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I <br />I <br />I <br /> <br />m <br />m <br /> <br />I <br />I <br />I <br /> <br />I <br />I <br />I <br /> <br />m <br /> <br />i <br />I <br />I <br />I <br /> <br />Guideline No. 1. - Income Ltmfts For Ownership Programs <br /> <br />The Fund will employ as 1ts maximum income 11mits the adjusted income <br />limits used by the Minnesota Housing Ftnance Agency for 1ts Homeownershtp <br />Program. These income limits vary depending upon the interest rate and <br />~hether the housing unit is new construction or extstfng. (See below.) <br />The Fund will also require, however, that at least 50 percent of the loans <br />in any program or project be made to households at or below the median <br />tncome for the Metropolitan Area. In addition, in every program or project <br />involving the Fund, at least 15 percent of the loans will be targeted <br />specifically to single parent households. Wherever possible, home <br />ownership efforts fnvolvfng the Fund shou]d give priority to serving <br />households with incomes below the median income. <br /> <br />MHFA Adjusted Income Limits <br /> <br />Mortgage <br />Interest Rate <br /> <br />New Construction <br /> <br /> Maximum <br />Gross Income <br /> <br />Existing Construction <br /> <br /> Maximum <br />Gross Income <br /> <br />0 - 10.00% $34,000 $31,000 <br />ZO.OI - 10.50% $35,000 $32,000 <br />10.51 - 11.00% $36,000 ~33,000 <br />11.01 - 11.50% $37,000 $34,000 <br />11.51 and over $38,000 $35,000 <br /> <br />Guideline No. 2. - Income Calculations For Ownership Programs <br /> <br />In accordance with industry accepted standards, the Fund should require a <br />monthly payment to income ratio of no more than 28% and a monthly payment <br />to obligation ratio of no more than 33% unless a contributing partner or <br />donor in a specific program or project feels higher ratios can be justified <br />in particular situations. <br /> <br />Guideline No. 3. - Sales Price For Ownership Program <br /> <br />In cooperation with the financial partners and/or comunitfes involved in <br />specific programs or projects of the Fund, percentages of units which are <br />to be low and moderate income affordable, modest cost and higher than <br />modest cost will be established during the formulation of individual <br />programs or projects. In all instances, however, the maximum purchase <br />price limits will be those limits employed by MHFA for its Homeownership <br />Program. Currently these limits are S83,000 for new construction and <br />$75,000 for existing housing. <br /> <br />m <br /> <br /> <br />