OkAT LOAN POLICY

The Purpose of the Alternative Financing Program (AFP) also known as the Assistive Technology Lending Program is to assist Oklahomans with disabilities to secure the assistive technology they need to become more independent and productive members of the community with an improved quality of life.

The OkAT provides low-interest loans with favorable terms and conditions through the participating financial institution, BancFirst of Stillwater; and provides loan guarantees so that people with disabilities and their families may acquire assistive technology.  The loan can not be used to refinance a previous purchase.  The Board of Directors consists of nine individuals, the majority of which have disabilities or family members with disabilities.  The Board meets quarterly to conduct business or via teleconference as needed to make loan guaranty decisions.

Loan Criteria

While OkAT provides guaranty for low interest loans to persons denied a low interest loan by BancFirst, the loan criteria established must have a reasonable expectation that the borrower will repay his or her loan. Generally, OkAT is looking for a pattern of stability in its loan applicants in areas such as type of residence, length of time at residence and length of time at present job.  It is also looking for a pattern of stability with respect to credit history.  Where credit problems have arisen, it is essential that the applicant is doing something about those problems.  This includes reducing current debt, assuring cash flow is sufficient for living expenses and loans, and making written arrangements with creditors.

The two most important criteria for an OkAT loan guaranty are credit history and capacity to repay.  A pattern of adverse credit that cannot be adequately explained and is not being dealt with will result in a declined application.  Similarly, an individual who does not have adequate resources after paying all other obligations (as measured by a debt service to income ratio) may not be approved for a loan guaranty.

While the Board may make exceptions for individuals who can prove their ability to repay, a 50% debt service to income ratio (including the monthly payment for the new OkAT loan) is typically required for loan approvals.  Applicants who do not meet that requirement may provide a qualified co-applicant.

The Loan Coordinator will ask individuals having debt or credit issues to provide additional financial and/or other information in order to qualify for a loan guaranty.  Individuals having unacceptable credit may provide a qualified co-signer.  If the Board can not verify that an applicant's poor credit history is directly related to the individual’s disability, the Board will generally decline an OkAT guaranteed loan application.  OkAT will also generally deny individuals who do not have stability in their financial and personal lives.

Residence: If the Borrower owns or rents his or her own residence and payments have been on time for at least the past year, stability is demonstrated.

Length of time at residence:  The OkAT prefers a minimum of a year’s stay, unless:

• A recent move was necessitated by a promotion, or
• The individual's relocation is related to their disability

Length of time at present job: While applicants do not have to be employed to qualify for an OkAT loan, a minimum of one year’s continuous employment demonstrates stability and increases the likelihood of loan repayment.  Exceptions to this guidance include if the:

• Change is related to recent promotion
• Change of employment is related to the disability

Credit history: Credit history priorities are as follows:

• No adverse credit history.
• Good credit within the past year. Previous credit problems have been worked out with the creditors.  Additional documentation may be requested.
• Poor credit history, including bankruptcy, will be considered if related to the individual’s disability.  Certain slow pay situations will be considered.
• Poor credit history is generally unacceptable if not related to the individual’s disability.

Debt to Income Ratio

• The OkAT will generally approve an applicant with a 50% debt to income ratio if the borrower can adequately document sufficient cash flow for the loan.
• Individuals with subsidized living arrangements may qualify for a guaranteed loan even if their debt to income ratio exceeds 50%.  Qualifying borrowers must document that they have sufficient resources to pay for all living expenses and still have a reasonable expectation of repayment before a loan may be considered by OkAT.
• The Board may approve loan guaranty to individuals who have additional projected income, which is verifiable.
• Individuals having approval for special funding (such as a Plan to Achieve Self Support or PASS through SSA) will be considered without regard to their debt to income ratio.

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