Agreement - Hurry Home - Home Ownership Financing Program

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c. Qualified Home. Any home purchased with any portion of the Total Donation Amount shall be located within the city limits of the City of South Bend, Indiana. Additionally, a Qualified Home will be an owner -occupied single- family unit, including but not limited to single-family homes, townhouses, and condominiums, with a purchase price not exceeding One Hundred Ten Thousand Dollars ($110,000,00). All Qualified Homes must be inspected by a qualified home inspector and must be in a condition that does not require ongoing costly maintenance or repairs. d. Pre -Purchase Requirements. Qualified Purchasers must complete an in -person one-to-one credit and pre -purchase counseling from any counseling agency approved by the United States Department of Housing and Urban Development, no more than six (b) months prior to the purchase of a Qualified Home. e. Post -Purchase Requirements, Qualified Purchasers must make twelve (12) consecutive on -time payments and attend six -post purchase homeownership training sessions. Additionally, Qualified Purchasers must endeavor to refinance loans with third party lenders within three (3) years of the closing date of the purchase of a Qualified Home. 2. DONATION. The City shall donate the Total Donation Amount to Hurry Home, which shall be used only for the purpose of assisting Qualified Purchasers acquire Qualified Homes as set forth in this Agreement. 3. DEFAULT COVERAGE FUND. Hurry Home shall set aside in a separate bank account Forty Thousand Dollars ($40,000.00) of the Total Donation Amount to repay actual funds that may be lost by investors in Hurry Home due to a Qualified Purchaser's default on a loan ("Default Coverage Fund"). The parties acknowledge and agree that the purpose of the Default Coverage Fund is to encourage third party investors to provide funds to Hurry Home in furtherance of its mission. A loan shall be considered in default after two (2) delinquent payments, as more specifically set forth in the Appendix attached hereto and incorporated herein by reference. 4. BUYER SUPPORT FUND. The remaining Forty Thousand Dollars ($40,000.00) shall be used to support Qualified Purchasers with regard to the following programs administered by Hurry Horne: a. Down Payment Assistance. Twenty -Five Thousand Dollars ($25,000.00) shall be used for a grant program providing Qualified Purchasers with up to Five Percent (5%) of their total loan amount. Qualified Purchasers must endeavor to complete the Post -Purchase Requirements. b. Closing Cost Assistance. Five Thousand Dollars ($5,000.00) shall be used for payment of up to one-half (1/2) of a Qualified Purchaser's closing costs, including, but not limited to, sums for an appraisal, home inspection, title search, title insurance, and processing charges.