Policy on Ability to Pay

Policy on Ability to Pay

  • The applicant must have a steady monthly household income, sufficient to cover mortgage payment, insurance, taxes, and other living expenses.
  • Applicant needs to have a satisfactory credit report.
  • All judgments must be paid in full and marked that way on the credit report.
  • 2 years since discharge date on either borrower or spouse with bankruptcy.
  • 5 years since foreclosure or deed-in-lieu of foreclosure.
  • Income of all household members must be listed.
  • Total gross household yearly income should be between those indicated in a table developed annually from HUD recommendations.  The following table is an example and represents the income range for Mercer County in 2016:






1-3 $16,000 $32,00
4 $17,900 $35,700
5 $19,300 $38,500
6 $20,700 $41,500
7 $22,000 $47,000