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 homeowners/borrowers 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;
- Have a household income of $10,000/month or less;
- Are purchasing a home within 30 miles of Duluth, MN;
- Are purchasing a property with four or fewer units; and,
- Do not own any other real estate.
What are the loan details?
- The minimum interest rate on the PAL is 5.5%, with either a fixed or adjustable rate.
- The rate will be 0.5% over the locked-in, fixed, first mortgage rate or 0.25% over the locked-in, adjustable, first mortgage 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 our complete list of current program guidelines.
Lenders can fill out our form online here: 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.
