Neighborhood Revitalization Program
Through the Neighborhood Revitalization Program (NRP), we purchase run-down or dilapidated properties in Sioux Falls.
Although some of these properties are then rehabbed, more often they are torn down and new houses are constructed which are then sold to households who make less than 80% of the median income. The net selling price for our homes starts at $129,900 after the down payment assistance.
Through the Neighborhood Revitalization Program we plan to build and sell 15 homes in 2018.
Four steps to home ownership:
- INCOME GUIDELINES Each household must be at or below 80% of the median average income limits as set by HUD for the Sioux Falls area.
- All potential buyers must complete a certified Home Ownership education class with one of the following local agencies.
- LSS Home Ownership Education http://www.lsssd.org/financial_services/home_ownership/
- Sioux Empire Housing Partnership https://www.siouxempirehousing.org/en/counseling-and-education/first-time-homebuyer-education
- Home buyers will obtain a mortgage through their own bank or mortgage company. Pre-certification for a loan of at least $138,000 is required.
- Buyers that have completed the home ownership education class, fit the income guidelines and have been pre-approved for a loan should contact email@example.com to schedule a meeting.
Up to $25,000 in Down Payment Assistance is available on most of our homes for qualified buyers. This will be Gap financing (difference between selling price and maximum qualified 1st mortgage).
For purposes of ensuring feasible financing opportunities for homeowners, SDHDA will adhere to the following requirements. The requirements must be met for SDHDA financing and all other mortgage financing provided to the homeowner; variance of any item must receive prior approval from SDHDA.
- No interest only loans, no balloon payment loans, no reverse mortgages.
- Interest rates cannot be greater than two percent (2%) above SDHDA’s first-time homebuyer rate - http://www.sdhda.org/sdhda-main-website/homebuyer- homeowner/first-time-homebuyer/current-interest-rates. If it is an adjustable rate mortgage, the rate cannot increase more than two percent (2%) over the life of the loan.
- Origination fees, points and other lender fees cannot exceed $3,000. SDHDA may reject fees and closing costs that are not reasonable.
- Total financing cannot exceed appraised value.
- Homebuyer must have a minimum credit score of 620.
- The total of the homebuyer’s monthly mortgage payments (principal, interest, taxes and insurance) may not exceed 31% of their gross effective monthly income.
- The homebuyer’s total monthly fixed payments may not exceed 43% of gross effective monthly income.
- Homebuyer must have a minimum savings or cash reserves of 2 months of principal, interest, taxes and insurance.
- Homebuyer must have a minimum $500 cash investment.
- Homebuyer must document their attendance at Homebuyer Education presented by a HERO organization. See http://sdhomebuyered.org/ for a list of HERO organizations.
- First mortgage lender, or second mortgage lender if HOME is first, is required to escrow for taxes and insurance.
Homes for sale
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Click on the PLAN for more information
ADDRESS PLAN PRICE DOWN PAYMENT ASSISTANCE
These NEW homes will be available in 2018!
Interested parties will:
1) Check the attached income limits to see if you could qualify for the program
2) Contact Tyler through this listing to discuss the project.
3) See your banker or other mortgage lender to become pre-qualified for mortgage
4) Become qualified for the program at Community Development - call 367-8180 for an appointment. Indicate you are interested in the Neighborhood Revitalization Program.
5) With an approved qualification for the program and your mortgage pre-approval you are ready for a purchase agreement.
The home will be sold to the first family or individual that is pre-qualified for a loan for the price of the home, program-qualified with Community Development, and has signed a purchase agreement with Affordable Housing Solutions.
Buyer financing is required. Down payment assistance may also be available through Sioux Falls Community Development - Affordable Housing Division.
Income Qualification Required Buyers will be at or below 80% Median Family Income
all information subject to change or update.