2006-046 - Laserfiche WebLink

Home Browse Search

ii. Housing Unit Classification All housing units shall be owner -occupied single family or condominium residences. Down payment closing cost loans can be given in combination with a rehabilitation or impact fee loan, for purchase of existing homes or combination with an impact fee/capacity charge loan for construction of a new unit. iv. As structured, the Program does not require an applicant to provide a minimum monetary contribution towards the down payment or closing costs. This program policy, however, does not exempt an applicant from a financial institution's minimum monetary contribution requirement, if applicable. v. No owner financing is allowed. All down payment/closing cost applicants must receive their first mortgage from a financial institution. vi. Except as otherwise provided for herein, SHIP funds shall not be provided to any household where that household's projected monthly housing cost, including mortgage principal, interest, taxes, and insurance, will exceed 30% of the household's gross income, or where the household's total debt will exceed 41% of the household's gross income. It is not the intent of this plan to limit an individual household's ability to direct more than 30% of its income for housing. The monthly housing cost to gross income ratio (front end ratio) may exceed 30% as long as the back end ratio does not exceed 41%. For moderate -income households, only back end ratio may be as high as 45%. In such cases, the first mortgage lender must inform the county in writing of its determination. This determination must be based on specific characteristics applicable to the applicant such as the applicant's debts being short term, the applicant having a good history of debt management, or other pertinent reasons. These requirements apply to all income categories. For the moderate -income group only, SHIP downpayment/closing cost funds shall not be provided to any household where that household's first mortgage loan to value ratio will fall below 85%. Housing units constructed as new units, within one calendar year, substantially rehabilitated within one (1) calendar year prior to purchase, or units to be rehabilitated in conjunction with the downpayment/closing cost shall be classified as constructed, rehabilitated, or repaired units. The maximum term of a first mortgage shall not exceed 30 years. The maximum interest rate for the first mortgage shall not exceed the Federal National Mortgage Association (FNMA) or Federal Home Loan Mortgage Corp.(FHLMC) fixed rate 30 or 60 - day delivery (published daily in the Wall Street Journal) rounded up to the nearest .125%. For SHIP downpayment/closing cost loans, the number of points, which may be charged by the financial institution providing the first mortgage shall be as follows: • For conventional loans, no points shall be charged. • For FHA loans, a maximum of one (1) point may be paid from SHIP funds. For "bond program" loans only, more than one (1) point may be paid from SHIP funds.