Affordable Home Purchase Underwriting Guidelines
Capacity:
- 33% Housing Debt to Income ratio
- 38% Total Debt to Income ratio
- 10% remaining disposal income on after-purchase household budget to allow for savings
and emergencies
- Two years stable income level
Collateral:
- 105% maximum Loan to Value ratio
- Subject property heating, electrical, plumbing, & mechanical systems in operating
condition
- No peeling paint
- Roof life expectancy of approximately 5 years
- Satisfactory professional appraisal
- Satisfactory CNHS staff walk-through
Capital:
- Liquid assets to pay credit report fee of $26
- Liquid assets to pay appraisal report fee of $300
- Liquid assets to pay year’s premium of $400 for homeowners insurance
- Liquid assets to pay any remaining closing costs not financed by loan
Credit:
- Timely rent payments within past two year period, if applicable
- Timely housing utility payments, if applicable
- No unpaid judgments
- No unpaid charge-offs
- No bankruptcies within past seven year period
- No unpaid non-medical collection accounts
- No unpaid medical collection accounts exceeding $5,000
- Record of monthly payments or proof of payment on medical collection accounts with total
balance under $5,000
- Acceptable letter of explanation regarding delinquent accounts
CNHS does not pre-qualify or pre-approve applications. The CNHS Revolving Loan
Committee action is required on all loan applications.