Tarrant County Housing Partnership Veteran s Housing Program

Tarrant County Housing Partnership Veteran s Housing Program Background The Homes With Honor Veteran s Housing Program is an initiative operated locally in North Texas by (TCHP) in partnership with Brooke Community Development and the National Community Stabilization Trust. The Veterans Housing Program will transform vacant, distressed, single family homes into fully rehabilitated, quality homes for sale to low to moderate income U.S. military veterans. Properties listed under this program will be sold to eligible veterans and active military personnel for owner occupancy at a 25% discount off the list price. Qualifications U.S. military veterans must demonstrate that they have received honorable discharge orders if not engaged in activity duty. The household gross income cannot exceed 120% of the area median income (AMI) as established by HUD and adjusted for household size and specific to the location of the property. TCHP determines income as defined in 24CFR Part 5 for all household income sources. Income limits by county are listed under the program information at www.tchp.net. The total household liquid assets are limited to a verifiable total not to exceed 50% of the annual gross household income limit according to family size in checking, savings, liquid retirement funds, stocks, bonds or mutual fund and unimproved real estate assets. Households must have sufficient income in order to afford the long-term costs of homeownership including taxes, insurance, etc. therefore, a borrower's home mortgage debt service ratio (front end ratio) may not exceed 35%. Assistance TCHP will discount properties under this program at 25% of the purchase price. Of the 25%, 22% will be utilized for down payment and principal reduction and 3% will be utilized for buyer s closing costs. Loan Terms The 25% purchase discount will be provided in the form of a no-interest, soft second lien forgivable over a 10 year affordability period at a rate of 1/10 th per year annually. The assistance will be secured by a Promissory Note and Second Lien Deed of Trust. The borrower must occupy the property as their primary residence during the entire affordability period. At no time may the property be leased or rented, used as a business, or conveyed. All or a portion of the second lien is due and payable to TCHP if the property is no longer occupied as the primary residence of the borrower, or if the property is transferred, sold or refinanced within the affordability period. At the end of the affordability period, the lien is released by TCHP upon request of the borrower. THIS IS A NON-ASSUMABLE LOAN. Lender Guidelines Lender may not charge more than 2% of the loan amount for fees.

Housing Counseling Borrower must successfully complete the HUD approved Homebuyer Education Course conducted by TCHP or another HUD-approved counseling agency at no charge, and meet with TCHP housing advisor for an exit review prior to loan closing. For buyers who do not reside within the Dallas/Fort Worth metroplex, a certified online course is available through TCHP. Implementation Plan Complete the Veteran s Housing Program packet available at www.tchp.net (click link under Programs and Services), execute all documents and submit to TCHP for approval of program eligibility. Completed packets must be provided by hard copy and received at the TCHP office located at 3204 Collinsworth St., Fort Worth, Texas 76107. TCHP will process applications on a first-come, first-served basis only after ALL required documents are received. Post Purchase TCHP offers post purchase, delinquency, and default counseling to all clients to ensure successful homeownership. All services are provided at no charge. Program Changes TCHP reserves the right to make changes to the Homes with Honor Homebuyers Assistance program and the forms used in the program as needed or required throughout the duration of the program. These changes can be made without notification to the participating lenders or the public. However, TCHP will endeavor to provide participating lenders with written notification of all changes to the program or forms in a timely manner. Contact Information If you have any questions or need any additional information about the Veteran s Housing program, please contact Veronica Elizondo, Housing Program Director for Tarrant County Housing Partnership, (817) 924-5091 ext. 109, veronica@tchp.net. For a list of available properties and a schedule of homebuyer education classes visit www.tchp.net. FEDERAL REGULATIONS FOR THIS PROGRAM MUST BE MET BY ALL PARTIES PARTICIPATING IN THE PROGRAM. (TCHP) and its partners are committed to affirmatively furthering fair housing (AFFH) for all persons. TCHP and its partners give all persons of similar income levels the ability to have available the same housing choices regardless of race, color, religion, sex, handicap, familial status, national origin, sexual orientation or gender identity. TCHP provides reasonable accommodations for those with disabilities and limited English proficiency; please let a TCHP representative know if you need assistance to participate in the homebuyer process. 3204 Collinsworth Street, Fort Worth, TX 76107 817.924.5091 office 817.924.7619 fax www.tchp.net

