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Home My Public Portal AboutBuy-Down Ready Buyer Application BREWSTER AFFORDABLE HOME BUYERS BUY – DOWN PROGRAM READY BUYER APPLICATION Program: The Town of Brewster, through Community Preservation Funds, provides up to $30,000 of grant assistance for eligible buyers purchasing a home in Brewster. The program, contingent on existing funds, is available to households qualifying at 80% AMI (Area Median Income) who agree to place a permanent affordable housing deed restriction on the home. T he grant assistance is provided as an interest free loan which is forgivable after 30 years. Eligibility:  First Time Homebuyer, defined as someone who has not owned a home within the past 3 years. Some exceptions.  The household must occupy the property as their principal residence.  The property must be located in Brewster.  A household cannot have more than $75,000 in assets.  The total household income must not exceed 80% of AMI. Maximum Household Income Limits for 2021 2021 HUD Income Limits Household Size 1 Person 2 Persons 3 Persons 4 Persons 5 Persons 6 Persons Affordable limits 80% of AMI $54,450 $62,200 $70,000 $77,750 $84,000 $90,200 For more information contact: Jill Scalise, Brewster Housing Coordinator at 508-896-3701 x1169 jscalise@brewster-ma.gov Brewster Affordable Home Buyers Buy-down Program Ready Buyer Application Ready Buyer Application Checklist □ Signed application form (ALL adult household members are applicants) □ Documentation of your income sources and assets (see Required Financial Documentation sheet) □ Mortgage pre-approval letter. The letter must be from a mortgage lender and conform to the “LIP Program Standards for New Mortgage Loans.” (See Appendix 2) □ Signed agreement on affordability and deed resale restrictions. □ Signed Application Certification and Consent for Release of Information for ALL adult household members. Brewster Buy Down Program Application Process  Submit Ready Buyer application with all documentation & mortgage pre-approval letter.  After initial eligibility determination, placement on the Brewster Ready Buyer List.  When specific home is identified, submit Purchase & Sale agreement for final approval.  Property appraisal & home inspection will then be required.  Final approval and authorization of funds made by Community Preservation Committee.  Deed restriction, secondary mortgage, and promissory note signed and funds released at closing. Return completed application to: Brewster Planning Department Attn: Jill Scalise, Housing Coordinator 2198 Main St. Brewster, MA 02631 Brewster does not discriminate based on race, color, national origin, religion, sex, familial status, and handicap (disability). Disabled persons are entitled to request a reasonable accommodation of rules, policies, practices, or services, or to request a reasonable modification of the housing, when such accommodations or modifications are necessary to afford the disabled person equal opportunity to use and enjoy the housing. 1 BREWSTER AFFORDABLE HOME BUYERS BUY-DOWN PROGRAM READY BUYER APPLICATION (All adult household members are considered applicants) Applicant Name:________________________________________________________________ Address:_______________________________________________________________________ City/Town:____________________________________State:_______Zip Code:_____________ E-mail Address:_________________________________________________________________ Telephone: (Day):__________________________ (Evening):____________________________ Employer’s Name:________________________________________ Town:_________________ Co-Applicant Name:_____________________________________________________________ Address:______________________________________________________________________ City/Town:____________________________________State:_______ Zip Code:____________ E-mail Address:_________________________________________________________________ Telephone: (Day):________________________ (Evening):______________________________ Employer’s Name:________________________________________ Town:_________________ Brewster Affordable Home Buyers Buy-down Program Ready Buyer Application 2 Household Members List all household members including yourself: Name Date of Birth Soc. Sec. # Relationship to Applicant 1._______________________________________________________________Self__________ 2.____________________________________________________________________________ 3.____________________________________________________________________________ 4.____________________________________________________________________________ 5.____________________________________________________________________________ 6.____________________________________________________________________________ Gross Annual HOUSEHOLD income: $______________ Down Payment Available: $_____________ Are you a first-time homebuyer? YES □ NO □ Someone who has not owned a home in 3 years, a person 55 and older, or a displaced homemaker. Have you completed a certified homebuyer education course? YES □ NO □ If so, please attach a copy of your completion certificate. A certified Home Buyer Education course is strongly recommended. On Cape Cod, the Community Development Partnership (CDP) in Eastham and Housing Assistance Corporation (HAC) in Hyannis offer these classes. Please see www.capecdp.org; 508-240-7873 or www.haconcape.org; 508-771-5400. You can also see ww.chapa.org for a list of courses. Brewster Affordable Home Buyers Buy-down Program Ready Buyer Application 3 ANNUAL HOUSEHOLD INCOME INFORMATION Households must meet certain maximum income limits in order to be eligible to participate in the lottery for a home, as outlined in the Lottery Information Package. Gross annual income is income from all sources, including all wages and salaries prior to deductions, overtime pay, commissions, tips, fees and bonuses, and other compensation for personal services, net business income, interest/dividend income, Social Security, Supplemental Security Income, pension payments, disability income, unemployment compensation, alimony/child support, and veterans’ benefits, for all adult household members over the age of 18, unless the member is a full-time student. Income for full-time students who