Mission Statement
The Lakewood HOME Program
provides one of the best mortgage financing packages available to qualified first
time home buyers interested in purchasing a Lakewood home. Assistance, which comes
in the form of a 0% interest, no monthly payment second mortgage is used to assist
with both down payment and closing costs. |
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| The Lakewood First-Time
Homebuyer HOME Program Offers: |
|
| 1) |
deferred payment, zero percent
(0%) interest second mortgage |
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• |
$7,500 for condominium
property, |
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• |
$10,000 for single-family property, or |
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• |
$14,000 for two-family property with forgiveness schedule. |
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Loan to be repaid immediately at time of resale, transfer, or if property
becomes absentee-owned. Purchasers of two family properties are eligible for loan
forgiveness. Fifty percent (50%) will be forgiven aftern the fifth year of owning
and occupying the property and twenty percent (20%) each year thereafter until
one hundred percent (100%) forgiven. |
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| 2) |
Pre-purchase counseling
program to help homebuyers become more informed homeowners. |
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| 3) |
Homebuyers
can be pre-qualified by participating lending institutions to determine their
maximum purchasing ability. |
|
| Eligible Homebuyers |
Household
size |
Maximum
Household
Income |
1 |
$34,800 |
2 |
$39,750 |
3 |
$44,750 |
4 |
$49,700 |
5 |
$53,700 |
6 |
$57,650 |
7 |
$61,650 |
8 |
$65,600 |
|
| • |
Homebuyer(s) must either be a displaced homemaker, single parent, or a
person who has not owned a home for 3 years. |
| • |
Homebuyer(s)
must provide a minimum of 1.5%* of the sale price from personal funds. (First
Federal of Lakewood only.) |
| • |
Homebuyer(s) must use the property as principal
residence. |
| • |
Homebuyer(s) must meet credit standards of participating
lender. |
| • |
Homebuyer(s) must participate in pre-purchase counseling
program provided by the lender. |
| • |
Monthly payment of principal,
interest, taxes and insurance should not exceed 33% of Homebuyer(s) gross monthly
income. |
| • |
Homebuyer(s) must meet federal income requirements for
household size. Current annual income is defined in the Federal Regulations at
24 CFR Part 813. |
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*Key Bank will continue to offer
the program at 3% down. |
|
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| Affordable Financing |
| Participating
lenders offer: |
| • |
30-year loan term; |
| • |
Discounted fixed interest
rate; and |
| • |
First mortgage loan to qualified buyers. |
| Appraisal
and credit bureau report fees are required at time of application. P.M.I. may
be required. |
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| Participating Lending Institutions |
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First Federal Savings and Loan Association of Lakewood
14806 Detroit Avenue
(216) 221-7300 |
| |
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Key Bank
(216) 229-2286 |
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| Eligible
Properties |
| • |
Single-family, two-family, or condominium properties
within the City of Lakewood. |
| • |
Purchase price cannot exceed $208,800
for a single-family or condominium, or $267,177 for a two-family property. |
| • |
Must meet certain Lakewood Building Department Housing Code Standards at
time of occupancy. Seller must apply for City Building Department inspection prior
to sale and pay a $25.00 for single- or two-family properties or a $50.00 fee
for condominiums. |
| • |
If purchasing a qualified two-family house, only
owner-occupied or vacant properties are eligible. If two-family house has a current
tenant, there must be no displacement or relocation of current tenant(s). |
|
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| First Time Homebuyer
Seminar |
| • |
Offered once a
month to prospective homebuyers. |
| • |
Mandatory
to those seeking assistance through the HOME Program. |
| • |
Information
provided regarding program requirements and federal lead-based paint guidelines. |
| • |
Program participants
are required to visit the Department of Housing and Urban Development's website
and take the Visual Assessment
Training Course prior to attending the seminar. |
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Directions:
Click here for HUD website |
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Step
One: |
Scroll down the page and click on Training
Curricula |
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Step
Two: |
Click on the Visual Assessment Course to select |
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Step
Three: |
Click on the logo to begin training |
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Step
Four: |
Follow the directions offered throughout
the training |
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Step
Five: |
At the end of the course, complete the
name and address page. (Use the cursor to move between entry spaces--do not use
the Tab or Return key.) |
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Step
Six: |
Print out certificate when prompted |
|
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Application Procedure
Click here for more Home Program Information.
Click here for Home Program Application Forms.
For more information regarding this program, please contact:
Mary E. Leigh, Programs Manager
City of Lakewood
Division of Community Development
12650 Detroit Avenue
(216) 529-5931 |
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Note: Prospective homebuyers
must complete certain letters and/or certifications required by the U.S. Department
of Housing and Urban Development (HUD). They are also required to sign a notice
from HUD's Office of Lead-Based Paint Abatement and Poisoning Prevention, which
promotes awareness of the dangers of lead-based paint. These documents, once executed,
must be filed with Lakewood's Division of Community Development. Prospective homebuyers
can obtain this information from their lender, or by contacting Ms. Leigh. |