TCHP Veteran s Housing Program Guidelines Exhibit 1 LENDER REFERRAL CHECKLIST Borrower Name: Loan Officer: E-mail: Date: Loan Processor: E-mail: EXHIBIT REQUIRED DOCUMENTATION FOR ALL HOUSEHOLD MEMBERS 1 TCHP Veteran s Housing Program Lender Referral Checklist 2 TCHP Veteran s Housing Program Application 3 TCHP Veteran s Housing Program HUD Income Limits 4 TCHP Veteran s Housing Program Counseling Agreement and Document Request Waiver 5 TCHP Veteran s Housing Program Borrowers Know Your Rights! TCHP Veteran s Housing Program Resale /Affordability Provision/Non-Assumability 6 Certification 7 TCHP Veteran s Housing Program List of Liquid Assets LENDER CHECKED CHECKED BY TCHP U.S. MILITARY ACTIVE DUTY CERTIFICATION OR HONORABLE DISCHARGE DOCUMENT COPY OF FULLY EXECUTED/RECEIPTED PURCHASE CONTRACT SIGNED RESIDENTIAL MORTGAGE LOAN APPLICATION (1003) COPY OF APPRAISAL (when available) COPY OF LENDER S SIGNED LETTER OF COMMITMENT COPY OF FINAL SIGNED GOOD FAITH ESTIMATE (AND INITIAL FEES WORKSHEET) COPY OF CREDIT REPORT COPY OF TRADITIONAL VERIFICATION OF EMPLOYMENT COPY OF 1 YEAR PAYMENT HISTORY FOR CHILD SUPPORT FROM A.G. OFFICE (if not applicable provide LETTER OF EXLANATION) (if applicable) COPY OF MOST RECENT RETIREMENT, AND INVESTMENT(S) STATEMENTS FOR ALL ACCOUNTS (if not applicable provide LETTER OF EXPLANATION) (if applicable) COPY OF SOCIAL SECURITY INCOME (AWARD LETTER) (if applicable) COPY OF LAST (4) CONSECUTIVE PAYCHECK STUBS (if overtime / bonus / commission are applicable, please provide 3 full months of paycheck stubs) COPY OF LAST (6) CONSECUTIVE CHECKING STATEMENTS FOR ALL ACCOUNTS COPY OF LAST (3) CONSECUTIVE SAVINGS STATEMENTS FOR ALL ACCOUNTS COPY OF SIGNED LAST (2) CONSECUTIVE INCOME TAX RETURNS (1040, 1099, AND W-2) COPY OF DIVORCE DECREE (if applicable, if not applicable provide LETTER OF EXPLANATION) (if applicable) HOMEOWNERSHIP EDUCATION CERTIFICATE (minimum 5 days prior to closing) 3204 Collinsworth St., Fort Worth, TX 76107 817.924.5091 Fax: 817.924.7619 www.tchp.net

