Laserfiche WebLink
i�" <br /> ;;,�,� ,' , ' <br /> ' /4S�ISt 2��0— Home Buyer Assistance � <br /> Affordabie home ownership forfamilies Program Outline � <br /> _ ; <br /> An innovative program sponsored by cities throughout the , <br /> state that ofFers families the opportunity to buy their own home. <br /> The home buyer assistance feature of the Assist program <br /> provides families with funds to pay all or most of their closing <br /> costs and down payment,enabling families with good credit but <br /> little extra capital to buy their first home. <br /> Overview <br /> • Cities join together and issue tax-exempt single family bonds . <br /> • Each home rule city contributes its private activity bond volume cap <br /> • Non-home rule apply for volume cap from the State <br /> • No financial contribution or commitment required from any city <br /> • Any Illinois city can participate <br /> Description of Bond Issue <br /> • Tax-exempt bonds are issued using the combined volume cap of the cities <br /> • The bonds are sold at a premium, a price greater than their face amount <br /> • Proceeds of the bonds are used to make the home loans and the <br /> assistance <br /> • The bond premium supplies the extra funds to provide home buyer <br /> assistance <br /> • The bonds are not a debt of the cities or paid from any city funds - <br /> • One (or more) cities acts as issuer on behalf of all the cities <br /> • The bonds are secured by loans on homes purchased with Assist <br /> Loan Description <br /> • 30 year fixed rate loans <br /> • FHA, VA and conventional loans available <br /> • Assist pays 4.75% cash assistance to qualifying homebuyers <br /> • 1.00% to lender as origination fee <br /> • 0.25% to lender as discount fee <br /> • 3.00% net to home buyer for closing <br /> • Loans are funded with proceeds of the bonds . <br /> �� �� Loan interest rate determined at bond closing <br /> • Loan interest rate below conventional loan rates as of bond closing <br /> ' GATES Capital Corporation <br />