Community Homebuyers Corp Forgivable Second Mortgage
The mission of CHC it to provide affordable mortgage opportunities and knowledge on how to be successful homeowners to low and moderate income residents of St. Joseph County with emphasis upon providing housing opportunities within the city limits of South Bend.
The CHC program offers homeowner assistance for applicants who meet the following requirements:
- Household income may not exceed 80% of median as adjusted for household size.
- Must be a first-time homebuyer with the following exceptions: 1.) An applicant who owns a mobile home 2.) An applicant who has been displaced from their home because of a legal situation (e.g. divorce) 3.) An applicant who has relocated to this area and who has not previously owned a home in this area 4.) An applicant who has not previously owned a home within the last three years 5.) An applicant with a foreclosure history who had extenuating circumstances.
- Must complete one to one, in person, credit and pre-purchase counseling from any HUD designated counseling agency that is documentable on HUD's Housing Counseling Website.
- Must have a minimum of $2000 in verifiable cash reserves prior to CHC loan committee review.
- Must purchase a home within the city limits of South Bend.
Second Mortgage Loan Subsidy and Post Purchase Requirements
Based on the household income, applicants may be eligible for a forgivable second mortgage loan from 5% to 20% of the purchase price through the CHC partner, 1st Source Bank. For the second mortgage to be forgivable, all applicants are required to:
- Make twelve consecutive, on-time payments within the first five years
- Attend six (6) post purchase training sessions within the first year
Both the on-time payment requirement and the post purchase training must be completed for forgiveness to start on the second mortgage loan. If the forgiveness is not earned, the borrower will be required to repay the second mortgage loan. Once the forgiveness has started, certain circumstances such as non-payment of the first mortgage loan, bankruptcy, foreclosure action, abandonment of property, etc. will stop the forgiveness and the borrower will be required to repay the balance of the second mortgage loan.
For Information about the Community Homebuyers Corporation (CHC) please call 574-235-5880.