NAC319.568. Requirements for deferred mortgage loans.

Each deferred mortgage loan financed by the Division must:

     1. Be of an amount that:

     (a) Does not reduce the ratio of mortgage payment to income of the eligible applicant, calculated as prescribed by the Federal Housing Administration, below 29 percent; or

     (b) Does not reduce the ratio of total fixed payment to income of the eligible applicant, calculated as prescribed by the Department of Veterans Affairs, below 41 percent;

     2. Not provide for money to be used for any purpose other than the down payment or the closing costs, or both;

     3. Not provide to the eligible applicant at closing any cash refund that is $50 or more;

     4. Not create a ratio of combined loan to value, including the mortgage loan and the deferred mortgage loan, exceeding 100 percent; and

     5. Meet the applicable requirements of the HOME Investment Partnerships Act, 42 U.S.C. §§ 12701 et seq.

     (Added to NAC by Housing Div. by R136-03, eff. 11-26-2003)