Organization identifies housing unit Homebuyer identifies housing unit (Preferred) House Selection
Initial Inspection Once property is identified, inspection is arranged Inspection completed by qualified inspector Property inspected according to: Minimal Housing Quality Standards, (HQS) DED Housing Rehab Standards Other requirements: City, State, etc.
Review Results of Inspection Rehabilitation specifications reviewed –Review repairs with homebuyer –Review costs with homebuyer –Determine re-sale amount –Determine amount of cash needed from buyer –Determine amount of financing required
Submit Offer to Purchase Purchaser is organization, not homebuyer Amount of offer determined with homebuyers’ input Offer can be cash or loan Offer is “as-is”, no repairs required of seller Set purchase date as soon as possible
Contingencies on Offer to Purchase Homebuyer obtaining loan approval Appraisal to meet purchase price of organization’s homebuyer Acceptable inspections (electrical, plumbing, HVAC, etc.) Lead Based Paint inspection Termite inspection Survey Title Insurance
Appraisal Requirements Appraisal is ordered “subject to” by homebuyers’ lender –Eliminates need to have 2 different appraisals –Allows appraisal to be used for permanent financing If valuation is acceptable, proceed to purchase property
Purchase/Rehab of Property Acquire property with Closing Agent or Realtor Have utilities put into organizations name Give Notice to Proceed to rehabilitation contractors and/or homebuyers –Use “Lead Safe Work Practices” when lead- based paint is present
Resale of Property Determine all repairs are completed Contact lender to have appraiser complete final inspection to review list of repairs were completed according to write-up Establish closing agent, date & location If providing Down Payment Assistance, prepare loan documents as needed Sell property, and finalize sale
Purchase/Rehab/Resell Example PURCHASE PRICE OF HOME: $65,000 Rehab Costs: (+) $ 5,000 Development Fee: (+) $ 5,000 PURCHASE PRICE FOR HOMEBUYER: $75,000 Lender’s Closing Costs: (+) $ 4,500 TOTAL EXPENSES TO BE PAID BY HOMEBUYER: $79,500 Elkhorn Valley CDC’s Down Payment Assistance (20%): (-) $15,000 Buyer’s Cash: (-) $ 1,000 TOTAL CASH AVAILABLE: $16,000 ESTIMATED MORTGAGE LOAN NEEDED: $63,500
We educate and enable individuals and families to be responsible homeowners
We help homebuyers afford the American Dream
Achievements $2,400,000 of down payment and closing cost assistance provided to 275 qualified homebuyers.
Lenders REALTORS® Contractors Closing Agents Community Leaders Norfolk Housing Agency Homebuyers/Homeowners Partners in Community Revitalization