North Carolina Administrative Code › Title 24 - INDEPENDENT AGENCIES › Chapter 01 - N.C. HOUSING FINANCE AGENCY › Subchapter D - SINGLE FAMILY MORTGAGE PURCHASE PROGRAM › Section .0100 - GENERAL INFORMATION › Section 01D .0102 - ELIGIBLE PERSONS AND FAMILIES

Current through Register Vol. 39, No. 2, July 15, 2024
(a) For
				  loans purchased with the proceeds of all bonds other than tax exempt bonds
				  issued after January 1, 1987:
(1) The agency
				  hereby finds and declares that income eligible persons and families, within the
				  meaning of the act, are deemed to be those persons and families who satisfy the
				  following criteria: insufficient total income, when size of family is
				  considered, to obtain on the normal housing market without subsidy, from
				  available housing supply in a given geographical area of residence in North
				  Carolina, housing found to be decent, safe and sanitary. The agency has
				  carefully considered all the factors which the General Assembly has specified
				  in the statutory definition of "persons and families of lower income." A
				  purpose of the act is to foster the new construction and substantial
				  rehabilitation of residential housing in the state for persons and families of
				  lower income by assisting in the permanent financing of such housing and that
				  the income limits used by the agency in ascertaining who are "persons and
				  families of lower income" must reflect, among other things, the costs of such
				  newly constructed and substantially rehabilitated housing. The General Assembly
				  intended, by means of the act, to assist not only those persons and families
				  eligible for federal housing assistance predicated on a lower income basis, but
				  also those persons and families whose incomes are too high to qualify them for
				  such federal assistance but are too low to enable them to obtain, without
				  governmental assistance, a mortgage loan to finance the purchase of a decent,
				  safe and sanitary home. The agency can best effectuate the purposes of the act
				  by establishing income limits for income eligible persons and families for
				  specific areas of the state which represent the agency's determination of the
				  maximum income level which persons and families in such area may have in order
				  to qualify for assistance under the act. Income eligibility is defined as a
				  function of median income by area, construction costs, and mortgage loan
				  underwriting criteria. Each factor is applied as follows to achieve an
				  equitable result:
(A) The agency used 150
				  percent of median income.
(B)
				  Housing construction costs were determined for a prototype of a modest house in
				  various areas of the state. The Marshall Swift Handbook was used to establish
				  the base construction costs. Finally, minimum lot costs in rural and urban
				  areas were added to the construction cost determinations to produce a finished
				  housing cost for urban areas and for rural areas.
(C) Mortgage lending industry underwriting
				  standards which establish the amount of loan for which a borrower may qualify
				  will be used by the agency. The agency assumes that the borrower would seek 100
				  percent financing at the FHA/VA maximum rate on a 30 year amortization and that
				  the borrower would be restricted to using 28 percent of his gross monthly
				  income to make the monthly mortgage payment which would include principal
				  interest, taxes and insurance.
(D)
				  Composite figures for median income and for housing cost and mortgage loan
				  underwriting were calculated upon the following premises:
(i) The median income factor relates to
				  eligibility for other housing predicated upon a lower income basis.
(ii) The house cost/underwriting figure
				  establishes minimum financial eligibility in the normal hous­ing
				  market.
The combination of the two figures at a 50:50 ratio
					 establishes the maximum income limits for the agency.