These three loan programs can help minority families purchase homes in Charlotte
In Charlotte, less than 50 percent of Black and Hispanic families own homes in the area.
To boost minority homeownership, Bank of America recently announced it is launching a pilot program called Community Affordable Loan Solution that will offer home loans with no down payments and no closing costs to Black and Latino communities in Charlotte and select cities around the country, The Charlotte Observer reported.
During the second quarter of 2022, the national homeownership rate for white residents was 74.6%, while the rate for Black and Hispanic residents was 45.3% and 48.3%, respectively, according to recent census data.
The nationwide gap coincides with Charlotte’s, according to a March report from Stacker, an online news outlet focused on data analysis. The data indicate that just 45% of Black families and 46% of Hispanic families own homes in the city.
While there are few loan programs that specifically target minorities in Charlotte, a few exist to help low-income families with mortgage down payments.
House Charlotte Program
The program offers two deferred down payment assistance loan options for homebuyers purchasing in Charlotte. Loans can also be used to pay closing costs on a home or interest rate buy-down.
Families who earn below 80% of the area’s median income ($73,350) are eligible for loans of up to $30,000, and families who make up to $110% of the median income ($103,600) can qualify for up to $10,000.
To qualify for the program, families must purchase a newly-constructed home for $315,000 or less, or existing home for $300,000 or less and complete a homebuyer education course.
Information about program offerings can be found at dreamkeypartners.com or by phone at 704-342-0933.
Section 184 Indian Home Loan Guarantee Program
The Section 184 Home Loan Guarantee Program, established by Congress in 1992, is “specifically designed for American Indian and Alaska Native families, Alaska village, tribes or tribally designated housing entities,” according to the U.S. Department of Housing and Urban Development.
Most Native Americans who are members of federally recognized tribes qualify for the program, according to HUD. The loans can be used on and off native lands, and are limited to a maximum term of 30 years.
In Mecklenburg County, the maximum loan limit for a one-unit dwelling is $474,100, according to HUD.
Information and qualifications of the home loan program can be accessed online at hud.gov.
HomeReady Mortgage
HomeReady Mortgage is a Fannie Mae program that offers home loans with down payments as low as 3%, according to the company’s website.
The program also allows income pooling, meaning all working members of a household can be used to help qualify for a mortgage.
According to the Fannie Mae website, the ideal borrower:
Is low-income, or earns less than 80% of the median income for a property’s location
Is a first-time or repeat homebuyer
Has limited cash for a down payment
Has a credit score of 620 or higher
Borrowers are required to take a homeownership education course to qualify for the program. More information can be found at singlefamily.fanniemae.com.
Charlotte Observer reporter Hannah Lang contributed to this story.
This story was originally published September 7, 2022 at 1:08 PM.