Applicant Name: TARRANT COUNTY HOUSING PARTNERSHIP VETERAN S HOUSING PROGRAM APPLICATION Applicant Name: Current Address: City, State, Zip: Home/Other Phone: Property Address: Member # Last Name County: PART II. HOUSEHOLD COMPOSITION Relationship to Head of Household First Name & Middle Initial 1 HEAD 2 3 4 5 Member# PART I DEVELOPMENT DATA Date of Birth (MM/DD/YYYY) PART III. GROSS ANNUAL INCOME (USE ANNUAL AMOUNTS) (A) (B) (C) Employment or Wages Soc. Security/Pensions Public Assistance F/T Student (Y or N) Social Security or Alien Reg. No. (D) Other Income TOTALS $ $ $ $ Add totals from (A) through (D) above TOTAL INCOME (E): $ Member # (E) Type of Asset (Checking, Savings, etc.) Include Bank and Account Number PART IV. INCOME FROM ASSETS (F) Current Balance/Cash Value of Asset (G) Annual Income from Asset Add totals from (E) through (G) above TOTALS (H): $ $ PART V. SUPPLEMENT INFORMATION OPTIONAL Tarrant County Housing Partnership collects the following information to fulfill reporting requirements and to assure compliance with fair housing and equal opportunity regulations. Resident(s)/Applicant(s) are not required to complete this section. Member # Sex Enter M or F Age Elderly Enter Y or N Disabled Enter Y or N Ethnicity / Race The following Ethnicity/Race codes should be used: A White B Black/African American C Hispanic D Asian or Pacific Islander HOUSEHOLD CERTIFICATION & SIGNATURES The information on this form will be used to determine maximum income eligibility. I/we authorize verification of all information provided on this application. I/we agree to notify TCHP immediately upon any member of the household moving in or out of the household or any additional changes to this information. I/we certify that the information presented in this application is true and accurate to the best of my/our knowledge and belief. Warning: Title 18, Section 1001 of the U.S. Code makes it a criminal offense to make willful false statements or misrepresentations to any department or agency in the U.S. Signature (Date) Signature (Date) Signature (Date) Signature (Date)

E F American Indian/Alaska Native Other Multi Racial TARRANT COUNTY HOUSING PARTNERSHIP VETERAN S HOUSING INCOME CERTIFICATION OFFICE USE ONLY: Applicant Name: Member # Property Address: ASSETS Asset Description Current Cash Value of Asset(s) Actual Income from Asset(s) 1. Net Cash Value of Asset(s): $ 2. Total Actual Income from Asset(s): $ If line 1 is greater than $5,000, multiply line by 2.00% Passbook Rate and enter results here; otherwise leave blank. $ Member# (A) Employment or Wages ANTICIPATED ANNUAL INCOME (B) (C) Soc. Security/Pensions Public Assistance (D) Other Income (E) Asset Income from above TOTALS $ $ $ $ $ Add totals from (A) through (E) above. TOTAL ANNUAL INCOME: $ Household Size: County: Income Limit: CERTIFICATION Based on the representations herein and upon the proofs and documentation required to be submitted, the individual(s) named in Part II of this application is/are eligible for the program under the provisions of program s rules and regulations. SIGNATURE OF TCHP REPRESENTATIVE DATE

TCHP Veteran s Housing Program Guidelines Exhibit 3 TCHP VETERAN S HOUSING PROGRAM HUD Income Limits The TCHP Veteran s Housing Program is limited to veteran households whose income does not exceed 120% of the Area Median Income (AMI). The income limitations are based on federal formulas published by the U.S. Department of Housing and Urban Development (HUD) by area and adjusted for family size. The chart below shows the maximum income for program eligibility (120% of AMI) for each county in which the properties are located and the number of persons in the household. The income limits are subject to change annually. The HUD income limits in effect as of January 2013 are as follows: 120% AMI 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person Collin 56,700 64,800 72,900 81,000 87,500 93,950 100,450 106,900 Denton 56,700 64,800 72,900 81,000 87,500 93,950 100,450 106,900 Henderson 42,400 48,500 54,550 60,600 65,450 70,300 75,150 80,000 Kaufman 56,700 64,800 72,900 81,000 87,500 93,950 100,450 106,900 Tarrant 55,250 63,150 71,050 78,950 85,300 91,600 97,900 104,250 Van Zandt 45,850 52,400 58,950 65,500 70,750 76,000 81,250 86,500 Please circle the appropriate limit for your household size and county and sign below. Applicant Signature Applicant Signature 3204 Collinsworth St., Fort Worth, TX 76107 817.924.5091 Fax: 817.924.7619 www.tchp.net

