PROJECT: Reclaim is a home ownership program created in collaboration between Urban Homeworks and City of Lakes Community Land Trust. The program facilitates successful home ownership—helping to create healthy, vibrant and sustaining communities.
About PROJECT: Reclaim
PROJECT: Reclaim homes are sold through a contract-for-deed program, giving families desiring home ownership the financial space and time to improve their stability and become able to conventionally finance a home. It is designated for households that have been declined a regular mortgage due to credit challenges.
How PROJECT: Reclaim Works
PROJECT: Reclaim takes boarded, condemned or foreclosed properties and restores them with the effort of trainees and volunteers. These houses are available to low- to moderate-income families who have credit challenges and face additional challenges due to market conditions and tightened financing guidelines. The homes are sold through a low-interest contract for deed. A portion of the interest is placed into a reserve account for the homeowner to use as a down payment at the time of refinance.
Each family agrees to an action plan to address credit enhancement and a number of preparation items, thus increasing their understanding and readiness for homeownership. When families can move from renting to owning, they not only have a place to call home, but they also become more engaged in the life of their community and now control the destiny of their housing.
- Competitive interest rate
- Home values range between $100,000 and $170,000
- Rehabilitated homes with great attention to detail and stringent construction standards
- Initial term up to 24 months
- Homes are provided through a partnership between Urban Homeworks and City of Lakes Community Land Trust (resale restrictions apply; visit clclt.org for more information)
Determine Your Eligibility
- You plan to purchase a home in Minneapolis
- Your household income is greater than $34,000 annually
- You have at least 500 credit score and delinquent debt does not exceed $5,000
- You do not qualify for a conventional mortgage
- You need a credit enhancement program to minimize debt and increase credit score within the terms of the contract period
- Your household income is less than the following amounts based on:
o 1 Person $46,100
o 2 People $52,650
o 3 People $59,250
o 4 People $65,800
o 5 People $71,100
o 6 People $76,350
o 7 People $81,600
o 8 People $86,900
Frequently Asked Questions
What does "Contract for Deed" mean? Contract for Deed is defined by Minnesota Homeownership Center: The buyer makes monthly payments to the seller for a few years, and then the buyer must make a “balloon payment” to finish paying the total cost of buying the house.
- What do program participants need to commit to? Program participants commit to:
- Purchase home in the City of Minneapolis
- Maintain employment that can afford 30 year fixed rate mortgage, minimum credit score of 500, any credit challenges have to be resolved within 24 to 48 months
- Complete application with Urban Homeworks and provide a copy of federal tax for the past 3 consecutive years, a copy of you state id, a copy of last six months paystubs and bank statements, a copy of all retirement and investment accounts, documentation relating to any unresolved credit issues, and a non-refundable $25 application fee
- Attend a City of Lakes Community Land Trust Orientation
- Obtain pre-approval letter from both Urban Homeworks a homestrectch certificate from BuildWealth MN and a certificate of completion from City of Lakes Community Land Trust
- Make all their appointments with UHW and our cohorts (BuildWealth, CLCLT, etc.)
- Complete and return the PROJECT: Reclaim Process & Application Form.
Check Out Our Finished Homes
Click here to see the list of downloadable PDFs featuring Urban Homeworks' recently finished projects.