Home » Lender » Income (AMI) Limits

• DPA Edge Soft Second Quick Overview

This product has the following features:

• Qualifying Income: < or = 115% AMI of the county the borrower will live in
• No monthly payment on the second mortgage
• FICO score 600 minimum
• 0% interest rate (0% APR) and 30-year term
• Possible forgiveness based on the DPA amount:
  • 3.5%: Forgiven after 36 consecutive, on-time payments on the first mortgage. This period resets if any payment is 30+ days late. May also be forgiven at the end of the 30-year term.
  • 5%: Forgiven after the initial 120 consecutive, on-time payments on the first mortgage. This period is not reset and the loan’s forgivable status is terminated if any payment is 60+ days late. May also be forgiven at the end of the 30-year term, even if any payments are 60+ days late.
• The loan will need to be repaid upon transfer of ownership or refinance if it is not already forgiven

 

DPA Edge Soft Second FHA overlays include the following:

• Only offered for single family and two-unit properties
  • Three- to four-unit properties not allowed
• Borrowers with 600–639 credit scores must complete pre-purchase homebuyer counseling prior to closing
  • Counseling must be through Money Management International if the borrower’s FICO is below 620
  • Lenders are advised notify their borrowers 14 to 21 days before closing that they need to complete this pre-purchase counseling

• DPA Edge Repayable Second Quick Overview

This product has the following features:

• No AMI limits
• Requires monthly payment
• FICO score 600 minimum
• Option of two terms for the second mortgage:
  • 10-Year term 0% interest rate (0% APR)
  • 30-Year term 5% interest rate (5.009% APR)

 

DPA Edge Repayable Second FHA overlays include the following:

• Only offered for single family and two-unit properties.
  • Three- to four-unit properties not allowed.
• Borrowers with 600–639 credit scores must complete pre-purchase homebuyer counseling prior to closing
  • Counseling must be through Money Management International if the borrower’s FICO is below 620
  • Lenders are advised notify their borrowers 14 to 21 days before closing that they need to complete this pre-purchase counseling

• Rate Advantage Quick Overview

This product has the following features:

• Qualifying Income: < or = 135% AMI
• FICO score of 640 or higher
• Maximum DTI of 50% or less
• Requires monthly payment
• Second lien has a 10-year term, 6% interest rate (6.022% APR)
• Non-occupant co-borrowers are not allowed
• No concurrent homeownership
• Manual underwrites are not allowed

• Standard Conventional Quick Overview

This product has the following features and Chenoa Fund™ program overlays:

• No AMI limits
• No borrower investment required
• Single family only
• Purchase only
• All borrowers must have a minimum FICO score of 620
• 30-year fixed rate first mortgage
• Second lien is a 10-year fixed rate mortgage with an interest rate 2% higher than the first mortgage’s interest rate
• MI Coverage 35%
• DU^®1 Only—to 97%
• Concurrent homeownership not allowed; at least one borrower must be first-time homebuyer
• No homebuyer education class required

Visit the Chenoa Fund™ Correspondent Lending Guide for details

Go to the Fannie Mae Selling Guide

¹DU^® is a registered trademark of Fannie Mae.

• Fannie Mae HomeReady® Quick Overview

This product has the following features and Chenoa Fund™ product overlays:

• AMI limits per FNMA guidelines (none in low-income census tracts)
• No borrower investment required
• Single family only
• Purchase only
• All borrowers must have a minimum FICO score of 620
• 30-year fixed rate first mortgage
• Second lien is a 10-year fixed rate mortgage with an interest rate 2% higher than the first mortgage’s interest rate
• DU^®2 only to 97% LTV
• Concurrent homeownership not allowed
• FNMA may require the borrower to take a homebuyer education class

Visit the Chenoa Fund™ Correspondent Lending Guide for details

Go the Fannie Mae Selling Guide

HomeReady^® is a registered trademark of Fannie Mae.

²DU^® is a registered trademark of Fannie Mae.

• Calculating Area Median Income: Primary Method

CBC Mortgage Agency understands that there are many websites that help you to calculate the area median income for the borrowers. We ask that you use the HUD Area Median Income site when working with borrowers who will be using Chenoa Fund™ down payment assistance and who are receiving an FHA-insured first mortgage as we consider this site to be our standard.

If a borrower qualifies using the AMI listed on a different website but does not qualify with the HUD Area Median Income site, the CBC Mortgage Agency Locks and Registrations team will reject the borrower underneath those program guidelines.

Access the HUD AMI:

1. Go to the HUD Area Median Income Site
2. Select the most recent fiscal year
3. Select the “State”
4. Select the “County”
5. Click “View County Calculations”
6. For families with a size of 1–4, select the higher of the following:
   1. The number in the “Median Family Income” column
   2. The number in the “Persons in Family” column (“Very Low Income Limits” row, 4 persons); multiply this number by two
7. Multiply the above number by 115% (Soft Second) or 135% (Rate Advantage)
   1. For example: $69,100.00 x 115% = $79,465.00

Note: This is a third-party site. CBC Mortgage Agency state restrictions still apply, even if you see the option here.

• Calculating Area Median Income: Alternative Method

There is an alternative calculation method allowed within the UW comments on the 1008. For families sized 5 and up, use this method.

1. Go to the HUD Area Median Income Site
2. Select the most recent fiscal year
3. Select the “State”
4. Select the “County”
5. Click “View County Calculations”
6. Go to the “Persons in Family” column and the “Very Low Income Limits” row
7. Use the number under the appropriate family size
8. Multiply the above number by two
9. Multiply the above number by 115% (Soft Second) or 135% (Rate Advantage)
   1. For example, using a family of 6: $40,100 x 2 = $80,200 x 115% = $92,230

 

Note that CBCMA will require a letter of explanation if more dependents than are listed on the 1003 are used to determine the AMI limit for the file.