Eagle Mountain Redevelopment Agency Mortgage Assistance Application

To the Applicant: 

The information collected in this application will be used to evaluate your eligibility to participate in the Mortgage Assistance Program. Be sure to provide the most accurate, complete information possible. All information is subject to verification. All applications are received, processed, and evaluated as set forth in the Mortgage Assistance Program Policy.

Program Summary:

Mortgage Assistance is offered as a forgivable loan of up to $25,000 for moderate‐income homebuyers (as determined by HUD-defined income limits, or authorized by State code) to purchase a home within Eagle Mountain. The loan does not need to be repaid provided the home remains the primary residence of the applicant for up to 15 years. Selling the home before the end of the 15-year period requires repayment of the loan. Renting or leasing the home anytime during the 15-year period will require full repayment of the loan. If either a sale or rental occurs within the first two years of the term, an additional penalty may apply.

Eligible Applicants

• Applicant must meet income guidelines and debt ratio requirements. Applicant must have six months of employment history in their current job and cannot currently have an ownership interest in a residential property (own a home). Those who own a home but can document economic hardship, such as divorce, may be eligible.

• Applicant(s) are encouraged to apply before submitting offers on a home or going under contract. However, applicants who have made a purchase commitment on a home may still apply. Both spouses/partners must sign our loan agreement, even if spouse/partner is not included in the mortgage.

• Applicant is a public employee OR a public employee working for a participating agency (Eagle Mountain City, Alpine School District, Utah County, Unified Fire Service Authority, or Central Utah Water Conservancy District).
• Applicant may be eligible for loan forgiveness earlier if they meet the employment requirement and length of time in public employment, as set forth in the Mortgage Assistance Program Policy.
• The applicant must submit a request in writing to the City for loan forgiveness, in whole or in part, when the requisite years of service are completed.
• Applicant is not a public employee.

Income Limits

Income for all household members over 18 will be included in the total household income calculation. Sources of income include, but are not limited to, paystubs, SSI/SSA yearly statement, profit and loss statements (if self‐employed), child support, alimony, etc. For full‐time students over 18 (excepting applicants and co‐applicants) only $480 of their annual income counts. Program specific income limits for the current fiscal year can be found at eaglemountaincity.com.

Household Definition

The number of household members is determined by counting every person (of any age) who will live in the home purchased with down payment assistance. The following are excluded: foster children, unborn children, live‐in aides, children being pursued for custody or adoption, and children under shared custody residing less than 51% of the time in the home.

Eligible Debt Ratios

Applicants must have a minimum mid‐credit score of 660 or higher. Monthly Housing Expense Ratio (HER) cannot exceed 47% of the household monthly gross income. Housing expenses or “PITI” includes taxes, insurance, principal payment, and HOA fees of the new home loan.

Total debt‐to‐income ratio (DTI) cannot exceed 50% of the household monthly gross income if their mid credit score is 650‐699 and cannot exceed 45%. This includes existing monthly debt payments and monthly payments of the new home loan. Applicants must choose a home whose required payment fits within these limits.

Agreement Term

Summary: The full term of the agreement is 15 years. No repayment is required for applicants who occupy the home as their primary residence through the full 15‐year term or if they meet certain conditions for loan forgiveness. If the applicant sells or vacates the property prior to the end of the 15-year term, they must repay the loan. If the applicant leases, rents, sublets, or the like, anytime during the 15-year term, the full amount of the loan must be repaid. If the applicant sells, vacates, leases, or rents the property within two years of the closing date, an additional penalty may apply. See full details in the Mortgage Assistance Program Policy manual.

Eligible Loans

Only fixed rate loans are accepted in the program. No ARM’s, owner‐financed, or other loans are allowed. FHA, VA, Conventional, etc. loans are acceptable. Non‐occupant co‐signers are not permitted.

Loan Amount

Subject to availability of funds, Eagle Mountain City will provide qualified applicants with up to $25,000 or 7.5% of the purchase price of the home (whichever is less).

Applicant Down Payment Requirements

Applicant must make a down payment of at least $1,000 of their own funds towards the purchase of the home. 

Homeowner Education

Applicant must enroll in and complete a homeowner education course from our approved list at their own expense. Applicant must submit completion certificate before closing. Applicants who have begun but not yet finished the course can be conditionally approved but must complete and submit certificate before closing. 

Recommended Course Options:

Fannie Mae, Freddie Mac

Note: On the Fannie Mae site, look for the section called "Certificate course for first time homebuyers." On the Freddie Mac site register ONLY for the CreditSmart Homebuyer U option. 

A fee may apply.

For more information:

Please email us at: mortgageprogram@eaglemountain.gov or contact Jacinda Montano, 801-847-5810, jacinda@uhlending.com

Documents may be uploaded at the end of this application form

All Applicants:

• Completed and Signed Application
• Copies of Federal Tax Returns for the immediately preceding year (two years if self-employed).
• Proof of income: Copies of paystubs for the immediately preceding three months for all working household members over 18 years of age. Statements for all other types of income must also be submitted for the last two months, including but not limited to wages, commissions, tips, bonuses, interest, social security, self‐employment income, pension/retirement, unemployment, workers compensation, child support/alimony, adoption credits, etc.
• Copies of bank statements for the previous two months (all checking, savings, and investment accounts must be included regardless of current balance). Documentation of all assets reported below must also be submitted. 
• Homeownership Class certificate or receipt indicating course has begun (not required now, to be completed and submitted after approval but before closing).
• Proof of identity. Government issued photo ID such as Drivers License, Passport, Permanent Residency Card, Global Entry Card, etc. Scanned copies are okay.

