Borrowers in the following professions may qualify for 1- or 2-unit property under terms and conditions that are less restrictive than standard guidelines (Higher loan to value limits, lightened credit requirements, for purchaces and refinancing):

Teachers

• Teacher or administrator (including principal, vice principal, librarian or healthcare specialist or a similar professional at the elementary or secondary levels), and
• Full-time employee of a public or private school or federal, state, county or municipal educational agency, and
• State certified, be in the process of becoming state certified or be employed by a school that is recognized by a state or regional accrediting association.

Public Safety Employee

• Full-time sworn employee of a police department, sheriff's office or corrections department that is a part of or administered by the federal government, a state a political subdivision of a state, a commission created by an interstate compact, a university, a hospital, a utility, or an airport or port authority who is responsible for the prevention and detection of crime, the enforcement of the penal, traffic, or highway laws, or the incarceration or detention of offenders, or
• Full-time sworn member of a local, state, or federal fire department or agency and responsible for at least one of the following:
  • Fire suppression
  • Emergency medical response and patient care
  • Fire and injury prevention
  • Arson investigation
  • Hazardous materials incident response and management
  • Response to acts of terrorism.

Income Verification - Teachers or Public Safety Employees Only:

For borrowers qualifying as a teacher or public safety employee, overtime and part-time income may be used to qualify the borrower under all of the following conditions:

• The employer verifies that the borrower has received the income for the last 12 months. (2 years for most all other borrowers)
• The employer indicates in all probability it will continue.
• The income used to qualify is a most recent 12 month average.
• Rental Income: If one of the units is rented or intended to be rented, 75% of the rent or projected rents for the unit may be added to the borrower's income when calculating the debt ratios.
  

Debt Ratios Comparrison:

Non-teacher/public safety borrowers:

• The maximum single qualifying ratio (total-expenses to total-income ratio) is 41%.

Borrowers qualifying as a teacher or public safety employee:

• The maximum single qualifying ratio is 45%.

Note: Borrowers qualifying as a teacher or public safety employee may have a qualifying ratio greater than 45% and equal to 50% with all the following requirements:

• The borrower must have two months reserves. The borrower must meet all the credit requirements shown in
• the credit section, except the borrower must in all cases have a traditional or nontraditional credit report.
• The borrower must have strong documented compensating factors.
• All two unit properties: The maximum qualifying ratios are 35/43%.

NOTE: Reserves are not required for standard borrowers but 2 months are required if borrower is a Teacher or Public Saftey Employee (Reserves are a required amount of funds that are readily available as liquid cash for making a determined number of monthly mortgage payments)

(See:  97-105% Purchace Financing)