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a Boa ,� 4 pm-,-, 7 ($951400 for new units and $83,160 for existing units) and establish one purchase price for both new and existing units based on the FHA maximum mortgage amount. The new recommended maximum purchase price is $77,150.00. c Asset Limit It was the position of the Lenders Committee that, if a household has $45,000,00 in assets, then that household does not need the county's assistance. Consequently, the Lenders Committee recommends that the county reduce the amount of assets that a SHIP applicant may have from $45,000 to $10,000. The committee further recommends that the county require that any reserve over $2,000.00 be applied towards the purchase of the housing unit before SHIP funds are used. c Eligible Persons The lenders committee recommends that the county maintain its existing income eligibility requirements (VLI, LI, and lower half of moderate income). It was the committee's position that households with incomes in the lower half of the moderate income category often need assistance to purchase adequate housing. DPCC Assistance The lenders committee acknowledges that there is a significant difference between VLI and LI groups in terms of income. For that reason, the committee feels that VLI groups need more assistance in order to qualify for a first mortgage loan from a bank. Also, the lenders committee believes that assistance to moderate income groups should be reduced. The committee feels that any abuse of the program would be more likely to occur with households in the moderate income category, where the potential exists for SHIP funds to be used to secure more expensive housing than a household needs or could afford without SHIP funds. Consequently, the lenders committee recommends that the county provide more downpayment/closing cost assistance to the very low income group. For this income group, the maximum amount of assistance is recommended to be increased from $10,000.00 to $15,000.00. The committee recommends that the county maintain its maximum existing assistance amount for"low income families ($10,000.00). Finally, the committee recommends that the county reduce its maximum assistance amount for eligible moderate income households from a maximum of $7,000.00 to a maximum of $5,000.00. Loan Requirements The lenders committee also recommends that the county adopt the following loan requirements to ensure that only people in need will receive assistance and then only in the minimum amount needed. With these requirements, the amount of assistance will correspond to household need, and a safeguard against abuses of the program will be established. The county should limit the number of points FEBRUARY 28, 1995 46 M