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Vermont Homeownership Programs and Financing. AGENDA. Programs Vermont Community Land Trusts Vermont HomeOwnership Centers Financing VHFA USDA Rural Development VHCB HOMELAND VSHA Homeownership Voucher Program. Vermont Community Land Trusts. Developers - PowerPoint PPT Presentation
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Vermont Homeownership Vermont Homeownership Programs and FinancingPrograms and Financing
AGENDAAGENDA
Programs Programs Vermont Community Land TrustsVermont Community Land TrustsVermont HomeOwnership CentersVermont HomeOwnership Centers
FinancingFinancingVHFAVHFAUSDA Rural DevelopmentUSDA Rural DevelopmentVHCB HOMELANDVHCB HOMELANDVSHA Homeownership Voucher ProgramVSHA Homeownership Voucher Program
Vermont Community Land TrustsVermont Community Land Trusts
DevelopersDevelopersOwners of Affordable Rental HousingOwners of Affordable Rental HousingNeighborWorks HomeOwnership CentersNeighborWorks HomeOwnership Centers
Vermont HomeOwnership CentersVermont HomeOwnership CentersHomebuyer’s WorkshopsHomebuyer’s WorkshopsCounselingCounseling– Pre-purchasePre-purchase– Delinquency and ForeclosureDelinquency and Foreclosure
Resource andResource and Referral to loan programs and Referral to loan programs and
products and housing products and housing professionalsprofessionalsAccess to GrantsAccess to GrantsRevolving Loan Funds –Revolving Loan Funds –– Health and SafetyHealth and Safety– Well and SepticWell and Septic– Energy ConservationEnergy Conservation
www.vthomeownership.org
VHFAVHFA
Offers low interest loans for eligible Offers low interest loans for eligible borrowers through participating banks, borrowers through participating banks, savings and loans, and credit unions.savings and loans, and credit unions.ProductsProducts– MOVEMOVE– Cash AssistanceCash Assistance– HOUSEHOUSE– Limited RefinanceLimited Refinance
USDA Rural DevelopmentUSDA Rural Development
Direct loan program (502)Direct loan program (502)– Subsidized loans to eligible borrowersSubsidized loans to eligible borrowers– Below 80% median incomeBelow 80% median income– Regional offices originate loansRegional offices originate loansGuaranteed Loan ProgramGuaranteed Loan Program– Offered through local lendersOffered through local lenders– Eliminates need for down payment or Eliminates need for down payment or
mortgage insurancemortgage insuranceRepair Loan Program (504)Repair Loan Program (504)
Community Land Trust ModelCommunity Land Trust Model
HOMELAND grants provide both initial HOMELAND grants provide both initial and perpetual affordability.and perpetual affordability.One-time investment by the State.One-time investment by the State.Homeowners share appreciation when Homeowners share appreciation when they sellthey sell
HOMELAND Shared Appreciation Program HOMELAND Shared Appreciation Program What Happens When I Sell My Homeland HouseWhat Happens When I Sell My Homeland House At PurchaseAt PurchaseOriginal Appraised ValueOriginal Appraised Value $175,000$175,000
Original Purchase PriceOriginal Purchase Price $175,000$175,000CLT GrantCLT Grant ---- $ 35,000$ 35,000Original Net Purchase PriceOriginal Net Purchase Price $140,000 $140,000
At ResaleNew Appraised Value $225,000
Original Appraised Value - $175,000
Market Appreciation $ 50,000
Appreciation that Owner Earns$50,000 x 25% = $12,500
Option PriceOriginal Net Purchase Price $140,000Owner’s Share of Appreciation + $ 12,500Price Owner sells house to CLT
$152,500
What Owner Makes on Sale $152,500 Option Price- $135,000 Pay off of Mortgage $ 17,500 = $12,500 appreciation + $5,000
mortgage principal
Price to New BuyerCLT purchase price $152,500CLT Stewardship Fee (6% of new appraised value) + $ 13,500Price to New Buyer $166,000
Amount ‘Banked’ in Perpetual TrustOriginal Grant $35,000 Shared Appreciation + $24,000 TOTAL $59,000
$225,000 - $166,000 = $59,000
VSHA Homeownership Voucher VSHA Homeownership Voucher ProgramProgram
Comparable to Section 8 Rental VoucherComparable to Section 8 Rental VoucherSubsidizes PITI and maintenance costs of Subsidizes PITI and maintenance costs of owning a homeowning a homeAvailable to existing rental voucher Available to existing rental voucher holders. Waiting list to join is closed for holders. Waiting list to join is closed for people without rental vouchers.people without rental vouchers.