Magnolia Walk Affordable Housing Sales Release Procedures

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1 Magnolia Walk Affordable Housing Sales Release Procedures In partnership with the Community Development Commission of the County of Los Angeles, the Magnolia Walk community will offer a special opportunity for low and moderate income first time home buyers to own a home at below market rate purchase prices. The program will also provide down payment assistance in the form of a deferred payment (silent second). The down payment assistance will be applied to the first mortgage loan amount and lower the monthly payments for the home buyer. There will be a total of 94 homes built at Magnolia Walk, and 30 of the homes are designated as affordable housing. There will be 11 homes designated for low income home buyers, and 19 designated for moderate income home buyers. The affordable homes will range in price from approximately $358,073 to $372,557. Down payment assistance on the low income homes will be up to $274,000, and down payment assistance for the moderate income homes will be up to $172,000. Prices are calculated for affordability; this calculation is not driven by property values or other market conditions. If you are interested in the program, it is very important that you read the attached requirements for the programs, and research and understand all details of the programs. (Attachment coming soon) Low Income Program There are 11 homes in the low income program and they are all plan 3 s, consisting of 1,529 sq ft, with 4 bedrooms and 2.5 baths. These homes will sell for approximately $358,073; however, buyers that fit the qualifying criteria will be able to qualify for up to $274,000 in housing assistance (silent second). This will leave the buyer s with a remaining amount left to finance, via their first mortgage, as low as $84,073. Moderate Income Program Plan 1 consists of 1,382 square feet with 3 bedrooms and 2 baths. These homes will sell for approximately $336,325; buyers that fit the qualifying criteria will be eligible to qualify for up to

2 $150,000 in down payment assistance (silent second). This will leave the buyer s with a remaining amount left to finance, via their first mortgage, as low as $186,325 Plan 2 consists of 1,409 square feet with 3 bedrooms and 2.5 baths. These homes will sell for approximately $341,391; buyers that fit the qualifying criteria will be able eligible for up to $156,000. This will leave the buyer s with a remaining amount left to finance their first mortgage as low as $185,391. Plan 3 consists of 1,529 square feet with 3 bedrooms and 2.5 baths. These homes will sell for approximately $372,557; buyers that fit the qualifying criteria will be able eligible for down payment assistance up to $172,000. This will leave the buyer s with a remaining amount left to finance their first mortgage as low as $200,057. Priority List/Sales Process 1. On March 10 th at 10:00am we will begin accepting applications for the priority list for the affordable homes (our priority list for the market rate homes will open at a later date). All applications will be submitted to Alpine Mortgage and reviewed for qualification of a first mortgage and the affordable programs. An , with instructions on how to apply, will be sent to out at that time and a link to begin the application process will go live on our Magnolia Walk website. Applications received prior to the opening of the priority list will not be accepted. 2. The application process will consist of two steps; Step 1 is to submit the initial online application with Alpine Mortgage Planning, and Step 2 will be to provide Alpine all required documentation for approval within 72 hours. 3. You will be contacted by the Alpine Mortgage Planning New Home Lending Team within 24 hours from your initial application, they ll be able to answer any questions for you and confirm what documentation will be required. 4. If you are pre-qualified with Alpine Mortgage and they determine that you re a possible candidate for one of the affordable programs, your application will then be sent to the County of Los Angeles for their approval. 5. Once you have been pre-approved for a mortgage with Alpine and pre-approved by the County for one of the affordable programs, your name will be added to the priority list. Priority will be given in order of the time the complete application was received (completion of Step 2 above). 6. Once pre-approved, your VIP status is confirmed and your invitation to the sales release event will be sent to you. a. Attend our affordable homes release event. You will have the opportunity to select your new home in order of VIP priority, subject to availability. b. When it s your turn, choose your home site, secure it with a $3,000 deposit check and complete the necessary paperwork. 7. Eligibility of the Affordable Program is subject to the final approval by Community Development Commission of the County of Los Angeles.

