5 Credit Scoring (20 pts.) Note: LTV = Loan-to-Value Loan Request Amount/Value of Home Standard Mortgage Program: 30-year fixed term, 5% fixed rate, annual payments Following conditions must be met: a) Total Annual Mortgage Payment 28% of Gross Income b) Total annual debt payments (mortgage + other debt payments) c) LTV 0.8 (at least a 20% down payment) 36% of Gross Income First-time Homebuver Mortgage Program: 30-year fixed term, 5% fixed rate, annual payments on first mortgage up to 80% of home value 15-year fixed term, 7% fixed rate, annual payments on second mortgage up to 15% of home value Following conditions must be met: a) Total Annual Mortgage Payments 28% of Total Gross Income b) Total annual debt payments (mortgage + existing debt payments) $ 36% of Total Gross Income c5% minimum down payment Note: For the first-time homebuyer program, the first mortgage is maxed out first at 80% of the value or purchase price of the home. The second mortgage is then used to cover the difference between the remaining 20% of the purchase price and the down payment the buyer is able to make