The City of Charlotte is expanding a utility to help first-time buyers find a home in an increasingly difficult market.
House Charlotte, a city program tailored to help low- to middle-income families buy a home, announced this week that it will offer up to $30,000 in loan options to buyers who earn 80% or less than the area’s median income. to deserve. in Charlotte, 80% of the area’s median income is $75,350 for a family of four, according to the House Charlotte website. Various aid amounts are available for families representing up to 110% of the area’s median income.
The new $30,000 limit in loans is an increase from the previous $17,000 limit. To further help potential buyers succeed in their search, the program’s maximum purchase price for existing properties will increase from $285,000 to $300,000.
Warren Wooten, the city’s deputy director of affordable housing, said the program changes are an acknowledgment of the city of how it is difficult for new buyers to find a home in the Charlotte area.
“What you see is that the city is responding to the economy. Home prices have risen dramatically in recent years, which is why home buyers, especially lower-income home buyers, need more help getting their own home,” Wooten said. The more home ownership help we provide, the more flexibility they have and the better they will be when they get into that home.”
The loans available through House Charlotte have 0% interest and are fully deferred if buyers still own the home after 15 years for those earning 110% of the area’s median income, or after 30 years for buyers who earn 80 percent. % to deserve.
Wooten said borrowers have flexibility over how they choose to use the program’s funds. They can use the loans to pay the mortgage on their house immediatelypay the interest on the mortgage or pay the closing costs once a home is found, including: fees such as inspections and homeowners insurance†
Julie Porter, president of DreamKey Partners, said the change to the program is the most significant she’s seen during the partnership. DreamKey is a non-profit organization that operates House Charlotte.
“(The city does) adjust the program from time to time, but they’ve never had such a dramatic adjustment to the amount of down payments a family might qualify for,” Porter said. “I encourage people, even if their credit is not great, to take advantage. We’ll work through that, sometimes we’ve worked with families for two or three years to make sure they can buy a house at the end of their path.”
Porter said buyers who want to use the program must complete a homebuyer education and housing counseling program that DreamKey offers. Dreamkey will provide buyers with a representative to guide them through the process, she said.
“I just want to make sure people give it a shot…if the rent is $1,500 or $1,600 for a two-bedroom apartment, we can get them into a house for less than that,” Porter said. “Right now, it could be a way to not only build long-term generational wealth, but also keep that housing payment stable.”
For information on how to apply, how much assistance you may be eligible for and more details, visit the website of House Charlotte†
This story was originally published June 30, 2022 10:55 AM.