Structure of Assistance. All assistance shall be provided to the homeowner in the form of a 0% interest rate, deferred-payment, non-recourse loan secured by a mortgage that will be recorded and will take a junior lien position on the home. This NJHK mortgage loan shall require no monthly payments from the homeowner. Within the first five years of the closing date of the NJHK mortgage loan, the full amount of the NJHK mortgage loan shall be due and payable upon the sale or upon the transfer or upon the refinance of the property (except for a lower rate/term refinance) or if the applicant ceases to occupy the property as his/her primary residence in the event there are sufficient equity proceeds available from such transaction. After the fifth year, the NJHK mortgage loan amount shall be forgiven 20% per year, to be forgiven in full at the end of the tenth year. All borrowers will be required to sign and acknowledge the program guidelines and any and all other program requirements, including employment status reporting. Any funds repaid to the NJHK by NJHK recipients in accordance with established program guidelines will be recaptured and may be used to assist additional homeowners up to December 31, 2017. After this date, all remaining and recaptured funds will be returned to the U.S. Treasury.
Appears in 7 contracts
Samples: Hfa Participation Agreement, Hfa Participation Agreement, Hfa Participation Agreement
