Home Ownership Works is designed to address the goal of providing home ownership opportunities for households who otherwise would have difficulty in attaining home ownership.

* It provides decent, long term affordable home ownership opportunities for households who would normally experience challenges in achieving home ownership.

* Address the problem of vacant and deteriorated structures

* Helps the City maintain a base of owner occupants and provides housing opportunities to households who find it increasingly difficult to qualify for a mortgage.

* Helps combat the Impacts of the foreclosure crisis

 

Income Restrictions:

Household Size: 1 person 44,950, 2 person 51,400, 3 person 57,800, 4 person 64,200, 5 person 69,600, 6 person 74,750, 7 person 79,900, 8+ person 84,500

* Must be the owner occupied property and can not use for a home business Day Care is not allowed

* Must purchase for the after-rehab fair market value, determined by appraisal

* Buyers must attend a pre-purchase counseling session with listing agent before the offer to purchase is presented to the seller.  You must also attend Homebuyer Workshop presented by the Home Ownership Center

RESALE RESTRICTIONS if there is no direct HOME assistance to the home buyer, buyer must sign a note, mortgage and declarations of restrictive convenants which provides that during the period of affordability (15 years), the home can only be sold to a low-moderate income buyer during the first 6 years after closing, and the seller must re-pay 50% of any net proceeds upon and real, trannsfer or refinancing of the prioperty as defined in the note and after the sixth year,. The percentage of net proceeds required to be repaid upon resale declines 5% per year.

Recapture: If there is direct Home assistance to the home buyer, buyer must sign a note and mortgage for the amount of assistance and if the home is sold must repay the full amount of the assistance.  If there is a decline in the fair market value  upon a sale to a bon fide buyer, the city may forgive a portion of the loan amount to share in the loss with the home owner.

 

BUYER MUST HAVE 1% of their own funds towards down payment

Buyer must obtain a front ratio of 28%-30%

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