Deferred mortgage payments.

CFR · 2024-01-01 · US · Title 7

For qualified borrowers, RHS may defer up to 25 percent of the monthly principal and interest payment at 1 percent for up to 15 years. This assistance may be granted only at initial loan closing and is reviewed annually. Deferred mortgage payments are subject to recapture when the borrower transfers title or ceases to occupy the property. (a) (1) The applicants adjusted income at the time of initial loan approval does not exceed the applicable very low-income limits. (2) The loan term is 38 years, or 30 years for a manufactured home. (3) The applicant's payments for principal and interest, calculated at a one percent interest rate for the maximum allowable term, plus estimated costs for taxes and insurance exceeds: (i) For applicants receiving payment assistance, 29 percent of the applicants repayment income by more than $10 per month; or (ii) For applicants receiving interest credit, 20 percent of adjusted income by more than $10 per month. (b) (i) For applicants receiving payment assistance, 29 percent of the applicants repayment income. (ii) For applicants receiving interest credit, 20 percent of adjusted income. (2) Deferred mortgage payment agreements will be effective for a 12-month period. (3) Deferred mortgage assistance may be continued for up to 15 years after (c)

official document · source cfr-2024 · id 7:§ 3550.69