Underwriting Standards:

1. Total debt ratios should not exceed 43 percent of gross income.
2. Credible median credit score of 640 or higher. Alternative credit verification is also acceptable if there is a lack of credit.
3. Payment shock may occur if projected loan payments exceed 150 percent of the applicant’s current rent or house payment.
4. Property standards must be adhered to. Loans may be made for the following purposes:

a) Existing single-family or duplex dwellings on a solid foundation with standard utilities that pass a home inspection;

b) New construction that meets Loan Fund underwriting criteria;

c) Refinancing, if it includes substantial rehabilitation/home repair; and

d) Rehabilitation or home improvement loans.

The following nonconforming uses may also be funded on a limited basis if there is a viable plan to be able to make the property conforming within the loan term:

a) Raw land acquisition;

b) Properties with alternative water or sewer sources;

c) Properties that require rehabilitation in order to pass a standard home inspection;

d) Nontraditional housing systems or styles, such as tiny houses or yurts; and

e) Any legal use for which a bank will not make a loan.