Down Payment Assistance

Purpose: To provide financial assistance to individuals who would qualify for a mortgage loan at a financial institution if they had sufficient down payment.

Guidelines:
-This must be individuals buying/building primary residence
-$150 loan fee
-Funding limited to 15% of purchase price with a maximum of $15,000, pending availability of funds, subject to change OR $30,000 if building
-Residence must be within the city limits of Cambridge
-O% fixed rate loan with a 10-year maturity and deferred payments for 6 months
-0% fixed rate loan with a 10-year maturity and deferred payments for 6 months on first $15,000, 2% on amount loaned after that for building a new home (Maximum is a total of $30,000)
-Borrower must own and reside in home for the length of the loan
-If residence is sold or borrower relocates remaining balance of loan must be paid in full
-Borrow must provide proof of insurance with CED listed as a loss payee
-Borrower must provide proof of property taxes being paid
-Your loan payment will be added to your monthly utility bill
-CED will file a secondary lien on the property which will not be released until loan has been paid in full
-Borrower must have approval from a financial institution to fund the purchase with a down payment and a letter stating such will be provided to CED.
-Checks will be payable to closing agent/lender and issued on closing date
-All applications must be approved by the CED before funding
-If lender is out of the area it must be approved by CED
-If borrower is building they must be living in home 18 months from closing date, or loan must be paid in full

If you have any further questions please call Diane Henderson at 308.697.3711 or edcity@swnebr.net