Borrower Profile
Borrowers must either be first time homebuyers unable to obtain conventional financing or be current homeowners unable to refinance and repair their homes.
Eligible Properties
Owner-occupied, 1 to 4 family dwellings, located within the city limits of Lafayette or West Lafayette.
Income Requirements
Borrowers must be below 80% of median income in targeted areas. Up to 100% of median income in targeted neighborhoods. (See income limits on next page)
Eligible Loans
Purchase/Rehab Loans – First-time homebuyers
Refinance/Rehab Loans – No cash out to borrower
Minimum Rehab is $5,000.
Loan Terms
First Mortgages: Conventional, uninsured, 30 year fixed rate. 90% LTV based on total of purchase price and repair costs or up to 90% of the "as repaired" appraised value on refinances. Interest rate based on current market rates.
Second Mortgages available to finance gap on purchase transations. Rate and term based on affordability. Borrower contribution minimum of $1,000 (Purchase transactions).
Qualifying Ratios
Debt Ratio – 36%
Exceptions on a case-by-case basis with compensating factors.
Fees
$326 non-refundable application fee, $250 feasibility study and any additional expenses related to inspections, processing and closing. Construction monitoring fee, of 18% of construction costs, paid at closing.
Rehabilitation
A LNHS inspector will perform inspection and feasibility study. Work will be completed by persons deemed qualified, selected by borrower and approved by the LNHS construction manager. All contractors must be bonded and insured. Work must be completed within 3 to 6 months of closing, but can be extended based on the scope of the work and the weather conditions.
Other Requirements
Buyer must complete a LNHS homebuyer education course.
Purchase: Origination fee of 1.0% of purchase price.
Refinance: Origination fee of 1.0% of loan amount.
Income Limits
Household Size Maximum Gross Annual Income
80% 100%
1 $32,200 $41,500
2 $37,950 $47,400
3 $42,700 $53,400
4 $47,450 $59,300
5 $51,250 $64,000
6 $55,050 $68,800
7 $58,850 $73,500
8 $62,600 $78,300
Monday through Friday 8:30am to 5:30pm
Appointments are not necessary but are encouraged
We do business in accordance with the Federal Fair Housing Law