The homebuyer may not acquire the property under the terms of a cash purchase.The household’s monthly housing expense, including principal, interest, taxes, insurance, and homeowner’s dues may not exceed 35% of gross income at closing.Any funds in excess of the approved mortgage amount, closing costs and cash back to the homebuyer shall be used as a credit to reduce the principal of the mortgage or as a credit toward the household’s monthly payments on the mortgage loan. The homebuyer(s) may not receive more than $250 cash back at closing.The homebuyer(s) must provide all documentation to the member institution as required for participation in the program.All individuals in title to the property must occupy the property for which the subsidy is being provided and must sign retention documents as described above.All properties must be titled as real estate and be permanently affixed to a permanent foundation.Lease/purchase arrangements and land contracts are not eligible ownership structures.HOP funds may not be used to purchase a property that includes a home-based business.Projected income must be included in household income whether or not homebuyer intends to rent the other unit(s). Duplexes are eligible as long as the homebuyer will occupy one-half as the primary residence and 75% of the projected income generated from the other unit(s) is included in the HOP income calculation.Transactions that require or involve non-occupying co-borrowers, co-owners, cosigners, or non-occupying loan guarantors are not eligible.

The homebuyer(s) must be owner-occupants of the home to be purchased (must be primary residence).

The homebuyer(s) must contribute a minimum of $1,000 in personal cash funds toward the purchase of the home.The homebuyer(s) has household income that is equal to or less than 80% of the area median income (AMI) adjusted for family size as published annually by the Department of Housing and Urban Development (HUD).The homebuyer(s) must complete a counseling/education program prior to the loan closing.

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