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<br /> Administrative Plan 7/1/2025 <br />. <br />Page 15-30 <br />15-VII.H. FINANCING [24 CFR 982.632] <br />The PHA may establish requirements for financing purchase of a home under the <br />homeownership option. This may include requirements concerning qualification of lenders, <br />terms of financing, restrictions concerning debt secured by the home, lender qualifications, loan <br />terms, and affordability of the debt. The PHA must establish policies describing these <br />requirements in the administrative plan. <br />A PHA may not require that families acquire financing from one or more specified lenders, <br />thereby restricting the family’s ability to secure favorable financing terms. <br />SAHA Policy <br />As a check against predatory lending, SAHA will review the financing of each purchase <br />transaction, including estimated closing costs. SAHA will review the loans for features, <br />such as balloon payments, adjustable-rate mortgages, and unusually high interest rates, all <br />of which are prohibited. SAHA also will not approve “seller financing” or “owner-held” <br />mortgages. Beyond these basic criteria, SAHA will rely on the lenders to determine that <br />the loan will be affordable to program participants. <br />The mortgage the family applies for must require a minimum down payment of at least <br />three percent of the sales price with one percent of the down payment coming from the <br />purchaser’s personal funds. SAHA will not require that the family have any more than <br />the minimum of one percent of their own money in the transaction. However, in cases <br />where a lender is requiring a larger amount, the family may be held to the underwriting <br />guidelines set by their lending institution. <br />SAHA will approve a family’s request to utilize its Family Self-Sufficiency escrow <br />account after final disbursement for down payment and/or closing costs when purchasing <br />a unit under the HCV homeownership option. <br />EXHIBIT 1