Resolution Number 01-2-6-9Rz
RESOLUTION NO. 01-2-6-9
EXCEPTION TO FIRST-TIME HOMEBUYER PROGRAM RULES
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA, AUTHORIZING AN EXCEPTION TO THE
CITY'S FIRST-TIME HOMEBUYER RULES TO AUTHORIZE THE FIRST
MORTGAGE LENDER TO USE A 30 -YEAR VARIABLE RATE LOAN FOR
LETTIA MURRAY
WHEREAS, the applicant, Lettia Murray, 32221 Alipaz Street, #101, San
Juan Capistrano, California 92675, has submitted an application for assistance through the
City's First -Time Homebuyer Program; and,
WHEREAS, the City's program rules require the first mortgage loan to be a
30 -year fixed loan; and,
WHEREAS, the first mortgage lender, American Sterling Bank, will notqualify
the applicant for a 30 -year fixed mortgage loan due to poor credit, but will approve a 30 -
year variable rate loan with a co-signer on the loan; and,
WHEREAS, the applicant has obtained a co-signer on the first mortgage
loan; and,
WHEREAS, the variable rate loan will initially provide a lower interest rate
than a 30 -year fixed loan; and,
WHEREAS, the City's second mortgage loan will be protected by having a
co-signer on the first mortgage loan; and,
WHEREAS, the City needs to spend the First -Time Homebuyer Program
grant funds as quickly as possible to avoid penalties for non-performance by the State of
California; and,
WHEREAS, on February 6, 2001, the City Council conducted a public
meeting to consider the exception to the program rule.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of
San Juan Capistrano does hereby find that the exception to the program rule to allow use
of a variable-rate interest first mortgage loan will not have any significant financial impact
to the City and will assist in satisfying the State of California's milestones for performance
on the grant.
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BE IT FURTHER RESOLVED, that he City Council approves an exception
to the city's First -Time Homebuyer Program rules to authorize the first mortgage lender to
use a 30 -year variable rate loan for Lettia Murray.
PASSED, APPROVED, AND ADOPTED this
February , 2001.
WYA ART, M&OR
ATTEST:
CITY CLERK)
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF SAN JUAN CAPISTRANO )
6th
day of
I, CHERYL JOHNSON, City Clerk of the City of San Juan Capistrano,
California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of
Resolution No. 01-2-6-9 adopted by the City Council of the City of San
Juan Capistrano, California, at a regular meeting thereof held on the 6th day of
February , 2001, by the following vote:
AYES: Council Members Bathgate, Greiner, Swerdlin, Gelff
and Mayor Hart
NOES:
ABSTAIN:
ABSENT:
(SEAL)
CHERYL JOHWSOK CITY CLERK
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