issue. Florida Housing will reimburse you if you have to pay. See the last paragraph on page two of this brochure. 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 you 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. Denihan and Associates. All Rights Reserved. Pg 1

6 [Type text] ABOUT RECAPTURE TAX 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. 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. Denihan and Associates. All Rights Reserved. Pg 2

7 [Type text] ABOUT 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 Closing Holding Period Percentage Income 1-2 Person HH % $ Amt shown for 1-12 months will be % Each 12 months the Amount shown will be % % % % % % % 109 or more No Recapture Tax Income 3 + Person HH the program limits. 5% more than the previous year s limits 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. THE BEST NEWS If you do have to pay Recapture Tax, Florida Housing will reimburse you. Please use the link below for an explanation of to apply for reimbursement. LINK TO FLORIDA HOUSING RECAPTURE TAX REIMBURSEMENT SITE Denihan and Associates. All Rights Reserved. Pg 3

8 Florida Housing Finance Corporation HOMEOWNER MORTGAGE REVENUE BOND PROGRAM - AFFIDAVITS/CERTIFICATION There are important legal consequences to this Affidavit. Read carefully before signing. MORTGAGOR AFFIDAVIT STATE OF FLORIDA COUNTY OF SERVICER LOAN # The undersigned, as part of my(our) application for a Florida Housing bond program loan, and, if applicable, a Florida Housing second mortgage, 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 COMORTGAGOR LAST NAME FIRST MIDDLE ADDRESS BEING PURCHASED FLORIDA CITY COUNTY ZIP CODE CHECK AS APPLICABLE: New Construction Existing Non-Targeted Area Targeted 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 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 Used to Qualify Mortgagors Household Income includes the anticipated gross income from all sources of all persons in the household 18 years of age or older Mortgagor Spouse or CoMortgagor Other Occupant(s) Annual Wages, Commissions, Bonuses $ $ $ Self-Employment (Plus Depreciation) $ $ $ Dividends/Interest/Annuities/Pensions $ $ $ Child Support/Alimony/Public Assistance $ $ $ Other Income $ $ $ 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 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 connection 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 this Affidavit. Rev 5-11 AFFIDAVIT 1, ORIGINAL WITH COMPLIANCE FILE, COPIES TO MORTGAGOR, LENDER

9 SERVICER LOAN # 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) 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 m y(our) eligibility and if an y 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 Printed Name of MORTGAGOR SIGNATURE OF COMORTGAGOR Printed Name of COMORTGAGOR Sworn to and subscribed before me on the day of,. PERSONALIZED SEAL Notary Public Signature Printed Name of Notary Public Rev 5-11 AFFIDAVIT 2, ORIGINAL WITH COMPLIANCE FILE, COPIES TO MORTGAGOR, LENDER

10 SERVICER LOAN # SELLER/BUILDER AFFIDAVIT I/We the undersigned, as an essential participant in an application for a single family mortgage revenue bond program loan located at in connection with the Mortgagor s(s ) purchase from the undersigned of a single family residence (the Residence ), 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 $ (total acquisition cost). This amount includes all amounts considered above under the paragraph entitled Total Acquisition Cost. 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 Dated Signature of Seller or Signature or Builder Representative Printed Name of Seller or Builder Representative 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 Printed Name of Notary Public 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) Lender no more than required by the program; (3) that the mid-credit score used to qualify Mortgagor(s) meets program requirements; and (4) 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 Dated Telephone Number of Authorized Officer Signature of Authorized Officer Print Name & Title of Authorized Officer Rev 5-11 AFFIDAVIT 3, ORIGINAL WITH COMPLIANCE FILE, COPIES TO MORTGAGOR, LENDER

11 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 (iv) who has a gross family income in excess of the applicable percentage of applicable median family income, as provided in Section 143 (f) 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

