You MUST use the Loan Document forms developed by TDHCA and provided in the HBA Manual Down Payment Assistance Note (Form 1.05) Subordinate Deed of Trust (Form 1.06) Transfer of Lien (Form 1.07)

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You MUST use the Loan Document forms developed
by TDHCA and provided in the HBA ManualDown
Payment Assistance Note (Form 1.05)Subordinate
Deed of Trust (Form 1.06)Transfer of Lien (Form
1.07)
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DOWN PAYMENT ASSISTANCE NOTE SECOND LIEN
(NOTE) (Form 1.05)
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• Page 1 of 6
• HOME Contract 1234567 Activity 12345
• Date October 14, 2004
• Property (which includes the real property and
• improvements thereon)
• Address 123 XYZ Avenue
• City Anywhere
• County Anyplace, Texas

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• 1. BORROWERS PROMISE TO PAY
• The Borrower is Name of Homebuyer.
• In return for a loan that I have received, I
  promise to pay
• U. S. Amount of HBA Assistance (this amount
  is
• called principal) to the order of the
  Lender.
• The Lender is Name of Contract Administrator.
  Lender may transfer this Note. The Lender or
  anyone who takes this Note by transfer and who is
  entitled to receive payments under this Note is
  called the Note Holder.

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• Page 2 of 6
• 2. INTEREST
• No interest will accrue on this loan at any
  time.
• 0

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• TIME AND PLACE OF PAYMENTS
• Provided that the Borrower complies with the
  other
• terms of this Note, the amounts due and payable
• under this Note shall be deferred and repayable
• as follows

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From Signature Date to 1st anniversary 100
From 1st anniversary to 2nd anniversary 90
From 2nd anniversary to 3rd anniversary 80
From 3rd anniversary to 4th anniversary 70
From 4th anniversary to 5th anniversary 60
From 5th anniversary to 6th anniversary 50
From 6th anniversary to 7th anniversary 40
From 7th anniversary to 8th anniversary 30
From 8th anniversary to 0th anniversary 20
From 9th anniversary to 10th anniversary 10
After 10th anniversary 0
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• Page 3 of 6
• The events which will cause the balance of the
  Note to be declared due and payable are as
  follows
• the note to Name of Mortgage Lender dated
  October 14, 2004 in the amount of
• Amount of Mortgage, hereinafter the First Lien
  Note (FLN), is paid in full according to its
  terms or

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• (b) the FLN is refinanced in whole or in part or
  is
• assumed by a new borrower without the
  consent
• of TDHCA or
• (c) the unpaid balance of the FLN becomes due
• and payable in full for any reason or
• (d) all or any part of the Property, or any
  interest in
• it, is leased, transferred, or foreclosed
  or

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• (e) all or part of the Property is sold or
• (f) the Borrower ceases to occupy the Property as
• his or her principal residence.

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• I will make my payment(s) at
• Address of Administrator
• or at a different place if required by the Note
  Holder.

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• Page 6 of 6
• Witness the Hand and Seal(s) of the
  Undersigned
• ____________________ __________
• Borrower
  Date
• ____________________ __________
• Borrower
  Date

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• Endorsement
• DATE October 14, 2004
• Pay to the Order of Texas Department of Housing
  and
• Community Affairs, an Agency of the State of
  Texas
• Name of Contract Administrator
• Name of Contract Administrator
• BY Authorized Persons Signature Title
• Authorized Signature Title

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• Down Payment Assistance Note
• NOT recorded
• ORIGINAL must be submitted
• to the Department with Draw
• Request support documents.

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SUBORDINATE DEED of TRUST (Form 1.06)
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• Page 1 of 11
• HOME Contract 1234567 Activity 12345
• This SUBORDINATE DEED of TRUST
• ( Security Instrument ) is made on
• Settlement Date (Date).
• The grantor is Name of Borrower (Borrower).

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• The trustee is Name of Contract Administrator
• (Trustee), whose address is
• Address of Contract Administrator.
• The beneficiary is Name of Mortgage Lender,
• (Lender), which is organized and existing under
• the laws of State of Lender , and whose address
• is Address of Lender.

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• Borrower owes Lender the principal sum of
• Spelled out Amount of HBA Assistance
• Dollars (U.S. Numerical Amount).
• This debt is evidenced by Borrowers note dated
• the same date as this Security Instrument
• (Note), with the full debt due and payable on
• 10 years from Date of Settlement (Final
• Maturity Date).

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• The Note provides for certain potential
  deferrals,
• forgiveness or other payment terms. The Note
• also provides that the full debt, if not paid or
• forgiven earlier, shall be due and payable on the
• sale of the property, refinance of the senior
• purchase money note dated Settlement Date in
• the original principal amount of Mortgage
• Amount issued by Borrower and made payable
• to Name of Mortgage Lender (Senior Lien
• Holder), hereinafter the First Lien Note
  (FLN),

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• This clause applies only in 3rd Lien situations
• refinance of a prior note dated _____________
• in the original principal amount of ____________
• issued by Borrower and made payable to
• ____________________ (Prior Note Holder),
• hereinafter the Second Lien Note (SLN),
• or acceleration of either the FLN, SLN or this
• Note upon Borrowers default, whichever is first
• to occur.

