A FHA loan is preferred but a Conventional (conforming and non-conforming), VA, Portfolio and Rural Development mortgage loan are also accepted.  

1. A fixed interest rate for the duration of the loan is required. 
2. The total PITI (principal, interest, taxes, and insurance) payment (front ratio) is not less than 20% and not more than 35% of the monthly income of the eligible homebuyer. With lender approval, the upper percentage may be slightly exceeded under extenuating circumstances that demonstrate the buyer’s ability to handle higher payments.  The maximum allowable total debt-to-income ratio (back ratio) is 45% (participating lenders may require a lower percentage).   
3. Loan origination fees can not exceed 2%, no exceptions.  
4. Loan terms must be 15 to 30 years.  
5. No pre-payment penalties.  
6. Assets listed on line 1003 may be counted as 5% towards income.  The assets added into income may result in buyer being ineligible for down payment and closing cost assistance. 
7. The City of Tyler’s lien will be in second lien position. 
8. The City of Tyler will not subordinate its lien to any other lien other than that of First Lender. In no event will City of Tyler subordinate its lien to any subsequent liens. 
9. Seller’s contribution can be up to 6%, but buyer can not receive money back at closing. 
10. Buyer may use other assistance programs or gifts towards down payment and closing costs but it must be approved by The City of Tyler.