42 USC 12852 - Assistance for first-time homebuyers

U.S Code last checked for updates: May 03, 2024

§ 12852.

Assistance for first-time homebuyers

(a)

In general

The Trust shall provide assistance payments for first-time homebuyers (including homebuyers buying shares in limited equity cooperatives) in the following manners:

(1)

Interest rate buydowns

(2)

Downpayment assistance

(3)

Assistance in connection with mortgage revenue bonds financing

(4)

Second mortgage assistance

(5)

Capitalization of revolving loan funds

(b)

Eligibility requirements

Assistance payments under this subchapter may be made only to homebuyers and for mortgages meeting the following requirements:

(1)

First-time homebuyer

The homebuyer is an individual who—

(A)

(and whose spouse) has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property with respect to which assistance payments are made under this subchapter;

(B)

is a displaced homemaker who, except for owning a home with his or her spouse or residing in a home owned by the spouse, meets the requirements of subparagraph (A);

(C)

is a single parent who, except for owning a home with his or her spouse or residing in a home owned by the spouse while married, meets the requirements of subparagraph (A); or

(D)

meets the requirements of subparagraph (A), (B), or (C), except for owning, as a principal residence, a dwelling unit whose structure is—

(i)

not permanently affixed to a permanent foundation in accordance with local or other applicable regulations; or

(ii)

not in compliance with State, local, or model building codes, or other applicable codes, and cannot be brought into compliance with such codes for less than the cost of constructing a permanent structure.

(2)

Maximum income of homebuyer

The aggregate annual income of the homebuyer and the members of the family of the homebuyer residing with the homebuyer, for the 12-month period preceding the date of the application of the homebuyer for assistance under this subchapter, does not exceed—

(A)

95 percent of the median income for a family of 4 persons (adjusted by family size) in the applicable metropolitan statistical area (or such other area that the Board of Directors determines for areas outside of metropolitan statistical areas); or

(B)

115 percent of such median income (adjusted by family size) in the case of an area that is subject to a high cost area mortgage limit under title II of the National Housing Act [12 U.S.C. 1707 et seq.].

The Board of Directors shall provide for certification of such income for purposes of initial eligibility for assistance payments under this subchapter and shall provide for recertification of homebuyers (and families of homebuyers) so assisted not less than every 2 years thereafter.

(3)

Certification

(4)

Principal residence

(5)

Maximum mortgage amount

(6)

Maximum interest rate

(7)

Responsible mortgagee

(8)

Minimum downpayment

(c)

Terms of assistance

(1)

Security

(2)

Repayment upon sale

(3)

Repayment upon increased income

(4)

Repayment if property ceases to be principal residence

(5)

Available assistance

(d)

Allocation formula

(e)

Assistance in connection with housing financed with mortgage revenue bonds

(1)

Authority

(2)

Eligibility

To be eligible for assistance under this subsection, homebuyers and mortgages shall also meet the requirements under subsection (b) of this section, except that—

(A)

the certification under subsection (b)(3) shall not be required for assistance under this subsection;

(B)

the provisions of subsection (b)(2) shall not apply to assistance under this section; and

(C)

the aggregate income of the homebuyer and the members of the family of the homebuyer residing with the homebuyer, for the 12-month period preceding the date of the application of the homebuyer for assistance under this subsection, shall not exceed 80 percent of the median income for a family of 4 persons (as adjusted for family size) in the applicable metropolitan statistical area.

(3)

Limitation of assistance

Notwithstanding subsection (a), assistance payments for first-time homebuyers under this subsection shall be provided in the following manners:

(A)

Interest rate buydowns

Assistance payments to decrease the rate of interest payable on the mortgages by the homebuyers, in an amount not exceeding—

(i)

in the first year of the mortgage, 2.0 percent of the total principal obligation of the mortgage;

(ii)

in the second year of the mortgage, 1.5 percent of the total principal obligation of the mortgage;

(iii)

in the third year of the mortgage, 1.0 percent of the total principal obligation of the mortgage; and

(iv)

in the fourth year of the mortgage, 0.5 percent of the total principal obligation of the mortgage.

(B)

Downpayment assistance

(3)

 So in original. Probably should be “(4)”.

Availability

(Pub. L. 101–625, title III, § 303, Nov. 28, 1990, 104 Stat. 4130; Pub. L. 102–550, title I, § 182(c)–(e), Oct. 28, 1992, 106 Stat. 3737, 3738.)

cite as: 42 USC 12852