The House Charlotte program has specific requirements in regards to the borrower(s) and the property being purchased. We will start with the borrower’s requirements.
- You must be a first time home buyer and not own any other property
- Your must occupy the property you are buying as your primary residence
- Mid-credit score must be a least a 620 (some lenders may require a higher credit score)
- Debt to income ratio (DTI) that does not exceed 33/45. House Charlotte will not allow front end ratios that exceed 40% or backend ratios that exceed 50%
- Recent 12 months of good rental payment history
- 3 months of reserve or 6 months of reserve if you don’t have recent rental history
- You must take 8 hours of home buyer education class
- Depending on our household income, the property must be located either within Charlotte’s city limits or within designated Neighborhood Profile Areas
- The home sales price cannot exceed $185,000 ($195,000 if it is a brand new home accompanied with a CO if less than 6 months old)
- The home must be vacant
- The home must pass the House Charlotte code inspection
- The property can be a single family residence, a town home, condominium or duplex (with some restrictions)
In general, the City allows the lender’s underwriting criteria to be the main factor in approving House Charlotte subsidies. However, the required monthly payment under both the insured mortgage and the second mortgage or lien, plus other housing expenses and all recurring charges, cannot exceed the borrower’s reasonable ability to pay. The City’s guideline for qualifying ratios is 33/45. In some cases the qualifying ratios may exceed 33/45; however, borrower(s) must show significant compensating factors.
The home you select must appraise for at least the purchase price. Your interest rate cannot exceed 2% of the current market rate for 30 year fixed rate mortgages. The standard used for determining the current market rate is www.bankrate.com. Adjustable rate mortgages are not permitted.
The House Charlotte program does not require any down payment from the borrower and concurs with the lending institution regarding their down payment requirements. Condominiums are eligible for purchase as long as the condominium has a financially stable condominium association. This would also include duplexes that have been established as a condominium. The condominium community must be over 50% occupied by owners in order to be eligible.
Useful links about the House Charlotte program
House Charlotte program
Apply for the House Charlotte program
House Charlotte program neighborhoods
House Charlotte program interactive neighborhood map
House Charlotte program eligible neighborhood statistical areas
House Charlotte program income guideline
House Charlotte program requirements to prequalify
House Charlotte program frequently asked questions