Current through Register Vol. XLI, No. 50, December 13, 2024
Section 88-4-6 - Program Loan Terms and Conditions6.1. The amount of a program loan shall not exceed 100% of the value of the statewide allowable purchase price limit for the program of $350,000, as determined by the West Virginia Housing Development Fund.6.2. Each program loan must be fully insured or guaranteed by Federal Housing Administration, Veteran's Affairs, United States Department of Agriculture or an acceptable Private Mortgage Insurance company.6.3. The maximum program loan amount that borrowers can finance shall be the maximum amount allowed by the insurer or guarantor, as the case may be, provided it does not exceed the purchase price limit of $350,000.6.4. Each program loan must be secured by a first lien deed of trust upon the property.6.5. The borrower must contribute a minimum of $2,500 of the borrower's own funds toward the transaction. The minimum contribution may be used toward paying closing costs.6.6. Program loans shall be 30-year, fixed rate loans.6.7. The program loan interest rate shall be 1% lower than the West Virginia Housing Development Fund's Homeownership Program rate or the Fannie Mae 60-day lock rate, whichever is lower, and shall be posted on the West Virginia Housing Development Fund's website.6.8. The lender may charge and collect lender fees not exceeding the amount allowable in the Procedural Guide.6.9. Program loans must be processed and underwritten to Federal Housing Administration, Veteran's Affairs, or United States Department of Agriculture guidelines, depending on the loan type, in accordance with the Procedural Guide. Federal Housing Administration loans must also comply with the West Virginia Housing Development Fund's credit score and debt-to-income overlays set forth in the Procedural Guide. Conventional loans with private mortgage insurance must be processed and underwritten to Fannie Mae guidelines.