10% Down payment Assistance Program Muskoka-Ontario

Moderator: Flipping4Profit.ca

Post Reply
Flipping4Profit.ca
Posts: 4528
Joined: Wed Mar 29, 2006 5:04 pm
Contact:

10% Down payment Assistance Program Muskoka-Ontario

Post: # 45535Post Flipping4Profit.ca
Sun Apr 12, 2015 9:29 am

10% Down payment Assistance Program Muskoka-Ontario
Muskoka Affordable Home Ownership Program

Homeownership Made Affordable Under the Investment in Affordable Housing for Ontario Program - Extension

Are you currently renting and dreaming of owning a home, but you don’t have the down payment in the bank?

The District Municipality of Muskoka is participating in the Investment in Affordable Housing for Ontario Program - Extension (IAH-E). The IAH-E program has committed funds to make homeownership affordable for households across Muskoka.

The Homeownership component of the IAH-E provides up to 10% (average grant will be approximately $14,500) in down-payment assistance to low and moderate-income households to assist them in purchasing a home.

Applicants must be renting, be at least 18 years old, have a combined household income at or below the provincially set, maximum eligible income limit of $78,700, assets at or below $20,000, and have access to mortgage financing.

The selling price of the home must be at or below the provincially set purchase price of $295,000. The home must be modest in size, relative to community standards.

10% Down payment Assistance Program Muskoka-Ontario
Muskoka Affordable Home Ownership Program


The purpose of the Homeownership Component of the Investment in Affordable Housing (Extension) for
Ontario (IAH-E) program is to provide down payment assistance in the form of a forgivable loan to eligible individuals and families for the purchase of a home.

Eligible homes include resale and new homes (including conversions from non-residential use that include a new home warranty). The home must be the sole and principal residence of the approved purchaser(s), and be located within The District Municipality of Muskoka (the District).

Program Rules

There are a total of 10 IAH-E down payment assistance loans (loans) available in an amount of approximately $14,500.00, or a maximum of 10% of the total purchase price of the home, whichever is less. They are available on a first come, first served basis until all funds have been exhausted. Therefore, IAH-E down payment assistance loans may not be available to all eligible applicants.

This component of the program will remain open until December 31,
2015, or until all loans have been awarded, whichever comes first.

Applicants must enter into a Loan Agreement with The District Municipality of Muskoka and the IAH-E down payment assistance loan will be registered on title against the lands. A copy of the Loan Agreement is available upon request.

The IAH-E down payment assistance loan may be forgiven if certain conditions are met. On the 20th anniversary date of the home purchase, the IAH-E down payment assistance loan will be forgiven at the request and expense of the home owner, provided no event of default has occurred. An event of default under the Loan Agreement includes but is not limited to death, bankruptcy, rent/lease, sale, etc.

The IAH-E down payment assistance loan is considered by CMHC as homeowner equity for the purposes of securing CMHC mortgage insurance.

A home inspection is required for resale homes and strongly recommended for new homes, and must be undertaken at the purchaser’s expense.

Eligibility Requirements (Homes)

Resale or new homes (including conversions from non-residential use that include a new home warranty).

The purchase price of the home shall not exceed at $295,000.00
*and must be located in Muskoka.

Persons seeking funds to offset construction costs on land that they
currently own are not eligible for funding.

Units may be detached, semi-detached, condominiums, stacked homes, row/town houses, or apartments.

Minimum Household Eligibility

Must be a renter household buying a sole and principal residence.

Must provide proof of tenancy.

Must provide proof of total household income at or below $78,700.

Must provide proof of total household asset level at or below $20,000*
-includes Savings, GIC’s, RRSP’s (for first time home buyers), gifts, and property or land, but does not include RESP’s, or items such as vehicles.

10% Down payment Assistance Program Muskoka-Ontario
Muskoka Affordable Home Ownership Program

Cannot currently own a home or have any vested interest in a residence/land.

Must be at least 18 years of age, a Canadian citizen, landed immigrant, or have Refugee Claimant status.

Must supply photo identification and birth certificate.

Must provide documentation showing mortgage pre-approval at time of application.

Application Process

Only complete applications will be considered for eligibility.

An application must have all information entered, and a
ll supporting documentation provided to be considered complete.

Upon determination of eligibility, the approved applicant will receive a conditional commitment letter which can be presented to a financial institution.

Eligible applicants must provide a copy of the 'Agreement of Purchase and Sale' within2 days of signing.
Offers conditional on financing must allow a minimum of10 business days for processing.
Your closing date must be a minimum of 15 business days after all conditions have been met.

FUNDING IS LIMITED AND SUBJECT TO AVAILABILITY.

Upon funding approval, eligible applicants will receive a final commitment letter specifying the exact amount of down payment assistance loan to be provided for the home being purchased.

Applicant(s) are required to sign the Loan Agreement and additional mortgage documentation, as required.

Funds are paid directly to the applicant’s lawyer on closing.

The IAH-E down payment assistance loan is registered as a mortgage on title against the lands.
Conditions for Repayment

No repayment of the IAH-E down payment assistance loan is required if no triggering event occurs within the 20 year term of the agreement.

If the home is sold before the 20 year time frame expires, the Loan Agreement requires the homeowner to repay the IAH-E down payment assistance loan plus a percentage of the capital appreciation amount
(increase in the market value of the property)
.
For example, if an applicant received a $15,000.00 loan to purchase a home for $175,000.00, the loan would comprise of 8.6% of the total cost of the home. If the home is then sold for $225,000.00, the capital appreciation equals $50,000.00. As per the Loan Agreement, 8.6% of $50,000.00 is $4,300.00 which amount is owed in addition to the $15,000.00 original loan amount. The total amount owed to The District
Municipality of Muskoka is therefore $19,300.00.

If the home is sold before the 20 year time frame expires and the home is sold for less than the original purchase price, the difference between the IAH-E down payment assistance loan and the depreciation amount will be repayable. In this situation, the District of Muskoka must be satisfied that the sale price was at fair market value.

If the purchaser is in default of any term of the Loan Agreement withinthe
20 year time frame, it is deemed the same as a sale and the IAH-E down payment assistance loan, plus a percentage of the capital appreciation becomes due.

If the purchaser chooses to repay the IAH-E down payment assistance loan without selling the home within the 20 year time frame, the purchaser will still be required to repay a percentage of any capital gain based on current fair market value at the time of the repayment of the loan.

Additional events of default triggering repayment of the IAH-E down payment assistance loan are set out in the Loan Agreement.

10% Down payment Assistance Program Muskoka-Ontario
Muskoka Affordable Home Ownership Program

P.S. Success isn't a matter of chance, it's a matter of choice. So it's up to you to make the right choice to become successful. If you don't know what to do it starts with making the choice to register for this LIVE real estate investors training in your town now, and making sure you make the right choice to SHOW UP!!!

To learn the strategies, techniques and Eye Witness Real Estate Investors Field Training. How to acquire Tax Sale Properties & Sheriff Sale Properties, Click Here

Post Reply