Homebuyers must obtain an eligible first mortgage loan from an LAHD-approved Lender. Eligible first mortgages must meet the following conditions:
- Fannie Mae or Freddie Mac
- Conventional or FHA
- 30- to 40-year fixed
- Fully amortized
- Maximum back-end ratio (DTI) of 42%. May be increased to 50% with acceptable documented compensating factors.
Talk to your LAHD-approved lender if you have questions about these requirements.