Affordable Housing: What Are the Options?
Homeownership isn’t one-size-fits-all. Explore a range of affordable housing options like fixed-rate, adjustable, FHA, VA, downpayment assistance programs – each designed to help make your monthly payments manageable and your dream home attainable. Here’s a little information on a few programs:
Community Land Trust: A CLT is a non-profit that makes affordable housing available through leasing or selling homes while retaining ownership of the land. The homeowner purchases the home at an affordable rate and agrees to sell it at an affordable rate in the future. CLTs often partner with other organizations to provide homeownership counseling and downpayment assistance.
Inclusionary Housing: Inclusionary housing initiatives require that new housing developments set aside a certain percentage of affordable housing units or contribute to affordable housing funds. Homeowners are qualified based on income restrictions and ability to pay.
Down payment assistance programs: DPA programs are available through state and local housing organizations, as well as lenders and nonprofits. They help eligible homebuyers with downpayment and closing costs through grants and forgivable, deferred payment, and low interest loans.
USDA, VA, FHA: Government lending programs exist to make homeownership affordable. Veterans and their spouses may qualify for the zero down payment VA program. The USDA program is available for the purchase of properties in rural and suburban areas. And the FHA program is available to borrowers who struggle to qualify for conventional loans.
Resources:
https://www.devnw.org/ DevNW, a local community organization that provides homeownership counseling and down payment assistance.
https://groundedsolutions.org/ Grounded Solutions Network. They support strong communities through CLTs and inclusionary housing initiatives.
https://www.usa.gov/government-home-loans Government backed loans like FHA, USDA, and VA.
Written by: Elena Christian
Read more mortgage posts:
- Steps to Prepare for Buying Your First home – And Why It Matters in the End
- Back to Basics – Homeownership FAQs
- Think You Can’t Afford to Buy a Home – DevNW Would Like a Word
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