We receive our funding in July and last year we ran out of funding in November. Funds are not committed until we receive from an applicant that has received preliminary approval, a copy of the buy-sell and a good faith estimate. At that time we inspect the property and issue an authorization for the lender to proceed. This commits the funds. If funds go as fast as they did last year, I would recommend that you talk to your lender or call our office regarding the status of funding before making an offer to purchase.
Good communication can avoid major disappointment.
The City's funds are given as a deferred loan. Upon issuance you will sign a Trust Indenture and Deed Restriction outlining the terms and conditions. If you move out of the home, sell it or change it's use, you 'II trigger paying back the loan. If you pay back the loan you only pay the amount that was loaned. There is no interest charged.