Purchase Assistance Loan (PAL) Program

One Roof Community Housing offers a smart alternative to private mortgage insurance (“PMI”). Qualified homebuyers may be able to finance their conventional loan down payment with an affordable monthly payment through our Purchase Assistance Loan, saving the cost of monthly PMI with as little as 2% down.

This program helps homebuyers pay down their mortgage quicker, increase their equity faster, and allow for a higher tax deduction of the increased interest paid.

This is a monthly-paying loan and may be used in conjunction with other assistance programs.

You may be eligible if you:

• • Have or will obtain One Roof’s Homebuyer Education Workshop certificate before closing;

• • Are purchasing a property that will be owner-occupied;

• • Are purchasing a property with four or fewer units;

• • Do not own any other real estate; and

• • At least one of the following is true:
    
    • • Your household income is at or below 80% AMI (by household size)* for the census tract you intend to purchase in; and/or
    • • The home you intend to purchase is located in a CDFI-eligible Investment Area* within 30 miles of the City of Duluth.

*For more information about Investment Areas and/or income eligibility, please call (218) 206-9231 or e-mail mbonney@1roofhousing.org

What are the loan details?

• • The minimum interest rate on the PAL is 5.5%, with either a fixed or adjustable rate.

• • The PAL rate will be 0.5% under the locked first mortgage fixed rate. Or the rate will be 0.25% under the locked first mortgage adjustable rate.

• • The maximum loan term will be 20 years on a 20-year to 30-year 1st mortgage, and cannot exceed the term of the 1st mortgage.

• • The maximum PAL amount is 18% of purchase price or $40,000 whichever is lower. The PAL can be layered with other assistance programs to bring the 1st mortgage to 80% of the home’s value.

Please contact our office for more details.

First mortgage loan officers can fill out our Online Purchase Assistance Loan Form. 

Please note that funds are limited and available on a first-come, first-serve basis.

For more information on our loan programs, please call (218) 727-5372.

NMLS: 380490

* Loan and program availability dependent upon funding.