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EXHIBIT 1 15-VII.H. FINANCING [24 CFR 982.6321 The PHA may establish requirements for financing purchase of a home under the homeownership option. This may include requirements concerning qualification of lenders, terms of financing, restrictions concerning debt secured by the home, lender qualifications, loan terms, and affordability of the debt. The PHA must establish policies describing these requirements in the administrative plan. A PHA may not require that families acquire financing from one or more specified lenders, thereby restricting the family's ability to secure favorable financing terms. SAHA Policy As a check against predatory lending, SAHA will review the financing of each purchase transaction, including estimated closing costs. SAHA will review the loans for features, such as balloon payments, adjustable -rate mortgages, and unusually high interest rates, all of which are prohibited. SAHA also will not approve "seller financing" or "owner -held" mortgages. Beyond these basic criteria, SAHA will rely on the lenders to determine that the loan will be affordable to program participants. The mortgage the family applies for must require a minimum down payment of at least three percent of the sales price with one percent of the down payment coming from the purchaser's personal funds. SAHA will not require that the family have any more than the minimum of one percent of their own money in the transaction. However, in cases where a lender is requiring a larger amount, the family may be held to the underwriting guidelines set by their lending institution. SAHA will approve a family's request to utilize its Family Self -Sufficiency escrow account after final disbursement for down payment and/or closing costs when purchasing a unit under the HCV homeownership option. Page 15-30 Administrative Plan 7/l/2025 City Council 5 — 668 7/15/2025