Definitions

For purposes of this Article, the following terms are defined to mean: COL9/7/2021 CH. 4 GUAM HOUSING CORPORATION

(a)Adjusted annual income means the total family income less five percent (5%) of such total family income less Four Hundred Eighty Dollars ($480) for each dependent.

(b)Appraised Value means the value of the home and lot to be purchased or the value of the home and lot to be constructed or renovated.

(c)Board means the board of directors of the Guam Housing Corporation.

(d)Dependent means

(1)any child or individual under the age of nineteen

(19)over which the head of household of such child or individual has legal guardianship; and

(2)any child or individual under the age of twenty-five

(25)over which the head of household of such child or individual has legal guardianship, if such child or individual is a full time student, or

(3)any individual, child, relative, or parent, regardless of age, over which the head of household of such person has an obligation to provide financial support due to mental or physical incapacity.

(e)Down Payment means the equity requirements of the homeowner needed to initiate the mortgage for the purchase, construction or renovation of a home.

(f)Family Income means the total annual income derived from all sources for each member of the family.

(g)Family means two

(2)or more persons related by blood, adoption or marriage, living together as a household.

(h)FHLMC means the Federal Home Loan Mortgage Corporation, also known as Freddie Mac.

(i)Financial Institution means any financial institution authorized to make mortgage loans.

(j)First-time Home Owner means any individual or family who has not had any ownership interest in a COL9/7/2021 CH. 4 GUAM HOUSING CORPORATION residential dwelling within the five

(5)years preceding the date of application. Families or individuals who have had an ownership interest in residential real property within the five

(5)year period preceding the date of application but such interest was terminated by a decree of divorce or operation of law qualify as First-time Home Owners.

(k)FNMA means the Federal National Mortgage Association, also known as Fannie Mae.

(l)GHC means the Guam Housing Corporation.

(m)Government means the government of Guam.

(n)Home means any single family dwelling or single family condominium or town house.

(o)Index Rate means the lower of the FNMA or FHLMC rate.

(p)Individual means any unmarried person.

(q)Interest Free Loan means second mortgages made by the Government that are to be repaid without interest pursuant to the provisions of this Chapter.

(r)Loan means the loan made by the Financial Institution or GHC to a family or individual pursuant to the provisions of this Chapter.

(s)Loan to Value Ratio means the percentage derived from the loan amount divided by the Maximum Price Factor.

(t)Maximum Price Factor means the lesser of the appraised value or the selling price of a Home purchased or constructed under this Chapter, including the underlying real estate.

(u)Real Estate Owned

(REO)means property acquired by a lender through foreclosure and held in inventory.

(v)Residential Real Property means real property consisting of land and a dwelling which has been used as a family’s or individual’s place of residence. COL9/7/2021 CH. 4 GUAM HOUSING CORPORATION

(w)Selling Price means for purposes of this Chapter the purchase price of a completed Home or the purchase price of the lot and the construction cost of the Home to be built on the lot.