Homeownership Assistance (HOA) Program

Lender Information

Presentation of Application Process - Lenders (Power Point)

Following are the steps required to qualify an applicant for the City’s Homeownership Assistance Program. Although staff will process requests as quickly as possible, applicants should allow thirty (30) days for review and processing from the time a COMPLETED application is received in the Planning and Development Office. Please note that HOA funds are only to be used for down payment and closing costs. Prepaid items, such as taxes and insurance, cannot be used in calculating the amount of HOA assistance an applicant is eligible to receive. Homebuyers must provide a minimum of $500 toward the purchase. Program Guidelines

How to Apply

E-mail (kesides@gocolumbiamo.com) or hand deliver the following information or documents to the City Planning Department – documents must be legible.

• City’s signed application form and data sheet which includes the proposed closing date (a total of 4 pages need to be completed and submitted).
• Good faith estimate
• Income verifications
• Underwriter's worksheet and summary sheet
• Applicant(s)' credit report(s)
• Committment for title insurance with exceptions reviewed
• The last six months checking and savings account statements.
• The last twelve (12) months of statements for all income-producing assets (monthly or quarterly statements), including money market accounts, CDs, mutual funds, stocks and bonds.
• Documentation of first-time homebuyer status may be verified by providing (1) copies of lease(s) or a letter(s) from landlord(s), verifying rental history for the past three years (up to and including the date of the City assistance application)  or (2) the last three years’ Federal tax returns, verifying applicant did not take mortgage interest credit. If tax returns are used, you must also provide written verification for the current calendar year in some form (copy of signed lease, etc.) Note: If the applicant has resided in a parent’s home during any part of the previous three years, a signed letter from their parent(s) will serve as documentation for that time period.
• Lender loan application, including information on front end and back ratios (maximum ratios allowed by the City for the HOA program are 35/45 respectively).
• Appraisal
• Third party property inspection (not required if property was constructed within the last three years).
• Sales contract
• Copy of signed lead notification statement indicating that lead hazard information has been provided to the buyer (for houses built prior to January 1, 1978).
• Copy of signed Uniform Relocation Act Compliance Notification.
• Copy of certificate from homebuyer’s education class. Buyers are required to attend an approved homebuyer’s class and funds cannot be released until proof of attendance has been provided. An on-line course or take home materials are not allowed (see flyer for Pre-Purchase Home Buyer's Seminar which is offered locally).

Property Inspection

After City staff determines the applicant meets program requirements, a City inspector will schedule an inspection of the property. HOA funds will not be approved until the property passes inspection. There are two purposes for this inspection:

1. Compliance with property maintenance code. The inspector will issue a correction notice if the property does not meet property maintenance requirements, and any deficiencies must be corrected prior to HOA funds being approved. Seller and/or buyer are responsible for cost of repairs.
2. To determine if lead paint hazard exists (only for homes built prior to January 1, 1978). The inspector will determine if deteriorated paint exists, and deteriorated areas, interior or exterior, if any, will be tested by a licensed risk assessor. If areas test positive for lead, paint stabilization is required by a contractor trained in lead safe work practices (contact City for list of approved contractors). The City has a $500 grant to help offset the cost of paint stabilization, but buyer and/or seller are responsible for all costs exceeding that amount. Once stabilization is complete, a clearance of the property by the licensed risk assessor is required, and this cost will be covered by the City. HOA funds will not be approved until this clearance is achieved. Please note that in these situations a buyer cannot occupy the home until clearance is achieved.

HOA Funds Request

Once the applicant and property have been determined to meet program requirements, City staff will request the check for the HOA assistance and prepare the Affidavit, Borrowers Agreement, Promissory Note, and Deed of Trust (if applicable). The Affidavit, Borrowers Agreement, Promissory Note, and Deed of Trust (if applicable) will be signed by the buyer(s) in the Planning Department Office prior to release of funds.

After Closing

The lender or closing company will provide copies of the signed warranty deed and HUD settlement statement to the Planning Department within three days after closing.

Questions

Please call us at 874-7239 should you have questions or need additional information.