A.
Loan
Periods. The term of each loan shall be based on the applicant's
circumstances and the useful life of the collateral. Typical Repayment periods
for various types of loan are shown below:
1.
Computers and adaptive peripherals - 3 years
2.
Stand-alone reading and magnification devices - 5 years
3. Hearing Aids - 4 years
4. Wheelchairs or scooters - 5
years
5. Building modifications - 10
years
6. New vehicles that need
adaptations (including when there is another funding source for the
adaptations) - 7 years.
7. Used
vehicles that need adaptations (including when there is another funding source
for the adaptations) - 6 years
8.
Lifts and elevators - 10-20 years
9.
Furniture, beds and mattresses - 7-10 years
10. Other - If AELP has not established a
loan period for specific type of adaptive equipment or assistive technology
knowledgeable individuals will be consulted to determine and assess the
expected useful life.
C.
Examples of Adaptive Equipment and
Assistive Technology.
AELP will facilitate loans to purchase a broad array of
adaptive equipment and assistive technology. Examples include, but are not
limited to the following:
1.
Wheelchairs and scooters
2. Braille
note takers
3. Assistive listening
devices
4. Telecommunications
devices
5. Electronic aids to daily
living
6. Visual aids with voice
output or magnifying features
7.
Computers, tablets and adaptive peripherals, applications
8. Building modifications for accessibility
including labor
9. Motor vehicles
that have been adapted or need adaptations
10. Hearing aids
11. Seat lift chairs
12. Recreational equipment including adapted
bicycles, Nintendo Wii
E.
Credit Worthiness and Capacity to
Repay the Requested Loan. The criteria discussed below seek to produce a
reasonable expectation that the applicant will repay the loan in full. The
three most important criteria for an AELP loan are credit history, debt-to-
income ratio, and capacity to repay. When the applicant has a history of credit
problems, the applicant must be able to demonstrate that he or she has a
workable plan to deal with those problems. A pattern of adverse credit actions
that cannot be adequately explained and has not been adequately dealt with will
result in a decision not to approve a loan.
Similarly, an applicant who does not have adequate cash
available to pay for a new loan after taking care of other financial
obligations will not be approved for a loan. If the applicant has experienced a
bankruptcy, she/he must be cleared from discharge for a minimum of one
year.
The following criteria will be examined in underwriting the
loan application:
1.
Proof of Income. An applicant will be required to
provide proof of his/her current income. Acceptable documentation includes, but
is not limited, to copies of IRS income tax return, a pay stub, W-2 form, child
support, survivor benefits, an SSDI or SSDI Award Letter.
2.
Timely Payment of Residence
Expense. If the applicant owns or rents his or her residence,
he or she must demonstrate that payments to the mortgage lender or landlord
have been made in a timely fashion for previous 12 months.
3.
Credit
History. Experian credit reports, as well as AELP's previous
lending experience with the applicant, if any, are the primary sources of
determining the applicants' repayment habits.
Provided the additional criteria below are met, AELP will
accept an Experian credit reporting score of 0 (no credit history) or 569 and
higher. If there are co-applicants, AELP will use the higher of the credit
scores to determine eligibility. If the applicant has experienced any of the
credit problems describe below within 12-month period preceding the
application, the applicant must demonstrate resolution of the credit problem,
or the loan application will be denied.
4.
Credit Problems Within the
Past Twelve Monthsa.
Delinquency with a Creditor. If the applicant has been delinquent
with a creditor within the past 12 months, the applicant must adequately
explain the reason for delinquency and provide satisfactory evidence that the
delinquency has been cured.
If any of the following items are on the credit report and
designated as "not paid," evidence of full payment or a payment arrangement in
place will be required: tax liens, civil judgments, levies, or child support
obligations (both payments and receipts). If any of these items are on the
credit report, but designated as paid, no additional evidence of payment will
be required.
If the applicant indicates the child support payments are
being paid, and there is nothing on the credit report or other available data
to suggest otherwise, then no additional evidence of payment will be
required.
b.
Collection Accounts. If an account in collections is less than 1
year from last activity, payment arrangements must be established by the
applicant (s). If the collection account has gone over a year since last
activity and is over $100 it must be paid in full.
c.
Medical Collections. Medical
collections if related to the applicant's disability are excluded from credit
evaluation, but in all events the applicant must still demonstrate a positive
discretionary income as described above including medical collection payment at
issue.
d.
Education
Loans. Applicant must provide evidence of payment arrangements or
deferment, including when re- payment will begin; education loans are generally
not forgiven or discharged in bankruptcy.
e.
Mortgages. If mortgaged loans
are being modified or refinanced, evidence from the lender must be provided.
Mortgage foreclosures must be explained in writing.
f.
Ability to Repay. After a
careful examination of these credit issues, the AELP Financial Service Provider
must be satisfied that the applicant has the capacity and credit worthiness to
repay the requested loan in full. An Applicant who lacks acceptable credit may
apply or reapply with a qualified co-applicant or may apply for a loan at a
later time should his/her financial circumstances change.
5.
Debt-to-income
ratio. AELP requires documented proof of all income and debts.
Up to a year of the most recent bank statements may be required to show all
recurring debts. In the first instance, AELP looks for a debt-to income ratio
of less than 50%. "Debt-to-income ratio" as used here means
the relationship of an applicant's fixed monthly debt to his/her monthly
income. AELP will accept a 50% or higher debt-to-income-ratio if, but only if,
the applicant can adequately document sufficient cash flow to make loan
payments after meeting all other outstanding obligations and expenses. That is,
the applicant must document positive discretionary income after the requested
loan payment. The applicant's monthly AELP loan payment will be included in the
debt-to -income ratio calculation. If co-applicant is on application, AELP will
consider the combined debt-to income ratio.
6.
Discretionary
Income. "Positive Discretionary Income" means that the
applicant has documented reliable income in excess of the applicant's monthly
expenses, including all necessary and reasonable living expenses, all debt and
expense obligations incurred, and the monthly payment obligations for the
requested loan and any insurance that may be required for the equipment and/or
device to be purchased. Applicants with a debt-to-income ratio of 50% must
demonstrate positive discretionary income of at least 50% of the applicant's
proposed loan payment. In calculating discretionary income, the following will
be included in evaluation of income and expenses. Expenses include, but not
limited to, groceries, medical bills, utilities (heat, sewer, water, phone,
etc.), rent/mortgage, real estate taxes, auto/transportation costs, clothing,
insurance, education, credit card payments, child support or alimony, and other
miscellaneous debts or expenses. AELP may require documentary proof for any or
all these expenses. Income includes but not limited to, all wages, salary,
commissions, interest, pensions, and other sources of financial support such as
employment -related disability benefits, Supplemental Security Income (SSI),
Social Security Disability Income (SSDI) and Social Security retirement
benefits.
7.
Credit
Reports. AELP will conduct its own credit checks on all
applicants by using a recognized credit reporting agency.