TCHP Veteran s Housing Program Guidelines Exhibit 4 COUNSELING AGREEMENT AND DOCUMENT REQUEST WAIVER I hereby accept the counseling services of (TCHP). I hereby agree to hold harmless and indemnify TCHP and its employees, members, officers, directors, agents, and assigns in connection with acts performed by them which would be associated with consultation, technical advice, financial counseling, property inspection, and related activities. I understand and agree that no warranty or guarantee is being extended by TCHP to me as a buyer of any real property. I further agree that I will not rely upon TCHP to inspect the property which I purchase or approve of its condition. I recognize that I have the right (at my own expense) to have an independent inspector of my choice inspect the property. Any statements of completion or acceptance of lender-required repairs by TCHP does NOT guarantee the quality of the repairs or the overall condition of the property. I understand that lender-required repairs are not a guarantee of condition of the property, but are only the lender s requirements to meet the minimum standards to obtain a loan on the property. I agree to provide to TCHP any and all information and documentation that it may request, such as credit, rental, employment and income histories, financial information, income tax returns, and other such reports which the staff of TCHP deem necessary to perform their functions in connection with my purchase of a house. Further, I authorize release of such information to TCHP from third parties. I agree to complete a homebuyer education (8-hour certified Homebuyer Training Course) at least five (5) days before the date of closing. I understand that I must complete this course at TCHP or another HUD-approved counseling agency or online through TCHP s website. TCHP must be in receipt of a copy of this certificate prior to closing. Whenever any singular pronoun, such as I or my is used in this agreement, it shall also include the plural, such as we, our, and us, if more than one applicant for counseling services is required to take the Homebuyer Training class and signs below. Applicant signature Date Co-applicant signature Date Print name Social Security number Print name Social Security number / / Work phone Home phone Work phone Home phone Address City, Zip Address City, Zip 3204 Collinsworth St., Fort Worth, TX 76107 817.924.5091 Fax: 817.924.7619 www.tchp.net

TCHP Veteran s Housing Program Guidelines Exhibit 5 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, D.C. 20410-8000 BORROWERS - KNOW YOUR RIGHTS! ATTENTION BORROWER: This may be the largest and most important loan you get during your lifetime. You should be aware of certain rights before you enter into any loan agreement. YOU have the RIGHT to shop for the best loan for you and compare the charges of different mortgage brokers and lenders. YOU have the RIGHT to be informed about the total cost of your loan including the interest rate, points and other fees. YOU have the RIGHT to ask for a Good Faith Estimate of all loan and settlement charges before you agree to the loan and pay any fees. YOU have the RIGHT to know what fees are not refundable if you decide to cancel the loan agreement. YOU have the RIGHT to ask your mortgage broker to explain exactly what the mortgage broker will do for you. YOU have the RIGHT to know how much the mortgage broker is getting paid by you and the lender for your loan. YOU have the RIGHT to ask questions about charges and loan terms that you do not understand. YOU have the RIGHT to a credit decision that is not based on your race, color, religion, national origin, sex, marital status, age, or whether any income is from public assistance. YOU have the RIGHT to know the reason if your loan was turned down. YOU have the RIGHT to ask for the HUD settlement costs booklet Buying Your Home. Signatures of Borrower(s): Date: Date: Buying Your Home and other helpful information is available at HUD S WEB site: http://www.hud.gov/fha/res/respa_hm.html For other questions call 1.800.217.6970

