So often the Kris Lindahl Team hears that the biggest obstacle standing in the way of homeownership is the large chunk of money needed for a down payment. The City of Bloomington, however, has a way to help tenants save and become homeowners.
It’s called the Rental Homes for Future Homebuyers Program and it just may be your ticket out of the rental rat race.
How it works
The Bloomington Housing and Redevelopment Authority (HRA) offers future homeowners a chance to rent one of 21 single-family homes in the city. Then, HRA takes part of your rent every month and sets it aside to build a down payment for homeownership.
Qualifying for the program depends on family size and income.
- Families must have between three and six members.
- Family income must be at least $24,870 per year. A family of three can make up to $39,000, a family of four up to $43,300, a family of five up to $46,800 and a family of six up to $50,250.
- Family members must have good credit and acceptable rental histories.
- The family must be able to afford the minimum rent and the cost of utilities. This is typically around $945 a month.
- All family members must have eligible citizenship or immigration status.
HRA will look into criminal, citizenship and immigration records.
Right now there is a waiting list, but HRA says they generally accept three to five new families into the program each year.Accepted families will need to sign a five-year contract with HRA acknowledging their goals and what they need to accomplish to become homeowner. Families with pets will not be accepted.
Learn more about the Rental Homes for Future Homebuyers Program and how to request an application on HRA’s website.