Cincinatti Form – Fill Out and Use This PDF

City of Cincinnati

Department of Community and Economic Development

Dear Prospective Home Buyer:

Thank you for your interest in the City of Cincinnati American Dream Down Payment Initiative (ADDI). The enclosed application packet details important information about the program. To be sure you will qualify, please review all information in this packet before completing the application. Program participation is limited to households where adjusted gross income is 80% or less than the median for our area. Consult the enclosed brochure for a listing of these income limits in addition to other Program requirements and guidelines. If you determine that you may be eligible, complete the application and return it to the appropriate address. This packet and a complete guide and procedure manual are available on the web at www.cincinnati-oh.gov.

Applications will be evaluated on a first come first served basis with a limited number of qualified applicants being granted a “Conditions of Pre-approval.” Those receiving this letter will then have 90 days to present a fully executed purchase contract for a qualifying residence in order to receive down payment assistance. Please note that a purchase contract executed prior to receipt of a Letter of Pre-approval will not be eligible for ADDI funds. Please also note that only applicants that have been pre-qualified for a mortgage are eligible to apply for ADDI funds. Evidence of pre-qualification must accompany the ADDI application. Additional information may be requested of you or a third party at anytime to determine or confirm your eligibility for participation in the ADDI program. Failure to comply with that request will result in a rejection or termination of your eligibility to participate. Allow 10-15 business days for processing.

We appreciate your interest in the ADDI program and look forward to receiving your application.

Sincerely,

Roy J. Hackworth

Senior Development Analyst

Enclosure(s)

Revised 11/15

Household Income	Maximum Amount of Assistance
66% - 80% AMI	4% of the purchase price not to exceed $5,000
50% - 65% AMI	4.5% of the purchase price not to exceed $5,000
At or below 49% AMI	5% of the purchase price not to exceed $5,000

A forgivable loan is one where payments are deferred over a period of time. ADDI loans are deferred over a five-year period with 20% forgiven (not requiring repayment) each year residency is verified. Should the property be sold or transferred before the end of the defined affordability/residency period, all or a portion of the funds awarded towards the purchase of the home have to be paid back to the City. All ADDI loans are enforced by a subordinate mortgage and promissory note. It is expected that the City’s mortgage filing fee will paid from ADDI funds that are awarded.

The applicants must provide all the necessary documentation for the City to completely review and process the ADDI application. The City assumes no responsibility related to the failure of any applicant to respond to documentation requests in a timely manner. It is the applicant’s responsibility to see that all the required documentation is submitted to the City; it is not the City’s responsibility to secure documentation for the applicant. However, the City reserves the right to obtain third party verification of employment income, child support, and any other income source or asset the City deems necessary to determine a client’s overall eligibility for the ADDI Program. Funding is limited and is provided on a first come, first serve basis. The City reserves the right to terminate an applicant’s pre-approval at anytime if funding is no longer available. *Faxed or emailed applications will not be accepted* Allow 10-15 business days for processing.

ADDI PROGRAM GUIDELINES & REQUIREMENTS

Eligible Property & Timelines:

It is required that the applicant(s) apply for ADDI assistance so that eligibility for funds can be determined before a contract is written on an eligible home. An eligible home is defined as a single-family residence, condominium unit, cooperative unit or combination of manufactured housing and lot in the City of Cincinnati limits. See page 11 for eligible neighborhoods. Multi-family units, including two-unit dwellings are not eligible. After the City has verified the eligibility of an applicant for ADDI funds and a fully executed contract to purchase has been submitted to the City, the City will provide the buyer(s) and/or their agent with information needed to schedule a housing code inspection of the property. This inspection paid for by the City and is meant to ensure that the property meets the local housing code and is not meant to be a substitute for a whole house inspection. The applicant(s) will not be eligible for funding if the home does not pass the local housing code inspection. All program funds will be held until the identified deficiencies are remedied. There is typically a 30- day time frame to close on a home provided that the applicant’s eligibility has been determined, the City receives a fully executed contract to purchase, and all ADDI program requirements are met.

