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6 <br /> 1 Proposed Underwriting Criteria for Existing Townhome Second Mortgage Program <br /> 1. MAXIMUM INCOME LIMITS. Applicant must bring three previous year tax returns <br /> and a current pay stub. Maximum income: <br /> a. Family of 1: $26,080 maximum income <br /> b. Family of 2: $28,760 maximum income <br /> c. Family of 3: $34,248 maximum income <br /> d. Family of 4: $37,200 maximum income <br /> 2. MINIMUM INCOME NEEDED. Generally, in order to qualify for a first mortgage <br /> loan of 80% of the purchase price, a family would need a minimum income of: <br /> a. $90,000 home, $72,000 first mortgage: $24,000 minimum income <br /> b. $80,000 home, $64,000 first mortgage: $21,000 minimum income <br /> c. $70,000 home, $56,000 first mortgage: $19,000 minimum income <br /> d. $60,000 home, $48,000 first mortgage: $17,000 minimum income <br /> e. $50,000 home: $40,000 first mortgage: $15,000 minimum income <br /> 3. DEBT RATIOS. <br /> a. Mortgage payment (P+I+T+I+HOA) may not exceed 33% of total gross <br /> monthly income. <br /> b. Total debts (mortgage plus other loan payments) may not exceed 41% of total <br /> gross monthly income. <br /> 4. CREDIT. <br /> a. Applicants must meet credit requirements in order to be eligible for a second <br /> mortgage. <br /> b. No late rental payments for a period of twelve months prior to application. <br /> c. Credit report must show an intent to have good credit. A history of late <br /> payments during the twelve months prior to application may result in rejection. <br /> d. No judgments or collections within the last 12 months; however, exception <br /> may be made for judgments relating to medical treatment that have been paid. <br /> No bankruptcies showing on credit report. <br /> 5. OTHER. <br /> a. Borrower may not have owned a home for three years. <br /> DRAFT <br />