New first mortgage program launches to help homebuyers with imperfect credit, low-to-moderate income
This press release was written and revised for The Land, April 2021. Photo by Phil Hearing on Unsplash.
CHN Housing Capital, an affiliate of CHN Housing Partners, announced Tuesday that The Believe Mortgage, a first mortgage program designed for low-dollar mortgages, is now available.
According to reporting from Cleveland.com, there are no earning restrictions for the program, but it’s generally targeted at lending $70,000 or less to those with low-to-moderate income (LMI).
Two down payment assistance programs and home repair loans are also available to assist homebuyers and homeowners in time for the spring buying season. CHN Housing Capital was created to address the lack of traditional home financing available to homebuyers of color, homebuyers with imperfect credit and LMI homebuyers in Cuyahoga County.
“Homeownership is the largest generational wealth builder, and we believe homeownership should be within reach for every family,” said Kevin Nowak, chief executive officer of CHN Housing Capital. “Here in Northeast Ohio, we have seen the reality that homeownership has not been within reach of every family, and we created CHN Housing Capital to solve that problem.”
CHN Housing Capital is offering the following products to help individuals and families achieve homeownership:
Low down payment first mortgages are available for homebuyers in Cuyahoga and Lorain counties.
There are no first-time homebuyer restrictions for this product, no income restriction and no monthly Private Mortgage Insurance.
Buyers with lower credit scores are considered.
Buyers are also eligible for a second mortgage in the form of a home repair loan at the time they receive the Believe Mortgage.
Two Down Payment Assistance programs:
Cuyahoga County Down Payment Assistance Program: Eligible homebuyers can receive down payment assistance in the amount of 10% of the purchase price, with a maximum purchase price of $133,950. Most Cuyahoga County communities are eligible. Homebuyers must be at or below 80% of area median income (AMI) and are responsible for a minimum 3% contribution towards the purchase. The assistance is provided in the form of a deferred second loan on the home and the full amount of assistance will be repaid upon sale, transfer or refinance of the home.
City of Cleveland Mayor’s Neighborhood Transformation Initiative Down Payment Assistance Program: Eligible buyers can qualify for down payment assistance in the amount of $20,000 for a new-construction or newly renovated home in the Glenville-Circle North neighborhood as a 0% deferred second mortgage which will be forgiven after five years. If the borrower's income is below or at 120% of the AMI, they must contribute 3% and if their income is greater than 120% AMI, they must contribute 5%.
This program is available to any homeowner at or below 120% of the area median income living in Cuyahoga County.
Homeowners can qualify for up to $20,000 for eligible repairs such as roofs, porches, HVAC, plumbing and driveways.
Eligibility and application information can be found at CHN Housing Capital’s website.