08:Underwriting Guidelines

Guidelines

Borrowers shall demonstrate that they lack sufficient assets to purchase the unit without City financial assistance. A Borrower is unable to acquire the unit without City financial assistance if:

1. The monthly cost for payment of principal, interest, taxes, homeowner association fees and insurance of the combined loans being obtained by the Borrower from a private financial institution and/or the seller would exceed thirty-three percent (33%) of the household's gross monthly income; and
2. The household's assets do not exceed the total of the following:
   1. The amount necessary to pay the estimated closing costs and down pay-ment for the unit to be purchased;
   2. The amount necessary to pay six (6) months of the monthly housing costs (principal, interest, taxes, insurance, and homeowner association fees) associated with the unit to be purchased; and
   3. Ten thousand dollars ($10,000).
    

These underwriting guidelines may be adjusted to conform to the underwriting standards utilized by the private institutional lender which is providing financing to a Borrower under this Program.