Wilmington Homeownership Pool: Empowering First-Time Buyers

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The City of Wilmington offers the Home Ownership Pool (HOP) program to assist low-to-moderate income first-time homebuyers. Through partnerships with local banks, HOP provides fixed-rate loans, down payment assistance, and free home inspections. Income limits and loan options cater to various household income levels, ensuring a pathway to sustainable homeownership for those with modest means.

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Leveraging Agency Home Buyer Products with Municipalities City of Wilmington

Housing Loan Programs Home Ownership Pool Owner Occupied Rehabilitation Rental Rehabilitation Incentive Loan Down Payment Assistance Housing Counseling

Income Limits Chart (Area Median Income) Wilmington , NC HUD Metro FMR Area Persons In Household 2023 Adjusted HOME Income Limits 1 2 3 4 5 6 7 8 100% $ 63,200 $ 72,200 $ 81,200 $ 90,200 $ 97,500 $ 104,700 $ 111,900 $ 119,100 50/50 80% $ 50,550 $ 57,750 $ 64,950 $ 72,150 $ 77,950 $ 83,700 $ 89,500 $ 95,250 70/30 130% $ 82,160 $ 93,860 $ 105,560 $ 117,260 $ 126,750 $ 136,110 $ 145,470 $ 154,830

Home Ownership Pool (HOP)

HOP LOAN 50/50 loan For borrowers whose household income is below 80% AMI 50% of the loan is financed at 0% 50% of the loan is financed at market rate 70/30 loan For borrowers whose household income is 80.01 130% AMI 30% of the loan is financed at 0% 70% of the loan is financed at market rate

What is HOP? HOP stands for Home Ownership Pool It is a loan for first time homebuyers. In conjunction with local banks the City of Wilmington offers the Homeownership Pool to low - to moderate income homebuyers. CDBG and General funds are used to provide second mortgages to homebuyers at 0% interest rates. Applicants without stable incomes and acceptable credit will not meet the HOP underwriting standards. This is not a sub-prime loan product which set borrowers up for failure. Our goal is to provide long-term home ownership to people of modest means.

HOP Advantage 100% Fixed Rate; NO PMI (1st & 2nd) Interest Rate: up to 50% of the loan amount at 0% up to 50% of the loan amount at market rate Down Payment Assistance Based on Housing Expense Ratio 30-33% Forgivable in 5 years DPA= up to $25,000-Single Family Home DPA= up to $35,000 - Condo/Townhome DPA= $50,000 - HOP/Rehabilitation (deferred in30 years) Free Home Inspection (Minimum Housing Standards) by City Sr Housing Rehabilitation Technician Free Home buyer Education Seminar Offered monthly, free lunch provided

HOP Restrictions & Limitations Restrictions: Home MUST be purchased within City limits; Minimum 620 Credit Score required; No unpaid collections within the past 12 months; All non-medical collections must be paid; Home must be vacant or owner occupied at the time of showing; Minimum income $30,000 to qualify Maximum Loan Amount $327,750

HOP REHAB

HOP REHAB Property that needs work; Can be assumed to be a rehab loan if visible repairs need to be done; Can be converted to a rehab if the seller refuses to make repairs; $50,000 Deferred DPA; Home must appraise at the as completed value to include the sales price + repairs + 15% contingency; Can be stacked with $25,000 forgivable DPA; If possible, the borrower can request additional repairs and upgrades; Relocation or rental assistance possible during the construction period; Repairs completed after closing;

Down Payment Assistance

DPA Subsidy Layering Review by City Finance staff to ensure borrowers aren t overly subsidized; Requires 1st lender approval; Deferred 0% interest loan; Term varies by amount of assistance and type of property <$15,000 = 5 yrs. $15k - $40K = 10 yrs. >$40,000 = 15 yrs. New Construction = 20yrs. Borrowers can receive up to $50,000; Household income must be below 80% AMI; Property must be located in the City limits of Wilmington; Can be stacked with other DPA; Referred by lenders and realtors; Combined with FHA, Conventional and VA loans; City takes 2nd lien position.

How Borrowers Get Started HOP/HOP Rehab Borrower must take Home Buyer Education; Pre-qualification; Must complete a 2 hour housing counseling session; DPA Referred by Lender/Realtor or Borrower; Must get approved by 1st lender who sends a complete package; Borrower must complete Home Buyer Education and Housing Counseling