Better Opportunity Fund HOPE Grant
Terms and Conditions
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Better Opportunity Fund (“BOF”) is offering qualified recipients (“Recipients”) who meet the eligibility criteria set forth in Section 2, the opportunity to receive the Grant (as defined below) to be applied towards the down payment and/or the closing costs associated with their Mortgage Loan (as defined below) (collectively, the “Program”).
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To be eligible for the Program, BOF Recipients must:
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Be a U.S. citizen, permanent resident or non-permanent resident (certain visa categories only);
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Meet the eligibility requirements for a Fannie Mae HomeReady mortgage product;
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Have submitted an application to obtain a mortgage loan with a licensed mortgage lender (the “Application”) for the purchase of a primary residence (the “Mortgage Loan”);
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The Application for the Mortgage Loan must have been underwritten using Fannie Mae’s Desktop Underwriter® system or Desktop Originator system;
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Have a minimum FICO credit score of 620;
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Have a total qualifying income for the Mortgage Loan that is equal to or below 80% of the area median income (“AMI”) for the location of the subject property of the Mortgage Loan;
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Be able to provide the Minimum Cash Investment (as defined below) for the applicable property type and LTV/CLTV/HCLTV limit associated with their Mortgage Loan; and
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Prior to closing on the Mortgage Loan, complete: (i) a Homeownership Education course which meets the National Industry Standards (“NIS”) or the United States Department of Housing and Urban Development (“HUD”) standards; (ii) Housing Counseling provided by a HUD-approved agency; or (iii) a course provided by BOF and Money Management International which can be accessed here.
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Successfully close on the Mortgage Loan with a licensed mortgage lender.
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The Program
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The Program is available for the purchase of the following property types:
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Single-unit principal residences;
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Two-to-four unit principal residences; and
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Condominiums.
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The program is not available for the purchase of secondary homes or investment properties.
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The Minimum Cash Investment
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The “Minimum Cash Investment” shall mean the following:
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For the purchase of a single-unit property, Recipients must provide 3% of the purchase price of the property from their own funds;
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For the purchase of a two-to-four unit property with a LTV/CLTV/HCLTV greater than 80%, Recipients must provide 5% of the purchase price of the property from their own funds; and
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For the purchase of a two-to-four unit property with a LTV/CLTV/HCLTV equal to or less than 80%, Recipients must provide 3% of the purchase price of the property from their own funds.
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The Grant
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Upon qualifying for the Program, BOF will provide a Recipient with a grant of funds equal to 2% of the purchase price of the subject property associated with the Mortgage Loan, up to $5,000, to be applied toward either the down payment and/or the closing costs for the Mortgage Loan (the “Grant”).
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The Grant may be used in combination with an outside gift, grant, or secondary financing as eligible under Fannie Mae HomeReady Program requirements.
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The Grant may only be applied once per eligible Mortgage Loan and may not be combined with any other BOF concessions, promotions or discounts.
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No repayment is required
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Cash back at closing of the Mortgage Loan is not permitted, unless the cash back meets the parameters as outlined in the Fannie Mae Selling Guidelines.