If Applicable, Submit the Following:

• Divorce decree.
• Bankruptcy documentation.

If applicant has an accepted offer on a house, the following must be submitted. Purchase Contract should be submitted now along with any other available materials. If needed, other materials may be submitted before final approval.

• Real Estate Purchase Contract, including seller's disclosure form
• Appraisal
• Preliminary Title Report or Commitment for Title Insurance (PR)
• Standard Flood Hazard Determination Form
• Home Inspection Report

Note: The following information is requested for monitoring our compliance with equal credit opportunity and fair housing laws. Federal Law prohibits the City from discriminating based on race, color, national origin, religion, gender, disability status or familial status.

Note: The following information is requested for monitoring our compliance with equal credit opportunity and fair housing laws. Federal Law prohibits the City from discriminating based on race, color, national origin, religion, gender, disability status or familial status.

IMPORTANT: All adults 18 years and older who will be living in the home purchased with mortgage assistance must complete the annual income information below and provide documentation for each source of income received (see "Documentation Required" checklist above). Any income (benefits/assistance) received on behalf of minor children in the household must also be included. Input information as an ANNUAL amount, except where indicated. Use a second sheet if needed.

Cash Assets

Investments

Profit-Sharing

Fixed Assets

Monthly Bills

If you do not have liabilities for a category, enter "0"

Installment Loans (Balance Due)

Loans (Balance Due)

Mortgages (Balance Due)

I/We do hereby certify that the individuals listed below do NOT receive income from ANY source. I understand sources of income include but are not limited to the following:

I, the applicant, acknowledge that Eagle Mountain City may contract with a mortgage broker to manage and administer the Mortgage Assistance Program, and that the statement below, includes such person(s).

I hereby authorize Eagle Mountain City, and their employees, officers, agents, contractors, or assigns, to verify my past and present employment earnings records, bank accounts, stock holdings, and any other assets needed to process my mortgage loan application. I further authorize Eagle Mountain City, and their employees, officers, agents, contractors, or assigns, to order a consumer credit report and verify other credit information, including past and present mortgage and landlord references. I understand that a photocopy of this form will also serve as authorization. The information is to be used in the processing of my mortgage loan application.

I/We verify that the information given on this form is accurate and complete to the best of our knowledge, and I/We authorize you to obtain such information as you may require to verify the information contained herein, including obtaining a credit report. I/We affirm that each answer is true and correct and is made for the purpose of obtaining assistance under The Eagle Mountain Mortgage Assistance Program and you are entitled to rely thereon, whether or not you obtain further and/or additional information. I/We understand that false or misleading information provided by me may cause this application to be denied and or legal action may be taken against me.

I/We further affirm that I/We are aware that, if such a grant is approved by Eagle Mountain City, I/We will work with the staff to comply with all of the policies and procedures as outlined by Eagle Mountain City, and that I/We will willingly secure the loan in the amount necessary with a duly executed Trust Deed and Trust Deed Note. If such loan is approved, I/We will be notified by Eagle Mountain City. I/We have also read and understand the Program Guidelines and this application and I/We agree to abide by the guidelines of the Program. I/We will not hold the Eagle Mountain Redevelopment Agency or Eagle Mountain City legally liable for any actions of the staff or agent.

AGREEMENT

I/We agree that if this Application is approved and I/we receive Mortgage Assistance to be bound by the terms and conditions in the Application and those found in the Mortgage Assistance Policy of Eagle Mountain City which is incorporated into this Agreement by reference.

CONSENT FOR LIEN

I/we acknowledge, consent, and grant to Eagle Mountain City a lien for the Mortgage Assistance amount on the real property where the Residence to which the Mortgage Assistance was applied to guarantee the repayment of the loan/grant, if the conditions to convert the loan into a grant are not fully met, as set forth above. I/we consent to the recordation of a Notice of Lien in the office of the Utah County Recorder on the Residence purchased with the aid of Mortgage Assistance.

DISCLAIMER: The undersigned hereby acknowledges that any discussions with or any information given by an employee or agent of either Eagle Mountain City or the Eagle Mountain Redevelopment Agency regarding Application for the Program, prior to receipt of a formal commitment letter from the Eagle Mountain Redevelopment Agency committing a specific amount of funds to the Applicant, is only for program information and may not be considered a binding commitment on the part of the Eagle Mountain Redevelopment Agency to provide funds or technical assistance to the Applicant. The undersigned also acknowledges that any costs incurred prior to receipt of a formal commitment letter from the Eagle Mountain Redevelopment Agency committing a specific amount of funds is at the risk and expense of the Applicant.

PRIVACY NOTICE: This information is to be used by the agency collecting it or its assignees in determining whether you qualify as a prospective mortgagor under its program. It will not be disclosed outside the agency except as required by law. You do not have to provide this information, but if you do not, your application for approval as a prospective mortgagor may be delayed or rejected. The information requested in this form is authorized by Title 38, USC Chapter 37 (if VA); by 12 USC, Section 1701 et seq. (if HUD/VA); by 42 USC, Section 1452b (if HUD/CPD); and Title 42 USC, 1471 et seq. or 7 USC, 1921 et seq. (if USDA/FHA).