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• ensure that the household ' s total debt to income ratio <br /> will not exceed 410 . In cases where a household ' s housing <br /> 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 justify <br /> that the additional downpayment is needed to ensure that <br /> the household ' s total debt to income ratio will not <br /> exceed 410 . 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 % and increase the total debt <br /> to income ratio to more than 41 % if circumstances warrant <br /> such a change . For the moderate income group only , SHIP <br /> downpayment / closing cost funds shall not be provided to <br /> any household where that household ' s first mortgage loan <br /> to value ratio will fall below 900 . <br /> Housing units which are to be constructed and acquired by <br /> eligible persons , housing units constructed as new units <br /> or substantially rehabilitated within one ( 1 ) calendar <br /> year prior to purchase , or existing housing units to be <br /> acquired with combined SHIP downpayment / closing cost and <br /> rehabilitation funds shall be classified as constructed , <br /> rehabilitated , or repaired units . <br /> The maximum term of a first mortgage shall not exceed 30 <br /> • years . The maximum interest rate for the first mortgage <br /> shall not exceed the Federal National Mortgage <br /> Association ( FNMA ) or Federal Home Loan Mortgage Corp . <br /> ( FHLMC ) fixed rate 30 or 60 day delivery ( published daily <br /> in the Wall Street Journal ) rounded up to the nearest <br /> . 1250 . <br /> For SHIP downpayment / closing cost loans , the number of <br /> points which may be charged by the financial institution <br /> providing the first mortgage shall be as follows : <br /> o For conventional loans , no points shall be charged . <br /> o For FHA loans , a maximum of one ( 1 ) point may be <br /> paid from SHIP funds . <br /> o For " bond program " loans only , more than one ( 1 ) <br /> point may be paid from SHIP funds . <br /> For applicants in the very low and low income groups to <br /> be eligible to receive SHIP funds for downpayment / <br /> closing costs , the first mortgage loan must be a fixed <br /> rate loan . Adjustable or fixed rate loans are acceptable <br /> for the moderate income group only . No loan requiring a <br /> balloon payment is acceptable for any income group . <br /> Title insurance is required for all downpayment / closing <br /> cost loan transactions . <br /> 21 <br />