Home Purchase Loans:

NHDC offers second mortgage loans to assist income-eligible households become home purchasers. First mortgage loans may also be available but on a very limited basis. All home purchase loans are secured by a recorded lien against the real estate.

The source of funding for NHDC home purchase loans include:

·         Neighborhood Reinvestment Corporation (NRC) Capital Fund

·         Neighborhood Housing Services (NHSA) Loan Fund

·         City of Gainesville HOME Program funds awarded to NHDC

·         Alachua County SHIP funding awarded to NHDC.

 

Loans made with NRC or NHSA capital carry an interest rate and term that is dictated by the cost of funds and the financial circumstances of the borrower. Most loans made with these funds carry a fifteen year (15) maximum term and an amount not to exceed fifteen thousand ($15,000) dollars. The NHDC Loan Committee reviews these loan requests and makes the final decision on the loan and loan terms.

 

Closing Cost Loans:

Obtaining all the cash needed to purchase a home is one of the major difficulties encountered by households planning to purchase their 1st home. During the 2005-2006 program year, NHDC changed the Closing Cost Loan Program to provide a low interest source of funds to enable 1st time homebuyers in achieving their dream of home ownership. The loan offers $5,000, 30-year term, at 3% interest to households who are unable to access the SHIP down payment/closing cost subsidies offered through the City of Gainesville and Alachua County. Repayment for all closing cost loans will be in one of the two following terms:

·          Regular monthly re-payment by direct debit from borrower’s account; or

·          Suspended re-payment; no monthly payment required, however, the interest accrues and payment in full is made when the property has been sold, re-financed, ceases to be occupied by the borrower or thirty (30) years, whichever occurs first.

 This program has proved to be very popular for our customers and is now a standard component of our loan product offerings

Home Improvement Loan:

NHDC's objective is to assist income eligible homeowners in making essential home repairs and other general property improvements to their residence.

Home Repair Loan Program - Owner Occupants: Low interest loans are available to assist owner occupants with code related repairs and for general property improvements.  The loan maximum is $15,000 with a term up to 15 years, with an interest rate currently at 7%.

 

Rental Rehab Loan Program - Investor Owners: Loan funds are available to assist in making repairs to investment properties.  The maximum loan amount is $7,500 per unit.  Lending priority is given to projects that assist in the improvement of real estate in a designated "target revitalization neighborhood."  

 

The loan amounts, interest rate and terms are based on the income and financial capacity of the borrower and shall be determined at the time of the funding which can be subject to change by majority vote of the loan committee. Monthly principal and interest payments are required. NHDC secures the loan by a first or second mortgage against the property.

 

 

Grant Opportunities:

City of Gainesville HOME Subsidy

Federal funding program that the City of Gainesville allocates to NHDC to assist first time homebuyers with purchase. The amount available is up to 25% of the purchase price. The HOME subsidy carries a 0% interest rate and there is no repayment requirement until the property is sold and ceases to be occupied by the purchaser household. The HOME subsidy is recorded as a junior mortgage. There is an income-eligibility requirement to access HOME funds (80% MSA or below) and clients are required to complete a homebuyer education program.

Alachua County Home Repair Program

The Home Repair Program provides a financial deferred loan up to $25,000.00 to income – eligible homeowners. An eligible recipient must meet three (3) key eligibility criteria:

·          Must own and occupy the home in which he/she resides as a principal residence.

·          Must be low income; the recipient(s) annual gross income must not exceed eighty (80%) of the median income for the area of his/her household size.

·          Must reside in Alachua County outside the incorporated limits of the City of Gainesville with a demonstrable need for home assistance.

To be designated as an Repair Project the home must:

·          Be the dwelling of a household receiving less than 80% of the Median Family Income as adjusted to family size; OR

·          Be the dwelling of a disabled person; AND

·          Be in a severely distressed state defined as a dwelling where continued habitation would put the owner at serious physical risk, and defined as such by approved County inspectors.

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) INCOME

                                      LIMITS FOR GAINESVILLE MSA

 

FAMILY SIZE                                      VERY LOW-INCOME                          LOW-INCOME         

(persons)                                                (50% MFI*)                                          (80% MFI*)

 

1 person                                                 $ 19,800                                              $ 31,700

2 persons                                                  22,650                                                 36,250

3 persons                                                  25,450                                                 40,750

4 persons                                                  28,300                                                 45,300

5 persons                                                  30,550                                                 48,900

6 persons                                                  32,850                                                 52,550

7 persons                                                  35,100                                                 56,150

8 persons                                                  37,350                                                 59,800

* Fiscal Year 2008 Median Family Income (MFI) = $56,600

Effective 02/13/08

HUD/INCM-.LMT