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FINANCING COMPARISON
The Homeownership Center’s financial assistance can have a dramatic impact in both initial out-of-pocket expenses as well as ongoing monthly payments. Below is an example of the difference between a conventional, open-market home purchase, and a home purchase using the HCT @HOME program.
For this example we will assume a home purchase price of $210,000, a first mortgage loan of 30 years at 5.75%, a 3 member household with annual household income of $55,000 (90%AMI), and the maximum assistance available in the @HOME Program. Since HCT’s assistance is determined on an as-needed basis, your numbers could differ.
| 2nd Mortgage Assistance | Household size of >> | 1 Person | 2 Person | 3 Person | 4 Person | 5 Person | 6 Person |
|---|---|---|---|---|---|---|---|
$20,000 |
120% Income Cap |
$59,520 |
$68,040 |
$76,560 |
$84,960 |
$91,800 |
$98,640 |
$30,000 |
100% Income Cap |
$49,600 |
$56,700 |
$63,800 |
$70,800 |
$76,500 |
$82,200 |
$40,000 |
80% Income Cap |
$39,700 |
$45,350 |
$51,000 |
$56,650 |
$61,200 |
$65,750 |
| @HOME Program | Open Market | |
|---|---|---|
Application Fee |
$20 |
$200 |
Down Payment |
1,000 |
6,300 |
Closing Costs |
375 |
5,000 |
Total Initial Out-of-Pocket Expenses |
$1,395 |
$11,500 |
| @HOME Program | Open Market | |
|---|---|---|
First Mortgage |
$171,650 |
$203,700 |
@HOME Financing Assistance |
30,000 |
0 |
City Down Payment Assistance (3.5%) |
7,350 |
0 |
Down Payment (from buyer) |
1,000 |
6,300 |
Total Home Price |
$210,000 |
$210,000 |
| @HOME Program | Open Market | |
|---|---|---|
First Mortgage Principal and Interest |
$980 |
$1,157 |
@HOME Financing Payment* |
0 |
0 |
City Assistance Payment* |
0 |
0 |
Taxes and Insurance (est.) |
300 |
300 |
Total Monthly Payment |
$1,280 |
$1,457 |
* Repayments on the @HOME Financing Assistance and the City Down Payment Assistance is deferred until the first mortgage is repaid, refinanced or the home is sold.
There is no Prepayment Penalty.
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The EVERGREEN Program is similar to this example with the exception that the buyers income can not exceed the 80% income cap as shown in the table above and the 3.5% downpayment assistance from the City of Tacoma is not available.