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not fall below 20%. Because Habitat for Humanity mortgages carry a 0% interest rate, Habitat for Humanity clients may have a monthly housing cost less than 20% of gross income. In the case of Habitat for Humanity clients, the front end ratio may be as low as 17%. 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 down payment/closing cost shall be classified as constructed, rehabilitated, or repaired units. Indian River County has a lending consortium, consisting of local banks and financial institutions. Pursuant to the consortium's rules, consortium members waive certain fees and charge interest rates equal to or less than the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation 30 to 60 day rate for principal mortgages provided to SHIP purchase assistance loan recipients. Only members of the Indian River County Lending Consortium may provide first mortgages to SHIP recipients. 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 purchase assistance loans, the number of points, which may be charged by the financial institution providing the first mortgage, shall be as follows: • For conventional loans, up to one (1) point may be paid from SHIP funds. If a lender does not charge any points on a principal mortgage associated with a SHIP purchase assistance loan, the lender may increase the interest rate on the first mortgage up to a maximum of 1 percentage point above the maximum interest rate referenced above. • 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. For applicants to be eligible to receive SHIP funds for down payment/closing costs, the first mortgage loan must be a fixed rate loan. No loan requiring a balloon payment is acceptable for any income group. Title inst}.anee--—regta=Yed For all purchase assistance dawn paymettielesing-east loans a copy of the first mortgage title insurance must 19 Formatted: Strikethrough Commented [RD5]: This confused us even more. Are you Baying that a moderate whose LTV is below 85t does not need SHIP assistance? If so, please clarify in simpler terms. The new language seems like a contradiction. we may need to discuss by phone.