Letter of Acceptance for a New Home

Sample Partnership Agreement Letter of Acceptance for a New Home

This Partnership Agreement between The Fuller Center of ______(we/us/our) and ______(you/your) sets forth the guidelines and requirements for your partnership in the [construction/rehabilitation] of a home. It is your responsibility to adhere to these policies in order to continue in the program and ultimately own your own Fuller Center home.

Sweat Equity Hours You will contribute ______sweat equity hours in the construction project.

These hours can be fulfilled entirely by you but you may also recruit family members, friends and co- member to help you meet the requirement. Hours can also be earned working on other Fuller Center projects or outside projects approved by us. ____% of the total hours must be completed by you and other family members who will live in the home.

To assure timely fulfillment of this requirement you must complete a minimum of ___ hours per month during the construction process. Failure to meet this requirement could result in the termination of this agreement.

All of the required hours must be completed before you can occupy the home.

You will be provided with a sweat equity tracking book. Hours must be recorded, dated and verified by the signature of the job supervisor or other individual authorized by us.

Sweat equity hours have no cash value and cannot be redeemed in the event this agreement is terminated by either you or us.

Homeowner Education You and must complete a financial/budgeting and home maintenance training sponsored or approved by us. You will receive sweat equity credit for each hour spent attending the education course.

Creditworthiness We will conduct a credit check as a part of the application process for the purpose of identifying issues that could impact your ability to pay your mortgage (liens, judgments, etc.). You will be expected to work with us to resolve those credit issues that can be repaired and not incur additional debt or engage in behavior (e.g. late payments) that would negatively impact your credit rating during the term of this agreement.

Down Payment You will be required to pay $______at closing to cover closing costs. You are encouraged to beginning planning for this expense now.

Initials: ____/____ Lease/Purchase The first year after move-may be under a lease/purchase agreement rather than a mortgage. All payments made on the lease/purchase agreement will be applied to reduce the mortgage principal less any funds paid for insurance and taxes. The lease payment will be equal to the projected monthly mortgage payment as described below.

You must stay in good standing in order for the lease/purchase agreement to be converted to a mortgage. Failure to make timely lease payments could result in the termination of this agreement and eviction from the property.

Mortgage Payments We will carry the mortgage on your home, although we reserve the right to sell the mortgage at any time. Such a sale would not impact the terms of the mortgage agreement, including the 0% interest rate.

You will be required to make a monthly mortgage payment, the principal amount of which will calculated based on the cost of construction. The term of the mortgage will be based in part on your household income. The monthly mortgage payment will include (1) reduction of the principal amount of the loan and (2) an amount equal to 1/12th of the projected costs for insurance and property taxes. We will pay the insurance premium and taxes on your behalf from those funds.

Mortgage documents will be executed at your closing and will include language prohibiting the rental or subletting of the property during the mortgage term. There will also be provisions for equity sharing in the form of a disappearing second mortgage with a term of ___ years. In the event that the property must be sold we will reserve right of first refusal.

House Construction The work on your home will be done in part by you and volunteers. The construction costs will be paid by donations we are given. Construction standards will meet or exceed all local building codes. Every effort will be made to complete the construction work during the projected time period and at the estimated costs. The completion timetable and final costs, however, cannot be guaranteed. We project that construction will begin within ___ [days/weeks] of the execution of this agreement and should take ____ months to complete. We estimate the price of the finished home to be $______.

House Maintenance You will be responsible for the interior and exterior maintenance of your Fuller Center home and property and will be expected to maintain to meet or exceed neighborhood standards. You are responsible for all utilities and any costs related to the maintenance and upkeep of their house.

Certification By your signature below you are certifying that you have read and understand the agreement and that you will abide by its requirements. It is further agreed that this agreement can be revoked by us if you fail to meet these requirements or by you at any time.

Initials: ____/____ I understand the provisions of this agreement and commit to fulfill all requirements as outlined.

Thus agreed to this ______day of ______,______

______Covenant Partner Representative

______Homeowner’s Signature Witness

Photographic Release I hereby grant and convey to Fuller Center for Housing all right, title and interest in any and all photographic images, video or audio recordings and story content of me by Fuller Center for Housing for the purpose of public relations. I, hereby freely release The Fuller Center for Housing from any claim or liability involved with information published or printed for public information.

______Homeowner’s Signature Witness

Initials: ____/____