ILLINOIS HARDEST HIT FUND DOWN PAYMENT ASSISTANCE PROGRAM ... - IHDA

Illinois Hardest Hit Fund Down Payment Assistance Program

ILLINOIS HARDEST HIT FUND DOWN PAYMENT ASSISTANCE PROGRAM SUMMARY DISCLOSURE OF FORGIVABLE LOAN TERMS

The ILLINOIS HOUSING DEVELOPMENT AUTHORITY (the "Authority"), a body politic and corporate established pursuant to the Illinois Housing Development Act, 20 ILCS 3805/1 et seq., as amended from time to time, pursuant to the requirements of the Illinois Hardest Hit Fund Program (the "Program"), will provide a forgivable loan to

and

, (the "Borrower")

regarding their residence located at

, Illinois (the "Property").

The Program will provide down payment assistance in the form of a Forgivable Loan (as hereinafter defined) to the Borrower that is forgivable, incrementally, over a period of time subject to certain conditions. The Forgivable Loan is evidenced, secured and governed by, among other things: (a) this Summary Disclosure of Forgivable Loan Terms; (b) the Promissory Note (the "Note"), (d) the Second Mortgage and (e) all other documents that evidence, govern or secure the Forgivable Loan including but not limited to the Dodd-Frank Certification and the required supporting documentation submitted therewith (collectively, the "Ancillary Loan Documents"). This Summary Disclosure of Forgivable Loan Terms, the Note, the Second Mortgage and the Ancillary Loan Documents are collectively referred to herein as the "Loan Documents."

SUMMARY OF TERMS

? The Forgivable Loan: As part of the HHF Down Payment Assistance Program, a loan will be made to the Borrower in the amount of Seven Thousand Five Hundred and No/100 Dollars ($7,500.00) to provide down payment assistance which will help the Borrower acquire the Property. The loan will be forgiven after 60 months, provided, however, if during this period, the Borrower: (i) sells, conveys or transfers title to the Property; (ii) refinances the Property; (iii) ceases to occupy the Property as their principal residence, or (iv) defaults under the Note (as described below), then the Borrower must pay the "Repayment Amount" to the Authority.

? Repayment Amount. If any of the events described above occur during the sixty (60) months period, the Borrower must pay to the Authority, the full amount of the Forgivable Loan reduced by 1/60th of that amount for each full month the Borrower has occupied the Property during such 60 month period (the "Repayment Amount"). The 60 month period starts on the first day of the first full calendar month after the closing date of the Forgivable Loan for the Property. So for illustrative purposes only and to provide an example only, if the closing for a home occurs on September 10, 2017, the start of the 60 month period for that loan would be October 1, 2017 and it would end September 30, 2022.

If at any time the Repayment Amount is outstanding, the Authority may refuse to subordinate the Second Mortgage to any subsequently recorded document or lien.

? Funding. The proceeds of the Forgivable Loan are to be disbursed by the Authority as part of the Borrower's closing of the purchase of the Property through an escrow or title company acceptable to the Authority.

? Interest Rate. 0%

? Costs. No fees or costs associated with the Forgivable Loan will be charged to the Borrower, other than a late charge of 5% of the amount due will be charged when an amount is not paid when due and not cured.

? Second Mortgage. The Forgivable Loan will be secured by a Second Mortgage on the Property, recorded with the Recorder of Deeds for the County where the Property is located.

This Summary Disclosure of Forgivable Loan Terms is a summary only and is not intended to replace or amend the terms and conditions in the Loan Documents. In the event of a conflict between this summary, the Loan Documents will control.

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