HOW TO BUY A CLT HOME
Prior to acceptance of an offer to purchase, Two Rivers Community Land Trust will process the Pre-Application of the buyer. If the buyer, based on this preliminary screening, fits the guidelines, they will be asked to complete the full application and provide information to Two Rivers CLT similar to the process involved through the bank and the mortgage application process. Two Rivers CLT is required to perform various verifications, which are similar to the lender underwriting process as a condition of the funds received that make the home affordable.
Interested buyers are also encouraged to submit a pre-application in order to get on our waiting list for new homes for sale. Buyers do not have to apply for a specific home for sale; they can also get on Two Rivers CLT's waiting list if they submit a pre-application and are deemed to meet the Housing and Urban Development income guidelines. After that income evaluation, the applicant is on the wait list and gets notified when Two Rivers has homes for sale.
Once we have completed the verification process and determined the buyer is eligible, the offer to purchase can be signed and accepted. Multiple applications can be processed at the same time and will be reviewed against an approved set of selection criteria. The first application completed and approved may be the determining factor (first come first serve).
Two Rivers CLT:
HOW TO OBTAIN FINANCING
Although homes for sale through a community land trust are nearly always more affordable than market-rate housing, very few low-income or moderate-income households will be able to buy a CLT home out of their own savings. They will need mortgage financing, and buyers can choose from a list Two Rivers has developed of approved lenders familiar with the CLT process. Lender lists can be requested from Two Rivers by contacting Operations Associate, Amy Weber - firstname.lastname@example.org.
If you are interested in buying a home but currently unable to qualify for a mortgage, Two Rivers CLT can connect you with organizations that will help you work towards mortgage readiness so you can purchase a land trust home in the future. Resources for mortgage readiness counseling include:
FIRST TIME BUYING A HOME?
Participate in a Home Stretch class for first-time homebuyers! The Minnesota Homeownership Center has a schedule of classes throughout the metro. Visit their website or call (651) 659-9336.
CONTINUED HOMEOWNER SUPPORT
Homeowners receive continued support after a purchase. Two Rivers CLT helps:
Answer property questions.
Referrals to service providers for personal, household, and financial needs.
Provide social and networking opportunities.
Assist with the resale of the home.
AM I ELIGIBLE TO BUY?
Review the household size chart below — does your income exceed the amount for your household size?
If yes, you do not qualify.
If no, go to the next question.
2020 INCOME LIMITS
2020 area median income: $103,400
Next, will the mortgage payment with the insurance and nominal ground lease be more than 30% of your gross monthly income?
If not, you are preliminarily eligible — if you are interested in a house, submit the pre-application to start the process.