Homeownership For Persons With Disabilities
HomeChoice
HomeChoice is a homeownership program for Utah residents with disabilities or who have a family member with a disability.
The funding is provided through the statewide Olene Walker Housing Loan Fund, but administered by Neighborhood Housing Solutions in Logan, Utah.
To date, over 160 families in Utah have obtained affordable homeownership through the help of HomeChoice.
The HomeChoice Difference
HomeChoice makes homeownership more affordable and achievable for those who have (or have someone in their family who has) a disability. It provides a low-interest second mortgage loan for up to 30% of the home’s purchase price up to a maximum of $45,000. It is a 30-year second mortgage at a 1% interest rate, with no penalty for early payoff.
Eligibility Requirements
Definition of Disability
Your or your family member’s disability must meet guidelines established by the Americans with Disabilities Act (ADA) of 1990 or by the Fair Housing Amendment Act of 1988.
Home Type
Single-family homes, townhomes, and condominiums are all eligible.
$500 Down Payment
You must contribute a minimum of $500 toward the down payment.
Attend First-time Homebuyer Education
Applicants will be required to receive a certificate verifying participation in a HUD-approved First-time Homebuyer class or workshop. These are offered both online and in-person.
Income Limits
You must have an annual combined household income equal to or less than 80% of the HUD median income guidelines in your county, based on household size. Income from anyone in the household 18 or older is included.
Loan Type
Up to 30-year fixed-rate or adjustable-rate mortgages are allowable to be used with the HomeChoice loan.
Benefits
Lower Monthly House Payment
Borrowing 30% of your home financing at only 1% interest lowers your total house payment.
“Gross Up” of Nontaxable Benefits
If you have nontaxable benefits as part of your income, they can be “grossed up” in the calculations for loan qualification. For example, if you receive $850/month in nontaxable benefits and you are taxed at 15%, then it would require you to earn $1,000/month in wages to have the same after-tax amount ($1,000 – 15% tax = $850). By “grossing up” your nontaxable benefits in the loan qualification calculations, you can qualify for more financing on your home.
Avoid Private Mortgage Insurance (PMI)
Using HomeChoice as a second mortgage allows you to avoid paying private mortgage insurance.
Parent Co-Signers
Parents can act as non-occupant co-signers for a child with a disability who is a HomeChoice recipient.
Income Source & Credit Flexibility
Sources of borrower income can include wages, public and private disability benefits, Section 8 vouchers, and income from trusts. Also, nontraditional credit is accepted.
Legally Appointed Guardians
A legally appointed guardian or a Supplemental Security Income (SSI) representative payee appointee may participate in the loan transaction provided they have a 24-month history of managing the borrower’s financial affairs and expect to continue to do so.
Get Started
Contact
Call or email program manager Dave Schuster to ask questions or request an intake application.
Phone: (435) 753-1112 ext. 104
Neighborhood Housing Solutions
195 West Golf Course Road
Logan, UT 84321
(435) 753-1112