Private Financing & Closing:

Applicants for the ADDI program may obtain a loan from the lending institution of their choice. The loan must meet the following underwriting criteria: No more than 31% of the borrower(s) income can be devoted to housing payment (principal, interest, taxes and insurance) and no more than 43% of income for total household debt (housing payment, car payment, credit cards, etc…). Loans may be Conventional, FHA, or VA, but must have a fixed rate and a reasonable term. Money should also be escrowed for property taxes and insurance. Adjustable Rate Mortgages (ARMs) are prohibited. Copies of the following loan documents must be submitted for review prior to closing: Loan Application, TRID Loan Estimate as amended or revised, underwriting summary, appraisal, legal description, and TRID Closing Disclosure, as amended or revised. In addition, the TRID Closing Disclosure must be made available for the City to review at least 24 hours prior to closing. Buyers are not permitted to receive cash back at closing. A City representative will bring all City closing documents and the assistance check to the closing. Completed applications should be submitted to:

Roy J. Hackworth/ADDI Program

Department of Community and Economic Development

805 Central Avenue, Suite 700, Cincinnati, Ohio 45202

P:(513) 352-6119 F: (513) 352-6113 roy.hackworth@cincinnati-oh.gov

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Affidavit of No Income

To be completed by each adult household member claiming no income

(additional copies may be made if needed)

I, ______________________________________, do hereby certify that I am currently receiving

no income from any source.

PLEASE ANSWER THE FOLLOWING QUESTIONS:
	Monthly Cost	Source of Payment
Do you own an automobile? _____ (Yes/No)	If Yes:
Cost of insurance per month?	$__________	_______________
Cost gasoline per month?	$__________	_______________
Cost of maintenance per month?	$__________	_______________
Do you smoke? _____ (Yes/No)	If Yes:
Cost of cigarettes per month	$__________	_______________
Do you have Cable/Sat. TV? _____ (Yes/No)	If Yes:
	$__________	_______________
Do you have a telephone? _____ (Yes/No)	If Yes:
	$__________	_______________
Cost of supplies not covered by food stamps:	If Yes:
Paper products, cleaning supplies, etc.	$__________	_______________
per month?
Cost of utilities per month?	$__________	_______________
Cost of clothing per month?	$__________	_______________
Cost of medical expenses per month	$__________	_______________
Total Monthly Expenses	$__________

I certify that this statement is true to the best of my knowledge and belief. I understand that false statements or information are punished under Federal law.

______________________________________	______________________________
Applicant/Household Member	Date

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City of Cincinnati Department of Community and Economic Development

American Dream Downpayment Initiative Residence Certification Form

Please list below all addresses where you have lived in the past three years:

Address #1: _____________________________________________
_____________________________________________
Dates at this residence:	From: __________________	To: __________________
Address #2: _____________________________________________
_____________________________________________
Dates at this residence:	From: __________________	To: __________________
Address #3: _____________________________________________
_____________________________________________
Dates at this residence:	From: __________________	To: __________________
Address #4: _____________________________________________
_____________________________________________
Dates at this residence:	From: __________________	To: __________________
I am claiming the status as a displaced homemaker (circle):		Yes	No

My signature below is certification that I have not been a homeowner in the last three years (unless claiming displaced homemaker status). I, my spouse or any co-applicant for this loan has not owned any of the residences listed above. I verify that all information provided is true and correct. I understand that if information has been deemed fraudulent by the City of

Cincinnati, I will be liable for repayment of City funds under Federal Regulation 24 CFR Part 28.

Applicant Signature: _______________________________	Date: ___________
Spouse/Co-applicant Signature: __________________________	Date: ___________

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Child Support Certification

All adult household members with children or without children must complete this form. Complete and sign the section that applies AND attach the appropriate documentation; if you do not have any children skip to Section III.

SECTION I

I hereby certify that I currently receive child support and have attached a copy of my payment history report and/or other supporting documentation. I also certify that I currently receive $__________ per __________ for child support.

