View the full CHT homeownership process.
A summarized version of the process is listed below:
- Review the program qualifications to self-screen for CHT homeownership.
- If you meet the criteria, complete the Readiness Questionnaire and a CHT staff member will contact you.
- When invited, complete all screening and application steps and submit all required documents.
- Keep an eye on your email for notifications when homes you may qualify for become available.
- Complete homebuyer education and visit an approved lender to get pre-qualified for a mortgage.
- Sign an offer-to-purchase contract.
The Community Home Trust Sales Department has licensed real estate agents who represent Community Home Trust but will provide professional assistance throughout the home buying process. Buyers may have their own representation, but the cost of the commission is the sole responsibility of the buyer. As with the buyer, the Community Home Trust Sales Team will assist the seller, but represents the interests of Community Home Trust. Sellers may have their own representation, but the process and guidelines for reselling a Community Home Trust home remain the same. If you are working with a realtor when you apply, Community Home Trust will pay a $500 referral fee.
We require a buyer’s total housing costs to be no more than 30% of their gross monthly income but target 28%, when possible. Housing costs include principal, interest, taxes, insurance, HOA dues, and ground lease fees.
You pay two monthly fees to Community Home Trust for the entire time you own your home. The first is a ground lease, or use fee, which is a small monthly charge that is payable to Community Home Trust. The second is the Stewardship Fee, explained below. You might see these two charges combined into one deduction from your bank account on an automatic draft.
The Stewardship Fee is dedicated to replacing specific capital systems (or major components of those systems) such as the roof, siding, air conditioning/heating system (HVAC), hot water heater, and flooring. For our single family homes, the fee also covers an annual termite inspection and warranty. These funds stay with the property and are only used to cover the replacement of those “big ticket” items listed above. The fee varies for different homes, so please ask our Sales Team about the fee on the home that interests you.
Community Home Trust will provide assistance based on need as determined by a thorough review of income and employment documentation. There may be additional criteria, steps, and documentation required depending on the source of funds. Our goal is to ensure that buyers are not over-extending themselves. We will apply subsidy to reduce a buyer’s first mortgage amount such that the monthly costs are approximately 28% of the household’s monthly gross income. We will not allow a buyer to purchase a home if the total monthly housing expenses exceed 30%.
Often, down payment assistance is available to our buyers in the form of a no-interest, no-payment loan. This means that typically a Community Home Trust buyer is not required to have a down payment to purchase one of our homes. Of course, you may choose to have a larger down payment if you wish. If your monthly housing costs exceed 30% of your gross monthly income after all subsidy has been applied, you may be required to add a down payment in order to qualify to purchase that home.
Closing costs typically range from $6,000-9,000. $1,000 is due in the form of earnest money when you sign your contract, $500-$800 is due soon after for the appraisal fee, and the remaining amount is due at the time of closing.
Gifts are allowed up to $10,000. Exceptions to this policy may be requested under very limited circumstances. We do not allow for co-signers. All gifts are also subject to lender requirements.
Due to the complexity of our land trust model, you must use one of our approved lenders to purchase a CHT home. We will provide a list of lenders at the appropriate time in the process.
Community Home Trust does not have a credit score requirement. However, our homebuyers must qualify for a traditional mortgage. This means that in order to purchase a CHT home you will have to meet lender or bank credit score requirements.
The homebuying process takes time, so even if you’re not sure when you’ll be ready to buy a house, it’s never too early to connect with us to learn more.
You can subscribe to our email newsletter to keep up to date with the organization and news.
You can complete our Readiness Questionnaire when you would like to take the first steps towards buying a home.
When you purchase a home through Community Home Trust, you sign a ground lease. This document stipulates that you must sell your home back to Community Home Trust when you move and you cannot resell it on the private market.Visit the Selling Your CHT Home page to learn more our process.
It is important to remember that the process will take more time than selling a private market home. Although most homes sell within 90 days, you should allow up to 6 months to sell your home. Since you are responsible for maintaining all costs associated with the home until it sells, we strongly advise not purchasing another home or signing a new lease until your home closes. This will prevent you from having to financially maintain two properties.
