New loan program helps home buyers

CARBONDALE - For the first time in decades, a new residential development is coming to northeast Carbondale. But, perhaps more importantly, the subdivision will offer a unique opportunity for lower income families to own a new home at a bargain price thanks to a partnership between the government and not-for-profit organizations.

The Illinois Housing Development Authority recently authorized $400,000 in grant funds for development of a 10-home subdivision on Robert A. Stalls Avenue.

The project is a collaborative effort being spearheaded by Western Egyptian Economic Opportunity Council, Attucks Community Services and the Illinois Community Action Development Corp.

The various subsidies will allow program participants to purchase a home that would normally cost them about $135,000 for about $75,000.



It's likely they'll qualify for a low-interest loan to cover the purchase price, according to WEEOC Executive Director Paulette Hamlin and WEEOC Housing Coordinator Rob Schroeder.

Schroeder said the program is designed to help people who do not now own a home be able to buy their own new home.

The basic home designs have been formulated, but the owners may work with the builder on some design revisions, Schroeder said. The homes will be about 1,250 to 1,300 square feet in addition to a garage for a total size of about 1,600 square feet. Each will include three bedrooms, 1½ baths and a one-car garage. They'll be built on what's now an empty lot.

A combination of grants and low-interest loans are financing the project. Along with the large IHDA grant, Carbondale has pledged $50,000 to help with infrastructure costs while the Federal Home Loan Bank has committed $50,000 toward home construction costs and the U.S. Department of Agriculture is providing low-interest mortgages.

There are a few requirements to participate in the program. Participants can't currently own a home. A $1,000 down payment is required, although some grant funding is available for this expense, too, and there are other sources for the money, Schroeder said.

The subsidized program requires that the buyers' income be within certain parameters based upon household size and Jackson County's median income. For example, a family of four must earn less than $41,750 annually to qualify. The income level varies according to the size of the family.

Schroeder said the subsidies will reduce the cost of the homes by nearly half meaning homeowners will have mortgages of about $75,000 for a home valued at about $135,000. A monthly payment of about $600 is anticipated for a 30-year, fixed-rate mortgage including the costs of insurance and property taxes.

Those wishing to participate must also attend a free home buyer education course, which will be offered Dec. 4 and 9. Those who attend will receive a $100 gift certificate good at a home improvement store while those who do go on to purchase a home through the program will receive a $1,000 gift certificate for new furniture or appliances.

The first step toward participating in the Carbondale Home Ownership Program is contacting Rob, Joyce or Michelle at WEEOC by calling (618) 965-3193.

An application then must be completed and one must attend one of the free one-day home buyer training workshops. Program coordinators also note that even though not everyone participating in a workshop may actually buy a home through the program, all will assuredly gain valuable information about improving their credit, creating a budget and savings plan, how to shop for a good mortgage and much more.

It's hoped that the groundbreaking for the new subdivision will be in February, Schroeder said. Plans call for the first home to be occupied by next summer.

"We're almost there," Schroeder said, noting that a few interested buyers are needed for the program to continue full-speed ahead. "This program is important for families in Carbondale and we are looking forward to getting started."

BY CHRISTI MATHIS at http://www.southernillinoisan.com/