- Total debt ratios should not exceed 43 percent of gross income.
- Credible median credit score of 640 or higher. Alternative credit verification is also acceptable if there is a lack of credit.
- Payment shock may occur if projected loan payments exceed 150 percent of the applicant’s current rent or house payment.
- Property standards must be adhered to. Loans may be made for the following purposes:
a) Existing single-family or duplex dwellings on a solid foundation with standard utilities that pass a home inspection;
b) New construction that meets Loan Fund underwriting criteria;
c) Refinancing, if it includes substantial rehabilitation/home repair; and
d) Rehabilitation or home improvement loans.
The following nonconforming uses may also be funded on a limited basis if there is a viable plan to be able to make the property conforming within the loan term:
a) Raw land acquisition;
b) Properties with alternative water or sewer sources;
c) Properties that require rehabilitation in order to pass a standard home inspection;
d) Nontraditional housing systems or styles, such as tiny houses or yurts; and
e) Any legal use for which a bank will not make a loan.