Northern Communities Land Trust

Do you have a steady job and not a lot of assets?  Another type of First Time Home Buyers loan program is called the Northern Communities Land Trust (NCLT).  It’s an opportunity to buy a home completely renovated without the stress of thinking you need a new roof or a new furnace within a month or a year or two after you move in to your new home.

Typically, buying a NCLT home a buyer would be purchasing 20-30% below market value.  The difference between the market value and your price is used as a buyer’s down payment.  A first time home buyer for this program will need a $1000 of your own money.

Usually the annual income level for a Land Trust homebuyer is between $20,000 – $45,000, which is in the low to moderate income level.  Our area is using 80% annual medium income.  If you are able to handle the monthly payments, which average $500-$700 per month, it’s an affordable way to buy your first home.

The purpose of the Land Trust is to keep affordable housing for buyers.  The land is held in Trust and the homeowner leases the home land back from the Trust.  There is a resale formula that caps the amount of the resale to continue the affordable housing.  It’s a way to give back to the community and to “resell” back to another land trust owner.

Effective, January 1, 2012, Northern Communities Land Trust will be merging with Neighborhood Housing Services of Duluth.   All the great programs and services currently provided by the two organizations will continue after the merger.  The new name for the combined organization will be One Roof Community Housing.

Jeanne Tondryk About Jeanne Tondryk

With 29 years of real estate experience, I find that I have used my negotiating skills and really enjoy helping people 'Find A New Way Home'.

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