Homeownership remains the largest and best investment a family can make for the long term, and it supports the national and local goals for an ownership society. Most consider it the “American Drem.” Homeownership is a cornerstone indicator of financial success and stability.
CADA’s purpose is to educate and assist modest income borrowers in the process of purchasing their dream home. In this process, clients are assisted in repairing their credit, educated on available mortgage products, provided a prequalification of their mortgage loan and when eligible, provided down payment assistance.
The homebuyer education curriculum includes the following topics: “Get the Facts” sponsored by Freddie Mac, Bank on It, Check It Out, Pay Yourself First, Keep It Safe, Identify Goals and Overcoming Obstacles, Money Matters, Credit Review, Mortgage Pre-Qualification and Affordability, Choosing the Right Mortgage Product, Find a Home, The Mortgage Process, The Closing Process, and After the Sale.
Individual Development Account Program (IDA)
IDA’s are the centerpiece of an asset based strategy designed to build an enduring escape from poverty for low to moderate income families. An IDA is a matched savings account that will jump-start the savings process and help modest income family’s progress down the path of prosperity.
The Roanoke Chowan Individual Development Account currently provides a 2:1 savings match. There is a 4:1 match if you are interested in pursuing your education or starting your own business. CADA will match $1,000, providing the participant with $3,000 for closing cost. In addition, eligible participants can receive up to $25,000 in down payment assistance that is at zero percent interest, deferred for the life of the first loan. Participants must be at least 18 years old, the household income can not exceed 200% of poverty, and the deposits must come from earned household income.
The New Homes Loan Pool
CADA is a part of the New Homes Loan Pool with the North Carolina Housing Finance Agency. Participants that are in need of down payment assistance, but are not eligible for the IDA can receive assistance with a minimum investment of $750. Eligible participants can receive down payment assistance at twenty percent of the sales price, but not more than $25,000, deferred for the life of the first loan.