are the head of household or spouse must be counted in annual income. See APPENDIX 1: Income and Assets for more details. Please attach all third party documentation for your sources of income (see Required Financial Documentation sheet for detailed information). Annual Income (Applicant): Gross Income for the past 12 months: $_____________________ Employer Name: ________________________________________________________________ Employer Address: ______________________________________________________________ Phone: __________________ Position: ______________________________________________ Wage/Salary per week before taxes and withholding: $_________________ Additional Income from other source(s): Source:________________________________________________________________________ Income per month: $____________________ Source:________________________________________________________________________ Income per month: $____________________ Annual Income (Co-Applicant): Gross Income for the past 12 months: $__________________ Employer Name: ________________________________________________________________ Employer Address: ______________________________________________________________ Phone: __________________ Position: _____________________________________________ Wage/Salary per week before taxes and withholding: $_________________ Additional Income from other source(s): Source:_______________________________________________________________________ Income per month: $_____________________ Source:_______________________________________________________________________ Income per month: $_____________________ Note: If any other adult household members have income, please attach a separate sheet of paper with their income information as described above. Third party documentation is required. Brewster Affordable Home Buyers Buy-down Program Ready Buyer Application 4 HOUSEHOLD ASSET INFORMATION Please complete the following asset information for all household members. Assets to be included: cash, savings and checking accounts, stocks, bonds and other forms of capital investment, excluding equity accounts in homeownership programs or state-assisted public housing escrow accounts. Do not include the value of personal property such as furniture and automobiles. See APPENDIX 1: Income and Assets for more details, and Required Financial Documentation for verification documentation needed. Name on Account: ______________________________________________________________ Bank Name and Address: _________________________________________________________ Savings Account Number: ________________________ Recent Balance: $_______________________________ Checking Account Number: _______________________ Recent Balance: $_______________________________ Other (e.g. Certificate of Deposit) Account Number: ______________ Balance: $______________ Name on Account: ______________________________________________________________ Bank Name and Address: _________________________________________________________ Savings Account Number: ________________________ Recent Balance: $_______________________________ Checking Account Number: _______________________ Recent Balance: $_______________________________ Other (e.g. Certificate of Deposit) Account Number: ______________ Balance: $______________ Stocks and bonds, other liquid assets: Description:____________________________________________ Value: $______________ Description:____________________________________________ Value: $______________ Description:____________________________________________ Value: $______________ Total Household Assets: $____________________ Note: If any other household members have assets from additional sources, please attach a separate sheet of paper for each with their asset informati on as described above. Brewster Affordable Home Buyers Buy-down Program Ready Buyer Application 5 AFFIRMATIVE MARKETTING Please complete the following section to assist us in fulfilling affirmative marketing requirements. Responses will not affect your application. Household Race (Head of Household): □ Caucasian □ American Indian/ Alaskan Native □ African American □ Hispanic/Latino □ Cape Verdean □ Asian/Pacific Islander Brewster Affordable Home Buyers Buy-down Program Ready Buyer Application 6 BREWSTER AFFORDABLE HOME BUYERS BUY – DOWN PROGRAM READY BUYER APPLICATION This form must be signed by all adult household members and returned with your application. Affordability and Resale Restriction Certification: I/We have read the summary of resale restrictions in the Information Package and agree to the restriction. I/We have been advised that a copy of the Deed Rider governing resale of the affordable homes is available at the Brewster Town Administrator’s Office for my/our further review and that I/we may request a copy to be sent to me/us or my/our lender. I/We also understand that, when I/we are ready to purchase a unit, a full copy of the Deed Rider will be provided to me/us. _____________________________________________ ________________________ Applicant Signature Date _____________________________________________ _________________________ Co- Applicant Signature Date Applicant Certification and Consent to Release Information: PLEASE CHECK THE FOLLOWING ITEMS THAT APPLY TO YOU: □ I/We certify that the information in this application and in support of this application is true and correct to the best of my/our knowledge and belief under full penalty of perjury. I/We understand that perjury will result in disqualification from further consideration in this program. □ I/We understand that the use of this application is for a potential grant to purchase an affordable home in Brewster, and does not guarantee an offer. Your signature(s) below gives consent to the Town of Brewster, to verify information provided in this application. No applications will be considered complete unless signed and dated by the Applicant and Co-Applicant (if any). _____________________________________________ ________________________ Applicant Signature Date _____________________________________________ _________________________ Co- Applicant Signature Date Brewster Affordable Home Buyers Buy-down Program Ready Buyer Application 7 Required Financial Documentation & Verification Sheet □ Two months of most