Eligibility requirements.

CFR · 2024-01-01 · US · Title 7

(a) (b) (c) (d) (1) Current homeowners may receive RHS loan funds to: (i) Refinance an existing loan under the conditions outlined in § 3550.52(b); (ii) Purchase a new dwelling if the current dwelling is deficient housing as defined in § 3550.10; or (iii) Make necessary repairs to the property which is financed with an affordable non- RHS loan. (2) Current homeowners with an RHS loan may receive a subsequent loan. (e) (f) (g) (1) An applicant is considered to have repayment ability when the monthly amount required for payment of principal, interest, taxes, and insurance (PITI), does not exceed thirty-three percent of the applicant's repayment income (PITI ratio). In addition, the monthly amount required to pay PITI plus recurring monthly debts must not exceed forty-one percent of the applicant's repayment income (total debt ratio). (2) If the applicant's PITI ratio and total debt ratio exceed the percentages specified by the Agency by a minimal amount, compensating factors may be considered. Examples of compensating factors include payment history (if applicant has historically paid a greater share of income for housing with the same income and debt level), savings history, job prospects, and adjustments for nontaxable income. (3) If an applicant does not meet the repayment ability requirements in this paragraph (g), the applicant can have another party join the application as a cosigner, have other household members join the application, or both. (h) (1) Indicators of unacce

official document · source cfr-2024 · id 7:§ 3550.53