Frequently Asked Questions (FAQ) - Carver County Community Land Trust

Who lives in a Community Land Trust Home?

CCCLT homeowners include families, children, grandparents, couples, and unmarried persons. They are social workers, bus drivers, teachers, office workers, business workers, stay-at-home parents, artists, and musicians – anyone who meets the program guidelines can become a CCCLT homeowner.

Typically, we see households who buy CCCLT homes use the model as a “steppingstone” towards traditional homeownership. Meaning, households who might not have been able to purchase a home on the traditional home market purchase a CCCLT home. They live in the home, build equity, increase their incomes, and purchase a home on the traditional home market once they wish to sell their CCCLT home.

How do I qualify for CCCLT Homeownership?

All CCCLT homebuyers must meet our income guidelines, at 80% Area Median Income (AMI) or below, based on household size. You must also be a first-time homebuyer and qualify for a conventional mortgage. You can complete the pre-application pre-screening to find out if you are eligible.

How much will my house payment be?

Your house payment will be dependent on many factors, including: the sale price of the CCCLT home, your mortgage payment (including principal payment, interest, taxes, and insurance), the interest rate of your mortgage, etc. Reaching out to a lender who is familiar with the Community Land Trust model is the best way to find out how much your housing payment should be, according to your income.

Do you take credit scores into account for eligibility?

Neither the Carver County Community Development Agency (CDA) nor the Carver County Community Land Trust, a program of the CDA, act as the lender. Your credit score will be taken into consideration when determining if you are eligible to be approved of a mortgage.  

Can I get a CCCLT home inspected before purchasing?

Yes, we encourage anyone to get their homes inspected prior to purchasing. This cost is not covered by the CCCLT and must be paid for by the applicant.

What happens if I get a raise or a higher paying job after closing?

CCCLT homebuyers must meet our income limit guidelines up until closing on the CCCLT home. After you close, we do not ask for updated income and you no longer need to meet our income guidelines.

How do you determine the household size?

All persons who will live in the home at the time of closing are included when determining household size.  

Does my household size affect my eligibility for purchasing with the CCCLT?

CCCLT homebuyers must meet our income guidelines up to closing that are based on household size. After you close on a CCCLT home, you no longer need to meet our income guidelines. We do not require updated income information after you close on your CCCLT home.  

I am already pre-approved with another partner lender. Can I work with them to purchase a CCCLT home?

Yes, however, not all lenders are familiar with the Community Land Trust model. You will want to work with a lender who is familiar with the Community Land Trust model. We can provide a list of approved lenders to work with, but you are not required to use the provided lenders.  

What types of loans work to purchase a CCCLT home?

CCCLT homebuyers must qualify for a Conventional mortgage (30-year mortgage with a fixed interest rate).  

Do I have to work with a CCCLT Realtor?

You may choose to work with any realtor of your choice. If you don’t have a realtor, the CCCLT can provide a list of approved realtors who have worked with a Community Land Trust model in the past.

Who will pay the property taxes?

CCCLT homeowners pay all taxes and assessments associated with their property. CCCLT homeowners pay property taxes for all improvements (home) and land. Property taxes for Community Land Trust homes in good standing (homestead status) are eligible for a lower tax rate at 0.75% rate.

Can a CCCLT home be placed into a trust for heirs?

No, a CCCLT home can never be placed into another trust, but homeowners can will their homes to their direct heirs. The heirs would be required to sign a ground lease.