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14 PROMISSORY NOTE FLORIDA HOUSING FINANCE CORPORATION FLORIDA ASSIST PROGRAM Date Loan Number Loan Amount $ (Principal) Florida Property Street Address City State Zip Code 1. BORROWER S PROMISE TO PAY In return for a loan that I (the Borrower ) have received, I promise to pay U.S. Dollars ($ ) (this amount is called Principal ) to the order of the FLORIDA HOUSING FINANCE CORPORATION, whose address is 227 North Bronough Street, Suite 5000, Tallahassee, Florida (the Lender ), or to any other legal holder of the Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note will be called the Note Holder. 2. INTEREST As long as I am not in default, the interest on this Note shall be zero percent (0%) per annum; however, if I fail to pay this Note as required, interest shall be due on the unpaid Principal balance at the rate of twelve percent (12%) per annum from the date when payment of this Note was due until I pay it in full. 3. PAYMENT (A) I understand that repayment of the Principal under this Note shall be deferred for the term of the First Mortgage loan (as that term is defined in the Mortgage) or until, 20, the date the last payment is due on the First Mortgage loan (that date is the Maturity Date of this Note). I agree to repay the Principal amount of this Note in full on the Maturity Date. I will make my payment at the Lender s address stated in Section 1 above, or at a different place if required by the Note Holder. (B) I also understand that if at any time before the Maturity Date: (a) I sell, transfer or dispose of the Property or Home, either voluntarily or involuntarily; (b) I fail or cease to occupy the Home as my primary residence; (c) I die, or, if I am married, my surviving spouse dies; or (d) I refinance or satisfy the First Mortgage loan, then, upon the occurrence of any such event, the Principal amount of this Note shall become immediately due and payable in full without notice or demand. 4. BORROWER S PAYMENT BEFORE PAYMENT IS DUE I have the right to make payment, in full, of the Principal at any time before it is due. This payment is known as a full prepayment. No partial prepayment of the Principal is permitted. When I make a full prepayment, I will tell the Note Holder in a letter that I am doing so. 5. BORROWER S FAILURE TO PAY AS REQUIRED (A) Default If I do not pay the Principal in full as required in Section 3 above, I will be in default. If I am in default, the Note Holder may enforce this Note by any lawful means and require me to pay the Note Holder s costs and expenses as described in (D) below. (B) Notice of Default If I am in default, the Note Holder may, but is not required to, send me a written notice. (C) No Waiver By Note Holder Even if, at a time when I am in default, the Note Holder does not take action to enforce this Note, the Note Holder will still have the right to do so at a later time if I am in default. THIS NOTE AND THE MORTGAGE SECURING THIS NOTE ARISE OUT OF OR ARE GIVEN TO SECURE THE REPAYMENT OF A LOAN ISSUED IN CONNECTION WITH THE FINANCING OF HOUSING AND ARE EXEMPT FROM DOCUMENTARY STAMP TAX AND INTANGIBLE TAX PURSUANT TO SECTION (1), FLORIDA STATUTES

15 (D) Payment of Note Holder s Costs and Expense If the Note Holder takes actions to enforce this Note, the Note Holder will have the right to be paid back for all of its costs and expenses, including but not limited to reasonable attorney s fees, whether incurred by the Note Holder before filing suit, at trial or an appeal. (E) 6. THIS NOTE SECURED BY A MORTGAGE In addition to the protections given to the Note Holder under this Note, a Mortgage, dated the same date as this Note, protects the Note Holder from possible losses which might result if I do not keep the promises which I make in this Note. That Mortgage describes how and under what conditions I may be required to make immediate payment in full of all amounts that I owe under this Note before the Maturity Date. This Note and the Mortgage are non-assumable. 7. BORROWER S WAIVERS I waive my rights that require the Note Holder to do certain things. Those things are (a) to demand payment of amount due (known as presentment ); (b) to give notice that amounts due have not been paid (known as notice of dishonor ); (c) to obtain an official certification of nonpayment (known as a protest ). Any co-signer, guarantor, surety or endorser who agrees to keep the promises I have made in the Note, by signing this Note or by executing a separate agreement to make payments to the Note Holder if I fail to keep my promises under this Note, or who signs this Note to transfer it to someone else waives these rights. 8. GIVING OF NOTICES Any notice that must be given to me under this Note will be given by delivering it or by mailing it by certified or registered mail, addressed to me at the Property Address above. A notice will be delivered or mailed to me at a different address if I give the Note Holder a notice in writing of my different address. Any notices that must be given to the Note Holder under this Note will be given by mailing it by certified or registered mail to the Note Holder at the Lender s address stated in Section 1 above. A notice will be mailed to the Note Holder at a different address if I am given a notice of that different address. 9. RESPONSIBILITY OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each of us is fully and personally obligated to pay the full amount owed and to keep all of the promises made in this Note. Any guarantor, surety, or endorser of this Note (as described in Section 7 above) is also obligated to do these things. The Note Holder may enforce its rights under this Note against each of us individually or against all of us together and may enforce its rights under this Note against all of us together and may enforce its rights against any of us in any order. This means that any one of us may be required to pay all of the amounts owed under this Note. NOTICE TO BORROWER DO NOT SIGN THIS NOTICE IF IT CONTAINS BLANK SPACES. ALL SPACES SHOULD BE COMPLETED BEFORE YOU SIGN. BORROWER Printed Name of Borrower BORROWER Printed Name of Borrower BORROWER BORROWER Printed Name of Borrower Printed Name of Borrower (SIGN ORIGINAL ONLY) Rev

