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Lakeshore CAP Home
Buyer Program
A Community Action Agency
Serving Door, Kewaunee, Manitowoc and Sheboygan Counties
540 North 8th Street, Manitowoc
920-682-3737
This program has
been developed to ensure homebuyers understand the home purchase
process through a suggested curriculum of counseling and education
required by most first mortgage lenders. The
Lakeshore CAP, Inc. Home Buyer Program is a three-phase program.
A completed spending
plan, signed budget counselor verification form, credit report and
workshop certification are required to move into phase two of the
program.
During
phase two a housing counselor meets with an applicant to
determine the steps needed to purchase a home. Typical barriers
include affordability, credit and savings. A good, better, best
exercise will help the participant better understand a purchase
price limit and the amount of funds Lakeshore CAP could provide at
closing. Funds are available on a first come first served basis, and
the applicant controls the pace of the program. Participants may
find they need to correct credit problems, save additional funds for
earnest money and moving expenses or reassess their needs and wants
relative to affordability and their “dream” home.
The third
phase of the program requires the participant to obtain a
first mortgage approval from a primary lender. Loan products are
reviewed by Lakeshore CAP to insure the participant has been quoted
a competitive interest rate, closing costs and reasonable terms.
Upon approval of a first mortgage, the participant is free to window
shop for a modest home that will suit the needs of the family. Once
an offer to purchase has been accepted, Lakeshore CAP, Inc. will
schedule an assessment of the home by a certified inspector. The
information from the inspection will be presented to the
participant. Program regulations require the home to be safe, decent
and affordable. The home must be equitable for Lakeshore CAP to
participate in the purchase and rehabilitation of a home.
If the home
requires more rehabilitation than funds available for assistance the
participant may continue on their own to find the means to purchase
the home. Lakeshore CAP will not prevent you from purchasing a
home. The agency will present information to help you make an
informed choice in the purchase of a home, and may choose not to
assist financially with a property which may not be able to meet
program requirements due to excessive investment required.
At closing, funds
for the down payment, closing costs and acquisition are paid to the
lender and applied to your loan. Approximately one month after the
purchase of the home, the owner will arrange for the repair and
rehabilitation for any items that failed on the inspection report.
Owners who do not complete the required repairs and/or
rehabilitation on a schedule provided by staff will be asked to
return the funds used to purchase the home.
No and/or low
interest loans used in the purchase and rehabilitation of the home
are repaid over 15 years and begin 18 months after the purchase of
the home. An affordability test is done after the home inspection to
insure the participant can afford repayment of the funds used to
assist in the purchase and rehabilitation of the home. Lakeshore Cap
maintains contact with the homeowner annually. Participants are
encouraged to contact the agency if there is a financial crisis to
assist in the evaluation the situation and to receive guidance.
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