RES 92196 - Laserfiche WebLink

Variations to the income to debt ratios may be approved by the City if the primary portion of the buyer(s) non-housing expense debt is for medical or other necessary expenses. However, since most lenders for the first mortgage are likely to sell the first mortgage to FannieMae, income to debt ratios are subject to FannieMae requirements. Examples of various payment scenarios are included in Attachment A. · Income Limits Buyer(s) income at time of purchase shall not exceed 120% of the Oakland PSMA as published annually by the U.S. Department of Housing and Urban Development (HUD) on its successor. The income limits for the year beginning May 1992 are as follows: One Person - Two Persons - Three Persons - Four Persons - $39,300 $44,900 $50,550 $56,150 · Income will be defined as indicated in Attachment C Property Maintenance The owner is required to maintain the residence in good condition and repair. As a precondition to resale of the residence, the City may inspect the residence to determine whether any code violations exist and whether the residence has been maintained in good condition. If any code violations or maintenance deficiencies exist, the owner will be required to cure the problems. If the owner fails to do so, money to cover the repair costs will be paid through escrow at the time of sale. · Property Equity Once the residence has been purchased, the owner(s) may earn equity in the property. However, the maximum earned equity allowed is capped at the percentage increase of the area median income for a family of four at the time of purchase and at the time of sale. This cap is necessary to assure that other moderate income families will have an opportunity to purchase the residence in the future. As a result, if the area median income has increased by 10% from the time the property was purchased to the time of sale, the owner(s) may realize a 10% equity increase in the property. There is no adjustment for improvements made by the owner to the property. A sample of the equity calculation is attached as Attachment B. · Resale Restrictions If the owner intends to sell the residence, the City must be notified in writing of the owner(s) intent to sell. In accordance to a Resale Restriction Agreement signed by the owner(s) and the City at the time of purchase, the City has an option to designate an eligible