16 This instrument was prepared by: Rev FLORIDA HOUSING FINANCE CORPORATION FLORIDA ASSIST PROGRAM SUBORDINATE MORTGAGE THIS SUBORDINATE MORTGAGE (this Mortgage ) is made this day of, 20, by (herein, the Borrower or Mortgagor ) whose address is. This Mortgage is given to Florida Housing Finance Corporation, a public corporation, whose address is 227 North Bronough Street, Suite 5000, Tallahassee, Florida (herein, the Lender or Mortgagee ). The Borrower is indebted to the Lender in the principal amount of Dollars (U.S. $ ). This debt is evidenced by the Borrower s Promissory Note (the Note ) dated the same date as this Mortgage. The Note provides that repayment of the indebtedness evidenced thereby shall be deferred for the term of the First Mortgage loan (as that term is defined below) or until, 20, the date the last payment is due on the First Mortgage loan (that date is the Maturity Date of the Note). The Note is due and payable in full on the Maturity Date. The Note also provides that if at any time before the Maturity Date, the Borrower (a) sells, transfers or disposes of the Property or Home, either voluntarily or involuntarily, (b) fails or ceases to occupy the Home as the Borrower s primary residence, (c) dies, or, if married, the Borrower s surviving spouse dies, or (d) refinances or satisfies the First Mortgage loan, then, upon the occurrence of any such event, the Note shall become immediately due and payable in full without notice or demand. The First Mortgage loan referred to in this Mortgage and in the Note means the loan being made to the Borrower on or about the same date as this Mortgage by (the "First Mortgage Lender") for the purchase of the Property, which mortgage loan shall be secured by a first mortgage lien on the Property (the "First Mortgage") in favor of the First Mortgage Lender. The Borrower applied to the First Mortgage Lender for both the First Mortgage loan and the subordinate loan evidenced by the Note and secured by this Mortgage. This Mortgage is subordinate to the First Mortgage. TO SECURE to Mortgagee the repayment of the indebtedness evidenced by the Note, the payment of all other sums advanced in accordance herewith to protect the security of this Mortgage; and the performance of the covenants and agreements of the Mortgagor herein contained, the Mortgagor does hereby mortgage, grant and convey to Mortgagee the following described Property located in the County of, State of Florida (insert legal description): THIS MORTGAGE AND THE NOTE SECURED BY THIS MORTGAGE ARISE OUT OF OR ARE GIVEN TO SECURE THE REPAYMENT OF A LOAN ISSUED IN CONNECTION WITH THE FINANCING OF HOUSING AND ARE EXEMPT FROM DOCUMENTARY STAMP TAX AND INTANGIBLE TAX PURSUANT TO SECTION (1), FLORIDA STATUTES.

