IHCDA Helping 2 Own - with current ownership interest
Updated: 07/02/2018
Article #: 108
Below is directly from the H2O program guidelines so unless she meets the parameters below re: interest that do not constitute ownership I don't believe she would be eligible.
A “First-Time Homebuyer” is someone who has not, at any time during the three (3) years preceding the date of the loan closing, had a present ownership interest in his or her principal residence. This requirement does not apply to all members of the household only to the Mortgagor(s) executing the loan documents. However, Mortgagors acquiring residences in Targeted Areas and eligible veterans are exempt from the First-Time Homebuyer requirement.
B. OWNERSHIP INTEREST An ownership interest includes:
a. A fee simple interest;
b. A joint tenancy, a tenancy in common, or a tenancy by the entirety;
c. The interest of a tenant shareholder in a cooperative;
d. A life estate;
e. A land contract (i.e. a contract under which possession and the benefits and burdens of ownership are transferred although legal title is not transferred until some later time);
f. An interest held in trust for the Mortgagor (whether or not created by the Mortgagor) that would constitute a present ownership interest if held directly by the Mortgagor; or
g. Ownership of a factory-made home permanently affixed to real property and taxed as real estate.
Interests that do not constitute ownership interest include:
a. A remainder interest;
b. A lease;
c. A mere expectancy to inherit an interest in a principal residence;
d. The interest that a purchaser of a residence acquires upon the execution of a purchase contract;
e. An interest in other than a principal residence during the previous three (3) years; or
f. Ownership of a factory-made home not permanently affixed to real property and taxed as personal property.
Original question:
Hi There...
I have a client that would like to utilize Helping 2 Own. However, she owns her current home that was deeded to her. She did not purchase it nor take a mortgage out against it. Does IHCDA allow for this or have an exception?
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