Fillable FIRST-TIME HOMEBUYER DEFERRED LOAN PROGRAM Homebuyer Application Instructions (Kane County, Illinois)

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FIRST-TIME HOMEBUYER DEFERRED LOAN PROGRAM Homebuyer Application Instructions (Kane County, Illinois)

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Kane County Office of Community Reinvestment
FIRST-TIME HOMEBUYER DEFERRED LOAN PROGRAM
Homebuyer Application Instructions
All programs offered through the Office of Community Reinvestment are designed to assist applicants within
certain income levels in order to meet regulations as set forth by U.S. Department of Housing and Urban
Development (HUD). As such, the county must verify the income of all adult (18+) members of the household
for the purpose of determining eligibility for assistance. HUD guidelines require that the county must project a
household’s (adjusted gross) income one year in the future - a “snapshot” of the household’s current
circumstances is used to project future income. Please review the information provided at the end of this
application (General Requirements related to Income Determination) for an explanation of how the county
determines household income.
To apply, Applicants must submit:
• Complete Application form with signed certifications
• Required documents for each household member age 18 and over:
Federal tax returns for the most recent past two years
Federal Tax Transcript issued by the IRS for most recent past two years (To get a copy of your Tax
Transcript from previous years or to verify that you have not filed, please go to IRS.gov and click on
"Get My Tax Record" or call 1-800-908-9946.)
W
-2s for the most recent past two years
Disability, SSI benefit statements, or other statements to document income for the current or
upcoming period
Pay stubs/Payment documentation covering the most recent past 60 days
If self
-employed, CURRENT year-to-date profit-and-loss statement
If an adult household member does not have income/paystubs, we will supply a certification form
for signature by the household member
PLEASE DO NOT submit ORIGINAL tax returns. We cannot make copies for you.
Documents submitted with your application will not be returned.
Application submittal options:
• By email: zillykaren@co.kane.il.us
• By mail: Karen Zilly, Program Manager
Kane County Office of Community Reinvestment
143 First Street, Batavia IL 60510
In Person to drop off documents BY APPOINTMENT: Weekdays, 8:30 am to 4:30 pm
Whe
n you submit your application with all requested documents, we will evaluate your eligibility for the
program and email you to inform you as to whether you meet the program eligibility requirements.
Contact Karen Zilly at (630) 444
-3027 or zillykaren@co.kane.il.us
if you have questions about the form.
It is the policy of the Kane County Office of Community Reinvestment to provide services without
regard to race, color, religion, national origin, ancestry, age, sex, familial status, physical
handicap or disability.
KANE COUNTY FIRST-TIME HOMEBUYER LOAN PROGRAM– EFFECTIVE 2/2021 – PREVIOUS VERSIONS NO LONGER VALID
Kane County Office of Community Reinvestment
FIRST-TIME HOMEBUYER DEFERRED LOAN PROGRAM
PROGRAM GUIDELINES
Program Contact: Karen Zilly, Program Manager - zillykaren@co.kane.il.us; (630) 444-3027
Program Area:
The Kane-Elgin Consortium Area (“Program Area”) includes all of Kane County (except properties that are in the
city/village limits of the City of Aurora, and the Villages of Hampshire, Huntley, Hoffman Estates, and
Montgomery), all of the City of Elgin (including that portion located in Cook County), all of the Village of Maple
Park (including that portion located in DeKalb County), and all of the City of St. Charles (including that portion
located in DuPage County).
Homebuyer Qualification:
To qualify for the program, homebuyers:
1) Must be a first-time homebuyer, defined as any homebuyer that has not owned a home in the last 3
years; and
2) Must currently live (or work full-time) in Kane County and the Kane-Elgin Consortium Area, and have
done so for at least one year leading up to the date of application for the program; and
3) Households must not exceed Federal income limits (see table below). Projected gross income is
calculated in accordance with HUDs guidelines (not Net income).
4) Upon Qualification, it will be effective for 6 months.
Income Limits:
Household income must not exceed these limits, as adjusted for household size.
Household Size
1
2
3
4
5
6
7
8+
Maximum Household Income
(effective 4/1/20)
$51,000 $58,250 $65,550 $72,800 $78,650 $84,450 $90,300 $96,100
Eligible Property:
Homebuyers may purchase a single-family detached home, condominium, or townhome under the program.
Regardless of the type of home desired, however, housing units purchased under the program cannot be tenant
occupied when a purchase offer is made. Also, the unit size, when compared with family size, must meet
minimum occupancy standards of the local building code.
Ineligible Property:
1) Properties located in the floodplain are not eligible.
2) Mobile homes are not eligible.
3) Tenant occupied property (i.e. rental units)
4) If a real estate sales contract has been executed for a property prior to: Homebuyer Qualification,
Program Area Verification, completion of the required Homebuyer Counseling, or not including required
First-Time Homebuyer Loan Program Real Estate Sales Contract Rider with the initial offer/contract, that
property is not eligible for funding under this program. These steps are outlined herein (i.e. First-Time
Homebuyer Loan Program Real Estate Sales Contract Rider must be signed and dated by Buyer, and the
Rider must be attached to/submitted with the Buyer’s initial signed and dated offer/real estate
contract).
