Interested in buying a home? Have you spoke with a lender and are unable to get pre-qualified due to low credit, not enough income, high debt-to-income ratio, or perhaps, all of the above? The Northshore Housing Initiative may be able to help!
According to their website, "The Northshore Housing Initiative is our area’s first Community Land Trust (CLT), a non-profit community organization that makes the dream of home-ownership an affordable reality for qualifying individuals and families." The idea behind this grant program is to pay it forward. "The community land trust model allows the moderate-income home-buyer to purchase a house while the community land trust invests in ownership of the land. The land is leased to the home-buyer by the trust with a limited appreciation formula that preserves affordability for the next buyer."
3. Pre-qualify with a NHI approved lending partner
4. Get approval from NHI selection committee
5. Attend a NHI home-buyers class (mandatory, around $35)
6. Find your PERFECT home!
This sounds too good to be true! What's the catch?!
Here is my pro/con list about the program...
1. Helps low-income buyers get into a home
2. Helps buyers get MORE house than what they could afford with a traditional loan/ mortgage program because NHI fronts 20% as a down-payment
3. NHI does not assist with purchase of homes in a flood zone (A/AE)
1. As of now, NHI only supports purchases in St. Tammany parish
2. NHI is able to front 20% as a down-payment because they purchase the land.
Wait. HUH!? Allow me to elaborate...
Think of a condo or townhouse. You own the house and use the land freely to grill, walk your dog, put up a slip n' slide, etc. This same principle applies to the NHI land grant program! They purchase the land and you own full rights to USE the land. You're welcome to put up a fence, in-ground pool, dye your grass Saints Black and Gold.. anything! In return, you pay NHI to "lease" the land, a VERY small fee.. sometimes as low as $5!!
Also, this means you aren't required to pay ANY property tax on the land! Again, more savings!
3. When you sell your home, you have to pay forward the savings to an applicant that qualifies for the same program. This is how the land trust pays the savings forward to future, low-income home-buyers.
So you're interested in applying. What's next?
Apply using the link above. We'll meet with a NHI counselor to determine your eligibility, visit a bank (NHI approved lender) to apply to their loan program, and find your dream home! The home-buying process is the same as if you've obtained a traditional mortgage.
Barden Realty is YOUR LOCAL real estate team here to help you fulfill for ALL of your real estate needs! Originally started in Mandeville, La., we specialize in assisting home buyers and sellers of all kinds. We look forward to helping you!