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| Home Purchase Incentive Program |
A home is a major investment... one that the City of Akron can help make a little
easier. The Home Purchase incentive Program (HPIP) has been designed by the City of Akron
with the cooperation of local financial institutions to help lower costs of purchasing a
home located in one of the City's Community Development Rehabilitation areas and
Neighborhood Housing Petition Areas.
What The Program Includes
Eligible Target Neighborhoods
Requirements to Qualify for HPIP
Assistance
How the Program Works
The HPIP Process
Home Ownership Is A Valuable
Inventment!
Participating Lenders
WHAT
THE PROGRAM INCLUDES
Persons buying homes in a target neighborhood are eligible for the following benefits:
- A $5,000 grant to be used towards down payment and rehabilitation assistance.
- Up to $2,000 can be applied towards the down payment. The City will match the buyer's
down payment dollar for dollar.
- Balance of the grant is to be used towards home rehabilitation such as plumbing,
heating, and wiring improvements.
- Low interest loans (average 6% APR) for repair costs exceeding the amount of the grant.
- Loan can also be used for general improvements.
- Loan is offered by the City of Akron through a participating lender and is dependent on
the buyer's credit rating and ability to repay the loan. HPIP approval is conditioned upon
buyer's ability to repay such a loan.
- Lower income buyers may also be eligible for a deferred payment 0% interest loan up to
$3,000.
- Special mortgage financing packages available from participating lending institutions.
- A down payment as low as 5%.
- Reduced mortgage interest rates.
- Special plans designed for low and moderate income borrowers.
ELIGIBLE
TARGET NEIGHBORHOODS
HPIP Benefits apply within designated target neighborhoods throughout the City:
VICTORIA area in North Akron... the GOODYEAR and MASON PARK areas in East Akron...
MANCHESTER area in South West Akron... the GLOVER area in South Akron... the CROUSE,
NOBLE, and AQUEDUCT areas in West Akron. HPIP assistance is available in neighborhood
petition areas. Call 375-2618 for those locations.
Federal funds will be used in each of the above Community Development Areas and
Neighborhood Petition Areas for the following neighborhood improvements:
- Home Rehabilitation
- Curbing and Sidewalk Reconstruction
- Sanitary & Storm Sewer Upgrades
- Street Repairs
REQUIREMENTS TO QUALIFY FOR HPIP
ASSISTANCE
HPIP is designed to encourage home ownership. Although the program is especially
helpful for the first time home buyer, any homebuyer can apply. There is no maximum income
limitation. Eligibility is based on these requirements:
- The property must be located in a Community Development Area or Neighborhood Petition
Area and not previously received City rehabilitation assistance.
- Eligibility is restricted to single-family structures with owner living on the premises.
- The buyer must meet City and lender's credit requirements.
- The house must be repaired within 18 months of purchase to eliminate all violations of
Akron's Environmental Health Housing Code.
- The buyer must live in the property for at least five years after repairs are completed
in order to retain the entire grant amount without a repayment.
HOW THE
PROGRAM WORKS
An example of how HPIP could be applied towards the purchase and rehabilitation of a
home:
| COST |
| Purchase price of home |
$30,000 |
| Cost of repairs |
$6,000 |
| MORTGAGE FINANCING |
| Buyer's down payment (5%) |
$1,500 |
| HPIP down payment match |
$1,500 |
| Total down payment |
$3,000 |
| Mortgage loan |
$27,000 |
| REHABILITATION |
| Repair cost |
$6,000 |
HPIP rehabilitation grant
(balance of $5,000 grant) |
$3,500 |
Low interest loan
(averaging 6% APR) |
$2,500 |
THE HPIP
PROCESS
- Buyer contacts Real Estate Broker or Seller after selecting a home in a target
neighborhood.
- Buyer signs a sales agreement contingent upon HPIP eligibility. Seller completes HPIP
inspection request form.
- Buyer makes appointment with HPIP counselor to discuss program requirements.
- City Health Sanitarian inspects the property and lists all code violations.
- Buyer takes copy of sales agreement and the list of housing code violations to a
participating lending institution for mortgage financing.
- Mortgage lender advises City of loan approval and escrow agent.
- Buyer signs City's promissory note and mortgage deed at closing committing to occupancy
within 3 months and completion of repairs within 18 months.
- City provides HPIP down payment grant at the loan closing.
- City Rehabilitation Specialist re-inspects the property and writes detailed cost
estimates for repairs.
- City releases HPIP rehabilitation grant funds and if necessary processes low interest
loan as repairs are completed.
- Buyer resides in the property for at least five years after repair work is completed to
avoid re-payment of HPIP rehabilitation grant.
Home Ownership is a Valuable
Investment!
Take advantage of the financial assistance offered throughout the Home Purchase
IncentiveProgram. For more details contact: The Department of Planning & Urban
Development (330-375-2618).
PARTICIPATING
LENDERS:
- BANK ONE, AKRON
- FIFTH-THIRD BANK
- THE FIRST FEDERAL SAVINGS BANK
- FIRST NATIONAL BANK OF OHIO
- NATIONAL CITY BANK, AKRON
- SOCIETY BANK
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