Laserfiche WebLink
ensure that the household's total debt to income ratio <br />will not exceed 410. In cases where a household's housing <br />cost to income ratio is to be less than 20%, the <br />financial institution providing the first mortgage.shall <br />provide sufficient written proof to the county to justify <br />that the additional downpayment is needed to ensure that <br />the household's total debt to income ratio will not <br />exceed 41%. For very low and low income applicants, the <br />Loan Review Committee may reduce the housing cost to <br />income ratio to less than 20% and increase the total debt <br />to income ratio to more than 41% if circumstances warrant <br />such a change. For the moderate income group only, SHIP <br />downpayment/closing cost funds shall not .be provided to <br />any household where that household's first mortgage loan <br />to value ratio will fall below 900. <br />Housing units which are.to be constructed and acquired by <br />eligible persons, housing units constructed as new units <br />or substantially rehabilitated within one (1) calendar <br />year prior, to purchase, or existing housing units to be <br />acquired with combined SHIP downpayment/closing cost and <br />rehabilitation funds shall be classified as constructed, <br />rehabilitated, or repaired units. <br />The maximum term of a first mortgage shall not exceed 30 <br />years. The maximum interest rate for the first mortgage <br />shall not exceed the Federal National Mortgage <br />Association (FNMA) or Federal Home Loan Mortgage Corp. <br />(FHLMC) fixed rate 30 or 60 day delivery (published daily <br />in the Wall Street Journal) rounded up to the nearest <br />.1250. <br />For SHIP downpayment/closing cost loans, the number of <br />points which may be charged by the financial institution <br />providing the first mortgage shall be as follows: <br />o For conventional loans, no points shall be charged. <br />o For FHA loans, a maximum of one (1) point may be <br />paid from SHIP funds. <br />o For "bond program" loans only, more than one (1) <br />point may be paid from SHIP funds. <br />For applicants in the very low and low income groups to <br />be eligible to' receive SHIP funds for downpayment/ <br />closing costs, the first mortgage loan must be a fixed <br />rate loan. Adjustable or fixed rate loans are acceptable <br />for the moderate income group only. No loan requiring a <br />balloon payment is acceptable for any income group. <br />Title insurance is required for all downpayment/closing <br />cost loan transactions. <br />21 <br />