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• Page 2 of 11
• For this purpose, Borrower irrevocably grants
• and conveys to Trustee, in trust, with power of
• sale, the following described property located in
• Name of County County, Texas
• insert legal description
• which has the address of
• Physical Street Address (Street),
• Name of City (City), Zip Code (Zip Code),
• Texas,(Property Address).

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• Page 3 of 11
• Payment of these amounts in escrow (if required
  under
• the terms of the approved purchase money Deed of
  Trust
• securing the FLN from Borrower herein to Name of
• Contract Administrator, Trustee, of even date
  with
• FLN, to be filed in the Official Public/Deed/Real
  Property
• Records of Name of County Where Property is
• Located County, Texas (First Lien Deed of
  Trust) instead
• of directly to the person owed payment, will not
  be a default
• under this Security Instrument, provided that the
  escrow
• agent in turn pays them on time to the person
  owed payment
• and the escrow agent or the Borrower promptly
  thereafter
• furnishes to Lender receipts evidencing the
  payments.

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• This phrase applies only to 2nd Lien situations
• Except as to the First Lien Deed of Trust and
• the prior deed of trust securing the SLN from
• Borrower herein to Name of Contract
• Administrator, Trustee, of even date with SLN,
• to be filed in the Official Public/Deed/Real
• Property Records of Name of County Where
• Property is Located County, Texas (Second
• Lien Deed of Trust),

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• Page 11 of 11
• Borrowers Signature Borrowers Signature
• Borrower Borrower
• SSN
  SSN______________
• Social Security Number Social Security
  Number

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• STATE OF TEXAS, County of County Where Deed of
  Trust
• is Being Signed
• BEFORE ME, the undersigned, a Notary Public in
  and for said
• County and State, on this day personally appeared
  Names of
• Borrowers, known to me to be the person(s) whose
  names(s)
• is/are subscribed to the foregoing instrument and
  acknowledged
• to me that he/she/they (s)(t)he(y) executed the
  same for the
• purposes and consideration therein expressed.
• GIVEN UNDER MY HAND AND SEAL OF OFFICE, this
• Date day of ___Month_____, 20Year.
• Signature of Notary NOTARYS SEAL
• Notary Public or
• STAMP

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• Instructions to County Clerks Office
• Forward RECORDED Deed of Trust to
• Texas Department of Housing and
• Community Affairs
• Single Family Finance Production Division
• Loan Closing, Suite 700
• P.O. Box 13941
• Austin, TX 78711

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• Subordinate Deed of Trust (DOT)
• CERTIFIED COPY must be submitted
• to the Department with Draw Request.
• Original DOT Must be RECORDED.
• Recorded trailing document must be
• submitted to the Department within
• 90 days following Settlement Date or all
• future Draw Requests will be suspended.

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TRANSFER of LIEN (Form 1.07)
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• Page 1 of 3
• HOME Contract 1234567 Activity 12345
• DATE Settlement Date
• HOLDERS MAILING ADDRESS
• (INCLUDING COUNTY)
• Name of Contract Administrator
• Address
• City

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• NOTE
• Date Settlement Date
• Original Amount Amount of HBA Loan
• Maker Name of Homebuyer
• Maker Address Property Address
• Unpaid Principal and Interest HBA Loan
• Payee Contract Administrator

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• Page 2 of 3
• Note and Lien are described in a Deed of Trust of
  even
• date executed by Maker and payable to Payee and
• recorded in the Real Property Records of  County
• Where Recorded     County, Texas.
• Property (including any improvements) subject to
  Lien
• (insert legal description)
•      
• Prior Lien(s)
• Deed of Trust (describe first lien Deed of Trust)
  
• dated Date of DOT executed by Maker, payable to
• Payee as described in the note, securing a note
  in the
• amount of HBA Loan Amount  and recorded
• in Records of County Where Recorded County, Texas.

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• Name of Contract Administrator_________
• Contract Administrator
• BY
• Signature of Authorized Representative____
• Authorized Signature
• Title of Authorized Representative_________
• Title

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• STATE of TEXAS
• County of County Where Transfer of Lien is Signed
• This instrument was acknowledged before me
• on Month and Date, 20Year.
• by Name of Authorized Representative, of
• Name of Contract Administrator, a Title of
  Representative,
• on behalf of said organization.
• GIVEN UNDER MY HAND AND SEAL OF OFFICE, this
• Date day of Month, 20Year.
• Signature of Notary Notarys Seal or Stamp
• Notary Public

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• Instructions to County Clerks Office
• Forward RECORDED Deed of Trust to
• Texas Department of Housing and
• Community Affairs
• Single Family Finance Production Division
• Loan Closing, Suite 700
• P.O. Box 13941
• Austin, TX 78711

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• Transfer of Lien (TOL)
• MUST be recorded
• ORIGINAL must be submitted
• to the Department with Draw
• Request support documents.