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 deductions that is at or below 120% of the area median income (AMI) for Kitsap County (see chart). However, all but 14 of our homes are restricted to 80% AMI. We are actively working to expand options for households over 80% 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, veteran benefits, annuities, pensions, retirement, 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 | 120% AMI |
|---|---|---|
| 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.).
*HRB will calculate these figures.
Assets:
• Total assets after close are limited to $300,000. Lending programs or other partner organizations may have smaller asset limits.
• Assets include checking, savings, money markets, CDs, funds in retirement plans, investments (stocks, bonds, gold, etc.), land, mobile homes, recreational vehicles, boats, art collections, or similar items.
• Exceptions include personal property (clothing, furniture, automobiles, and jewelry that is not held as an investment), interest in Indian trust land, term life insurance policies, assets of an active business, other assets deemed to be of insignificant quantity or value.
• 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.
