CHIP Pilot Program

Constance Bones, CHIP Program Coordinator
701 North 7th Street
Phone: 913-573-5127
Fax: 913-573-5115
Email: cbones@wycokck.org

Office Hours are Monday thru Friday, 8 a.m. to 5:00 p.m.

Those homebuyers at  0% - 50% of HUD median will receive 20% CHIP down payment assistance, not to exceed $25,000.00 (20% of $125,000.00 cap)

Those homebuyers at 51% - 80% of HUD median will receive 10% CHIP down payment assistance, not to exceed $25,000.00 (20% of $125,000.00 cap)

CLOSING COST

Pilot area 2009 Closing Cost – CHIP

Pilot Area 2009 will follow these guidelines for additional funding through the Unified Government 

0   - 50 percent                       HUD MEDIAN INCOME                       must infuse     1%      (minimum)                 

CHIP recipients are required to infuse 1% of the contract sales price or $500.0, (whichever is higher). Grants are available from the Unified Government to help with closing cost that exceeds the clients required 1% or $500.00. Closing cost from the Unified Government will be infused into the CHIP loan amount, and the second mortgage will reflect the total cost

51 - 60 percent                       HUD MEDIAN INCOME                       must infuse     2%      (minimum)

CHIP recipients are required to infuse 2% of the contract sales price or $500.0, (whichever is higher). A grant up to $750.00 is available from the Unified Government to help with closing cost that exceeds the clients required 2% or $500.00. Closing cost from the Unified Government will be infused into the CHIP loan amount, and the second mortgage will reflect the total cost

For projects in APPROVED CHDO Developments

The CHIP subsidy is “20%” of $125,000.00 ($25,000.00 =20% of $125,000.00) for eligible buyers. The purchase price CAN exceed the $125,000.00, but the maximum funding will not exceed the subsidies amount of $25,000.00.

Homebuyer Training

All applicants must complete a Homebuyers Training course. This includes all adults that are on the loan.

Minimum Down Payment

The required down payment will be determined according to the buyer’s median income level:                                              

Loan Terms

The loan terms vary by the amount of HOME assistance provided, as follows: 

$ 1,000.00  to $ 4,999.00                                                                        5 years

$ 5,000.00  to $ 9,999.00                                                                        7 years

$10,000.00 to $19,999.00                                                                      10 years

$20,000.00 to $25,000.00                                                                      15 years

NOTE:             

Our program guidelines cannot dictate the loan term agreement between the first mortgage lender and their borrower. 

Interest Rate

Zero percent interest                 

Loan Deferral

The Unified Government’s second mortgage will be deferred based on the above mentioned terms with the following conditions.

If all of the above conditions are met, the Unified Government will forgive the second mortgage at the end of the loan term. 

Resale Provisions

If the CHIP buyer ceases to occupy the property as his/her primary residence i.e., sells the property, loses the property through foreclosure, or converts the property to rental or primarily business use, or refinance,BEFORE the CHIP loan term expires, then he/she mustREPAY the Unified Government theFULL amount of the CHIP loan and any closing cost received. NO PRO-RATA

Target Areas

Eligible properties for second mortgage assistance must be located within our program’s targeted areas as determined by the Unified Government policies.

Property Standards

All homes purchased through the CHIP program must pass our Housing Quality Standards Inspection. If a home needs additional repairs to bring it into compliance with IPMC requirements, a customer can contact one of the area financial institutions participating in the CHIP program regarding a rehabilitation loan in conjunction with the first mortgage (Purchase Rehab). The buyer can also request that the seller make the repairs prior to the closing on the property.

Additional Information

If you have any questions regarding the CHIP program, feel free to contact Constance Bones, in the Housing and Community Development Department at (913) 573-5127. For applicant ready to go to the next step, choose a lender from the list provided with this packet and begin the process to become a homeowner.

2009 HUD Income Limits

Family Size                    50%___                       80%__                    100%___

            1                      $23,950.00                    $38,300.00                    $47,900.00

            2                      $27,350.00                    $43,800.00                    $54,700.00

            3                      $30,800.00                    $49,250.00                    $61,550.00

            4                      $34,200.00                    $54,700.00                    $68,400.00

            5                      $36,950.00                    $59,100.00                    $73,850.00

            6                      $39,650.00                    $63,500.00                    $79,350.00

            7                      $42,400.00                    $67,850.00                    $84,800.00

            8                      $45,150.00                    $72,250.00                    $90,300.00

More than 8                 $  2,750.00                    $  4,400.00                    $  5,450.00

***For family sizes larger than 8 persons, add the above to the 8-person income for each family member in excess of 8. ***