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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 $170,000, a first mortgage loan of 30 years at 4.5%, a 3 member household with annual household income of $50,000 (80%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 |
$59,025 |
$67,425 |
$75,825 |
$84,225 |
$90,975 |
$97,725 |
$30,000 |
100% Income Cap |
$49,000 |
$56,000 |
$63,000 |
$70,000 |
$75,800 |
$81,400 |
$40,000 |
80% Income Cap |
$39,350 |
$44,950 |
$50,550 |
$56,150 |
$60,650 |
$65,150 |
| @HOME Program | Open Market | |
|---|---|---|
Application Fee |
$20 |
$200 |
Down Payment |
1,000 |
5,100 |
Closing Costs |
375 |
5,000 |
Total Initial Out-of-Pocket Expenses |
$1,395 |
$10,300 |
| @HOME Program | Open Market | |
|---|---|---|
First Mortgage |
$129,000 |
$164,900 |
@HOME Financing Assistance |
40,000 |
0 |
Down Payment (from buyer) |
1,000 |
5,100 |
Total Home Price |
$170,000 |
$170,000 |
| @HOME Program | Open Market | |
|---|---|---|
First Mortgage Principal and Interest |
$650 |
$835 |
@HOME Financing Payment* |
0 |
0 |
Taxes and Insurance (est.) |
300 |
300 |
Total Monthly Payment |
$950 |
$1,135 |
* Repayments on the @HOME Financing 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.