Key Features
- Up to 97% financing (1 – unit purchase)
- No minimum borrower contribution (1 – unit properties); use flexible sources of funds for down payment and closing costs (gifts, grants, Community Seconds®, and cash – on – hand )
- Required home ownership education through a simple online course provided by Framework
- Borrowers who occupy the property may not have an ownership interest in any other residential dwelling at the time of loan closing.
This restriction does not apply to a non-occupant borrower.
Flexibilities
- Non – occupant borrowers allowed ( max 95% Loan to Value ) – income is considered part of qualifying income and subject to applicable income limits
- Innovative new feature that supports extended family households : will consider income from a non – borrower household member
- Compensating factors may allow for a debt to income ratio higher than 45% , up to 50% .
- Not counted as qualifying income
- Non – borrower income must be at least 30% of the total monthly qualifying income being used by the borrower (s). (Note: Income from more than one non – borrower household member may be considered.)
- Non – borrower household member s may be relatives or non – relatives.
- Non – borrowers must document their income and sign a statement of intent to reside with the borrower(s) for a minimum of 12 months .
- Rental income from accessory dwelling units may be considered in qualifying the borrower ( per rental income guidelines )
- Lower than standard mortgage insurance coverage – 25% for Loan to value above 90% to 97%
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