Purchase Process

The purchase process for CLT homes differs from that of market-rate homes. It includes homebuyer education and counseling support to ensure complete understanding of shared equity homeownership. Northern Michigan Community Action Agency is the HUD certified housing counseling agency that will: 

  • Identify if CLT homeownership is right for you

  • Determine your income eligibility

  • Introduce you to CLT experienced mortgage lenders

  • Provide required pre and post purchase housing education and support

  • Help you build a strong foundation for successful homeownership

To get started and to learn about available CLT purchase opportunities, contact NMCAA using the form below. 

Frankfort Area CLT Codes & Requirements  

  • CLT has a fixed rate resale formula. This fixed rate formula is detailed in the ground lease. It is easy to calculate your equity at any time. The fixed rate increases the longer you own the home. The actual dollars will vary for each homeowner and will be discussed with your housing counselor. 

  • Homeowners pay two separate property tax bills. One for the improvement (which is the house), and one for the land. 

  • Homeowners have full use of their leased land. You can put up a fence, do your own landscaping, plant a garden, put up a playset, etc. 

  • You are responsible for maintaining the land and the home.

  • You are responsible for all utilities. 

  • You sign a 99-year ground lease when you purchase your home. 

  • Ground Lease fee is $20 per month. 

  • NMCAA, the Northern Michigan Community Action Agency, is not a mortgage lender, a realtor, or the developer. They are the agency that provides housing counseling services to help guide you through shared equity homeownership.

  • CLT income eligible buyers have a 99-year ground lease. Under this lease, you, the homeowner, can do what you would like with the land in accordance with local city ordinances and condo restrictions.

  • At the time of resale, the land subsidy stays with the home. All additional accrued equity is shared with the CLT. You earn less equity than a traditional market-rate sale, but you spend less money month-to-month while living in the home. The next home buyer will also be income restricted to 120% of the area median income at the time of sale and must be qualified by NMCAA.

Next Step 

Please fill out the below to be contacted by NMCAA. Estimated timeframe for response from NMCAA to prospective homeowners is September of 2022.

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