Are you interested in buying your first home, but can’t afford a down payment? While traditional mortgages generally require a down payment, there are other options to help you get that dream home. You may qualify for the Twin Cities Habitat Homeownership Program! The program provides education to help buyers prepare for homeownership as well as affordable loan options through TCHFH Lending, Inc.
Twin Cities Habitat for Humanity’s wholly-owned nonprofit mortgage company, TCHFH Lending, Inc. provides mortgages to low- and moderate-income households across the seven-county metro area. The mortgage can be used on a Habitat-built home or a home you find on the open real estate market. We even have a mortgage calculator (below) to help you estimate how a mortgage from TCHFH Lending, Inc. would compare to a traditional mortgage.
TCHFH Lending Mortgage Details
There are many financial benefits to a TCHFH Lending, Inc. mortgage including:
- 3.0% fixed interest rate, 3.0538% APR*
- 30-year term
- Affordable monthly housing payment set at no more than 30% of gross income
- No mortgage insurance
- Maximum mortgage of 96.5% of home’s value – down payment and affordability assistance available depending on income qualification and availability.
This is NOT an offer for a rate lock agreement. The calculator is a tool to help you estimate your mortgage and does not guarantee interest rate, eligibility, or availability of assistance.
Do You Qualify?
To qualify for a mortgage from TCHFH Lending, Inc., there are a few application requirements to meet. Applicants must:
- Complete the Habitat Homeownership Program: This prepares you for the responsibilities of homeownership.
- Meet the income eligibility guidelines and other financial guidelines like credit score, debt, employment, and bankruptcy.
- Be a first-time homebuyer: Cannot have owned a home in the past three years.
- Currently live in the seven-county metro area and have lived there for at least one consecutive year.
- Buy a primary residence: The mortgage must be for a home you plan to live in.
Try Our Mortgage Calculator
Understanding Our Calculator
There are a few important things to understand about the calculator.
- This calculator does not determine your actual mortgage amount.
- This does not guarantee Habitat can contribute the full assistance amount listed.
- To qualify for a Habitat mortgage, you need to meet all income and other underwriting criteria.
- Even if your affordability indicates you can afford more, a purchase with a Habitat mortgage would be limited to our maximum purchase price.
What Can You Afford?
The TCHFH Lending, Inc. mortgage is designed to keep your housing payment affordable at no more than 30% of your gross monthly income. As a general rule, you should not buy a house that requires you to have a monthly payment higher than 30% of your monthly income.
Many people will qualify for a larger loan and it can be tempting. But sticking with a monthly payment of 30% or less of your income will help ensure you can pay for your other regular expenses. It’ll also help you be prepared for unexpected expenses.
Our calculator generates an estimate of what you may be able to afford based on your income. The calculation is based on the following criteria:
- Interest rate (3% fixed)
- Mortgage term (30 years)
- Property tax escrow (1.5% of the desired home's price, divided over 12 months)
- Homeowner’s insurance escrow (0.69% of the desired home's price, divided over 12 months)
- Maintenance fund contribution of $50 per month
- Maximum monthly payment set at 30% of your income
- The calculated APR is based on the estimated first mortgage and interest rate. Actual APR may vary.
Find Out If You Qualify
Interested in taking the next step toward homeownership? Fill out the eligibility questionnaire to find out if you qualify for our homeownership program. Whether you find a loan through TCHFH Lending, Inc. or another lender, take the time to understand the financial requirements and think about how much you are comfortable spending. This will put you on the right track toward finding the loan that is right for you.
*For example, on a $175,000 30-year fixed rate loan at an annual interest rate of 3.0% with no down payment, your monthly payment would be $737.81 and the APR would be 3.0538%. The monthly payment amount does not include sums for homeowner’s insurance premiums, property taxes, or maintenance fund, all of which must be paid in addition to the principal and interest on your mortgage