Home Buying Process with Story County Community Housing Corporation (SCCHC)
The SCCHC partners with perspective eligible buyer families to purchase and retain ownership of the ground under their homes, leasing it to them at $25 / Month. This partnership reduces the cost of ownership by up to $125 per month. (see brochure) Properties are generally considered eligible if a single family detached home, in one of Story County’s cities, in good and decent condition [SCCHC will make an inspection], and considered affordable to the buyers. Home sales prices will need to range not more than $155,000 (4 person family) to not more than $130,000 (2 person family).
During Listing – Area real estate agents are encouraged to make available at their Home Showings the two SCCHC brochures. One discusses buyer eligibility, the other a comparison between a ‘conventional’ and a ‘partnership buyer’ purchase. Currently, the SCCHC has up to $30,000 to assist each of two buyers with a lot purchase – lease partnership. A buyer needs pre-approval for our partnership, and they will have a letter from us of that fact. If not, the perspective buyer will need to contact the SCCHC for an application and determination of eligibility. This can take a few days depending on the applicant.
The Offer – The traditional offer to purchase is made by the home buyer, AND the SCCHC adds a 1 page addendum defining the relationship of the buying parties. The SCCHC is not part of an offer without this addendum. The seller usually doesn’t care, but should appreciate the process will involve another entity (the SCCHC) and their resulting needs also. The offer should also contain the other customary conditions: inspections, financing, and others as applicable to the circumstance.
Closing & Occupancy – Prior to closing the SCCHC will present to the closing agent the land lease contract, our portion of the acquisition funds, and any other necessary documents. The SCCHC will also wish to review the other lender mortgage documents prior to closing for specific requirements. The resulting fully amortizing, fixed price mortgage is a Fannie Mae eligible product sellable to Iowa Bankers Mortgage Corp.
Future Sale – The once-buyer / now-seller is free to sell their home in any conventional method desired to a next eligible buyer, and in addition consult the SCCHC for families eligible and shopping at the time. The future sale will only be for the home and improvements, but not the land, which will continue in SCCHC ownership. Some of the home’s value gain (or loss) will be shared with the seller. The balance is retained and passed on to the next eligible buyer.
Perspective buyers and real estate agents are encouraged to learn more about the SCCHC at www.storyhousing.org. The program pre-application is available at this site. Our Ames office is at 130 S Sheldon #304. Please call [292-3676] with any questions or to discuss this partnership further. The SCCHC is a non-profit, membership corporation serving the affordable housing needs of Story County.
Angie Shirk, REALTOR
Hunziker & Associates Realtors
105 S.16th Street, Ames, IA, 50010
Brokers Dean Hunziker & Chuck Winkleblack 515-233-4450
Licensed in Iowa #318000201
Do you need $30,000 to the purchase your 1st home?
Affordable home ownership can become a reality for 2 more 1st-time homebuyers in Story County due to grants the SCCHC received through the IA Finance Authority (IFA). The grants can apply to any existing home located here in Story County. The home must be safe, decent and sanitary, and be eligible for a mortgage. The SCCHC will use the grant funds to purchase the land under the buyer’s home, leasing it to the homeowner for $25 a month. Through the community land trust model, each family will save about $125 each month in principle and interest. The SCCHC currently has 7 homes utilizing the land trust model, and is excited to add 2 more in 2008.
If you can answer “yes” to the following questions, you may be eligible.
Do you have access to some funds/savings for a down payment?
Do you have good credit?
Does your household income fit into the ranges shown to the right?
Are you pre-qualified for a mortgage by a local mortgage professional?
80% of County Median Income
Household Size
Income
