Eligibility requirements.

CFR · 2024-01-01 · US · Title 7

(a) (b) (c) (d) (e) (1) The applicants are not financially responsible for another Agency guaranteed or direct home loan by the time the guaranteed home loan is closed; (2) The current home no longer adequately meets the applicants' needs; (3) The applicants will occupy the home financed with the SFHGLP loan as their primary residence; (4) The applicants are without sufficient resources or credit to obtain the dwelling on their own without the guarantee; (5) No more than one single family housing dwelling other than the one associated with the current loan request may be retained; and (6) The applicants must be financially qualified to own more than one home. In order for net rental income from the retained dwelling to be considered for the applicant's repayment ability, the consistency of the rental income must be demonstrated for at least the previous 24 months, and the current lease must be for a term of at least 12 months after the loan is closed. (f) (g) (h) (1) A repayment ratio will be used to determine an applicant's ability to repay a loan. The Agency will utilize two ratios, principal, interest, taxes and insurance (PITI) ratio and total debt (TD) ratio, to determine adequate repayment for the requested loan. The Agency reserves the right to consider calculation of a single ratio in determining repayment for the requested loan. (i) An applicant is considered to have adequate repayment ability when the monthly amount required for payment of PITI, homeowners' associat

official document · source cfr-2024 · id 7:§ 3555.151