Level of Home Assistance

The minimum level of HOME funds to be used for the Home Buyers Purchase Program is $1,000 per dwelling unit. The maximum HOME assistance per project for homebuyers purchase is based on a sliding scale depending on the primary mortgage.

Allowable Loan Use

The deferred payment loan may be used for:

• Closing costs
• Down payment assistance
• Interest buy down and/or mortgage buy down

Ratios

The debt-to-income ratio cannot exceed 43% of the front-end ratio. The front-end ratio, indicates the percentage of income that goes toward housing costs, which for homeowners is:

• PITI, which is comprised of:
  
  • Mortgage principal and interest
  • Mortgage insurance premium (when applicable)
  • Hazard insurance premium
  • Property taxes
  • Homeowners' association dues (when applicable)