Signature of Applicant	Date

SECTION II

I hereby certify that I have a court order to receive child support, but do not currently receive any payments and such payments are in arrears. I have attached a copy of the court order, payment history report and/ or other supporting documentation.

Signature of Applicant	Date

SECTION III

I hereby certify that I that I do not have any court order to receive child support payments nor do I receive such payments of any kind.

Signature of Applicant	Date

I hereby certify that the information provided is accurate and complete to the best of my knowledge. Also, in executing this form, you grant the City of Cincinnati permission to verify any of the information disclosed above or attached with a third party so that your eligibility to receive federal funding assistance can be determined. If this certification is not signed below, this form will not be accepted and application for funding will be rejected. I understand that if information has been deemed fraudulent by the City of Cincinnati, I will be liable for repayment of City funds under Federal Regulation 24 CFR Part 28.

Signature

Date

Print Name

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ADDI Application Checklist

(Documents needed to complete the ADDI application)

Application

OComplete and signed by applicant and co-applicant (if applicable)

ODocumentation of pre-qualification for a mortgage loan

Income Determination Worksheet

Wage Statements/Pay Stubs (3 previous months/3 month equivalent)

OThree-month equivalent (i.e. 6 pay stubs for bi-weekly pay cycles, and 12 pay stubs for weekly pay cycles)

ORequired for every employed household member 18 years of age or older

OIf self employed – must submit two previous years of tax returns

Affidavit of No Income (if applicable

ORequired of all household members 18 or older claiming no income

OYou may be required to make copies for additional household members

Bank Statements

OThe past six months of all checking accounts

OMost recent month (one only) of all savings accounts

Eligibility Release Form

ORequires initials by “X” of all household members 18 years of age

and older that are employed, receive benefits and/or have bank account

ORequires signatures of all household members 18 years and older

Social Security/Child Support/Workers Comp. (if applicable)

OAward letters from the Social Security office for each person benefiting

OChild Support Certification form with attached documentation, if applicable

ODocumentation exhibiting any other unearned income aside from wage statements, Social Security and Child Support

Legal Separation document or Divorce Decree (if applicable)

We reserve the right to request further documentation or obtain third party verification if we deem it necessary to determine eligibility.

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Eligible Cincinnati Neighborhoods

Avondale	Mt. Adams
Bond Hill	Mt. Airy
California	Mt. Auburn
Carthage	Mt. Lookout
Camp Washington	Mt. Washington
Carthage	North Avondale
Clifton	North Fairmount
College Hill	Northside
Columbia Tusculum	Oakley
Corryville	Over-The-Rhine
Covedale	Paddock Hills
Downtown	Pendleton
East End	Pleasant Ridge
East Price Hill	Price Hill
East Walnut Hills	Riverside
East Westwood	Clifton Heights
English Woods	Roselawn
Evanston	Sayler Park
Fairview	Sedamsville
Hartwell	South Cumminsville
Hyde Park	South Fairmount
Kennedy Heights	Spring Grove Village
Linwood	University Heights
Lower Price Hill	Walnut Hills
Madisonville	West End
Millvale	West Price Hill
	Westwood
	Winton Hills

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American Dream Downpayment Initiative (ADDI)

FAQ Sheet

What is the ADDI program and what does it do?

It is a down payment assistance program that provides up to $5,000 to be used for down payment and/or closing costs for the purchase of a home in the City of Cincinnati.

How do I get started?

You can obtain an ADDI application packet and brochure online at www.cincinnati-oh.gov or by contacting the Department of Community & Economic Development at (513) 352-6146. Incomplete applications will be returned.

Who is the ADDI program for?

The ADDI program is for first time homebuyers that have been pre-qualified for a mortgage loan and that have low to moderate household income. Please refer to ADDI application or program guide for income limits. All household income must be documented. Evidence of a mortgage pre-qualification must be submitted with the ADDI application. Please refer to the application packet or program guide for other required documentation.

I have a job where I don’t receive pay stubs. Will I still have a chance to participate?

