Buying and Selling FAQ
WHAT INCOME VERIFICATION IS REQUIRED FROM THE BUYER?
The buyer is required to submit a complete signed original Affordable Housing Program Application and the requested documentation.
Copies of the following are required to be submitted as verification of income for all adult occupants of the buyer’s household. Any person in the household over the age of 18 who earns income must be included in the calculation of maximum household income. Any person whose income is used to qualify for the purchase of the property must have a vested interest in the property income is calculated using gross income:
- Most recent pay stubs for all adult wage earners of the household, regardless of who will be showing on title.
- Previous 3 years of W-2’s and federal income tax returns, including all corresponding Schedules and forms. The income tax and W-2 documents must be submitted to the HACSB within 10 days of opening escrow.
- Current statements for all bank accounts including checking and savings.
- Current statements for all household assets.
- Household Assets' means the value of a household's savings and equity in stocks, bonds, real property (minus debt), or other forms of capital investment. 'Assets' does not include items that are reasonably necessary for the personal use of the household, such as personal effects, furniture, appliances, automobiles, and real or personal property used in a business or undertaking which is a primary source of livelihood for such household. Restricted accounts, such as IRA's, 401(k)'s, SEPs and pension funds will not be used to calculate total amount of assets, but will be used to calculate household income, if a household is currently drawing down from such account(s).
- Lenders Underwriting Analysis (HUD form 1008 and 1003). Please note that there are certain loan products that will not be accepted in conjunction with the sale of its affordable units. These loan products include Stated Income, First Trust Deeds with a Balloon Payment, Interest Only, Negative Amortization, and CalHFA.
WHAT OTHER CRITERIA IS REQUIRED FROM THE BUYER?
The criteria varies by affordable development. The following links will provide some guideline to what is allowed and needed for the approval of a buyer.
Country Grove/Harvest, Harmony, La Paloma, Melody, NorthBank Greens, Seneca Gardens & Seneca Highlands
Bella Vista, The Cannery, Enclave & Hearthside