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1998-090
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Resolutions
Resolution Number
1998-090
Approved Date
09/01/1998
Resolution Type
Amending Local Housing Assistance Plan for FY 98-99 & 99-2000
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from a financial institution's minimum monetary <br /> contribution requirement, if applicable. <br /> For purchase of a house financed by the owner, the <br /> applicant, as part of the loan application process, will <br /> be required to pay for a credit report. <br /> Except as otherwise provided for herein SHIP funds shall <br /> not be provided to any household where that household's <br /> Projected monthly housing cost, including mortgage <br /> principal, interest, taxes, end insurance, will exceed <br /> 30% of the household's gross income, tmie ss - a a <br /> bele*, or where the household's total debt will exceed <br /> ed <br /> 41% of the household's gross income. The monthly housing <br /> cost to a3s lisant'-e gross income ratio may eaa exceed 30% <br /> and the total dart to inc�m� ratio may exceed 41% if UM <br /> a first mortgage lender is satisfied that the applicant <br /> household can afford mortgage payments that exceed the <br /> 30% frontend and 41% backend benchmarks. In such a this <br /> cases, the first mortgage lender must inform the county <br /> in writing of them Wig• determination. <br /> determination must be based on sneer;i=; �rA, to scticAA <br /> applicable to the applicant such as the applicant's debts <br /> being short term. the yi,,,, <br /> debt manaa menta good h; or+ of <br /> or thet pertinent reasons These <br /> requirements apply to all income categories. No SHIP <br /> funds will be provided to households for <br /> downpayment/closing costs when the household's housing <br /> cost to income ratio will be lower than 20%, unless a <br /> housing cost to income ratio lower than 20% is needed to <br /> ensure that the household's total debt to income ratio <br /> will not exceed 41%. In cases where a household's <br /> housing 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 ius ; _Y <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% increase the total debt <br /> to-income ratio to more than 41% if circumstances warrant <br /> such a chance feel•�aet4-ee, For the moderate income <br /> group <br /> only, SHIP downpayment/closing cost funds shall not be <br /> provided to any household where that household's first <br /> mortgage loan to value ratio will fall below 90%. <br /> Housing units which are to be constructed and acquired by <br /> eligible persons. ee housing units constructed as new <br /> units or substantially rehabilitated within one (1) <br /> calendar year prior to <br /> purchase. or existing housing units to <br /> 19 <br />
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