DEBT-TO-INCOME RATIO REDUCTION

LOAN PROGRAM:

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The MJFLA Debt-to-Income (DTI) Ratio Reduction Loan Program provides interest-free loans up to $7,500 to referred participants of homebuyer education programs from four community partners, including Acts Housing, Habitat for Humanity, Housing Resources Inc. (HRI), and the United Community Center (UCC). Applicants are required to have sufficient income to repay the loan and must be referred by their Financial Coach or Loan Officer. Loan terms will include repayment over a maximum of 36 months. As loans are repaid, those payments will be recycled into loans to help more First-time Homebuyer Coaching participants.

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How to Apply:

1.    Ask your financial coach or loan officer for the link to submit the online application. Printed applications are available at the Acts Housing, Habitat for Humanity, HRI, and UCC offices.

2.   Submit your application and read the confirmation email that you receive after submitting.

3.   Upload or email your proof of income and bank statements.

4.   Ask your coach to fill out the referral form and provide your monthly budget financial analysis worksheet (if applicable) and credit report to MJFLA.  For those with credit reports dated more than 3 months prior, we will run an Experian soft pull credit report to confirm up-to-date information.

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Loan Committee Review:

This loan typically takes 30 days to process.  Once all documents are received, including all information from your financial coach or loan officer, if the applicant qualifies, then the loan committee will meet to review the application within three days. Once approved, loan documents will be signed and loan funds will be disbursed.

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Repayment:​

• Repayment will begin about 30 days after loan disbursement.

• All payments will be made via monthly ACH transactions from the client's bank account.​​

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