Program Description
PeopleTrust is a 501(c)(3), non-profit organization that provides affordable homeownership opportunities for working people. PeopleTrust creates opportunity, wealth, and stability through homeownership to help our clients build assets and create a better life. PeopleTrust Homeownership Program provides qualified homebuyers with a zero percent interest loan to assist with purchasing a home.
Type of Loan: Shared Appreciation Loan 0% interest, deferred, non-forgivable loan, second lien position. Includes a “Shared Appreciation Loan Agreement” and “Purchase Option & Right of First Refusal” provision.
Amount: Up to $90,000 of assistance for acceptable closing costs, pre-paid expenses, and down payment. Amount is based on the borrower’s demonstrated need and funding availability.
Repayment: The loan will be due and payable, plus a percentage of equity gained, upon the sale, lease, or transfer of title before the affordabilityperiod of 30 years. Otherwise, the loan is payable after30 years. Other restrictions may apply for refinancing and home equity loans.
Financing: First lien loan must be a fully amortized, fixed-rate loan of up to 30 years with an interest rate that does not exceed the prevailing market interest rate for conforming loans.
Minimum Borrower Contribution: $1,000 Earnest Money contribution in the sales contract
Properties: Must be the borrower’s primary residence. Property must be located within the Austin city limits. Extra Territorial Jurisdiction is ineligible. Certain restrictions may apply to properties constructed prior to 1978. Other restrictions may apply.
Participants: Homebuyers who are citizens or legal permanent residents whose household earns no more than 80% of the Austin Median Family Income (adjusted for family size), as established by the U.S. Department of HUD. See table below.
80% of the Median Family Income by Household Size for Austin, Texas
(Effective March 19, 2009)
Size |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
80% MFI |
$41,050 |
$46,900 |
$52,800 |
$58,650 |
$63,350 |
$68,050 |
$72,750 |
$77,400 |
