Affordable Home Ownership
The Housing Fellowship’s Community Land Trust (CLT) program offers first time, income and mortgage qualified buyers the opportunity to purchase their first home. Homes are sold at prices well below the average sales price in our area. Homeowners create equity and may gain from any improvements made to their home. The CLT provides affordable home ownership while ensuring that the house remains affordable over time. The Housing Fellowship maintains ownership of the land and the homebuyer purchases the improvements only. The price of the home is reduced by subtracting the cost of the land. The City of Iowa City has allocated federal dollars in the form of a grant for the purchase of land. Homebuyers enter into a 99 year Ground Lease and pay The Housing Fellowship $20/month for full and free use of the land. Homebuyers agree to a limited equity upon re-sale if they sell within 16 years.
Buyers must have incomes at or below 80% of the HUD established Area Median Income and obtain a mortgage from a lender approved by The Housing Fellowship and the loan must be minimally a 15 year fixed rate loan. Lender partners include Iowa State Bank, Hills Bank and Trust and Wells Fargo. Many buyers have qualified for the Iowa Finance Authority’s First Home Mortgage, which offers a below market fixed interest rate for 30 years.
The Housing Fellowship has constructed 16 homes and acquired/rehabilitated two homes in the CLT program. A grant from State of Iowa HOME and American Dream Downpayment Initiative programs has provided four homebuyers additional assistance for down payment, closing costs and mortgage buy downs of $34,999 per buyer. CLT and down payment assistance are two of several strategies being implemented locally and nationally to encourage affordable first time homeownership. Design and construction of the homes is not compromised and all are located in desirable neighborhoods.
FOR SALE: 1904 HANNAH JO COURT, IOWA CITY $127,900
ELIGIBILITY: Households who meet the income guidelines, qualify for a private mortgage, have not owned a home for three years and have lived in Johnson County for at least three years may apply to purchase this home.