WHAT KIND OF ASSISTANCE CAN THE HOMEBUYER PROGRAM PROVIDE YOU?

The program can provide down payment and closing cost assistance up to $10,000.

You will be responsible for any up front costs the bank requires such as a credit report, appraisal and Home Inspection.  

These costs could normally be $500 to $700.  You will also be required to bring proof to the closing that you have a year of pre-paid homeowners insurance on your new home.

A lead test is required for most homes.  Clients are responsible for paying the $500 fee for this test.

The program also can provide funding for rehabilitation of the property bringing the dwelling up to Section 8 Housing Quality Standards.

The above assistance is in the form of a Five or Ten year, zero interest forgivable loan secured by a Recapture Agreement and/or a Second Mortgage.

HOW CAN YOU APPLY?

1. Call the Homebuyer Program at (618) 965-3193 to get started.

2. Obtain a credit report & score from www.annualcreditreport.com for each applicant and mail it to us along with your name, current address & phone number.

3.  If there is an outside obstacle that may prevent you from purchasing a home, staff will work with you to identify the problems and concerns, and plan with you a course of action which will help alleviate the problems and enable you to purchase a home.  Western Egyptian requires that these obstacles be taken care of before you complete an application along with a credit score of at least 620.

4. Complete an application and provide all necessary documents and credit report to the Agency.  

5. Participate in:  1) a credit analysis; 2) the examination of the affordability of purchasing a home; and 3) determination of what price home you may be able to afford.

6. You must successfully complete the Homebuyer Workshops.  The Agency provided homebuyer applicants with workshops, one-on-one counseling, and follow-up counseling after the purchase of a home.  The workshops will include topics such as the application process, mortgage and closing information, home selection, home maintenance, dealing with contractors, information on lead based paint, budgeting procedures, credit and other related subjects.  The workshops are sponsored by Western Egyptian E.O.C., Inc. in conjunction with local lending institutions.

WHAT ARE THE ELIGIBILTIY REQUIREMENTS?

1.  Income is based on a 12 month projected gross income from all sources, calculated using the IRS regulations, and must be less than or equal to 80% of the area median income.

2.  Property purchased must be occupied as the principal residence and be a single-family home, a condominium or a cooperative unit and must be purchased through a fee simple title.

3. Applicants must have satisfactory credit and financial stability in order to secure a bank loan.

4. The homebuyer must provide at least $1,000 of their own money as a down payment.  However, if you and the homebuyer program together provide 20% of the purchase price as down payment, you may avoid costly mortgage insurance.  The maximum down payment allowed under the program is 20%.

5. Property value and rehabilitation work must not exceed 95% of the median sales price for the area as reflected by HUD’s Purchase Price//Value limits.

For more information call (618) 965-3193
E-mail:  housing@weeoc.org

                                         

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