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How much money is available to Sarasota County?
The U.S. Department of Housing and Urban Development (HUD)
allocated $7.1M in NSP funds to Sarasota County.
How will the Sarasota County use its allocation of NSP funds?
Sarasota County is partnering with non profit developers to:
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acquire and rehabilitate foreclosed or abandoned homes in
Sarasota County
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sell homes to qualified, income-eligible homebuyers
I am interested in purchasing a home in Sarasota County using
the NSP program. How do I get started?
Anyone interested in purchasing a home must contact one of the
partners identified
on the Web site.
How will a non-profit
partner help me buy a home?
Owning a home is a great commitment with many responsibilities;
furthermore, the federal guidelines have requirements of the
potential homebuyers to complete eight hours of homeowner
education. Any non-profit partner will help you find a HUD
approved housing counselor so that you can meet this requirement
free of charge. The non-profit
partners and the potential homebuyers will go through all
aspects of purchasing a home:
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from getting qualified for a mortgage
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choosing a home that meets their needs
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helping the homebuyer understand all the long-term aspects
of homeownership
Why should I use “My Own Home” instead of purchasing a
foreclosed home on my own?
Making a serious purchase of a large item like a home cannot be
taken lightly because it involves a lot of risk. The “My Own
Home” program and it partners have come together to lower that
risk and assist the homebuyer through purchase process. The key
benefits and features are:
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renovation on the home is managed by the non-profit partner
and incorporated in the purchase price of the home
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the home renovations will
often improve the energy efficiency and
the longevity of the home
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the amount of your mortgage will be affordable
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the home will be move-in-ready, which means the homebuyer
should not be required to do anything to make the home
livable before they move in
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the homebuyer will be working with the non-profit partner
throughout the process
Who qualifies for “My Own Home”?
Homebuyers whose income cannot exceed
100
percent of area median income
(AMI)
adjusted to household size.
What other homebuyer qualifications are there?
The other qualifications for homebuyers will arise in process of
qualifying for a mortgage. This is where the non-profit partners
will be extremely helpful. These qualifications will vary for
every potential homebuyer, but the process should not discourage
you because owning a home can take time and qualifying for a
mortgage is only the first component.
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Other federal requirements for the program include
completing eight hours of homeowner education by a HUD
approved credit counseling agency (click
here to view this
free service)
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The homebuyer must make the home they purchase their primary
residence.
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The homebuyer must provide at least $2,000 toward the down
payment or closing costs of the home.
If I meet all of the qualifications, where will I be able to buy
a home?
Due to the limited nature of the funds in this grant and
requirements of the authorizing statute, NSP is limited to
purchasing homes in three targeted areas, identified as north
Sarasota, Bee Ridge Road and North Port. These areas include
selected neighborhoods and parts of the larger areas
encompassing the target areas, for more details about the target
areas refer to the maps on the Web site “Where can I buy a
home”.
Will a potential homebuyer be able to choose a target area they
wish to buy in?
Yes, in fact they are encouraged to do so. Affordability goals
of this program are to bring homebuyers closer to the places
they can work, shop, play and be able to utilize local transit.
So, I’ve been working with a non-profit partner, have been
qualified for a mortgage, and determined a target area I wish to
live in and the non-profit partner has found a home that fits my
needs, what if the mortgage amount I qualify for is less than
the amount of the purchase price?
The most important goal of “My Own Home” is to match homebuyer’s
to homes that meet their greatest needs. It is expected that
every home purchased through “My Own Home” will incorporate some
amount subsidy into the purchase price of the home and the
percentage of the subsidy relative to the amount of the purchase
will determine the continued affordability model, either Land
Trust or Shared Appreciation, assigned to the purchase of the
home.
Affordability Models
Shared Appreciation
Mortgage.
The property will be sold to an eligible buyer for an affordable
price. The sales price is the cost to acquire, rehabilitate, and
redevelop the home, or a current appraisal, whichever is less.
The amount of the subsidy is the difference between the sales
price and the amount the individual can afford. NSP funds may be
provided to the buyer as a soft second mortgage.
The mortgage will be in the form of a zero
percent interest loan
that is deferred with no payments until
the property is sold, transferred, no longer occupied by the
eligible family or 30 years, whichever occurs first. The amount
of the appreciation that will be shared with the county will be
based upon the following formula:
Year 1 – 80 percent of appreciation to County
Year 2 – 60
percent
of appreciation
to County
Year 3 – 40
percent of appreciation
to County
Year 4 – 20
percent of appreciation
to County
Thereafter, the amount of appreciation that will be repaid will
be the percentage of the original purchase price provided by the
Down Payment Assistance Loan. In the event there is no Net
Appreciation or Net Appreciation is a negative number, the
amount of the original loan will still be due and payable. A
mortgage will be placed on the property to insure that the NSP
funds are repaid to the county and used to assist other eligible
applicants.
Land Trust. The
home and other improvements will be sold to an eligible buyer
for an affordable price.
The sales price is the cost to acquire, rehabilitate, and
redevelop the home, or a current appraisal, whichever is less.
Only the home and the improvements will be
deeded under any situation. The land will be conveyed to a Community
Land Trust (CLT) with a deed restriction to ensure long-term
affordability. The CLT will enter into a long-term lease that
will impose owner occupancy and resale price restrictions
designed to ensure long-term affordability of the assisted homes
to the target income group.
Do I have to be a first time homebuyer in order to participate
in the NSP program?
No.This program is open to all eligible, qualified homebuyers.
The first time homebuyer requirement is not applicable to the
Neighborhood Stabilization Program.
Can I use other credits,
rebates, or homebuyer incentives with “My Own Home”?
It
will depend on the regulations of the fund sources.
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INCOME
LIMITS FOR SARASOTA COUNTY
2009 |
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50 percent |
100 percent |
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Household size |
Very low |
Moderate |
| 1 person |
$21, 800 |
$43,600 |
| 2 persons |
$24, 900 |
$49,850 |
| 3 persons |
$28,050 |
$56,000 |
| 4 persons |
$31,150 |
$62,300 |
| 5 persons |
$33,650 |
$67,300 |
| 6 persons |
$36,150 |
$72,300 |
| 7 persons |
$38,650 |
$77,300 |
| 8 persons |
$41,100 |
$82,200 |
For more information:
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