Homebuyer Counseling:
Homebuyers must complete homebuyer counseling from a HUD certified counselor/agency* prior to submitting
a purchase contract. Please make sure that the agency can confirm that they are in compliant with HUD’s
KANE COUNTY FIRST-TIME HOMEBUYER LOAN PROGRAM– EFFECTIVE 2/2021 – PREVIOUS VERSIONS NO LONGER VALID
guidelines for Homebuyer Counseling. Please be aware that while taking an online course such as Framework
can provide valuable information, online courses/group workshops do not complete the Homebuyer Counseling
requirement – counseling must include customized services to the homebuyer. Homebuyers will be required to
provide a signed and dated certification from the Housing Counselor. Any costs associated with completing
housing counseling are the responsibility of the homebuyer. Homebuyers may work with the HUD certified
counseling agency/counselor of their choice.
*Local HUD-certified Housing Counseling agencies include:
• The Neighbor Project (Aurora) (Contact Jerria at 630-906-9400 extension 123)
• Consumer Credit Counseling Service of Northern Illinois (Elgin) (Contact Erika at 224-769-7440)
• DuPage Homeownership Center (Wheaton) 630-260-2500
Please be sure to let the counselor know:
• You are seeking HUD-Certified Homebuyer Counseling to meet the requirements of Kane
County’s First Time Homebuyer Loan Program – direct them to Karen Zilly (630) 444-3027 with
any questions about the requirements
• You will require a signed and dated completion certificate from the counselor
Monthly housing payment affordability:
To receive the Kane County second mortgage, the monthly housing payment, including Principal, Interest,
Property Taxes, Property Insurance, Mortgage Insurance, and including any association fees (i.e. condo or
homeowner association fees) (front-end ratio or housing expense ratio) must be between 25% to 32% of the
total household monthly income as determined by Kane County. If the first mortgage housing payment is less
than 25% of your household monthly income, your second mortgage from Kane County will be reduced to
amount that brings your first mortgage housing payment to 25% of your total household monthly income. In
the event that your first mortgage payment is over 32% of your household monthly income, Kane County will
not be able to provide assistance and will cancel your qualification for a second mortgage.
The Homebuyer Qualification Letter will clearly state Kane County’s household income determination,
as well as the calculation of 25% and 32% of the household’s income.
Monthly overall debt liability:
To receive the Kane County second mortgage, the monthly housing payment, including Principal, Interest,
Property Taxes, Property Insurance, Mortgage Insurance, and including any association fees (i.e. condo or
homeowner association fees) plus other monthly debt payments (back-end ratio or debt-to-income ratio) must
not exceed 50% of the total household monthly income, as identified by the first mortgage lender. In the event
that your back-end ratio or debt-to-income ratio is over 50% of your household monthly income, Kane County
will not be able to provide assistance and will cancel your qualification for a second mortgage.
Homebuyer asset review and cash reserve evaluation:
The homebuyer must provide a copy of their First Mortgage loan application in order for the County to review
assets and cash reserves to: 1.) assist in determining the amount of assistance to be offered, and 2.) ensure the
homebuyer has cash reserves to address unanticipated emergencies or issues without impacting ability to stay
current with housing payments.
Downpayment:
Not including any assistance provided by the County through this program, the applicant is required to
contribute a minimum down payment of at least 1% of the purchase price. The County will require that the
purchaser deposit a minimum 1% earnest money with contract to comply with this requirement. (*First
mortgage lender may require more.)
Maximum home purchase price: (effective 4/1/2020)
Existing home: $228,000; New Construction home: $257,000
KANE COUNTY FIRST-TIME HOMEBUYER LOAN PROGRAM– EFFECTIVE 2/2021 – PREVIOUS VERSIONS NO LONGER VALID
Program Area Verification:
Upon being determined “qualified” for the program, homebuyers will be issued a “Qualification Letter” including
a “Program Area Verification Form”. Under this program, homebuyers work with a lender of their choice to
identify the home they wish to purchase, subject to program guidelines. Once you identify the home, and
BEFORE entering into a contract, homebuyers must submit the Program Area Verification Form to County staff,
who will confirm that the address meets program guidelines. (County staff will make its best attempts to
respond within 24 hours on business days to Program Area Verification form requests). After staff has confirmed
eligibility of the property, you will be provided a written confirmation letter including a First-Time Homebuyer
Loan Program Real Estate Contract Rider that must be included with a contract for that address - signed by the
homebuyer and dated same as Real Estate Contract.
Pre-Purchase/Contract Requirements in order to obtain Kane County deferred loan commitment:
1) Homebuyers must complete homebuyer counseling from a HUD certified counselor/agency prior to
submitting a purchase contract. Failure to complete this step prior to entering into a contract will
make the project ineligible for First-Time Homebuyer Loan funding.
2) Before executing a Real Estate Contract, homebuyers must provide their real estate agent the required
First-Time Homebuyer Loan Program Real Estate Contract Rider. The Rider will be provided to you by
Kane County after the property is determined to be located within the eligible Program Area. The First-
Time Homebuyer Loan Program Real Estate Contract Rider must be signed and dated by Buyer, and this
document must be attached to/submitted with the Buyer’s initial signed and dated offer/real estate
contract. The Buyer’s signature must be dated same on both documents. This means that the Buyer
must SIGN and DATE the Rider and submit it to the Seller as part of the signed and dated
offer/contract initially presented to the Seller. This also means that if the Buyer submits an offer to
purchase a property, but does not also present the Rider at the same time, the purchase will be
ineligible. Failure to include this Rider in the initial contract offer will make the project ineligible for
First-Time Homebuyer Loan funding.
3) Homebuyers must have a downpayment of at least 1% of the purchase price of the home they wish to
purchase (to be deposited as earnest money with contract).
4) Contract closing date must be at least 35 days or more from Contract execution date. The County has
timing constraints that require lead time, including completing the required inspections, obtaining title
company information, and registering title companies as “Vendors” with the County.
