Sample questions – Down payment activities
Provide the following information about your down payment assistance activities:
- State whether a home builder or home seller pays a commission, donates to, or otherwise contributes to your organization. If so, describe in detail what the revenue is used for, such as financial assistance to the homebuyer, to pay for administrative expenses, or to pay for other expenses.
- State whether you have any relationships, contracts or agreements with specific banks, construction firms, title companies, real estate companies or agents or other entities in conducting this program. If so, describe each relationship in detail. Discuss fees you paid to the companies or individuals, fees you received and provide copies of agreements you signed with these entities.
- What amount (or percentage) of financial assistance do you usually give a homebuyer? How do you determine this amount (or percentage)? Include who determines the amount (or percentage) you provide.
- Describe in detail how you approve applicants. Include whether applicants must meet certain income guidelines. Send a copy of the application and any other material you use to solicit applicants.
- Describe in detail your requirements for the home seller. Include whether you know the identity of the home seller or their status as a contributor to your organization when evaluating an application for assistance. Include documents you give to a prospective home seller, such as written guidelines, forms and copies of any applications.
- Explain the step-by-step process you use to find buyers, sellers, realtors, mortgagers and others involved in the home purchase process.
- Explain your involvement in the process leading up to the sale, during the sale and after the closing of the sale. Include whether you require a home inspection to ensure that the house the homebuyer intends to buy will be habitable.
- State whether you provide financial counseling seminars or other educational programs to help prepare potential homebuyers for home ownership. If so, describe the programs.