LENDER GUIDELINES
CITY OF CAPE CORAL
AFFORDABLE HOUSING PROGRAMS
- Financing should be by institutional lenders of 501(c)3 not-for-profit agencies whose primary mission is providing affordable housing
- Fixed Interest Rate Loans – No adjustable rate mortgages (ARMS) or balloon payments
- Thirty year (30) maximum amortization
- Minimum buyer cash contribution is $2,000
- Gift funds not included in buyers $2,000 cash contribution
- Property taxes and hazard insurance must be escrowed
- Maximum debt ratios: 33% front end recommended, will consider up to 36% on case-to-case basis; 42% back end.
- Interest rate – Fannie Mae 30 Year/60-day RNY plus 4%
- Combined loan-to-value not to exceed 100% the appraised value
- Lender fees not to exceed 3% of the loan value (application fee, appraisal review, closing fee, commitment fee, discount points, document preparation fee, origination fee, processing fee, underwriting fee, partner fee, mortgage broker fee, administration fee)
- Any exceptions to these requirements must be justified and documented to the SHIP Administrator for the City of Cape Coral
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