DIRECT LOAN PROGRAM
Residential mortgage lending program, to assist families and individuals, who are first time homeowners and are unable to obtain financing for purchase or construction through conventional lending institutions. Interest rate is 7.5% (rate subject to change) for a term or 30 years.
Eligibility Criteria:
- U.S. Citizen or permanent alien resident
- Resident of the territory
- Minimum occupancy requirement two (2) year
- Must have a written denial from a financial institution
- Applicant must be a first time homeowner
Qualifying Criteria:
- Permanent employment (2years employment)
- Acceptable credit
- Maximum Income to Housing expense ratio 29%
- Maximum Debt to Income (including housing expense) 41%
Collateral Criteria:
- Maximum loan-to-value ratio 80% (1st Mortgage)
- Improvement must be insurable with all perils
- Detached single family dwelling
- Town house and condominiums acceptable upon review and common area fees must be included in housing expense calculations
Maximum Loan Amount:
Increased to FHA maximum loan limit currently $180,500.00.
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