5) Copy of executed contract documents must be provided to the County via email to
zillykaren@co.kane.il.us
within 24 hours following execution (at least 30 days in advance of closing
date). Please contact Karen Zilly if alternate delivery methods are requested, however a copy of the
contract must be delivered at least 34 days in advance of closing date.
County Property Inspection:
1) All homes, townhomes, and condominiums purchased under the program must pass both a general
inspection and a visual lead-based paint inspection conducted by a county examiner to ensure the home
meets housing quality standards.
2) The County will need to be granted access to the property to complete the following visual inspections
of the housing unit, for the purpose of documenting compliance with federal guidelines. These
inspections may/should occur during the inspection period negotiated within the real estate contract.
3) Visual Lead Inspection: As mandated by HUD’s Lead Regulation, effective September 15, 2000, any
housing purchased under a federally funded homebuyer program must be inspected for lead and any
potential hazards identified as a result of lead being found within a home. All homes built prior to 1978
are required to go through this process. The inspection involves a visual assessment. The home must be
free of peeling, flaking, and chipping paint on the interior and exterior. If such conditions are found, the
following steps must be completed before a closing can be scheduled.
KANE COUNTY FIRST-TIME HOMEBUYER LOAN PROGRAM– EFFECTIVE 2/2021 – PREVIOUS VERSIONS NO LONGER VALID
a. Paint Stabilization: All chipping, peeling, and flaking paint must be stabilized before the
homebuyer moves into the home. Paint stabilization involves repairing deteriorated surfaces,
removing loose paint, and applying new paint.
b. Safe Work Practices: The owner must use safe work practices while conducting paint
stabilization. Safe work practices include safe work methods, occupant protection, work site
preparation, and cleanup.
c. Clearance: Once the work has been completed, the home must pass a clearance test. Clearance
must happen before the date of the scheduled closing or occupancy.
4) Report: The county examiner will produce a written report to document the results of the housing
quality and lead-based paint visual inspections. If the home is in compliance with housing quality
standards and meets lead-based paint standards, the county examiner will authorize the home as a
suitable living environment, and it will be eligible for purchase assistance under this program.
5) Inspection/Re-inspection: If the home does not pass the initial County inspection (i.e. within the 5-day
period following contract execution), any re-inspections necessary after repairs have been made may
delay the availability of funds.
Kane County Loan/Disclosures:
1) To the homebuyer, Kane County may provide a second mortgage for a maximum of $10,000 to cover
down payment (and may include reasonable and customary closing costs), subject to all other
qualification limitations contained in these guidelines. If the home purchased is located within the city
limits of St. Charles, an additional up to $10,000 may be provided. The amount of the loan will be
finalized after evaluation of the homebuyer’s monthly debt liability, homebuyer asset review and cash
reserve evaluation.
2) The Kane County second mortgage is a 0% deferred-payment loan. This second mortgage is NOT A
GRANT and is NOT A FORGIVABLE LOAN. It is a DEFERRED PAYMENT LOAN - it will be due when the
home is sold, the title is transferred, or the household no longer occupies the home as their primary
residence; the full amount of the loan will be due at that time of one of these events, out of net
proceeds.
3) At closing, Kane County will provide funds for the loan, as well as a Mortgage and Promissory Note for
signature by Homebuyer.
4) Kane County’s assistance will be secured by a mortgage, which must be recorded with the applicable
County Recorder. The buyer is responsible for title fees/charges and the cost associated with
document recording (contact your title company regarding applicable fees and charges).
5) Recapture policy to meet HUD guidelines: The first 5-years of the deferred loan term will satisfy HUD’s
required affordability period. The deferred loan term will then continue, with the loan due when the
home is sold, the title is transferred, or the household no longer occupies the home as their primary
residence. The full amount of the loan will be due at that time, out of net proceeds.
Title insurance:
Kane County does not require a title policy for its second mortgage loan, however it is required that the First
Mortgage Lender’s Title Commitment include in Schedule B the mortgage from borrower to Kane County Office
of Community Reinvestment, securing the principal amount of the loan.
Hazard insurance:
Prior to or at closing, homebuyer must provide proof of hazard insurance with Kane County as a Mortgagee,
“Kane County, by and through its Office of Community Reinvestment, its successors and/or assigns, 143 First
Street, Batavia Illinois 60510”.
First Mortgage Structure. Financing must comply with guidelines stated below:
1) First mortgages must be fixed-rate loans for the entire term of the loan;
KANE COUNTY FIRST-TIME HOMEBUYER LOAN PROGRAM– EFFECTIVE 2/2021 – PREVIOUS VERSIONS NO LONGER VALID
2) Interest rates on first mortgages cannot exceed the FNMA 30-year rate (60-day delivery) on the date of
origination, plus 150 basis points (BPS);
3) Maximum Combined Loan-to-Value (CLTV): 99%. CLTV is the ratio of all loans compared to the appraised
value of the property. Kane County’s 0% deferred loan is a LOAN, and shall be considered in the
calculation of the CLTV; Kane County’s Loan is NOT A GRANT.
