I’m self employed. How do I determine if I am income-qualified and how many years of tax returns do I need to show the lender?
Lenders/banks typically require three years of self-employment tax returns to be able to determine your income. For income eligibility purposes, we look at Schedule C of your tax returns. Look at the bottom line – the net income after deductions. Your income for that year will be that number plus any amount you deducted for use of your home and for depreciation. Some lenders also add other deductions back in as well. We do this for the past three years and then take an average of the three years. This average is considered your current income.
My household size is 3 people, but I am the only one that will be on the mortgage. Do I need to include my partner’s income for income eligibility purposes even though he/she isn’t going to be on the mortgage?
Yes, all household members over the age of 18 must be included for income eligibility purposes. Proud Ground needs to obtain and have on file recent pay stubs for each and every wage earner in the household to determine income eligibility. If you are currently living with someone and plan to have them move into your new home then they are part of your household and their income must be verified by Proud Ground for eligibility purposes. Failure to report income or household members is fraud.
I want to buy my house with my partner, but we aren’t married. Is that okay?
Yes! You and your partner do not have to be spouses or registered domestic partners to obtain a mortgage together or buy a home.
I have filed bankruptcy in the past. How long do I need to wait after my bankruptcy before I can apply for a loan?
Three years if you filed for consumer debt, and two years if it was for medical debts.
I’m pre-approved with ABC Mortgage for $150,000. Can I purchase a Proud Ground home with ABC Mortgage?
Unfortunately, Proud Ground can only work with approved lenders. You can view a list of currently approved lenders here. If you want to buy a home through Proud Ground you will need to be pre-approved based on Proud Ground’s lending criteria through one of our approved lenders.
My mom has offered to co-sign on a home loan for me. Does Proud Ground allow co signers?
No, typically, applicants that require a co-signer to obtain a mortgage do not meet Proud Ground’s minimum guidelines for purchase.
My uncle is willing to loan me 100% of the money to purchase a Proud Ground home. Can I purchase a Proud Ground home with this money?
Unfortunately, no. To purchase a home with Proud Ground you must use a permitted mortgage, which is generally one with a fixed interest rate and a fixed time span. Private loans from friends and/or family members do not meet the guidelines of a permitted mortgage. However, private loans can be used for a percentage of your purchase. See below.
My sister wants to loan me $30,000 to help with a down payment on a home. Can I do that?
Yes – you definitely can use that money to help purchase a home through Proud Ground, but if the money is a LOAN and not a gift then the lender and Proud Ground need to include your monthly payments on that debt into your monthly housing costs. If the money is a GIFT and not a loan then there would be no monthly debt payment considerations. The person giving the gift would need to provide documentation to your lender stating the money is a gift and there is no obligation to pay the money back. The giver would also need to show documentation to the lender that they have the ability to give the money (copy of bank statement or sale of stock, etc.).
What happens when I want to sell my home?
When you are ready to sell your home, first call Proud Ground. The next step is to notify Proud Ground in writing. At that time, if you have identified a buyer for your home, Proud Ground will verify that the buyer meets income guidelines. If so, the buyer will go through Proud Ground’s steps to become a homeowner. However, Proud Ground always retains the first right to identify a buyer to purchase the home from you, even if you have identified a buyer. We hope to respect your wishes to identify a buyer but we also have a waiting list of buyers who are in line, ready, and eager to purchase a Proud Ground home that’s right for them.
Do Proud Ground homeowners pay property tax?
Thanks to a tax appeal brought — and won — by Proud Ground in Oregon’s magistrate court, Proud Ground homeowners in Multnomah and Clackamas County only pay a percentage of the assessed property tax. In other words, property taxes are based on the assessed value of the house, plus a small amount of the land value. Proud Ground homeowners outside of Multnomah and Clackamas County pay full property taxes on both the house and the land.
When Proud Ground homeowners sell, how many of them move to market-rate homes?
Proud Ground is still too young to have data regarding this issue. However, the Champlain Housing Trust — the country’s oldest and largest community land trust — commissioned an independent study after its 100th resale to answer this question. In short, of BCLT homeowners who sold their land trust homes, 74% moved to market rate housing. Click here for the CHT study.
Does Proud Ground have bi-lingual materials available?
Proud Ground has general information and Frequently Asked Questions brochures in Spanish. Proud Ground also offers its orientation classes in Spanish and other languages, and we work with translators when necessary. Please contact us for info.
If you have additional questions, please contact Tyler at Tyler@proudground.org or call the Proud Ground office at (503)493-0293, ext. 11.