CDBG-DR funds are currently earmarked for the recovery of housing and infrastructure in communities affected by natural disasters over an extended period of time. When used properly, they help homes and common areas to be rebuilt together.
Therefore, the eligibility and application process consists of six steps to be followed to obtain the same, which are presented below:
1. Pre-qualify for a mortgage loan with a participating institution: This way the bank will be able to establish, according to the program guidelines, the amount of bond that the participant could be qualifying for.
2. Take a housing counseling course: Each person who wishes to apply for funds must complete the course and then submit the official documentation, along with proof of income.
3. Evaluating and obtaining eligibility: The requirements and verification of family income and calculation, as well as citizenship status, are confirmed, and the AFV will send a notice of eligibility.
4. Obtaining the loan: The financial institution will perform a pre-qualification, where the person must select the property and proceed with the loan application.
5. Evaluation of the property: The financial institution will grant eligibility.
6. Cost of assistance: The Puerto Rico Housing Finance Authority (HFA) evaluates the total amount, and provides a letter of commitment.
7. The AFV will work together with the financial institution that the person applied for and, therefore, the financial institution will review the documents with the authority to finance the property.
Dalma Acevedo, mortgage banker at RF Mortgage, says that the Housing Department took into consideration what the banks were requesting in relation to CDBG funds, due to the increase in mortgage funds and in order to make the eligibility process a little faster and thus help the ownership of the properties in a much shorter period of time.
In conclusion, for having received financial assistance from the program, the future owner will have to live in the new address for a minimum of 5 years, in the case of moving or selling the property before the five years agreed upon, the owner will have to make a reimbursement to the program, which is specified as a part of the original amount of the mortgage loan.
We hope that with these new changes the granting of these funds will be more agile and easier for the benefit of buyers who need to acquire their first home.