Page:United States Statutes at Large Volume 104 Part 5.djvu/809

 PUBLIC LAW 101-625—NOV. 28, 1990 104 STAT. 4131 (5) MAXIMUM MORTGAGE AMOUNT.— The principal obligation of the mortgage does not exceed the principad amount that could be insured with respect to the property under the National Housing Act. (6) MAXIMUM INTEREST RATE.— The interest payable on the mortgage is established at a fixed rate that does not exceed a maximum rate of interest established by the Trust taking into consideration prevailing interest rates on similar mortgages. (7) RESPONSIBLE MORTGAGEE. — The mortgage has been made to, and is held by, a mortgagee that is federally insured or that is otherwise approved by the Trust as responsible and able to service the mortgage properly. (8) MINIMUM DOWNPAYMENT.— For a first-time homebuyer to receive downpayment assistance under subsection (a)(2), the homebuyer shall have paid not less than 1 percent of the cost of acquisition of the property (excluding any mortgage insurance premium paid at the time the mortgage is insured), as such cost is estimated by the Board of Directors. (c) TERMS OF ASSISTANCE. — (1) SECURITY. —Assistance payments under this subtitle shall be secured by a lien on the property involved. The lien shall be subordinate to all mortgages existing on the property on the date on which the first assistance payment is made. (2) REPAYMENT UPON SALE.— Assistance payments under this subtitle shall be repayable from the net proceeds of the sale, without interest, upon the sale of the property for which the assistance payments are made. If the sale results in no net proceeds or the net proceeds are insufficient to repay the amount of the assistance payments in full, the Board of Directors shall release the lien to the extent that the debt secured by the lien remains unpaid. (3) REPAYMENT UPON INCREASED INCOME.— I f the aggregate annual income of the homebuyer (and family of the homebuyer) assisted under this subtitle exceeds the applicable maximum income allowable under subsection (b)(2) for any 2-year period after such assistance is provided, the Board of Directors may provide for the repayment, on a monthly basis, of Eill or a portion of such assistance payments, based on the amount of assistance provided and the income of the homebuyer (and family of the homebuyer). (4) REPAYMENT IF PROPERTY CEASES TO BE PRINCIPAL RESI- DENCE. — If the property for which assistance payments are made ceases to be the principal residence of the first-time homebuyer (or the family of the homebuyer), the Board of Directors may provide for the repayment of all or a portion of the assistance payments. (5) AVAILABLE ASSISTANCE. — The Trust may make assistance payments under paragraphs (1) and (2) of subsection (a) with respect to a single mortgage of an eligible homebuyer. (d) ALLOCATION FORMULA. —Amounts available in any fiscal year for assistance under this subtitle shall be allocated for homebuyers in each State on the basis of the need of eligible first-time homebuyers in each State for such assistance in comparison with the need of eligible first-time homebuyers for such assistance among all States.

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