States across the Deep South incentivize Low-Income Housing Tax Credit developers to build or rehabilitate single-family homes, as well as duplexes and triplexes, that include lease-to-purchase options. HOPE designed its Y16 innovation to help long-term renters successfully transition to homeownership.
HOPE’s mortgage product offers down-payment assistance and requires no private mortgage insurance. Loans are manually underwritten and based on residents’ one-time 24-month rental payment history.
In its most recent iteration, the Y16 innovation also includes education modules to prepare residents for homeownership and maintaining their asset post-purchase. These modules cover topics such as basic budgeting, home savings accounts, the homebuying process, home maintenance, and heirs property.
Impact to Date
- 32 mortgages closed across four Mississippi Delta communities, with 40 more in development
- 250+ residents referred to homebuyer education
- 450+ residents in the queue to participate in education modules
- $3 million HUD appropriation to acquire additional lease-purchase homes
- $250,000 in additional grant funding to support partnership and conversion
The networking, the learning, the collaboration with the rest of the Breakthrough Challenge cohort is unmatched. I always leave the group with an action to take or an idea to execute. Jena Reed, Vice President of Community and Economic Development, HOPE |
A Home of Her Own
In Canton, Mississippi, Tanya Parker, a medical assistant, is raising her grandson in the home she purchased through the Y16 Innovation. Homeownership never felt within reach before HOPE helped her secure her first mortgage. Now she’s encouraging neighbors to pursue the same opportunity.
“My mother bought a home when she was 22. She lost it when she was 25 and never tried again,” said Parker. “So to me, this means a lot. Because I know if she was here, she’d be proud.”
