CONTRACT FOR TITLE HOME LOAN PROGRAM

PROGRAM CONCEPT

The Contract for Title (C4T) Program is a loan program designed to facilitate the sale of NCF-owned manufactured homes.  NCF acquired 70 late model manufactured homes through a federal government disposition program.  The homes were placed in NCF sponsored Resident Owned Cooperatives (ROCs) to fill vacant home sites.

The financing is provided by NCF at 0% interest for medium terms of from 5 - 8 years. Several sources of Down Payment Assistance have also been made available to work in concert with NCF’s C4T program, further reducing barriers to affordable homeownership.  The objective of this program is to provide high-quality manufactured housing at affordable levels, while at the same time building co-op membership levels and improving their corporate bottom lines.

PROGRAM EXPERIENCE

Since the C4T program was made available by NCF in late fall of 2013, twenty-eight sales have been recorded.  Underwriting of prospective homebuyer applications is performed by a partner organization of NCF’s, Three Rivers Community Action, Inc.  Three Rivers uses underwriting criteria NCF developed that relied heavily on a contract loan program designed by Dayton’s Bluff Neighborhood Housing Services, another non profit partner of NCF’s.  To date, NCF has experienced no losses under this program—a testament to the hard work of the homebuyers and experience of the partners NCF leaned on to create and administer the program.

PROGRAM OUTCOMES

Twenty-eight low and moderate-income households now own an affordable home.  The program creates an asset building and wealth creation opportunity for these homebuyers that they’ve taken advantage of.  The results of this program are: lower housing costs, more economic and social security, and increased engagement in their communities.

With generous support from the McKnight Foundation, NCF has been able to expand programming and services for manufactured home park cooperatives we’ve been creating; including the creation and implementation of a lending program (C4T) described above.