Laserfiche WebLink
fees and property taxes. Variations to the income to debt ratios may be approved by the <br /> City if the primary portion of the buyer(s) non-housing expense debt is for medical or <br /> other necessary expenses. However, since most lenders for the first mortgauge are likely <br /> to sell the fLrSt mortgage to FannieMae, income to debt ratios are subject to FannieMae <br /> requirements. Examples of various payment scenarios are included in Attachment A. <br /> <br />· Income Limits <br /> <br /> Buyer(s) income at time of purchase shall not ex6~-~cl the lower 'income limits of the Oakland <br /> PSMA as published annually by the U.S. Depatlnent of Housing and Urban Development <br /> (HUD) on its successor. The income limits for the year beginning May 1992 are as <br /> follows: - - <br /> <br /> One Person $27,800 <br /> Two Persons $31,750 <br /> Three and Four Persons $39,700 <br /> <br /> Income will be-defined as indicated in Attachment C. <br /> <br />· Property Maintenance <br /> <br /> The owner is required to maintain the residence in good condition and repair. As a <br /> precondition to resale of the residence, the City may inspect the residence to determine <br /> whether any code violations exist and whether the residence has been maintained in good <br /> condition. If any code violations or maintenance deficiencies exist, the owner will be <br /> required to cure the problems. If the owner fails to do so, money to cover the repair costs <br /> will be paid through escrow at the time of sale. <br /> <br />· Property Equity <br /> <br /> Once the resi~lence has been purchased, the owner(s) may earn equity in the property. <br /> However, the maximm earned equity allowed is capped at the percentage increase of the <br /> area median income for a family of four at the time of purchase and at the time of sale. <br /> This cap is necessary to assure that other low income families will have an Opportullity to <br /> purchase the residence in the fUnkre. As a result, if the area median income has increased <br /> by 10% from the time the property was purchased to the time of sale, the owner(s) may <br /> realize a 10% equity increase in the property. There is no adjustment for improvements <br /> made by the owner to the property. <br /> <br /> A sample of the equity calculation is attached as Attachment B. <br /> <br />September 7, 1993 Page 3 <br /> <br /> <br />