HUD Dollar Home Benefits Low-income Home Buyer

Through the HUD Dollar Home and YCAP programs, this home in Sanford was completely renovated and sold to a low-income family.

The York County Community Action Agency (YCAP) Purchase-Rehab-Resell Program provides affordable homeownership opportunities to lower and moderate income residents. In one recent success story, YCAP's program, in conjunction with a special HUD program, has worked to show how federal and local cooperation can bring benefits to local citizens, to a local neighborhood, and to a community's tax base all at once.

In June, a property on Schuler St. in Sanford was sold to a local family earning 80% or below the area median income. The Town of Sanford purchased the property from HUD for $1 under the HUD Dollar Home Program. In turn, the Town of Sanford sold it to YCAP for $1 with the requirement that the property be used to benefit a low-income family.

Under YCAP's Program, the two-bedroom home has been completely renovated, including new wiring, heating system, windows, bath fixtures and cabinetry. The home, fully improved, has appraised at $85,000 - $93,000; to make it affordable to a low-income family, YCAP set the sale price at $79,900. USDA-Rural Development provided the first mortgage at low income-based interest rate (between 1%-6.5%) for a term of 38 years. YCAP provided a second mortgage (0% for 5 years, forgivable) to cover closings costs. The borrower was also required to provide a $100 down payment.

For more information about similar properties and other YCAP housing programs, contact Chris LaRoche at (207) 324-5762.