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Homebuyer Eligibility |
Eligibility Requirements
You are eligible for an HRB Community Land Trust home if you meet the following five criteria. Housing Resources Board will assist you in determining your eligibility. Attend a Homebuyers Orientation to learn more about Community Land Trust and the eligibility requirements for Ferncliff Village. For more information, feel free to call Phedra Elliott at Housing Resources Board at (206)842.1909 7#, or email her at phedra@HousingResourcesBoard.org
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1. Income requirement: |
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2. Credit rating: |
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3. Debt: |
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4. Employment or other income: |
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5. Assets: |
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| 1. Income requirement: |
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In order to be eligible to purchase a home at Ferncliff Village buyers must be income qualified between 50% and up to 80% of the Area Median Income (AMI). Originally HRB was able to sell 6 of the 24 homes at Ferncliff Village to moderate-income buyers (120% AMI). As of March, 2012, all those homes have sold. Because of the complexity of qualifying and the potential subsidies available, all potential buyers, regardless of their income, should discuss their situation with HRB. A buyer must earn enough to pay the monthly mortgage, taxes, insurance and home association fees. Below are the AMI rates for Kitsap as of May, 2011. AMI changes annually for Kitsap County. All potential homebuyers should discuss their situation with Housing Resources Board and attend a Homebuyer Orientation to learn more.
Kitsap County Area Median Income (AMI): (Effective 12/2011)
Household Size 80% of AMI (Maximum Income)
1 Person $40,950
2 Persons $46,800
3 Persons $52,650
4 Persons $58,500
5 Persons $63,200
6 Persons $67,900
7 Persons $72,550
8 Persons $77,250
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| 2. Credit rating: |
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You must have a good credit rating showing no significant delinquencies in the past year and no bankruptcy in the past three years. If you apply for a home, HRB will attain a credit report for you including a FICO score. You can look at your credit for free (no score included) at www.annualcreditreport.com. In addition, banks will order a report of their own when you ask them to pre-qualify you. If the applicant does not have good credit, HRB staff can provide referral information for credit counseling which may assist you in improving your credit rating. If you are willing to work to quality for a home, we are willing to support and work with you!
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| 3. Debt: |
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HRB requires that your housing costs for the proposed house are no more than 35% of your monthly income. Housing costs include principle, interest, taxes, insurance, ground lease fee, repair reserve fee, and homeowner’s association fees. Your total debt, including housing costs, should be no more than 38%-40% of your monthly income. Debt includes any long-term obligation (a repayment period of more than 6 months), such as automobile payments, child support, and student loans, plus the minimum monthly payment or 2% of all credit card debts. HRB staff can help you determine this percentage during your application process. If the applicant’s debt load is too great to qualify, HRB staff can provide referral information to a non-profit credit counseling agency that can assist you in establishing a plan for debt reduction.
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| 4. Employment or other income: |
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You must have proof of steady employment or income for at least two years. Sources of income include all wages, overtime and tips; interest and dividends; social security, annuities, pensions; unemployment, disability and severance compensation; alimony and child support; and most forms of public assistance. Applicants must demonstrate proof of earnings with tax returns for the past two fiscal years or an employment contract if newly out of school.
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| 5. Assets: |
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Net Assets after home purchase cannot exceed $300,000. Assets include savings, savings in retirement plans, land, mobile homes, recreational vehicles, boats, art collections, or similar items. Not included in the calculation of asset value are household possessions, cars (with a total value less than $50,000), or assets from an active business.
Income will be calculated on assets using actual returns or an imputed rate of 4% and this will be added to the income calculation. Please keep in mind that some lending programs will have smaller asset limits and to use these loan programs you would have to meet their requirements. Exceptions to this policy on assets may be granted in unusual circumstances at the discretion of the Executive Director.
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