17 TOGETHER with all the improvements now or hereafter erected on the property, and all easements, rights, appurtenances and rents, all of which shall be deemed to be and remain a part of the property covered by this Mortgage, and all of the foregoing, together with said property (or the leasehold estate if this Mortgage is on a leasehold) are hereinafter referred to as the "Property" or Home. MORTGAGOR COVENANTS represents and warrants to Mortgagee and its successors and assigns that Mortgagor is indefeasibly seized of the estate hereby conveyed in fee simple; has full right to mortgage, grant and convey the Property; and that the Property is unencumbered, except for other encumbrances of record. Mortgagor warrants title to the Property and will defend same against the lawful claims and demands of all persons whomsoever. PROVIDED ALWAYS that if Mortgagor shall pay to Mortgagee, all sums due or to become due under the Note or this Mortgage and shall perform, comply with, and abide by each and every stipulation, agreement, condition, and covenant of the Note and of this Mortgage, and shall pay all taxes that may accrue on the Property and all costs and expenses that Mortgagee may be put to in collecting the Note and in foreclosure of this Mortgage or otherwise, including costs and reasonable attorney's fee, then this Mortgage and the estate hereby created shall cease and be null and void. MORTGAGOR FURTHER COVENANTS and agrees with Mortgagee as follows: 1. Payment. Mortgagor shall promptly pay when due the principal amount evidenced by the Note and all other sums of money payable by virtue of the Note or this Mortgage. 2. Funds for Taxes and Insurance. Subject to applicable law or a written waiver by Mortgagee, Mortgagor shall pay to Mortgagee with the monthly payments of principal and interest under the Note, a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments (including condominium and planned unit development assessment, if any) plus one-twelfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Mortgagee on the basis of assessments and bills and reasonable estimates thereof. Mortgagor shall not be obligated to make such payments of Funds to Mortgagee to the extent that Mortgagor makes such payments to the holder of a prior mortgage or deed of trust if such holder is an institutional lender. If Mortgagor pays Funds to Mortgagee, the Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or state agency. Mortgagee shall apply these funds to pay said taxes, assessments, insurance premiums and ground rents. Mortgagee may not charge for so holding and applying the Funds, analyzing said account or verifying and compiling said assessments and bills, unless Mortgagee pays Mortgagor interest on the Funds and applicable law permits Mortgagee to make such a charge. Mortgagor and Mortgagee may agree in writing at the time of execution of this Mortgage that interest or earnings on the Funds shall be paid to Mortgagor, and unless such agreement is made or applicable law requires such interest to be paid, Mortgagee shall not be required to pay Mortgagor any interest or earnings on the Funds, Mortgagee shall give to Mortgagor, without charge, an annual accounting of the Funds showing credits and debits to the Funds and purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Funds held by Mortgagee, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rent, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Mortgagor's option, either promptly repaid to Mortgagor or credited to Mortgagor on monthly installments of Funds. If the amount of the Funds held by Mortgagee are not sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Mortgagor shall pay to Mortgagee any amount necessary to make up the deficiency in one or more payments, as Mortgagee may require. Upon payment in full of all sums secured by this Mortgage, Mortgagee shall promptly refund to Mortgagor any Funds held by Mortgagee, if under paragraph 17 hereof the Property is sold or the Property is otherwise acquired by Mortgagee, Mortgagee shall apply, no later than immediately prior to the sale of Property or its acquisition by Mortgagee, any Funds held by Mortgagee as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Mortgagee under the Note and paragraphs 1 and 2 hereof shall be applied by Mortgagee first in payment of amounts payable to Mortgagee by Mortgagor under paragraph 2 hereof; then to the interest due under the Note; then to principal of the Note; then to any other monies due under the Note or this Mortgage in that order. 4. Prior Mortgages and Deeds of Trust; Charges; Liens. Mortgagor shall perform all of Mortgagor's obligations under the First Mortgage and any other mortgage, deed of trust or other security agreement with a lien which has priority over this Mortgage, including Mortgagor's covenants to make payments when due. Mortgagor shall pay or cause to be paid all taxes, assessments and other charges, fines and impositions attributable to the Property which have attained or may attain a priority over this Mortgage, and leasehold payments or ground rents, if any [2]

