To purchase a New Development home, you must meet the following requirements:
- Be a first time homebuyer (have not owned a home is the last three (3) years)
- Be mortgage ready with a participating lender
- This requires a reasonable debt-to-income ratio and an acceptable credit score
- Be income eligible (see the chart at Homes for Sale)
- Contribute at least 1% of the sales price
- Complete an approved Homebuyer Education course
We are here to help you through the home buying process. It takes time and no two buying experiences are the same, but the process will look approximately like this:
(1) Applicant completes the following NDC forms:
- Application Packet consisting of:
- Family Composition
- Verification of Earnings
- Verification of Resources (Section B to be completed by applicant’s financial institution(s). Request (or make) additional copies of this form for each banking/financial institution.
Be sure to review forms carefully. Sign accordingly. After completing all of the forms, please return it to our office by fax to: 616.361.7575, e-mail to: email@example.com or mail to: 205 Carrier NE Grand Rapids MI 49505. You must have Adobe Reader to view the application documents. If you have questions, call us!
(2) Return forms to New Development Corporation. Keep in mind that our houses are sold on a first-come, first-eligible basis. If you are seeking a particular house, prompt return of these documents may help you secure the house you desire.
(3) Gather the information you will need to apply for a mortgage. At a minimum, gather:
- Tax returns for the last two years (be sure that W-2’s are attached)
- Two most recent pay stubs for all borrowers
- List of current debts and monthly payment schedules
- Child support payment record from Friend of the Court (if applicable)
- Landlord information (name, address, phone #) if applicable
- Social Security numbers for all borrowers
- Identification (MI driver’s license, State of MI ID, etc)
(4) In order to get down payment assistance, usually available, our homes can be purchased using only a participating lender. We work with several and are happy to help you find a lender that can meet your needs. Click here for more information on the City of Grand Rapids HAF Program
(5) PLEASE do NOT give notice to your landlord just yet. This process can take time!
(6) Work closely with the New Development Corporation to determine the timing of your next steps. Those usually include:
- Getting an independent appraisal, inspections or surveys
- Providing additional documentation to your lender
- Securing homeowners insurance
- Providing notice of your move to your landlord