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FAQs
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What are the general program qualifications?
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How do I know if I meet the income guidelines?
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How does Land Trust ownership differ from a private market purchase?
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What is a Ground Lease?
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What happens after 99-yrs.?
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Am I able to earn equity on my Land Trust home?
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How do I go about purchasing a Land Trust home?
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What steps must I take prior to buying a house?
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Can I purchase anything I can afford within your inventory?
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Would I be allowed to rent a room within my Land Trust home?
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What would my total house payment be?
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What are Ground Lease fees and Stewardship fees?
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How much are the Ground Lease fees and Stewardship fees?
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Can I use a mortgage lender and closing attorney of my choice?
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What do I do when I am ready to sell my Land Trust home?
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Then what do I do?
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Do I need to hire my own Realtor?
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How can I support or become a member of the Land Trust?
What are the general program qualifications?
You must be currently living or working in Orange County, NC. Sometimes this requirement carries a 1 year minimum prior to closing. You must have not owned a home in the last 3 years, or be a displaced homemaker. You must use the home as your primary residence, not for income producing purposes, and you must meet income guidelines.
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How do I know if I meet the income guidelines?
The income limits are set by the Department of Housing and Urban Development and are based on our area’s Metropolitan Statistical Area (MSA). These figures are adjusted annually, and based upon your household size and your household’s gross annual income.
The chart can be found here
.
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How does Land Trust ownership differ from a private market purchase?
The Land Trust retains the Deed to the land and improvements and conveys homeownership interest in the improvements to qualified buyers via a 99-year Ground Lease.
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What is a Ground Lease?
The Ground Lease is a legally binding agreement that gives you the exclusive rights to the use and possession of the property. It describes in full what your rights and responsibilities are and what restrictions you accept in exchange for those rights. The lease strives to balance your interests as a homeowner with the Land Trust’s interests.
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What happens after 99-yrs.?
The Ground Lease is renewable for another 99-yr. period. In addition, the Ground Lease has a legacy provision that allows for the home to stay in the ownership of your spouse or children.
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Am I able to earn equity on my Land Trust home?
Yes. In addition to building equity as you pay down your mortgage, you will earn equity on a daily basis at a rate of 1.5% per year based on your cost basis
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How do I go about purchasing a Land Trust home?
The process starts with filling out a Homeownership Intake Form. This form and the requisite income verification forms can be found on our website. You will receive a letter from the Land Trust within a week after we review your intake form letting you know the next steps to our process.
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What steps must I take prior to buying a house?
Upon receiving a letter regarding your application, the next step is a financial assessment. Next, we’ll invite you to an Intake/Orientation session to learn about our program and processes. Finally, the Land Trust will require you attend a homebuyer education class. Now you’re ready for the home shopping process. (
Please see Land Trust Homebuyer’s Flowchart to Success
).
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Can I purchase anything I can afford within your inventory?
Our Residential Selection Policy restricts households with less than the number of bedrooms within the home for a period of 45 days prior to purchase for existing homes, and until a certificate of occupancy is issued for newly constructed homes. This same provision applies to applicants with student status.
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Would I be allowed to rent a room within my Land Trust home?
Renting rooms is permitted, but discouraged in homes that are not located in developments governed by a homeowner’s association (HOA). In developments governed by an HOA, renting a room is acceptable if it is allowed by the HOA.
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What would my total house payment be?
Your total housing cost is based on many factors including your loan amount, interest rate, tax rate, insurance cost, homeowner’s association fees, ground lease fees, and stewardship fees.
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What are Ground Lease fees and Stewardship fees?
Ground Lease fees are monthly rent fees charged for use of the property. The Stewardship fee is a monthly amount that will be set aside as reserves for the long-term maintenance of specific parts of your house.
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How much are the Ground Lease fees and Stewardship fees?
The Ground Lease, or Use fee is presently $11.00/mo. for town homes and condominiums, and $22.00/mo. for single-family homes. Stewardship fees vary based upon what major systems covered under Stewardship may already be covered by one’s Homeowner’s Association dues.
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Can I use a mortgage lender and closing attorney of my choice?
Yes and no. You may choose which lender and attorney, but from a Land Trust approved list of knowledgeable professionals. The list of attorneys and lenders can be found on our website.
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What do I do when I am ready to sell my Land Trust home?
One of the ways a Land Trust home stays affordable is by restricting re-sale to another income qualified Buyer. The first step toward re-selling your home will be to notify the Sales and Marketing Team via the Notice of Intent to Sell form. This form outlines your intent, in writing with ideal timeframes for moving. We determine the re-sale formula to the new Buyer and begin the marketing phase of assisting with the sale of your home. However, it is very important to remember that while we’re here to assist, the ultimate responsibility is upon you to maintain and sell your home.
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Then what do I do?
After we have determined your ideal timeframe and list price, the Sales and Marketing team will work diligently and free of charge to market your home via our database of qualified applicants, our website, area businesses listserves, flyers, print ads, and in some cases, we can provide notice via the Triangle Multiple Listing Service. As licensed Realtors, we always work with representing the interest of Land Trust with all sales and purchases.
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Do I need to hire my own Realtor?
You are welcome to hire a Realtor to represent your interests as Buyer’s Agent or Seller’s Agent. However, the cost of their fees will be borne by you, and all of our processes and Buyer qualifications must be adhered to prior to the home being conveyed.
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How can I support or become a member of the Land Trust?
Orange Community Housing and Land Trust is a 503c non-profit. All donations made to the Land Trust are tax-deductable and will go toward furthering our efforts of providing safe, affordable housing within our community at large. All homeowners within our program automatically become voting members of the organization and have a say in what happens to the land under your home as well as the rest of the land included within the trust at large.
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Orange Community Housing and Land Trust · 104 Jones Ferry Rd., Ste C · Carrboro, NC 27510
Phone: (919) 967-1545 · Fax: (919) 968-4030 · Email:
info@ochlt.org