99- 346 C.M.R. ch. 7, § 2

Current through 2024-50, December 11, 2024

Section 346-7-2 - Eligibility

A. The Applicant must meet the following standards to be eligible for insurance of a Loan under this Program:

1. The Applicant must appear on the current "Annual Census" of the Passamaquoddy Tribe or Penobscot Nation.

2. The land to be mortgaged must be located on one of the following tribal reservations:

a. the Penobscot Tribal Reservation;

b. the Indian Township Passamaquoddy Reservation; or

c. the Pleasant Point Passamaquoddy Reservation.

3. The Applicant's monthly income must be such that (a) his or her projected monthly housing expense, which shall include mortgage principal and interest, mortgage insurance premiums, property insurance premiums and, if applicable, life and health insurance premiums shall not exceed 28% of the Applicant's gross monthly income and (b) his or her fixed monthly payments (installment loans, alimony, child support, etc.) shall not exceed 36% of gross monthly income, provided, however, that, on recommendation of the Lender, the Authority may permit use of increased ratios up to 33% and 38% respectively.

4. The Applicant shall have a credit rating and an employment history acceptable to the Lender and the Authority in accordance with standard loan underwriting standards prevalent in the industry.

5. The Applicant shall have sufficient cash to pay closing costs and to make the payment described in Section 3(D) of this Rule.

B. The Property and any existing residential waste disposal system must satisfy applicable life and safety construction or habitability codes and regulations including, without limitation, the requirements of the Maine State Plumbing Code, as it may be amended from time to time.

99- 346 C.M.R. ch. 7, § 2