If you do not receive pay stubs through your line of work. We may request tax returns to support what the income is stated to be. Ultimately, with the information received, if we are unable to adequately determine or verify income, the assumption will be made that you are over-income and approval will be denied on the basis of lacking substantial information.

Do I have to pay ADDI funds back?

ADDI funds are forgivable loans that are to be paid back only (in whole or in part) if the property is sold or transferred before the 5th anniversary of the closing date. Homebuyers awarded ADDI funds must maintain the property as their primary residence for five years to avoid any repayment.

How are the funds actually forgiven?

ADDI funds are forgiven at a rate of 20% annually over a five-year period considering that the homeowner maintains the property as his/her primary

residence for the term of the loan.

Can I use this program to purchase a home outside of the City?

No. The City’s ADDI program only supports homeownership within the City limits. If there is a question about the eligibly of a particular address, please contact the Department of Community and Economic Development for verification.

Does ADDI work with acquisition/rehab loans?

Acquisition/rehab loans are not suggested because ADDI funds will only be awarded for a house that passes a City housing code inspection.

Do I have to pay for the City inspection?

No, however, it is the homebuyer’s responsibility to obtain any other inspection services associated with buying the home (i.e. whole house; termite, etc…). The City’s inspection is not meant to substitute a whole house inspection

I want to refinance my house bought with ADDI funds; will the City of Cincinnati subordinate its loan?

Yes, but the City will only subordinate its loan in favor of a better rate or term for the homeowner. The City will not subordinate to consolidate debt or to “cash out”. ADDI subordination guidelines are listed in the Program manual.

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Am I allowed to receive cash back at closing?

No. ADDI participants are not allowed to receive cash back at closing. Any potential cash back can be used for a principal reduction or other closing costs. If this cannot be accomplished, the refund amount will have to be deducted from the ADDI funds.

How long does the process take to receive funding?

Contingent on meeting all ADDI requirements, it can take anywhere from 30-45 days to have a check released after the City receives a copy of the fully executed purchase contract. Please take this into consideration when setting a closing date.

I already have a purchase contract on a house and a friend just told me about the ADDI program; can I still apply?

No. If you are seeking down payment assistance you must apply and be approved for participation in the ADDI program prior to signing a contract to purchase.

How long is the ADDI approval letter valid?

An applicant has 90 days to present to the City a fully executed contract to purchase before the approval letter expires. One 45-day extension can be requested in writing if this deadline cannot be met. If a purchase contract is received, but a closing is not held within 6 months of the date of the initial ADDI approval letter, the applicant will be required to reapply so the City can verify continued eligibility.

Do I have to participate in homebuyer counseling?

Yes. It is required that you complete HUD-certified homebuyer counseling in order to receive funding. Certificates older than 18 months will not be honored. Refer to the program manual for a list of acceptable agencies offering counseling.

Do you provide a list of lenders or realtors?

It is left to the discretion of the applicant to choose a lender and realtor that is suitable and willing to work with them and within the ADDI guidelines.

Does the ADDI Program work with FHA and conventional loans?

Yes, but with any loan, we reserve the right to deny or terminate eligibility if the loan is suspected to be subprime or does not meet our debt-to-income requirements (31%/43%). Adjustable Rate Mortgages (ARMs) are not permitted.

Can ADDI be used with other assistance programs?

Yes, however all ADDI requirements will still have to be met and you must notify the City of the program in question and the City will determine whether ADDI can be used in conjunction.

I am separated; do I still have to include my separated spouse on the ADDI application? Yes, separated couples will be treated as married couples there is a legal separation agreement or an actual divorce decree.

Are non-occupying co-borrowers/co-signers permitted if I cannot obtain financing by myself?

The ADDI applicant(s) must be able to afford the mortgage on their income only. Non- occupying co-borrowers are permitted only if the lender is using the co-borrower as added security. This can be in the case of insufficient credit and/or short or sporadic work history. Applicants whose monthly income cannot support a monthly mortgage cannot utilize a non- occupying co-borrower for the sake of securing financing in order to receive ADDI funds. Non- occupying co-borrowers are not permitted to be on the deed at purchase.

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