COMMUNITY AFFORDABLE HOUSING ACTION TRUST (CAHAT)
An interest free second mortgage designed as a down payment assistance program for first time homeowners for families and individuals who lack the down payment resources to purchase or construct a typhoon resistant home. Enabling legislation Public Law 21-99. Term of the loan is 30 years.
Eligibility Criteria:
- U.S. Citizen pr permanent alien resident
- Resident of the territory for at least five (5) years
- Minimum occupancy requirements five (5) years
- Must be able to obtain financing from a participation financial institution
- Applicant must be a first time homeowner
Qualifying Criteria:
- Permanent employment
- Acceptable credit
- Maximum Income to Housing expense ratio 28%
- Maximum Debt to Income (including housing expense) 36% to include 2nd mortgage payments
Collateral Criteria:
- Maximum loan-to-value ration 95.00% (1st mortgage and 2nd mortgage payments)
- Improvement must be insurable with all perils
- Detached single family dwelling
- Town home and condominiums acceptable upon review and common area fees must be included in housing expense calculations]
Maximum Loan Amount:
- The maximum interest free 2nd mortgage amount it $40,000.00.
- The first mortgage maximum amount is determined by the participating institution based on the borrower’s ability.
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