18 5. Hazard Insurance. Mortgagor shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as Mortgagee may require and in such amounts and for such periods as Mortgagee may require. The insurance carrier providing the insurance shall be chosen by the Mortgagor subject to approval by Mortgagee; provided, that such approval shall not be unreasonably withheld. All insurance policies and renewals thereof shall be in a form acceptable to Mortgagee and shall include a standard mortgage clause in favor of, and in a form acceptable to Mortgagee. Mortgagee shall have the right to hold the policies and renewals thereof, subject to the terms of any other mortgage, deed of trust or other security agreement with a lien which has priority over this Mortgage. In the event of loss, the Mortgagor shall give prompt notice to the insurance carrier and to the Mortgagee. Mortgagee may make proof of loss if not made promptly by the Mortgagor. If the Property is abandoned by the Mortgagor, or if the Mortgagor fails to respond to Mortgagee within thirty (30) days from the date notice is mailed by Mortgagee to the Mortgagor that the insurance carrier offers to settle a claim for insurance benefits, Mortgagee is authorized to collect and apply the insurance proceeds at Mortgagee's option either to restoration or repair of the Property or to the sums secured by this Mortgage. 6. Preservation and Maintenance of Property; Leaseholds; Condominiums, Planned Unit Developments. Mortgagor shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Mortgagor shall perform all of Mortgagor's obligations under the declaration or covenants creating or governing such condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development and constituent any other documents. 7. Protection of Mortgagee's Security. If Mortgagor fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Mortgagee's interest in the Property, then Mortgagee, at Mortgagee's option, may make such appearances, disburse such sums, including reasonable attorneys' fees, and take such action as is necessary to protect Mortgagee's interest in the Property. If Mortgagor is required to maintain mortgage insurance as a condition of this Mortgage or any other mortgage or deed of trust, Mortgagor shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with the Mortgagor's written agreement or applicable law. Any amounts disbursed by Mortgagee pursuant to this paragraph, with interest thereon, at the rate of twelve percent (12%) per annum, shall become additional indebtedness of the Mortgagor secured by this Mortgage. Unless Mortgagor and Mortgagee agree otherwise, such amounts shall be payable upon demand. Nothing contained in this Paragraph 5 shall require Mortgagee to incur any expense or take any action hereunder. 8. Inspection. Mortgagee may make or cause to be made reasonable entries upon and inspections of the Property upon notice to Mortgagor specifying reasonable cause therefore related to the Lender s interest in the Property. 9. 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 to the extent of the unpaid balance of all sums due or to become due under the Note or this Mortgage, are hereby assigned and shall be paid to Mortgagee, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Mortgage. 10. Mortgagor Not Released; Forbearance by Mortgagee Not a Waiver. No extension of the time for payment or modification of the terms or conditions of the Note or this Mortgage granted to Mortgagor shall operate or release Mortgagor, in any manner, from liability under the Note or this Mortgage. Mortgagee shall not be required to commence proceedings against such successor or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Mortgage by reason of any demand made by the original Mortgagor and Mortgagor's successors in interest. Any forbearance by Mortgagee 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. 11. Successors and Assigns Bound; Joint and Several Liability; Co-Signers. The covenants and agreements and references to Mortgagor and Mortgagee herein contained shall bind, and the rights hereunder shall inure to, their respective heirs, successors and assigns, subject to the provisions of Paragraph 16 hereof. All covenants and agreements of Mortgagor shall be joint and several. Any Mortgagor who co-signs this Mortgage, but does not execute the Note is co-signing this Mortgage only to mortgage, grant and convey that Mortgagor's interest in the property to Mortgagee under the terms of this Mortgage; is not personally liable on the Note or under this Mortgage; agrees that Mortgagee and any other Mortgagor hereunder may agree to extend, modify, forbear, or make any other accommodations with regard to the terms of this Mortgage or the Note without that Mortgagor's consent and without releasing that Mortgagor or modifying this Mortgage as to that Mortgagor's interest in the Property. This Mortgage and the Note secured thereby are non-assumable, except as may be provided in Paragraph 16 hereof. 12. Notice. Except for any notice required under applicable law to be given in another manner: (a) any notice to [3]