HOME PURCHASE/REHAB/RESELL PROGRAM

 

The HOME Purchase/Rehab/Resell program (HPRR) utilizes HOME funds from the Department of Housing and Urban Development (HUD) to provide down-payment assistance to any homebuyers who meet the income eligibility requirements and wish to purchase an older single-family residence needing some rehabilitation.

 

The Wayne Community to Housing Development Corporation (WCHDC) works with eligible homebuyers to identify older housing stock that needs improvement to bring it in line with current housing standards.  WCHDC will purchase the property, perform the necessary improvements in cooperation with the family's wishes, and resell the residence to the family with up to 20% down-payment assistance to help make first mortgage financing possible.

 

The maximum amount of assistance allowed by HPRR is 20% of the final sale price of the rehabilitated residence.  The average purchase price allowed for a home under this program is $87,500, thus the HPRR loan would be $17,500.  The applicant is required to provide a minimum of $500 cash investment.

 

The HPRR assistance is a deferred, 0% interest loan.

 

Who Qualifies?

The HOME Purchase/Rehab/Resell program is open to any household whose adjusted gross income projected for the upcoming year does not exceed 80% of the median household income for Wayne County as prorated by family size:

 

2004 Income Limits are:

Household Size	Income Limit (80% Median)
1 Person	$28,300
2 Persons	$32,300
3 Persons	$36,350
4 Persons	$40,400
5 Persons	$43,650
6 Persons	$46,850
7 Persons	$50,100
8 Persons	$53,350

 

A second aspect of income eligibility is qualification for first mortgage financing.  Applicants are required to secure their own home loan for the remaining balance of the sale price through a conventional first mortgage lending institution. Applicants who qualify for this program may also be eligible for first mortgage funding through USDA-Rural Development direct loan programs and other first-time homebuyer  programs.

 

Other Requirements:

A house must require a minimum of $1,000 in improvements to qualify for the program.  It must also be single-family residential property within the service area of WCHDC. 

 

Housing must be the principal place of residence for the owners.

 

Property chosen must be priced so that the necessary improvements can be funded and the final sale price remains under the maximums set forth by this program and/or HUD.  

 

Applicants must complete a homebuyer education course as defined by the WCHDC prior to the closing date on any home purchase.  It is recommended that applicants complete this course prior to beginning the search for a home. This course provides valuable information that is helpful to the homebuyer.

 

Inspection:  An inspection of the property will be required to establish the minimum improvements that are required to meet Housing Quality Standards. This becomes the basis for the Work Order defining the project.  Other improvements may be included at the discretion of the applicant and WCHDC. 

 

ACT NOW!!!  The Purchase/Rehab/Resell program has limited funding and assistance will be granted on a first-come first serve basis.