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clearance examination. Any health and safety code violations identified in the inspection must be <br /> corrected by the seller or applicant prior to closing, in order for the City to give final approval to <br /> the application. <br /> 7. If the "Financial Institution" and the"City" approve the application for a loan <br /> under the Program, the City shall provide 25%of the funds necessary to finance the purchase of <br /> the described property or$10,000, whichever is less. The City shall provide a deferred <br /> forgivable loan to the successful applicant and shall obtain a second mortgage position on said <br /> property. The City's deferred forgivable loan shall be a 0% interest rate loan for a five (5) year <br /> term. The funds will be provided as down payment assistance, as agreed upon in advance by the <br /> lender, applicant, and the City. <br /> 8. The applicant shall be responsible for providing at least 1%(maximum of$800) <br /> of his/her own funds necessary to purchase the described property to be used as for the down <br /> payment. The applicant shall have his/her own funds to purchase the first year of homeowner's <br /> insurance on or before the loan closing date. <br /> 9. The"Financial Institution" shall provide the remainder of the funds necessary to <br /> finance the purchase of the described property. The "Financial Institution" shall provide said <br /> funds to the successful applicant and shall obtain a f�rst priority martgage�n such property. The <br /> , . <br /> "Financial Institution" shall set the rates and terms it deems appropriate for its portion of the <br /> "Program". The "Financial Institution" is encouraged not to charge any origination fees. If loan <br /> origination fees are charged, origination fees cannot exceed 1% of the loan and limited to its <br /> normal fees. - <br /> 10. The "Financial Institution" and the"City" shall each service their respective <br /> above-described loans. The "Financial Institution loan services shall include the collection of <br /> monthly PITI payments and other such necessary steps involved in mortgage servicing. For the I <br /> 3 <br />