Who can buy an HRB community land trust home?
HRB analyzes income, assets, and debt to determine if CLT homeownership makes sense for you. Familiarize yourself with these requirement, but if you fall short in a few areas, do not discount your future eligibility. Contact HRB’s Homeownership Program Director Sherri Raines at 206.842.1909, ext. 19 or sherri@housingresourcesbi.org. She can assess your prospects and start you on the path to homebuyer readiness.
Income:
• Households must earn a gross income before taxes that is at or below 80% of the area median income (AMI) for Kitsap County (see chart). For a minority of homes, that income limit is 120% AMI.
• You must have proof of steady income for at least two years or an employment contract if newly hired.
• Sources of income include all wages, overtime, tips, self-employment, interest, dividends, social security, annuities, pensions, disability, alimony, child support, and most forms of public assistance.
• You must provide tax returns for the most recent two years and most recent 90 days of income statements.
| Household Size | 80% AMI | Column 3 |
|---|---|---|
| 1 | $67,050 | $100,548 |
| 2 | $76,600 | $114,912 |
| 3 | $86,200 | $129,276 |
| 4 | $95,750 | $143,640 |
| 5 | $103,450 | $155,131 |
Credit rating:
• You must have a credit rating with a FICO score of 640 or higher and show no significant delinquencies in the past year and no bankruptcies or foreclosures in the last four years. If your score is lower, don’t despair. HRB can help you begin the process of improving it.
• You can review your credit for free (no score included) at www.annualcreditreport.com.
Debt:
• Total housing costs cannot exceed 35% of your monthly gross income. Housing costs include principal, interest, taxes, insurance, ground lease fee, repair reserve fee, and homeowner’s association fees.
• Total debt, including housing costs, cannot exceed 40% of your monthly gross income. (Debt includes car payments, child support, student loans, credit card debt, etc.).
Assets:
• Total assets after close are limited to $300,000. Other lending programs or partner organizations may have smaller asset limits.
• Assets include savings, savings in retirement plans, investments (stocks, bonds, gold, etc.), land, mobile homes, recreational vehicles, boats, art collections, or similar items.
• Household possessions, cars, or assets from an active business are not counted as assets.
• Exceptions to the asset policy may be granted in unusual circumstances at the discretion of HRB.
• Income will be calculated on assets using actual returns or the HUD Passbook rate and will be added to the income calculation.
