- Income: This is represented by a percentage of the Area Median Income (AMI) and is usually set at 80% or 120% AMI. This chart shows specific income qualification based on AMI and household size for 2022:[table id=1 /]
- Net Assets: This is a calculation of net assets (assets minus liabilities) with the maximum assets varying depending on the deed restriction.
- Employment: All local deed restrictions require that the purchaser be either employed full-time in Routt County or retired from full-time employment in Routt County.
- Affordability: Some deed restrictions require that the mortgage payment does not exceed 30% of gross income. This is often referred to as a “front end ratio” or “housing allowance” in mortgage lending terms. Other affordability terms include an appreciation cap, limiting the price appreciation of the unit over time.
- Sole Residency: All local deed restrictions require the owner to live in the unit as their sole residence. This means that rentals of the deed restricted unit are only permitted under certain circumstances outlined in the deed restriction.
Buying a deed-restricted unit is not the same as buying a free-market unit. By requiring specific criteria for buyer qualification, affordability of the unit is maintained. This also means the value of the property will be indexed to the growth of local wages and not to the general housing market. As a result, owners of deed-restricted homes will not see significant value appreciation compared to free-market homes.
To determine eligibility, and begin the qualification process please email email@example.com.