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• <br /> TENTATIVE REC`EIvED APil :98 <br /> PROGRAM GUIDELINES <br /> I. Borrower Eligibility Criteria 7Ir <br /> A. Income Limits (see attachment) <br /> B. Asset Limits <br /> 1. The limit for any person or family is $40,000. <br /> 2. The limit for persons between ages of 62 and 64 is $50,000. <br /> 3. The limit for persons 65 years of age and older is $60,000. <br /> 4. The limit for a disabled or handicapped person requiring a <br /> constant attendant is $75,000. <br /> 5. Net assets are calculated by totaling all assets of the borrower <br /> and deducting from them outstanding debts. The value of the <br /> dwelling to be rehabilitated and its site are excluded from this <br /> calculation. <br /> II. Underwriting Criteria <br /> A. Underwriting Ratios <br /> 1. The total monthly housing expenses should not exceed <br /> twenty-eight percent (281) of the borrowers gross monthly income. <br /> 2. The total monthly debt should not exceed thirty-six percent <br /> (361) of the borrowers monthly gross income. <br /> 3. The combined loan to value ratio shall not exceed ninety percent <br /> (901) of the projected value of the property after improvements. <br /> B. Expense to Borrower <br /> 1. The following closing costs may be financed: <br /> Letter Appraisal (will be required on limited number of loans) <br /> Attorney fees <br /> Recording fees <br /> C. Loan Terms <br /> 1. The interest rates available are 7.71 and 31. <br /> 2. The HIL must be a first or second lien. <br /> 3. The combined loan to value ratio of a first and a proposed <br /> second mortgage cannot exceed ninety percent (901) of the <br /> improved value. <br /> 4. Maximum loan amount is $15,000. <br /> 5. Minimum loan amount is $3,000. <br /> 6. The loan terms may be for either 5, 10 or 15 years. <br /> III. Basic Roles and Responsibilities <br /> A. Local Government and/or Non Profits <br /> 1. Identify areas for the HILP <br /> 2. Market the HILP <br /> 3. Fill out preapplication <br /> 4. Prepare work write-up and estimate <br />