3 A Division of Finance of America Mortgage LLC Pre-Application Checklist In Partnership with The Community Development Commission of the County of Los Angeles (LACDC) APPLY ONLINE TODAY AT MAGNOLIAAFFORDABLEAPPLY.COM

4 PROGRAM SUMMARY & REQUIREMENTS Affordable Housing Program Summary Thirty (30) homes within Magnolia Walk development have been designated as affordable for-sale homes targeted to low and moderate income first time home buyers. Eleven (11) of the thirty (30) homes are targeted to qualified low income first time home buyers. Nineteen (19) of the thirty (30) homes are targeted to qualified moderate income first time home buyers. Home Buyer Requirements (Initial Requirements Only) The total annual gross income for the home buyers and all household members 18 years of age and older cannot exceed the following income limits: Household Size Low Income Limit Moderate Income Limit 1 $50,500 $54,450 2 $57,700 $62,200 3 $64,900 $70,000 4 $72,100 $77,750 5 $77,900 $83,950 6 $83,650 $90,200 7 $89,450 $96,400 8 $95,200 $102,650 *Source: LA County DRP Income/Rent Limits effective 6/9/17 (subject to change) All home buyers must be first time home buyers who have not had an ownership interest or held title in any real property during the past three years. All home buyers and household members must provide a copy of their U.S. birth certificate or U.S. passport or permanent resident card and a copy of their social security card. All household members must also reside in the same principal residence as the home buyers at the time of application. The foregoing is intended as initial information only. Prospective home buyers are subject to additional requirements. The Community Development Commission of the County of Los Angeles (LACDC) reserves the right to require additional information and documentation if needed. APPLY ONLINE TODAY AT MAGNOLIAAFFORDABLEAPPLY.COM

5 REQUIREMENTS CONTINUED Down Payment and Closing Costs A minimum of 1% of the down payment must be from the home buyer s own funds for the purchase of the home and cannot be a gift. The household assets (liquid or convertible) cannot exceed the combined total of the home buyer s portion of down payment, estimated closing costs, six months of monthly housing costs, plus an emergency allowance of $5,000. Home buyer assets that exceed $5,000 shall be calculated as income pursuant to HUD 24 CFR Part 5 Annual Income guidelines. Home Buyer Education The home buyers are required to complete a face to face eight (8) hour education class from a HUD certified agency. The class must be completed prior to loan closing and a certification of completion must be provided. First Trust Deed Loan Requirements The first trust deed loan must be a 30 year fixed rate mortgage. Adjustable rate mortgages are not permitted. The home buyers must meet credit underwriting criteria established by the first trust deed lender. The prospective household must have sufficient income and creditworthiness to qualify for primary financing defined by the lender. Down Payment and Closing Cost Assistance LACDC will provide down payment and closing cost assistance in the form of a second trust deed loan. The Affordable Homeownership Program (AHOP) loan is a deferred interest second trust deed loan. All payments are deferred until the home is sold, ownership is transferred to another party or the property is no longer occupied by the owner as their primary residence. LACDC will share in a percentage of the equity accumulated on the property, depending upon the circumstances that exist at the time of the sale and federal requirements. The AHOP loan is not transferrable or assumable. The home buyer s eligibility to purchase the home is subject to review and approval by the LACDC. Ownership Requirements The property must be occupied and used as the home buyer s primary residence and may not be used as an investment property, rental, vacation home, or recreational home. All home buyers are required to submit an annual certification of residency to the LACDC for the duration of ownership of the Restricted Unit. Additional Requirements All applications for the program will be processed through Alpine Mortgage. For more information about the community and how to apply, please visit the Magnolia Walk website at magnoliawalkhomes.com or call the sales office at (562) APPLY ONLINE TODAY AT MAGNOLIAAFFORDABLEAPPLY.COM

6 CONTACT REQUIRED INFORMATION DOCUMENTS Most recent month of Pay Check Stubs Most recent 3 years W- 2 and/or1099 forms (all employers) Most recent 3 years Personal Tax Returns (all schedules) Most recent 3 years Business Tax Returns (if applicable/all schedules) Most recent 2 mos Bank Statements for all assets (all pages) Most recent Retirement Statement (401k/IRA/Pension) Name and Phone number of Landlord (if applicable) Copy of CA driver s license or ID card for all buyers Copy of social security card for all buyers Social Security/Pension award letter (if applicable) US Passport/Permanent Resident Card/US Birth Certificate Credit Report for all household members over the age of 18 HOW TO APPLY APPLY ONLINE Follow the easy step by step process by clicking Apply Now MagnoliaAffordableApply.com Applications begin March 10 at 10:00am 2017 A division of Finance of America Mortgage LLC Equal Housing Lender NMLS 1071 AZ BK Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. (562) affordable@alpinemc.com EXPERIENCE ISN T EXPENSIVE, IT S PRICELESS.