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4 . Applicant must obtain a fixed rate First Mortgage from a financial institution or <br /> Developer . No sub - prime products or adjustable rate mortgages are allowed . <br /> 5 . Applicant' s housing cost to income ratio ( front- end - ratio ) shall be <br /> between 19 % and 35 % ; <br /> 6 . Applicant' s total debt to income ratio ( back- end ratio ) shall not exceed 45 % . <br /> Ratios must be calculated based on the 1st mortgage amount only ( see section E . <br /> below ) , since the county' s mortgage is a soft second , with no monthly payments <br /> and forgiveness in 15 years ( see section G . below ) . <br /> 7 . The household ' s total gross income shall be used to calculate the maximum 1st <br /> mortgage loan amount described in section E . below ( gross income of all <br /> household members 18 years and older ) . <br /> Be Application for NSP3 Assistance <br /> Before a prospective buyer is referred to counseling or to execute a sales agreement for <br /> an NS133 - assisted property, the buyer must complete and submit a complete Application <br /> for NSP3 Assistance attached as Appendix C ( or current version of application as may be <br /> updated by Grantee ) . The information obtained in the application will be used -- along <br /> with verifications --to determine a buyer' s eligibility to purchase an NSP3 home and to <br /> receive NSP3 Homeowner Financial Assistance . While paper forms may be filled out in <br /> advance by Applicants, the application will be completed in a face -to -face meeting with <br /> a qualified representative of Developer . <br /> C . Evidence of Employment, Residence , Income and Assets <br /> Developer will require Applicants to bring this evidence to the intake and application <br /> interview in order to make an initial determination of eligibility . <br /> D . Credit Report <br /> During the intake interview, Developer will obtain , with the Applicant' s written <br /> permission , a credit report that includes a credit score . Developer will review the report <br /> with Applicant and explain any positive or negative data with regard to qualifying for <br /> purchase of an NSP3 home . <br /> E . Provision of First Mortgage Loan <br /> Grantee acknowledges that Developer will provide 1st Mortgage financing for NSP3 <br /> homebuyers . That financing shall be a standard loan amortized up to a thirty ( 30 ) year <br /> period that does not constitute a sub - prime mortgage . Developer shall prepare a 1st <br /> Mortgage pre- approval letter listing the maximum 1St mortgage amount that Developer <br /> will loan to applicant . A copy of that letter shall be supplied to Grantee . <br /> 16 <br />