Underwriting Guidelines:
Ratios Maximum: 32/43 (maximum 50% DTI with compensating factor)
Required documented income:
- 30 days recent paystubs (additional may be required)
- Child Support (12-month payment history)
- Alimony (12-month payment history)
- Social Security Income (may be gross up by 25% with compensating factor)
- Self-employment (2019 through 2021 Federal tax returns - tax transcripts are acceptable)
- Award letters - Social Security, Disability, etc.
- Retirement income
- Other sources that support current income
Homeowner requirement for final approval:
- Required to have documented proof of source of funds to have the ability to resume any regular payments after account is reinstated
- Documentation need as proof of source of funds:
- Bank statements (checking or saving)
- Money Market
- Gift letter with source of funds
Credit: Applicant must have a reasonable credit risk
- Judgments and liens must be paid prior to closing and clients must provide documentation that they have been satisfied.
Bankruptcy: Permission must be given by the Court prior to approval of the mortgage assistance.
Additional Requirements:
Cost Burden: The program administrator may recommend the homeowner enter a comprehensive counseling program if the homeowner is deemed cost burden. Cost burden is defined as paying more than 30 percent of income for housing expense. Housing expense include mortgage plus utilities.
Note: The program administrator will provide applicants with additional information on documentation requirements and eligibility.