Home Ownership for People with Disabilities

Community Development Corporation of Utah (CDC) is a sponsor of "The Home Choice Loan Program" that can assist with the critical need for accessible affordable housing in Utah. 

Today, the CDC targets low income families earning 80% or below the area median income (AMI), and people with disabilities in order to make home ownership more affordable.  Those individuals with disabilities, or families with a family member with disabilities, who earn more than 80% of the AMI, can given direct assistance by the Home Choice partner Washington Mutual.

ELIGIBLE BORROWERS FOR HOME CHOICE:

Includes anyone defined as “a person with a disability” by the Americans with Disabilities Act of 1990; or “handicapped” as defined by the Fair Housing Amendments Act of 1988; and who “lives in low-to-moderate-income households,” as defined by the Department of Housing and Urban Development (HUD).  This definition generally
includes incomes at or below the area median income.

DOWN PAYMENT ASSISTANCE 

•      Borrowers’ entire income must be at or below 80% of the area.
•      Median income (AMI) as published by Housing and Urban.  

ELIGIBLE MORTGAGES

Mortgages that include 15 to 30 year fixed rate, fully amortizing (the entire principal, interest, taxes, and insurance payments are paid monthly), level payment mortgages.

LOAN AMOUNT

Borrower must provide 5% down payment; family and/or seller may gift most of those expenses.  The loan allows for retrofit/handicap accessibility to be done.

Home Choice FLEXIBILITIES

• Lower down payment requirements.
• Budget-based qualification process for borrowers with incomes below 50% of Area Median Income (AMI)Nontraditional credit histories.
• Nontraditional sources of support and income.

DOWN PAYMENT REQUIREMENTS

• Minimum down payment is 5% or the lesser of the sales price or Appraised value of the security property.
• Home Choice allows for lower cash investment from the borrower’s own funds.
• Down payment assistance can come from gifts, grants, and secured loans from nonprofit or government entities.

CREDIT HISTORY

• Must demonstrate the willingness and ability to repay the mortgage through credit references which may include Verification from landlord, utility, and telephone companies.
• Borrowers without much credit history may be eligible for a Home Choice mortgage if there is a legal guardian who has been managing the borrower’s financial affairs for the prior 24 months and will continue to do so.
• Specific Fannie Mae approval is required for any borrower that has a representative payee who has been appointed by the Social Security Administration to accept and administer Social Security Income or Social Security Disability Income benefit payments on behalf of the borrower.

ALLOWABLE SOURCES OF INCOME

• Wages and salaries.
• Social Security Benefits.
• Supplementary Security Income (SSI).
• Supplemental Security Disability Income (SSDI).
• Workers’ Compensation.
• Private disability insurance.
• State supplemental income payments.
• Aid to Families with Dependent Children (AFDC).
• Trust income from “special needs trusts”.

NON-INCOME SOURCES OF SUPPORT

• Medicaid Home and Community-Based Waiver Funds.
• Transportation and meal vouchers.
• Social services and other non-cash support from a government or nonprofit agency or organization.
• Property repair and maintenance assistance.
• For groups of two borrowers, non-income sources of support shall be included as income items in the budget-based qualification process.
• Non-income sources of support that are specifically committed to the mortgage payment shall be included in the borrower’s income for qualifying purposes.

HOMEOWNERSHIP PLAN

The borrower shall attend Homebuyer Education Classes, and may be invited to prospective homebuyer workshops sponsored by a member of the Home Choice Coalition. The borrower may contact any member of the coalition for further information. 

Please contact Brady Pierce at 787-8351 for the additional information regarding Community Development Corporation in our area.

*All above information subject to change without notice.