4) Any subordinate mortgages originated (in lieu of private mortgage insurance) must have the same
interest rate as the first mortgage and must be fixed-rate loans for the entire term of the loan;
5) “Stated income” loans are not acceptable;
6) “Option” loans, wherein the borrower has the option of paying less than a fully amortizing principal and
interest payment, are not acceptable, nor are any loans that would result in “negative amortization”;
7) “Interest-only” loans, wherein the borrower has the option of paying only accrued interest on the loan,
are not acceptable;
8) Prepayment penalties on first mortgages or subordinate mortgages are not acceptable;
9) Balloon payments on first mortgages or subordinate mortgages are not acceptable;
10) Total points and fees on any mortgage loan cannot exceed 5% of the total loan amount, including any
yield spread premiums;
11) Any mortgage loan that results in a debt/income ratio for housing expense (including principal and
interest payments on the first mortgage and any subordinate mortgages, property taxes, property
insurance, and condominium or homeowner association fees) that exceeds 32% or is less than 25% (i.e.
total housing expense divided by gross household income); OR any mortgage loan that results in a
Combined Debt/Income ratio that exceeds 50% is not allowable by the program.
12) The homebuyer is not allowed cash back at closing. Payment of any other debt at closing is not allowed.
Subordination Guidelines:
The County may, in its sole discretion, subordinate a second mortgage issued under its Program. Such
subordinations, however, must comply with the County’s subordination guidelines which may be amended from
time to time.
1) The borrower may not take any cash out. (The payment of credit card debt is considered cash.)
2) The borrower may roll into the new first mortgage only reasonable and customary closing costs
associated with the refinancing. (This does not include points paid to buy-down the interest rate, but
does include expenses such as the appraisal, credit report, and title charges.)
3) The new first mortgage principal balance, not including closing costs discussed in line number two,
cannot exceed the original first mortgage existing principal.
4) The borrower may refinance into a 15-year mortgage provided that they have the capacity to handle the
higher payment. (Such situations will be reviewed on a case-by-case basis.)
5) The borrower must refinance into a fixed-rate mortgage.
6) The first mortgage lender must escrow taxes and insurance if the lender had been doing so prior to
refinancing.
7) The County will not subordinate to home equity or reverse mortgage loans.
KANE COUNTY FIRST-TIME HOMEBUYER LOAN PROGRAM– EFFECTIVE 2/2021 – PREVIOUS VERSIONS NO LONGER VALID
Kane County Office of Community Reinvestment
FIRST-TIME HOMEBUYER DEFERRED LOAN PROGRAM
APPLICATION AND LOAN CLOSING PROCESS
Program Contact: Karen Zilly, Program Manager - zillykaren@co.kane.il.us; (630) 444-3027
Step One: Homebuyer Qualification
1) Submit application with all required documentation. Note that the program evaluates HOUSEHOLD
income, which includes the income of all household members that are 18+ years old, regardless of
whether the members will be listed on the deed or first mortgage.
2) County staff will review complete applications; review will begin once all documents are submitted. If
all required documents are not submitted, application review will be delayed.
3) If applicant meets the program requirements, a QUALIFICATION letter will be issued to the Applicant.
4) The Applicant will also be provided with a copy of HUD’s lead brochure “Protect Your Family from Lead
in Your Home” before they begin their house search. Applicants are advised that all homes built prior to
1978 must undergo a visual lead inspection. Any home with peeling, flaking, and chipping paint is
required to go through paint stabilization and a clearance test before the closing.
5) It is imperative that you follow the steps outlined herein, and do not execute a real estate sales
contract prior to authorization from the County for a purchase subject to this program.
Once you have been QUALIFIED to receive assistance through the Program, you may then proceed to complete
the next steps. Your qualification will be effective for 6 months.
Step Two: Homebuyer Counseling (may be completed prior to qualification)
1) Homebuyers must complete homebuyer counseling from a HUD certified counselor/agency
2) Homebuyers will be required to provide a signed and dated certification from the Housing Counselor.
Local HUD-certified Housing Counseling agencies include:
• The Neighbor Project (Aurora) (Contact Jerria at 630-906-9400 extension 123)
• Consumer Credit Counseling Service of Northern Illinois (Elgin) (Contact Erika at 224-769-
7440)
• DuPage Homeownership Center (Wheaton) 630-260-2500
Please be sure to let the counselor know:
• You are seeking HUD-Certified Homebuyer Counseling to meet the requirements of Kane
County’s First Time Homebuyer Loan Program
• You will require a signed and dated completion certificate from the counselor
This step MUST be completed prior to the date of a Real Estate Contract - if not, the home
purchase will not be eligible for loan assistance
Step Three: Program Area Verification
1) With your Qualification Letter, you will receive a Program Area Verification Form.
2) Work with the Realtor of your choice to identify the home you wish to purchase, subject to program
guidelines. Once you identify the home, and BEFORE entering into a contract, you must submit the
Program Area Verification Form to County staff, who will confirm that the address meets program
guidelines. (County staff will make its best attempts to respond within 24 hours on business days to
Program Area Verification form requests)
3) After staff has confirmed eligibility of the home, you will be provided a written confirmation letter
including a First-Time Homebuyer Loan Program Real Estate Contract Rider that must be included with
a contract for that address - signed by the homebuyer and dated same as Real Estate Contract.
KANE COUNTY FIRST-TIME HOMEBUYER LOAN PROGRAM– EFFECTIVE 2/2021 – PREVIOUS VERSIONS NO LONGER VALID
This step MUST be completed prior to the date of a Real Estate Contract - if not, the home
purchase will not be eligible for loan assistance
Step Four: Real Estate Contract
1) In addition to the standard real estate contract document, you must include the following in your
contract in order to be eligible for Kane County First-Time Homebuyer Loan funds:
i. Before executing a Real Estate Contract, homebuyers must be sure that the real estate agent
has the required First-Time Homebuyer Loan Program Real Estate Sales Contract Rider. The
Rider will be provided upon verification that the property is within the eligible Program Area.
