What makes HRB homes affordable?

HRB is a community land trust (CLT) and a CLT provides permanently affordable housing for those living and working in a specified community. CLT homes are affordable because the owner purchases only the house and leases the land under a 99-year renewable ground lease. This ground lease defines the homeowner’s rights and ensures the permanent affordability of the home.

What are the benefits of owning a CLT home?

  • Stable monthly mortgage payments that are affordable to you
  • Opportunity to build equity in your home
  • Tax deductible Mortgage interest
  • Long term security – no rent increases, can live there as long as you want

What is different about owning a CLT home?

  • The owner must live in the home full time – cannot be rented
  • If you decide to sell the home it must be sold to another qualified household at a price that is based on a resale formula. (not the market rate of the area)

What are your next steps?

Click through the options below to learn more about purchasing a CLT home through HRB.

To be eligible, you must meet the following qualifications:

1. Income Eligibility

HRB homes must be sold to buyers who have a gross household income that is less than 80% of the Area Median Income (AMI) for Kitsap County. (HRB does have a limited number of homes available to households earning less than 120% of AMI), If you are self-employed, qualifying income is calculated after deducting any business-related expenses (Schedule C). Click here to view the maximum income by household size.

2. Asset Eligibility

If you are of retirement age or have assets in excess of HRB’s asset limit ($300,000), you may still be eligible for a limited number of HRB home. Contact Marta Holt if you have additional questions about how assets are used to calculate eligibility.

3. Mortgage

You need to be able to qualify for an approved mortgage to purchase your home, or have adequate assets to purchase it outright. This includes:

  • Adequate Income – You must be able to document adequate, steady income so that your house payment does not exceed approximately one-third of your gross monthly income.
  • Adequate Credit – Generally you will be able to get a loan to purchase your home if your credit score is at least 640. If your credit score is lower than 640 or you do not have a score, it is still possible to purchase a home if you can document at least forms of non-reported credit, such as utility bills, landlord references, etc.
  • Minimum Debt – Your total debt payments, including your future house payment, may not exceed 41% to 44% of your gross monthly income, depending on your mortgage. HRB’s housing manager can help you calculate this. Generally speaking, monthly debt obligations of more than $200 to $250 per month, in addition to your house payment, make it difficult to qualify.

HRB is here to help you own a home and that process starts with completing the application. We encourage anyone who wants to own their own home on Bainbridge Island to apply! Download the HRB Homeownership Application here.

If you have any questions about the homeownership program or would like more information, email Marta Holt or call (206) 842-1909 ext. 10.

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