Wills Creek Neighborhood
Mortgage and Renovation Loan Programs

Summary
Cumberland Neighborhood Housing Services, Inc. in partnership with First Peoples Community Federal Credit Union is currently offering a special mortgage program to prospective homebuyers interested in purchasing a home in the Wills Creek Neighborhood. Properties eligible for this program include all residential property that falls within the boundaries of the 400-700 blocks of North Centre and North Mechanic Streets. First Peoples will offer the loan options listed below for any qualified homebuyer. In addition, CNHS is offering a home renovation/rehab loan for any buyer interested in making improvements to the property. The maximum amount of this direct financing from CNHS will be $20,000 – up to 105% of improved property value. The term will be 10 years with a rate of interest fixed at 2% with 0 points (2.307% APR). Both of these loan programs are available to borrowers that will occupy the property as their primary residence. Rental or commercial properties are not eligible. The renovation funds are limited and some restrictions do apply.

	Loan Type	Rate	Max. Term	Loan to Value	Closing Cost Discounts
Option #1	3/1 ARM	2.99%	30 Years	100%	$450.00
Option #2	5/1 ARM	3.50%	30 Years	100%	$450.00
Option #3	15 Year Fixed	4.00%	15 Years	100%	$450.00
Option #4	20 Year Fixed	4.50%	20 Years	100%	$450.00

Other Parameters

1. All candidates will be subject to normal First Peoples underwriting criteria, except noted above
   
2. Should the applicant sell the property in the first 5 years of the loan, any resulting capital gain shall be shared with the lender in accordance with the following schedule from closing date of loan.
   
   

   0-2 Years	75% to the lender
   2-3 Years	60% to the lender
   3-4 Years	50% to the lender
   4-5 Years	25% to the lender

   
   Example: 1st Peoples, First Mtg loan $100,000 + CNHS 2nd Mtg Rehab loan $20,000 = Total loans $120,000. Property then sells for $150,000 less realtors commissions of $10,500, the net proceeds $139,500, less first loan $100,000, less second loan $20,000 = $19,500 gain. Gain would be shared at above terms with First Peoples. If borrower makes additional fixed improvements to the property (no appliances) using their own funds they would not have to share the gain of the sale on the property improvements provided they have receipts supporting the improvements. Borrower must provide CNHS a copy of the receipts after the work is completed to establish their basis in the home should they sell in the first 5 years.
   
   
3. The property must remain as the primary residence.
   
4. Borrower required to be a member of First Peoples by opening a savings accounts with a minimum deposit of $5.00
   
5. First Peoples loan rates are subject to change at anytime.
   
6. Borrowers must complete CNHS Homebuyer Education Class – at no charge to the borrower.
   

Citywide Affordable Home Purchase Program

This program is offered through CNHS when funds are available.

Terms of the Program:

Amount of Loan	Up to 105% of property value
Term of Loan	30 years
Location of Property	City limits of Cumberland, Maryland
Other Terms	Owner-occupied
Rate of Fixed Interest	Call CNHS for current rates

Prior to loan approval you must meet the following terms: 

• $100.00 deposit on Contract of Sale to listing real estate agent or seller
• $28.00 per borrower for credit report fee to CNHS
• $350.00 appraisal report fee to CNHS

Following loan approval you must have paid: 

• Estimated $400.00 annual homeowners insurance premium to insurance agent of borrower's choice

At loan closing: 

• No payment is needed at closing if the appraised value of the property exceeds $26,000 since closing costs are financed in the purchase loan.

Click here to view the Affordable Home Purchase Underwriting Guidelines »