The Rider must be made a part of the executed contract and dated same. This means that the
Buyer must SIGN and DATE the Rider and submit it to the Seller as part of the signed and
dated offer/contract initially presented to the Seller. Failure to include this rider in the initial
contract offer will make the project ineligible for First-Time Homebuyer Loan funding.
ii. Make sure you have at least a 5 business-day window to complete your inspections;
iii. Must specify a closing date at least 35 days from the date of contract execution; and
2) Buyer real estate agent and attorney name, phone number and email should be listed on Real Estate
Contract.
3) Contract must be submitted to County immediately following execution in order for the County to begin
its process (within 24 hours).
4) Homebuyer must provide proof that you have completed the Homebuyer Counseling requirement by
submitting documentation from the HUD-certified Housing Counselor, showing that it was completed
prior to the execution of your Real Estate Contract.
5) Homebuyer must also provide a copy of their application for First Mortgage application for review of the
Homebuyer’s overall debt liability.
Step Five: Kane County Property Inspection
NOTE: The required inspections conducted by the County are not a replacement for an independent Home
Inspection and may not be used as such.
1) The County must be provided access to the interior and exterior of the property to perform visual
inspections for Housing Quality and Lead Based Paint – and these should be done during the contract
inspection period. Please ensure that the contract includes contact information so that our staff may
access the interior and exterior of the property to complete this required component of the process.
Failure to allow County access for these required inspections will make the purchase ineligible for
funds.
2) Once these inspections are completed, the County will provide a verification letter that the property has
passed. If the property does not pass the inspections, you will also be notified as such. In that case, you
will be notified of the remedies necessary to obtain a passing score. Note that the County will not be
able to provide deferred loan funds unless/until the home passes the inspections.
3) If deficiencies are identified, they must be corrected and verified with a re-inspection scheduled with
the County.
Step Six: Documentation needed for County to make funds available
1) After the home has passed County inspections, the County staff will begin to prepare for closing. Title
Company/Closing Agent information and escrow file number must be submitted to the County as soon
as possible in order for the funds to be requested.
2) Once the County receives this information (if new “Vendor” to County’s financial system, Title Company
must complete a Vendor Packet), the County will process funds for closing.
Step Seven: Documentation needed to obtain Final Commitment / Clear to Close from Kane County
1) The following information/documents must be submitted to the County:
KANE COUNTY FIRST-TIME HOMEBUYER LOAN PROGRAM– EFFECTIVE 2/2021 – PREVIOUS VERSIONS NO LONGER VALID
i. Copy of homebuyer’s First Mortgage loan application
ii. Copy of First Mortgage Lender’s Loan Estimate
iii. Copy of First Mortgage Lender’s Commitment Letter
iv. Copy of First Mortgage Lender’s Appraisal
v. Copy of First Mortgage Lender’s Closing Disclosure
vi. Copy of property/hazard insurance including Kane County as a mortgagee: “Kane County, by and
through its Office of Community Reinvestment, its successors and/or assigns, 143 First Street,
Batavia IL 60510”
vii. Copy of First Mortgage Lender’s Title Commitment showing in Schedule B the mortgage from
borrower to Kane County Office of Community Reinvestment, securing the principal amount of
the Kane County loan
2) The County will perform a final underwriting based on first lender documentation and ensure monthly
payments are within allowable range and finalize loan amount and documents.
3) Kane County will then issue a Final Commitment Letter for the amount of the deferred loan.
PLEASE NOTE THE FOLLOWING WHEN PREPARING FOR CLOSING/FINALIZING FIGURES:
• The buyer is responsible for the cost associated with the Kane County mortgage document recording
(contact your title company regarding applicable fees and charges)
• When using First Time Homebuyer funds, the County does not allow a homebuyer to receive cash back
at the closing.
Step Eight: Purchase your home
1) Kane County will issue closing instructions to the Title Company, with the required documents for
signature (Kane County Mortgage and Note), and a CHECK for the approved amount of funds. The
County will NOT wire funds to a closing. According to 215 ILCS 155/26)(c)(6), Kane County funds are
considered “Good funds” and therefore funds in the form of a CHECK are acceptable.
2) After the closing, the title company or closing agent that handles your closing must provide the County
with the following documents from the closing:
i. Certified copy of the Kane County’s Mortgage (original after recording)
ii. Original executed Kane County Deferred Payment Note
iii. Copy of the executed Final Master Settlement Statement for the property purchase
iv. Certified copy of First Mortgage and Note
Step Nine: ENJOY YOUR NEW HOME!
WARNING: TITLE 18, SECTION 1001 OF THE U.S. CODE STATES THAT A PERSON IS GUILTY OF A FELONY FOR KNOWINGLY AND WILLINGLY MAKING FALSE OR FRAUDULENT
STATEMENTS TO ANY DEPARTMENT OF THE UNITED STATES GOVERNMENT.
A
PPLICATION FORM FEBRUARY 2021– PREVIOUS VERSIONS NO LONGER VALID
Kane County Office of Community Reinvestment
FIRST-TIME HOMEBUYER DEFERRED LOAN PROGRAM
Application Form
AFFIDAVIT CONCERNING HOUSEHOLD SIZE, INCOME AND ELIGIBLITY
Applicant Name(s):
Please read these statements and complete the blanks before signing. I (We) hereby state the following:
A. That in order to determine my eligibility for the First Time Homebuyer Deferred Loan Program, Kane County
needs information about my household size and members; and
B. I (we) do not currently own a home, nor have I (we) owned a home within the past three years;
C. I (we) currently live (or work full-time) in the Kane-Elgin Consortium Area, and have done so for at least one
year leading up to the date of this application;
D. The number of members constituting the household that will live at the property is:______. The list of
household members is provided below;
E. For all household members 18 years or older, an information sheet must be completed, including the
required income documentation, and must be attached to this application.
