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Vermont Homeownership Programs and Financing

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

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Vermont Homeownership Programs and Financing

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  1. Vermont Homeownership Programs and Financing

  2. AGENDA Programs • Vermont Community Land Trusts • Vermont HomeOwnership Centers Financing • VHFA • USDA Rural Development • VHCB HOMELAND • VSHA Homeownership Voucher Program

  3. Vermont Community Land Trusts • Developers • Owners of Affordable Rental Housing • NeighborWorks HomeOwnership Centers

  4. Vermont HomeOwnership Centers • Homebuyer’s Workshops • Counseling • Pre-purchase • Delinquency and Foreclosure • Resource and Referral to loan programs and products and housing professionals • Access to Grants • Revolving Loan Funds – • Health and Safety • Well and Septic • Energy Conservation www.vthomeownership.org

  5. VHFA • Offers low interest loans for eligible borrowers through participating banks, savings and loans, and credit unions. • Products • MOVE • Cash Assistance • HOUSE • Limited Refinance

  6. USDA Rural Development • Direct loan program (502) • Subsidized loans to eligible borrowers • Below 80% median income • Regional offices originate loans • Guaranteed Loan Program • Offered through local lenders • Eliminates need for down payment or mortgage insurance • Repair Loan Program (504)

  7. Community Land Trust Model • HOMELAND grants provide both initial and perpetual affordability. • One-time investment by the State. • Homeowners share appreciation when they sell

  8. HOMELAND Shared Appreciation Program What Happens When I Sell My Homeland House At Purchase Original Appraised Value $175,000 Original Purchase Price $175,000 CLT Grant -- $ 35,000 Original Net Purchase Price $140,000

  9. Appreciation that Owner Earns $50,000 x 25% = $12,500

  10. What Owner Makes on Sale $152,500 Option Price - $135,000 Pay off of Mortgage $ 17,500 = $12,500 appreciation + $5,000 mortgage principal

  11. Amount ‘Banked’ in Perpetual Trust Original Grant $35,000 Shared Appreciation + $24,000 TOTAL $59,000 $225,000 - $166,000 = $59,000

  12. VSHA Homeownership Voucher Program • Comparable to Section 8 Rental Voucher • Subsidizes PITI and maintenance costs of owning a home • Available to existing rental voucher holders. Waiting list to join is closed for people without rental vouchers.

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