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_I BOOK 964 PAGE 147 housing unit to the eligible person is completed. Downpayment/closing cost loans shall not be provided for the acquisition of housing units requiring rehabilitation prior to approval for occupancy by residents unless the rehabilitation loan is provided through SHIP funds in conjunction with the downpayment/closing costs loan. As structured, the LHAProgram does not require an applicant to provide a minimum monetary contribution towards the downpayment or closing costs. This LHAProgram policy, however, does not exempt an applicant from a financial institution's minimum monetary contribution requirement, if applicable. _ For purchase of a house financed by the owner, the applicant, as part of the loan application process, will be required to pay for a credit report. 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. These requirements apply to all income categories. No SHIP funds will be provided to households for downpayment/closing costs when the household's housing cost to income ratio will be lower than M 20%, unless a housing cost to income ratio lower than 20% is needed to ensure that the household's total debt to income ratio will not exceed 41%. In cases where a household's housing cost to income ratio is to 'be less than ® 20%, the financial institution providing the first mortgage shall provide sufficient proof to the county that the additional downpayment is needed to ensure that the household's total debt to income ratio will not exceed 41%. For very low income applicants, the Loan Review Committee may reduce the housing cost to income ratio to less than 20% if circumstances warrant such a reduction. For the moderate income group only, SHIP downpayment/closing cost funds shall not be provided to any household where that household's bank loan to value ratio will fall below 90%. Housing units which are to be constructed and acquired by eligible persons or housing unit constructed as new units or substantially rehabilitated within one (1) calendar year prior to the closing transaction to acquire that housing unit, or existing housing units to be acquired with combined SHIP purchase and rehabilitation funds shall be classified as constructed, rehabilitated, or repaired units as listed Section III.A.4.a. 21 5 2 - Se tember 19, 1995