F. I understand that in order to qualify for this program my household income as determined through this
application process must not exceed the levels below as adjusted by household size;
Household Size
1
2
3
4
5
6
7
8+
Maximum Household Income
(effective 4/1/20)
$51,000 $58,250 $65,550 $72,800 $78,650 $84,450 $90,300 $96,100
G. List all household members including applicant (list everyone who will be living in the home regardless of
whether they will be listed on the deed/mortgage):
Name Date of birth
Estimated Annual Gross
Income
1. $
2. $
3. $
4. $
5.
$
6. $
7. $
8. $
TOTAL: $
Total # of Household Members: Maximum income for household size listed:
-
-
WARNING: TITLE 18, SECTION 1001 OF THE U.S. CODE STATES THAT A PERSON IS GUILTY OF A FELONY FOR KNOWINGLY AND WILLINGLY MAKING FALSE OR FRAUDULENT
STATEMENTS TO ANY DEPARTMENT OF THE UNITED STATES GOVERNMENT.
A
PPLICATION FORM FEBRUARY 2021– PREVIOUS VERSIONS NO LONGER VALID
Financial Information:
A. Has the Applicant ever filed for a bankruptcy? Yes No If YES, provide the date discharged:
_______
B. Do you currently owe any federal, state or local tax debts? Yes No
If YES, please explain:
______________________________________________________________________
By signing this application below, I (we) acknowledge that:
• I (we) have reviewed the Program Guidelines and understand that failure to follow the steps
outlined therein will make the home purchase ineligible for financing under this program.
• I (we) have reviewed the Application and Loan Closing Process document and understand that
failure to follow steps as outlined will make the home purchase ineligible for financing under
this program.
• I (we) understand that this is not a grant program, and any funds/financing received will be
repaid
• Any documents submitted will not be returned
By:
Print Applicant Name Print Co-Applicant Name
Applicant Signature Co-Applicant Signature
Date:
WARNING: TITLE 18, SECTION 1001 OF THE U.S. CODE STATES THAT A PERSON IS GUILTY OF A FELONY FOR KNOWINGLY AND WILLINGLY MAKING FALSE OR FRAUDULENT
STATEMENTS TO ANY DEPARTMENT OF THE UNITED STATES GOVERNMENT.
A
PPLICATION FORM FEBRUARY 2021– PREVIOUS VERSIONS NO LONGER VALID
Program Eligibility Release Form
Kane County Office of Community Reinvestment, 143 First Street, Batavia IL 60510 (630-444-3027)
Purpose: Your signature on this Program Eligibility Release Form, and the signatures of each member of your household who is 18 years
of age or older, authorizes the above-named organization to obtain information from a third party relative to your eligibility and
participation in the Kane County housing program(s):
Privacy Act Notice Statement: The Dept. of Housing and Urban Development (HUD) is requiring the collection of the information derived
from this form to determine an applicant’s eligibility in a NSP/HOME/CDBG Program and the amount of assistance necessary using these
funds. This information will be used to establish level of benefit under the NSP/HOME/CDBG Program; to protect the Government’s
financial interest; and to verify the accuracy of the information furnished. It may be released to appropriate Federal, State, and local
agencies when relevant, to civil, criminal, or regulatory investigators, and to prosecutors. Failure to provide any information may result in
a delay of your eligibility determination or rejection of your application. The County is authorized to ask for this information by the
National Affordable Housing Act of 1990.
Instructions: Each adult member of the household must sign a Program Eligibility Release Form. Additional signatures must be obtained
from new adult members whenever they join the household or whenever members of the household become 18 years of age.
NOTE: THIS GENERAL CONSENT MAY NOT BE USED TO REQUEST A COPY OF A TAX RETURN. IF A COPY OF A TAX RETURN IS NEEDED,
IRS FORM 4506, “REQUEST FOR COPY OF TAX FORM” MUST BE PREPARED AND SIGNED SEPARATELY. Inquiries may be made about
items listed below:
Verification Required
Income (all sources)
XX
Assets (all sources)
XX
Full time Student status
XX
Additionally I authorize Kane County to discuss this real estate transaction with the following individuals:
Realtor Yes No
Name:
Phone:
Email:
Mortgage Officer Yes No
Name:
Phone:
Email:
Attorney Yes No
Name:
Phone: Email:
Authorization: I authorize Kane County and HUD to obtain information about me and my household that is pertinent to eligibility for
participation in the Program.
I acknowledge that: A photocopy of this form is as valid as the original. I have the right to review the file and the information received
using this form (with a person of my choosing to accompany me).I have the right to copy information from this file and to request
correction of information I believe inaccurate. All adult household members (18+) will sign this form and cooperate in this process.
WARNING: TITLE 18, SECTION 1001 OF THE U.S. CODE STATES THAT A PERSON IS GUILTY OF A FELONY FOR KNOWINGLY AND WILLINGLY MAKING FALSE OR
FRAUDULENT STATEMENTS TO ANY DEPARTMENT OF THE
UNITED STATES GOVERNMENT.
Primary Applicant Signature:
Date:
Adult Household Member #2 Signature:
Date:
Adult Household Member #3 Signature:
Date:
Adult Household Member #4 Signature:
Date:
Adult Household Member #5 Signature:
Date:
ALL ADULT HOUSEHOLD MEMBERS MUST SIGN THIS FORM.
