What Is a Community Partner Loan Pool?
Put simply, a community partner loan pool is a system that assists qualified homebuyers with the down payment on their home. In our area of the country, we partner with the NCHFA to provide access to a community partners loan pool, as well as other related services. But how can you benefit from a program like this? Let’s take a closer look.
Who are the NCHFA
The North Carolina Housing Finance Agency is a public agency that finances affordable housing opportunities for qualified residents of North Carolina. If needs are not being met by the market, the agency provides financing through the sale of tax-exempt bonds and management of federal tax credit programs, the federal HOME program, the state Housing Trust Fund, and other programs.
The Benefits for Homebuyers
Specifically, the Community Partners Loan Pool is a program designed for homebuyers to get assistance in making a down payment on their home purchase. Homebuyers need to be qualified and they can get up to 20% of the homes sale price when combined with the NC Home Advantage Mortgage or 10% with the USDA’s Section 502 loan. Homes eligible for the program include new construction or existing homes in “like new” condition.
What You Need to Know
To qualify, you need to know some details. Total household income can’t exceed 80% of the area median income for the county where the home will be purchased. The borrower must have proof of stable and sufficient income, and a minimum credit score of 640. Their total debt-to-income ratio may not exceed 43%. There is also the approved homebuyer education course and housing counseling sessions required by the program. If you’re potentially eligible, you need to contact a CPLP member to establish a mutually agreed-upon homeownership readiness plan for education and counseling before signing the contract on the property.
Asheville Area Partners
For homebuyers in Buncombe County, the community partners helping with this program are Mountain Housing Opportunities, Inc. in Asheville and The Housing Assistance Corporation, Inc. in Hendersonville. The CPLP partner will work with applicants over a period of time to understand their credit history and family budgets. The commitment to education will increase the chances of successful homeownership in the future. First-time buyers will need to complete a strenuous homebuyer education component which is overseen by the CPLP partner.
Do you want to know if you qualify for a program like the Community Partners Loan Pool? Call Zachery Adam and the team at GoPrime Mortgage of West Asheville today.
If you want to take the first step to buy a house or refinance, call Zachery Adam at GoPrime Mortgage in West Asheville today.