Hawaii Administrative Rules › Title 6 - DEPARTMENT OF BUDGET AND FINANCE › Division - EMPLOYEES' RETIREMENT SYSTEM › Chapter 27 - MEMBER HOME LOAN PROGRAM › Section 6-27-11 - Monthly mortgage payment to income ratio

Current through June, 2024
(a) As
				used in this section:
"Applicant" means any person signing the note or mortgage, or
				  both, and occupying the subject property, including an eligible member.
"Guarantors, endorsers, or co-signers" means the persons
				  signing the note or mortgage, or both, but who may or may not be occupying the
				  subject property.
(b) As a
				general rule, the lender shall require that the applicant's monthly mortgage
				payment does not exceed twenty-eight and one-half percent of the applicant's
				stable monthly income less any monthly debt payments.
(c) Monthly mortgage payment shall include
				first mortgage payment, hazard and flood insurance payments, lease rent,
				property taxes, and monthly dues for common element/property charges and
				maintenance, but excluding unit utility charges for condominiums and property
				with similar dues and charges.
(d)
				Monthly debt payment shall include all monthly payments on installment debts
				having a remaining term of one year or more. Secondary financing for the
				subject property, mortgage loan payment for other properties, alimony, child
				support, and separate maintenance payments shall be considered installment
				debts, unless the obligations terminate within one year.
(e) Stable monthly income is the applicant's
				gross monthly income from the applicant's primary employment base earnings plus
				recognizable secondary income averaged for the past twelve months. Secondary
				income of the applicant, such as rental income, overtime or part-time
				employment may be included in stable monthly income only if those items of
				secondary income are substantiated by written evidence of the applicant's
				previous year's earnings and that the continuation thereof is probable.
				Interest and dividends may be considered if substantiated by written evidence
				and averaged for the past two years. Rental income for the subject property may
				be considered if substantiated by written evidence.
(f) If the applicant chooses to disclose
				income from alimony, child support, or maintenance payments, the lender may
				consider those payments as income to the extent that they are likely to be
				consistently made. Factors which the lender may consider in making that
				determination include, but shall not be limited to:
(1) Whether the payments are received
				pursuant to written agreement or court decree;
(2) The length of time the payments have been
				received;
(3) The regularity of
				payments;
(4) The availability of
				procedures to compel payment;
(5)
				Whether full or partial payments have been made;
(6) The age of any child; and
(7) The creditworthiness of the payer,
				including the credit history of the payer where available to the lender under
				the Fair Credit Reporting Act (
				15 USC
				§§1681 -
				1681t ) or
				other applicable laws. The lender shall submit to the system evidence to
				support its determination.