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Vermont Homeownership Programs and Financing. AGENDA Programs Vermont Community Land Trusts Vermont HomeOwnership Centers FinancingVHFA USDA Rural Development.

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Presentation on theme: "Vermont Homeownership Programs and Financing. AGENDA Programs Vermont Community Land Trusts Vermont HomeOwnership Centers FinancingVHFA USDA Rural Development."— Presentation transcript:

1 Vermont Homeownership Programs and Financing

2 AGENDA Programs Vermont Community Land Trusts Vermont HomeOwnership Centers FinancingVHFA 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 Referral to loan programs and products and housing professionals Access to Grants Revolving Loan Funds – –Health and Safety –Well and Septic –Energy Conservation

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 At Resale New Appraised Value $225,000 Original Appraised Value- $175,000 Market Appreciation $ 50,000 Appreciation that Owner Earns $50,000 x 25% = $12,500

10 Option Price Original Net Purchase Price $140,000 Owner’s Share of Appreciation+ $ 12,500 Price 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

11 Price to New Buyer CLT purchase price $152,500 CLT Stewardship Fee (6% of new appraised value)+ $ 13,500 Price to New Buyer $166,000 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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