The FHAP participant shall keep the property in good repair and shall not commit waste or permit violations or allow the property to deteriorate. The participant shall perform all of participant's obligations under any declarations, covenants, bylaws, rules or other documents governing the use, ownership or occupancy of the property. The property must be kept in compliance with the local government's housing code, and the participant will also be responsible for all care and maintenance of the yard and outside areas. Escrow of Property Taxes and Insurance Premiums If not required by the primary lender, the Foundation may require a monthly escrow of estimated property taxes and insurance premiums. The Foundation accepts a certain amount of risk in issuing an FHAP loan.
Participants also have a risk.
Declining real estate market values and varying mortgage interest rates may affect the economic attractiveness to the participant and their ability to refinance the property upon the termination of FHAP loan. Situations that initiate the acceleration of the due date of the note may be outside of the direct control of the participant. The FHAP loan terms may change at any time without notice prior to execution of the FHAP loan. The submission of an application or the receipt of the initial Foundation commitment does not guarantee approval of an FHAP loan. The numbers quoted in this program summary are examples only.