MORTGAGE CENTRAL

                 CLAYTON HOMEBUYER ASSISTANCE PROGRAM

OVERVIEW

First-Time Homebuyers may receive a deferred payment, zero interest loan (soft second mortgage) for down payment, closing costs and/or prepaid items, for up to $5000.  The second mortgage is designed to work with 95 or 97% loan-to-value first mortgages such as FHA loans, 203(k) loans, the Fannie Mae Community Home Buyer Program and other private conventional loans where applicable, however, first-time homebuyers with 100% loan-to-value are NOT eligible to receive closing costs assistance.

First-time homebuyers must meet the income guidelines established by HUD.  The maximum purchase price can NOT exceed $180,000.

Pre-purchase Counseling is required prior to closing for all recipients of Clayton County Down Payment Assistance. Online class certifications are not acceptable.

The loan is forgiven after 60 months, however, the loan is paid in full if one of the following circumstances occurs within the first 59 months of the loan:

1.  Original borrower transfers the property.

2.  Borrower no longer uses the property as his/her primary residence.

3.  First mortgage with the primary lender is refinanced or satisfied.

The Borrower must provide a minimum of $500 towards the purchase price to purchase his/her home.  The borrower's funds that will be required will be based on the purchase price of the home and specified in the sales contract.  Borrower must pay $100 to Jonesboro Housing Authority for a home inspection.

Home must pass inspection prior to loan closing.

To increase affordability, CHAP funds may be used to buy down the prevailing mortgage interest rate on the first mortgage.

The CHAP funds should not be used for a 203(k) loan.  The Home MUST PASS (JHA) Inspection.