WARNING: TITLE 18, SECTION 1001 OF THE U.S. CODE STATES THAT A PERSON IS GUILTY OF A FELONY FOR KNOWINGLY AND WILLINGLY MAKING FALSE OR FRAUDULENT
STATEMENTS TO ANY DEPARTMENT OF THE UNITED STATES GOVERNMENT.
A
PPLICATION FORM FEBRUARY 2021– PREVIOUS VERSIONS NO LONGER VALID
PLEASE COMPLETE THIS PAGE FOR THE PRIMARY APPLICANT
Adult Household Member #1 - Primary Applicant Information: (please print)
Name: Gender: Female Male
Date of Birth: U.S. Veteran: Yes No
Current Address:
City: Zip Code:
Home Phone: Work Phone:
Email Address:
If you have moved within the past 3 years, list your prior home addresses and dates you lived there:
1. Owned Rented
2. Owned Rented
Employment/Income:
Current Employer: Date Hired:
Employer Address:
Job Title: If Self-Employed, years in business:
How many hours do you work per week?
How often are you paid? Weekly Every Two Weeks Twice/Month Other
Average Monthly Overtime Hours: N/A Average Annual Bonus: $ N/A
Other income (i.e. 2
nd
job, disability income, SSI, etc.) - Monthly Amount $ N/A
If on your current job less than two years, provide Employer, Job Title, and Dates of Employment for prior two years:
1.
2.
These items are required as part of your submittal.
Federal tax returns for the past two years (please do not submit Illinois State Tax Returns)
Federal Tax Return Transcript issued by the IRS for past two years (see 1
st
page for instructions)
W-2s for the past two years (and 1099, SSI statements, etc.)
Most recent pay stubs covering the past 60 days (i.e. if you get paid every 2 weeks, you must
attach your most recent 4 pay stubs; if you are paid weekly, 8 pay stubs, etc.)
Other income documentation covering the past 60 days
* Failure to submit required information will delay the application review process*
WARNING: TITLE 18, SECTION 1001 OF THE U.S. CODE STATES THAT A PERSON IS GUILTY OF A FELONY FOR KNOWINGLY AND WILLINGLY MAKING FALSE OR FRAUDULENT
STATEMENTS TO ANY DEPARTMENT OF THE UNITED STATES GOVERNMENT.
A
PPLICATION FORM FEBRUARY 2021– PREVIOUS VERSIONS NO LONGER VALID
PLEASE COMPLETE THIS PAGE FOR THE 2
nd
ADULT MEMBER OF THE HOUSEHOLD
Adult Household Member #2 (complete if 18 years or older): (please print)
Name: Gender: Female Male
Date of Birth: U.S. Veteran: Yes No
Current Address:
City: Zip Code:
Home Phone: Work Phone:
Email Address:
Employment/Income:
Current Employer: Date Hired:
Job Title: If Self-Employed, years in business:
How many hours do you work per week?
How often are you paid? Weekly Every Two Weeks Twice/Month Other
Average Monthly Overtime Hours: N/A Average Annual Bonus: $ N/A
Other income (i.e. 2
nd
job, disability income, SSI, etc.) - Monthly Amount $ N/A
If on your current job less than two years, provide Employer, Job Title, and Dates of Employment for prior two years:
1.
2.
These items are required as part of your submittal.
Federal tax returns for the past two years (please do not submit Illinois State Tax Returns)
Federal Tax Return Transcript issued by the IRS for past two years (see 1
st
page for instructions)
W-2s for the past two years (and 1099, SSI statements, etc.)
Most recent pay stubs covering the past 60 days (i.e. if you get paid every 2 weeks, you must
attach your most recent 4 pay stubs; if you are paid weekly, 8 pay stubs, etc.)
Other income documentation covering the past 60 days
If the above listed ADULT HOUSEHOLD MEMBER #2 is not working, please contact Karen Zilly at 630-
444-3027 or zillykaren@co.kane.il.us who will provide you with additional forms to complete in order
to document that you have zero income or are a full-time student.
Regardless of income, you must still obtain and submit the Federal Tax Return Transcripts noted above.
Even if you do/did not file, the transcript will show that status.
* Failure to submit required information will delay the application review process*
WARNING: TITLE 18, SECTION 1001 OF THE U.S. CODE STATES THAT A PERSON IS GUILTY OF A FELONY FOR KNOWINGLY AND WILLINGLY MAKING FALSE OR FRAUDULENT
STATEMENTS TO ANY DEPARTMENT OF THE UNITED STATES GOVERNMENT.
A
PPLICATION FORM FEBRUARY 2021– PREVIOUS VERSIONS NO LONGER VALID
PLEASE COMPLETE THIS PAGE FOR THE 3
rd
ADULT MEMBER OF THE HOUSEHOLD
Adult Household Member #3 (complete if 18 years or older): (please print)
Name: Gender: Female Male
Date of Birth: U.S. Veteran: Yes No
Current Address:
City: Zip Code:
Home Phone: Work Phone:
Email Address:
Employment/Income:
Current Employer: Date Hired:
Job Title: If Self-Employed, years in business:
How many hours do you work per week?
How often are you paid? Weekly Every Two Weeks Twice/Month Other
Average Monthly Overtime Hours: N/A Average Annual Bonus: $ N/A
Other income (i.e. 2
nd
job, disability income, SSI, etc.) - Monthly Amount $ N/A
If on your current job less than two years, provide Employer, Job Title, and Dates of Employment for prior two years:
1.
2.
