Transcription of CHAPTER 4: BORROWER ELIGIBILITY
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HB-1-3550 OVERVIEW Ensuring that all applicants served are eligible and receive the correct amount of assistance is a significant responsibility of Loan Originators and Loan Approval Officials. A BORROWER must be income -eligible, demonstrate a credit history that indicates ability and willingness to repay a loan, and meet a variety of other program requirements. This CHAPTER provides guidance for each of these areas. Section 1: Evaluating BORROWER income provides instructions for calculating and verifying annual, adjusted, and repayment income . Section 2: Evaluating BORROWER Assets discusses Agency requirements for cash contributions to the purchase and methods for computing income from assets. Section 3: Credit History identifies indicators of acceptable and unacceptable credit and provides instructions for reviewing an applicant s credit history.
• The low-income limit is an adjusted income limit developed in consultation with HUD; and • The moderate-income limit is an adjusted income that does not exceed the moderate-income limit for the guaranteed single family housing loan program. 4.
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