NCRC HOMES Program

The Process

To qualify for home purchase you must:

  1. Attend an information meeting.
  2. Meet the income guidelines.
  3. Have $1,000 of "earnest money" when the Purchase Agreement is signed.
  4. Attend a Home Stretch Workshop.
  5. Return to NCRC a completed application form, signed ’Release of Information’ form & Data Privacy Statement, and Certificate from Home Stretch class, and the following: 6 months of bank statements for both checking and savings, IRA/401K statement.
  6. Return to NCRC a Pre-Approval letter from a lender on our list of approved lenders.

Your entire application and verification will occur after all these steps are complete.

When these documents have been submitted, NCRC staff will show you the homes that are in your pre-approval range.

NCRC gives preference to people who live or work in the city where the home is
OR
Live or work in one of the 4 member cities
OR
Are buying a home for the first time
OR
Are an appropriate size family for the home

When you have identified your preferred house, and your application has been accepted, you will sign a Purchase Agreement and submit a check for $1,000.

 

Basic Requirements For NCRC HOMES Program

Please note: ALL of these requirements must be met.

1. Meet income guidelines. Click here for our Income Calculation Sheet (Microsoft Word Format).

Household
Size

Maximum Annual Income
(This changes every year)

1

$43,050

2

$49,200

3

$55,350

4

$61,500

5

$66,400

6

$71,350 

              7            $76,250
              8            $81,200




2. Be prepared to contribute at least $1,000 earnest money when Purchase Agreement is signed.

3. Expect to pay 30% of your income toward the mortgage.

4. Have a decent credit rating.

5. Have a low level of debt.

For more information call (763) 533-5114.

Second Mortgages Funded Through the NCRC HOMES Program

  • The loan is a 30-year, deferred, zero interest loan that is due and payable at the end of the term, sale, transfer of ownership or if the property is no longer owner-occupied.
  • The household income must be at or below 80% of the HUD Area Median Income for household size, as determined by NCRC at the time of application.
  • Minimum buyer investment of $1,000.
  • Lenders: any on NCRC list of approved lenders, and no others.
  • Loans of any type except FHA insured.

The HOME Fund mortgage is used to reduce the gap between the sale price of a home and what the buyer can afford. It is not a set amount, but is based on buyer need.

This is a loan, not a grant, and will be paid back at some point. This may be at the sale of the property, refinancing, or if the purchaser no longer lives in the home. If the home is sold within 15 years, it must be sold to someone who meets the income guidelines. All of these requirements are to ensure that the home remains affordable.

One important part of the Application is the ’Buyer Awareness’ form. This includes several pages of examples of documents that will be signed at the closing. Most relate to this HOME second mortgage. We need to know that you have seen and understand these documents before the closing, which is why they are included in the application.

If you have questions about any of these forms, please ask them early in the process.