Cape Coral Housing Development Corporation

Let Cape Coral Housing Development Corporation (CCHDC) help open the door for affordable home ownership for you.

Our Program assists eligible participants by reducing the mortgage amount necessary to purchase the homes, including down payment assistance through State and Federal grants. The amount of assistance is determined through commitment letter from the lender. The first mortgage amount and the client’s financial ability will determine which model the client will be placed in, as well as the purchase price.

         1)    Application process

All applicants must be defined as low or very low income, according to the current HUD income limits

It is mandatory for the prospective applicant to attend the  Home-Buyers Workshop , at which time they receive the application.

When the application is submitted to the CCHDC it must be accompanied by a $30.00 (non-refundable) money order made payable to the Cape Coral Housing Development Corporation. Upon receipt of the application and $30.00 money order ( non- refundable), the CCHDC will obtain a credit report for the individual(s) who will be responsible for securing financing for a mortgage. At this time applicants must provide pay stubs in order to verify employment status and income levels.

    2)  INTERVIEW

Each applicant will meet with CCHDC staff in order to review the information and/or answer any questions or concerns. At this time, the applicant will be required to enroll in one of our monthly homebuyer workshops. During the client interview three major factors will be discussed: qualifying ratios, credit history and savings information. Below are the elements that affect each factor:

Housing – 33% of gross monthly income
Total - 40% of gross monthly income

Monthly housing expenses including principal, interest, taxes, and insurance, should not exceed 33% of your gross monthly income. Your monthly housing expenses plus all other monthly debt obligations (excluding basic utilities) should not exceed 40% of your gross monthly income.

Acceptable Sources of Income:

1. Salary and Wages
2. Commission Income (must have two (2) year
   history and 24 month average will be used
   to qualify), plus two years tax return
3. Part time jobs
4. Pension
5. Self-employment (verified through tax
   returns, minimum of two years)
6. Child support and alimony (with
   documentation of continuance and
   evidence of regular receipt).
7. Social Security or disability income
   (that will continue into the future).
8. Unemployment Compensation

NOTE: The CCHDC will evaluate each applicant’s income
and debts to determine an affordable range for
the client. However, it is up to the lending institution to
qualify the individual based on their underwriting criteria.

CASH TO CLOSE: Applicants must contribute their
own funds towards purchasing of the home in the
amount of 3% of the first mortgage amount. This
minimum amount provided by the applicant
can be utilized towards the down payment and/or
closing cost.

             3)  Credit History :

Bankruptcy	Must be discharged for at least three years, with good credit reestablished.
Collections	Over $100.00 must be set up on repayment plan or paid in full.
Repossessions	Must be set up on a re-payment plan and paid in a timely man- ner for at least one year before the loan will be considered
Civil Judgment/ and IRS Liens	Must be paid in full and satisfied.
Previously Delinquent Obligations	Depending on the amounts involved the CCHDC staff may refer the applicant to Consumer Credit Counseling (CCCS) for a debt management program. This situation will be addressed with each individual lender separately.
Lack of Credit	Credit history can be established through non-traditional Sources, e.g., landlords, utility companies, local retail accounts, etc.
Open accounts	Must be current.

4) Savings

The CCHDC requires that the Homebuyer contribute at least
3% of the first mortgage amount towards the purchase of
the new home. The amount will vary with each applicant.
Prior to sending an applicant to be pre-qualified by a
lender, the CCHDC will need verification that the client
has a savings account in the amount of at least $2000.
The three percent requirement cannot be a gift. Please
note that each financial institution may have different
savings requirements.

Once an applicant is income qualified, has repaired
and/or re-established credit and has savings in place,
the CCHDC staff will refer the individual to one of the
participating lenders to qualify for a mortgage.

MORTGAGE SUBSIDY AND
DOWNPAYMENT ASSISTANCE:

The mortgage buy down subsidy and any down payment assistance awarded to the applicant by the CCHDC, will be secured by a 0% interest second mortgage. The note has a term of 15 years. If the applicant keeps the house as their primary residence for a 15-year period then the second mortgage is forgiven. If the applicant sells or refinances the home within the 15-year period, the second mortgage is due in full to the CCHDC.

          5)  Applying for the mortgage

 As stated above, once you have met the requirements of the Cape Coral Housing Development Corporation, which includes attendance at a Home Buyer Workshop, you will be sent to your choice of one of the participating lending institutions to be pre-qualified for a mortgage.

All mortgages obtained with the assistance of the CCHDC Program will have a fixed interest rate for 30 years and no private mortgage insurance is required.

The lender will ask for specific information from you and may request additional information. It is important that you submit the requested information as soon as possible, because they will not be able to proceed with your loan until they have all the information.

It is important that during the construction stage, you stay in touch with the lender. Due to the length of time it takes to build the home some of the documents may expire. CCHDC staff will assist with this effort, however it is ultimately the responsibility of the homebuyer.
 

           6) Construction Phase

Once a commitment has been received from the lending institution we can begin the actual construction phase of your home. Baywood Construction, Inc is constructing the homes. Two models are available. Both models contain three bedrooms, two baths, and a two-car garage The model that will be available to the applicants is based solely upon the mortgage amount the client has qualified for. The Baywood model is available for those who qualify for a minimum of $125,000.00.

The CCHDC has purchased lots for the new home sites and will give the client as many choices as possible at the time they qualify for their home. The lots will be reserved on a first-come-first-served basis.

Each applicant will be given the phone numbers of the Designer Showcase and Sears Appliance Center, after a site has been selected. Each participant is responsible for setting appointments in order to select colors for your new home. You will be choosing the exterior paint color, trim, shingle color, bathroom tile, carpet and appliance colors.

The actual construction period is roughly 120 days. This may vary due to inclement weather, shortage of building supplies and/or circumstances beyond our control. There will be no changes/upgrades allowed during construction of the home.

Once the builder can establish an estimated completion date, the CCHDC will contact the bank and the applicant to establish a closing/settlement date.

         7) The Closing

Prior to the closing date, the homebuyer will complete a walk through of the home with a representative of Baywood Construction.

Also prior to closing, the CCHDC and Bank may require updated information regarding income and savings. At this time, the CCHDC will meet with the buyer to review items such as purchasing homeowner’s insurance and to discuss the closing procedure.