Virginia Administrative Code › Title 13 - HOUSING › Agency 10 - VIRGINIA HOUSING DEVELOPMENT AUTHORITY › Chapter 40 - RULES AND REGULATIONS FOR SINGLE FAMILY MORTGAGE LOANS TO PERSONS AND FAMILIES OF LOW AND MODERATE INCOME › Part II - Program Requirements › Section 13VAC10-40-100 - Maximum gross income

Current through Register Vol. 40, No. 24, July 15, 2024
A. As
				  provided in
				  13VAC10-40-50
				  A5, the gross income of an applicant for an authority mortgage loan may not
				  exceed the applicable income limitation imposed by the U.S. Department of the
				  Treasury. Because the income limits of the authority imposed by this section
				  apply to all loans to which such federal limits apply and are in all cases
				  below such federal limits, the requirements of
				  13VAC10-40-50
				  A 5 are automatically met if an applicant's gross income does not exceed the
				  applicable limits set forth in this section.
B. Gross income is calculated by projecting
				  gross income forward for the 12-month period beginning on the date of loan
				  application. Typically, income such as bonuses, overtime, and commissions will
				  be averaged for the most recent 12-month period. If information is unavailable
				  for this period, the originating lender may average the past year and
				  year-to-date bonuses, overtime, and commissions. This average multiplied by 12
				  will be added to current base salary to determine gross income. All such
				  earnings must be included in gross income unless the employer documents that
				  such earnings will not be continued. The following are included in gross
				  income: base salary, overtime, part-time employment, bonuses, dividends,
				  interest, royalties, pensions, Veterans Administration compensation, net rental
				  income, alimony, child support, public assistance, sick pay, social security
				  benefits, unemployment compensation, income from trusts, and income from
				  business activities or investments.
C. The executive director shall, from time to
				  time, establish the applicable maximum gross incomes. Each such maximum gross
				  income shall be expressed as a percentage (which may be based on the number of
				  persons expected to occupy the dwelling upon financing of the mortgage loan) of
				  the applicable median family income or as a dollar amount, which percentage or
				  dollar amount may vary by loan program and geographic region as determined by
				  the executive director, after taking into consideration such factors as he
				  deems appropriate, including, without limitation, the following factors:
1. The current and anticipated financial
				  resources available to the authority to make mortgage loans;
2. The current and anticipated financial
				  resources available to potential applicants from sources other than the
				  authority to finance mortgage loans;
3. The current and anticipated demand for
				  mortgage loans;
4. The prevailing
				  mortgage loan terms available to potential applicants; and
5. The current and anticipated need for
				  targeted or subsidized lending in each region based upon financial conditions
				  and the housing market in such region.