These items are required as part of your submittal.
Federal tax returns for the past two years (please do not submit Illinois State Tax Returns)
Federal Tax Return Transcript issued by the IRS for past two years (see 1
st
page for instructions)
W-2s for the past two years (and 1099, SSI statements, etc.)
Most recent pay stubs covering the past 60 days (i.e. if you get paid every 2 weeks, you must
attach your most recent 4 pay stubs; if you are paid weekly, 8 pay stubs, etc.)
Other income documentation covering the past 60 days
If the above listed ADULT HOUSEHOLD MEMBER #3 is not working, please contact Karen Zilly at 630-
444-3027 or zillykaren@co.kane.il.us who will provide you with additional forms to complete in order
to document that you have zero income or are a full-time student.
Regardless of income, you must still obtain and submit the Federal Tax Return Transcripts noted above.
Even if you do/did not file, the transcript will show that status.
* Failure to submit required information will delay the application review process*
WARNING: TITLE 18, SECTION 1001 OF THE U.S. CODE STATES THAT A PERSON IS GUILTY OF A FELONY FOR KNOWINGLY AND WILLINGLY MAKING FALSE OR FRAUDULENT
STATEMENTS TO ANY DEPARTMENT OF THE UNITED STATES GOVERNMENT.
A
PPLICATION FORM FEBRUARY 2021– PREVIOUS VERSIONS NO LONGER VALID
PLEASE COMPLETE THIS PAGE FOR THE 4
th
ADULT MEMBER OF THE HOUSEHOLD
Adult Household Member #4 (complete if 18 years or older): (please print)
Name: Gender: Female Male
Date of Birth: U.S. Veteran: Yes No
Current Address:
City: Zip Code:
Home Phone: Work Phone:
Email Address:
Employment/Income:
Current Employer: Date Hired:
Job Title: If Self-Employed, years in business:
How many hours do you work per week?
How often are you paid? Weekly Every Two Weeks Twice/Month Other
Average Monthly Overtime Hours: N/A Average Annual Bonus: $ N/A
Other income (i.e. 2
nd
job, disability income, SSI, etc.) - Monthly Amount $ N/A
If on your current job less than two years, provide Employer, Job Title, and Dates of Employment for prior two years:
1.
2.
These items are required as part of your submittal.
Federal tax returns for the past two years (please do not submit Illinois State Tax Returns)
Federal Tax Return Transcript issued by the IRS for past two years (see 1
st
page for instructions)
W-2s for the past two years (and 1099, SSI statements, etc.)
Most recent pay stubs covering the past 60 days (i.e. if you get paid every 2 weeks, you must
attach your most recent 4 pay stubs; if you are paid weekly, 8 pay stubs, etc.)
Other income documentation covering the past 60 days
If the above listed ADULT HOUSEHOLD MEMBER #4 is not working, please contact Karen Zilly at 630-
444-3027 or zillykaren@co.kane.il.us who will provide you with additional forms to complete in order
to document that you have zero income or are a full-time student.
Regardless of income, you must still obtain and submit the Federal Tax Return Transcripts noted above.
Even if you do/did not file, the transcript will show that status.
* Failure to submit required information will delay the application review process*
WARNING: TITLE 18, SECTION 1001 OF THE U.S. CODE STATES THAT A PERSON IS GUILTY OF A FELONY FOR KNOWINGLY AND WILLINGLY MAKING FALSE OR FRAUDULENT
STATEMENTS TO ANY DEPARTMENT OF THE UNITED STATES GOVERNMENT.
A
PPLICATION FORM FEBRUARY 2021– PREVIOUS VERSIONS NO LONGER VALID
PLEASE COMPLETE THIS PAGE FOR THE 5
th
ADULT MEMBER OF THE HOUSEHOLD
Adult Household Member #5 (complete if 18 years or older): (please print)
Name: Gender: Female Male
Date of Birth: U.S. Veteran: Yes No
Current Address:
City: Zip Code:
Home Phone: Work Phone:
Email Address:
Employment/Income:
Current Employer: Date Hired:
Job Title: If Self-Employed, years in business:
How many hours do you work per week?
How often are you paid? Weekly Every Two Weeks Twice/Month Other
Average Monthly Overtime Hours: N/A Average Annual Bonus: $ N/A
Other income (i.e. 2
nd
job, disability income, SSI, etc.) - Monthly Amount $ N/A
If on your current job less than two years, provide Employer, Job Title, and Dates of Employment for prior two years:
1.
2.
These items are required as part of your submittal.
Federal tax returns for the past two years (please do not submit Illinois State Tax Returns)
Federal Tax Return Transcript issued by the IRS for past two years (see 1
st
page for instructions)
W-2s for the past two years (and 1099, SSI statements, etc.)
Most recent pay stubs covering the past 60 days (i.e. if you get paid every 2 weeks, you must
attach your most recent 4 pay stubs; if you are paid weekly, 8 pay stubs, etc.)
Other income documentation covering the past 60 days
If the above listed ADULT HOUSEHOLD MEMBER #5 is not working, please contact Karen Zilly at 630-
444-3027 or zillykaren@co.kane.il.us who will provide you with additional forms to complete in order
to document that you have zero income or are a full-time student.
Regardless of income, you must still obtain and submit the Federal Tax Return Transcripts noted above.
Even if you do/did not file, the transcript will show that status.
* Failure to submit required information will delay the application review process*
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FIRST-TIME HOMEBUYER DEFERRED LOAN PROGRAM Homebuyer Application Instructions (Kane County, Illinois)

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Completed 6 April 2021

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