Frequently Asked Questions

What is a Community Land Trust?

A community land trust (CLT) is a non-profit organization that owns and stewards assets on behalf of the community to serve a desired purpose, often affordable housing. To achieve this end, CLTs use private and public investment to acquire or construct homes that will be restricted to permanent affordable housing. In a CLT purchase transaction, a home buyer purchases the home (structure) only, while the CLT retains ownership of the land underneath the home. This removes the cost of land from the purchase price and protects the private and public investment used to make the home affordable to low-and-moderate income households.

How does the New River Home Trust work?

When a homeowner purchases a NRHT home they purchase only the home, itself. The land underneath the home is owned by NRHT. NRHT then conveys a leasehold interest in that land, providing the homeowner with exclusive rights to occupy and use the use the land their home sits on. This lease is structure for a 99-year term and cannot be modified unless both parties agree to modification OR the homeowner sells their home to another income qualified buyer. Check out our What is a CLT? page.

Can I build equity in an NRHT home?

Yes. Homeowners can build wealth through equity in two ways. First, with each monthly mortgage payment they make, a homeowner is reducing their loan balance relative to their original purchase price. That’s their earned equity to keep. Second, the home’s value can increase over time. The homeowner is entitled to earn limited appreciation at the time of sale, based on the indexed resale price. If you haven’t already, go see our What is a CLT? to see this process in action.

Can the homeowner make changes to the home?

Yes, they own the home and can make any modifications that comply with local code and ordinances. Significant modifications that increase the value of the home are considered Capital Improvements and can increase the allowable resale price, letting homeowners benefit from the improvements they perform.

Can the homeowner make changes to the land owned by the New River Home Trust?

Yes, the ground lease provides the homeowner with exclusive rights to use the land during the lease period. NRHT must approve any modification to the land, prior to the homeowner’s action. All modifications must comply with local code and ordinances.

How much is the monthly Ground Lease Fee on a NRHT home?

They can vary between properties but typically range between $10-$25/month.

Can NRHT raise the monthly Ground Lease Fee on me?

No, the Ground Lease Fee is established at the time of purchase and cannot be increased during the 99-year lease period. NRHT can adjust the ground lease fee if it reaches its 99-year term OR at the time of resale, when a new lease is established with a new homeowner.

What are the current income limits for eligible buyers of a NRHT home?

NRHT has three qualification tiers based on Area Median Incomes (AMI), with certain properties serving specific tiers. These tiers establish the maximum household income allowed at the time of purchase. Those ties are: Below 80% AMI, Below 100% AMI, and Below 120% AMI. Visit our Income Limits page to see the current thresholds.

Can my income increase while I live in the home?

Yes! Income qualification only occurs once, at the time of purchase. Once you’re in the home, we hope the stability of affordable housing propels you forward to a higher earning position.

Can I work with any lender in the area to obtain a mortgage on a NRHT home?

Homebuyers must work with one of NRHT’s Approved Lenders, when securing financing on their NRHT home. See our current list of Approved Lenders. NRHT staff will support you every step of the way, from mortgage application to closing, to make sure you are making informed decisions about your home purchase.

How does someone become an NRHT homeowner?

• Income qualification

  • Create an online profile and upload the required financial documents

  • Receive an NRHT Eligibility Letter

• Homebuyer Counseling/Education

  • Prospective homebuyers must complete Homebuyer Counseling from an HUD-approved housing counseling agency

  • Community Housing Partners is an HUD-approved housing counseling agency and NRHT provides this service in-house

  • Receive a Certificate of Completion for HUD Counseling

  • Most CLT mortgages also require completion of a Homebuyer Education course

• Preapproval of an CLT Mortgage

  • If financing is needed to complete the purchase, NRHT will work with you to secure a Preapproval Letter with one of our Approved Lenders

• Purchase Contract

  • Sign a Residential Contract of Purchase with NRHT or one of its development partners

• Closing!

  • NRHT will support you all the way through you closing day when you become a new NRHT Homeowner!