TCHP Veteran s Housing Program Guidelines Exhibit 5 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, D.C. 20410-8000 Prestatarios - Conoscan sus derechos! Atenciòn prestatario: Este puede ser el préstamo más grande e importante de su vida. Por tanto, usted debe conocer ciertos derechos antes de entrar en un acuerdo de préstamo hipotecario. Usted tiene el derecho de adquirir el préstamo hipotecario que más le convenga y de comparar los cargos de diferentes corredores de hipoteca y prestamistas. Usted tiene el derecho de estar informado sobre el costo total de su préstamo incluyendo el porcentaje de la tasa de interés, puntos y otros cargos. Usted tiene el derecho de preguntar por el Estimado de Buena Fe de todo el préstamo hipotecario y los costos de cierre, antes de estar de acuerdo con el préstamo y pagar algún cargo. Usted tiene el derecho de saber cuáles recargos no seran devueltos si usted decide cancelar el contrato de préstamo. Usted tiene el derecho de pedir a su corredor de hipoteca que le explique lo que hará por usted. Usted tiene el derecho de saber cuáles son los honorarios que el corredor de hipoteca está recibiendo de usted y del prestamista. Usted tiene el derecho de hacer preguntas sobre aquello que no entiende relacionado con los cargos y términos del préstamo. Usted tiene el derecho a una decision de crédito que no esté basada en su raza, color de piel, religion, origen nacional, sexo, estado civil, edad, o en caso de que algunos de sus ingresos que vengan de la asistencia pública. Usted tiene el derecho de saber la razón por la cúal al préstamo no le fue consedido. Usted tiene el derecho de solicitar el folleto de HUD sobre gastos de cierre hipotecarios tíktulado Comprando Su Casa. Signatures of Borrower(s): Date: Date: Comprando Su Casa HUD S WEB site: http://www.hud.gov/fha/res/respa_hm.html Para más información llame a HUD 1.800.217.6970

TCHP Veteran s Housing Program Guidelines Exhibit 6 TCHP VETERAN S HOUSING PROGRAM RESALE/AFFORDABILITY PROVISION/NON-ASSUMABILITY CERTIFICATION AND BORROWER(S) ACKNOWLEDGEMENTS I acknowledge that the resale, refinance, repayment provisions associated with the TCHP Veteran s Housing Program loan for which I am applying have been clearly and understandably explained to me, and I fully understand these provisions. I understand that the loan is being made to me based upon my assurance that I will live in the house, as my principal place of residence and that if I should sell, refinance or move from the property within the first year after the mortgage loan closing, the loan will become immediately due and payable to Tarrant County Housing Partnership. I acknowledge that the assistance I receive will be in the form of a deferred, forgivable loan forgiven at an annual rate of the affordability period commencing on the first year s anniversary of the mortgage loan closing date. I acknowledge the forgivable loan is not assumable and another person or entity may not take on the balance of the loan if the property is sold. I further acknowledge that the resale, repayment calculation examples and the circumstances under which they would be initiated, have been clearly explained to me, and that I understand them and the circumstances under which they would be triggered. I further acknowledge that I have been informed of the rules and regulations of the TCHP Veteran s Housing Program and understand that the assistance for this program is limited and offered to applicants on a first come-first served basis and there is no guarantee the assistance I apply for will be actually provided until such time that we are officially notified in writing by Tarrant County Housing Partnership of the fact, but that our application will be taken and considered on a first come-first served basis. Borrower: Borrower: Date: Date: 3204 Collinsworth St., Fort Worth, TX 76107 817.924.5091 Fax: 817.924.7619 www.tchp.net

TCHP Veteran s Housing Program Guidelines Exhibit 7 TCHP VETERAN S HOUSING PROGRAM LIST OF LIQUID ASSETS The following list of assets should be considered liquid assets: Cash Savings Account (actual amount) Checking Account (6 month average) Certificates of Deposit Savings Amount for an Individual Development Account (IDA) (unless restricted by use) Money Market or Mutual Fund Accounts In Trust for Accounts (amount accessible) Stocks or Bonds Funds Gifted with Gift Letters Amount used or borrowed from IRS, 401(K), or a Life Insurance Policy within the past 6 months Expenses paid outside of closing (POC) The following list of assets should be excluded from liquid assets: Cash surrender value of Life Insurance Policy Value of IRS, 401(K), or other Retirement Accounts (if under applicable age for accessibility without penalty) Personal Property held as investments such as Gems All requests for a variance from this definition must be submitted in writing for consideration of approval to, as provided in the program guidelines. 3204 Collinsworth St., Fort Worth, TX 76107 817.924.5091 Fax: 817.924.7619 www.tchp.net