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Homebuyer Assistance Program Q & A Q. What is the CNH Homebuyer Assistance Program? A. The CNH Homebuyer Assistance Program provides education and financial assistance to Newaygo County residents. We help families find and purchase a quality, affordable home.
Q. What is offered by CNH to assist homebuyers? A. CNH provides individual credit counseling and classroom homebuyer education. CNH provides up to $10,000 for down payment assistance and closing costs, and up to $20,000 for renovations.
Q. Do I have to repay CNH for the financial help they provide? A. All applicants will be asked to sign a second mortgage for the equity in the home at the time of purchase. Any appreciation after the purchase is not included in this loan. This loan will be interest free and will be due when applicant refinances or sells the home.
Q. Do I have to be a first time homebuyer to qualify for assistance? A. No. You must however meet the eligibility criteria for our program.
Q. Can I renovate the house myself or work with contractors that CNH hires? A. CNH is required to ensure your home meets HUD Minimum Housing Quality Standards (HQS) and Federal Lead Based Paint Standards. CNH hires local contractors through a bid process to perform renovations CNH inspectors determine renovations needed to bring your home up to HQS. Contractors are liable for their work and for Lead Based Paint Clearance. Buyers are not allowed to perform any renovations on the house until CNH hired contractors are done and Lead Based Paint Clearance is issued.
Q. Can I get a loan from CNH? A. No. But we can help you shop for mortgages and help you to avoid predatory lenders. We also pay the closing costs on a loan if you are approved for our program.
Q. I'm interested in purchasing a mobile home and putting it on some property. Can you help me? A. CNH assists only in the purchase of stick built homes. Manufactured home, double-wides, single-wides, and modular homes are not eligible properties. Parcels of land in excess of 10 acres are also not eligible. CNH must approve all homes through an inspection process.
Q. I need a place to live now. How quickly can you help put me in a home? A. It takes a typical family 2 to 3 months to move through the property selection and mortgage approval process. We refer families in a crisis situation to other programs in the community, such as NCCS and FIA. The website Newaygohome.org is also a great tool for finding apartment listings in Newaygo county.
Q. Why do I have to have good credit? A. Since we are not the lender, you must find financing to purchase a home. Our program then helps with the closing costs and renovation fees, if needed. We can also help with down payment assistance. But the majority of the financing to purchase a home with CNH assistance comes from a lender of your choice. You must meet the guidelines for a conventional loan within limits acceptable to CNH (29%PITI and 41% Total Debt Maximum) If you qualify for a MSHDA mortgage and you have collections totaling less than $5,000 that relate to a one time, documentable crisis, we can pay up to $5,000 to settle those collections.
Q. What do I do if my credit is poor? A. Call and request to be put on the list for the money management classes. You will learn money management skills, how to repair and build your credit and much more. Classes are offered free to Newaygo County residents.
Q. How much can we qualify for? A. CNH is not the lender, so your lender will be able to tell you that after you formally apply for a loan. We can help you to estimate your affordability which is based upon the income of your household, your current debts, and the mortgage interest rate you are likely to qualify for. If you have a two-income family, then both of the people who earn that income must also have good credit. As a general rule of thumb, if your credit is good, we can use that source of income. 29% of all household income (as long as the person earning it will be on the loan and has good credit) is the maximum your payment will be.
Q. Can I use my land for a down payment or collateral? A. Possibly. If you have land and can qualify for a loan for at least $80,000, then we could possibly build a home. However, if you do not qualify for $80,000, the land will be considered an asset because you don't have the ability to afford a home to be built by CNH. In this case, if the market value of the land is over $10,000, you will not be eligible for any services from our program. Our asset limit is $10,000.
Q. I only make $500-$800 a month in income. Can you help me buy a home? A. Probably not. Home ownership isn't for everyone. It is much more affordable for you to rent a subsidized apartment or increase your household income and then reapply. Your total housing ratio cannot exceed 29% and your total debt ratio cannot exceed 41% of your gross monthly income.
Q. I just declared bankruptcy. Is there anything you can do for me? A. No. Generally, in order to qualify for a conventional mortgage after a bankruptcy you must reestablish 3 or 4 lines of credit showing positive history for one year per line and wait a period of 2 years. Then you may qualify for mortgage financing from a lender and be able to access our funds for the closing cost, down payment and renovations. ------ |