recent, consecutive paystubs for all working members of the household age 18 years and older. □ Federal Tax Returns (1040) from the last 3 years. Include W-2 and 1099-R forms. □ Verification of child support (copy of child support order, etc.) □ Verification of any other household income, ie: Social Security, SSDI, SSI, VA benefits, unemployment benefits, public assistance, etc. You may provide a copy of the official statement of monthly amount received for the present year. □ Savings account statement- submit the three most recent bank statement copies □ Checking account statement- submit the three most recent bank statement copies □ Verification of student status for each child 18 years of age or older who is a full time student. □ Mortgage pre-approval letter. The letter must be from a mortgage lender and conform to the “LIP Program Standards for New Mortgage Loans.” (Appendix 2) Brewster Affordable Home Buyers Buy-down Program Ready Buyer Application 8 APPENDIX 1: Income and Assets INCOME: Income Limit: Total household annual income must be at/below the 80% Barnstable County Median Income limits, as adjusted for household size. Maximum Household Income Limits (Barnstable MSA) for 2021 2021 HUD Income Limits Household Size 1 Person 2 Persons 3 Persons 4 Persons 5 Persons 6 Persons Affordable limits 80% of AMI $54,450 $62,200 $70,000 $77,750 $84,000 $90,200 Annual Household Gross Income means all income, from all sources, of all current adult household members for the 12-month period following application. Annual income includes but is not limited to the following: • The full amount, before ANY payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services • Net income from the operation of a business or profession • Interest, dividends, and other net income of any kind rom real or personal property • Payments from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of period receipts • Payments in lieu of earnings such as unemployment and disability compensation, worker’s compensation and severance pay • Welfare assistance payments • Alimony and child support • Regular pay, special pay, and allowances of a member of the Armed Forces ASSETS: Asset Limit: Total household assets cannot exceed $75,000 Household Assets include the following: • Cash in savings accounts, checking accounts and safety deposit boxes, etc., certificates of deposit, bonds, stocks, treasury bills, mutual funds and money market accounts • Revocable trusts. • Equity in rental property or other capital investments • Retirement plans are included when the holder has access to the funds, even though a penalty may be assessed. Retirement funds are NOT included if amounts can only be withdrawn if upon termination of employment or retirement • Cash value of life insurance policies available to the applicant before death. • Personal property held as an investment (this includes gems, jewelry, coin collections, or antique cars held as investments; personal jewelry is NOT considered an asset) • Lump sum receipts or one-time receipts. (i.e. inheritance, capital gains, one-time lottery winnings, victim’s restitution, settlements on insurance claims (including health and accident insurance, worker’s compensation, and personal or property losses), and any other amounts that are not intended as periodic payments. • A mortgage or deed of trust held by an applicant. Household assets do not include: • Personal property. (clothing, furniture, cars, wedding ring and other jewelry that is not held as an investment, vehicles specially equipped for persons with disabilities) • Term life insurance policies. (i.e. where there is no cash value) Brewster Affordable Home Buyers Buy-down Program Ready Buyer Application 9 • Equity in the cooperative unit in which the applicant lives. • Assets that are part of an active business. Business DOES NOT include rental of properties that are held as investments unless such properties are the applicant’s main source of income. • Assets that are not effectively owned by the applicant Assets disposed of for less than fair market value: Applicants must declare whether an asset has been disposed of for less than fair market value during the two years preceding application. If an asset has been disposed of for less than fair market value, the amount counted as an asset is the difference between the cash value and the amount actually received. APPENDIX 2: LIP (Local Initiative Program) Program Standards for New Mortgage Loans  The loan must be a fully amortizing fixed rate mortgage with a down payment of at least 3%, at least half of which must come from the buyer’s own funds.  The loan must be made by an institutional lender. Loans from private parties are not allowed.  The loan must have a fixed rate through the full term of the mortgage that is a current fair market interest rate.  The loan can have no more than 2 points.  The buyer’s monthly housing costs (inclusive of principal, interest, property taxes, hazard insurance, private mortgage insurance and condominium or homeowner association fees) may not exceed 38% of the buyer’s monthly gross income.  Non-household members shall not be permitted as co-signers of the mortgage. APPENDIX 3: Summary of Affordable Housing Deed Restriction An affordable housing deed is a legal document recorded at the Registry of Deeds that specifies the resale, refinance and leasing provisions for the referenced property. The deed restriction ensures that the unit remains affordable for future purchasers of the property. It is strongly recommended that purchasers of a deed restricted affordable home review the deed restriction with their attorney and lender prior to closing. Here is a general description of the deed restriction:  The property must be the owner’s principal residence.  The deed rider restricts the resale price of the property. The rider includes a formula to calculate the future maximum resale price based on the Area Median Income at the time of resale.  Owners of a deed restricted home must notify the monitoring agent, the Town of Brewster, in writing of their intention to sell or convey the home.  Owners of a deed restricted affordable home cannot rent, lease, refinance or encumber the home without prior written consent of the monitoring agent, the Town of Brewster.