What we verified in “Community land trusts, Habitat and other affordable homes”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. According to Fannie Mae's Selling Guide (B5-5.3-01), shared equity programs, sometimes called 'below-market programs,' create long-term affordability by limiting income eligibility and imposing a maximum resale price (or a resale formula that limits the owner's proceeds); the provider typically subsidizes the price for the first buyer and recycles that subsidy for later eligible buyers; in exchange for buying below market value, owners accept restrictions on future sale; and Fannie Mae buys loans tied to community land trusts, income and resale price restrictions, and limited or shared equity co-ops.

   Sources 1 · Selling Guide B5-5.3-01, Shared Equity Overview (02/05/2025): 'Shared equity programs, sometimes called "below-market programs," create long-term affordability by both limiting income eligibility and imposing a maximum resale price'; 'subsidizing the sales price for the first buyer and recycling the subsidy'; 'In exchange for purchasing a home below market value, the homeowners agree to restrictions on the future sale'; 'community land trusts, income and resale price restrictions, limited or shared equity co-ops' · Checked October 31, 2026

2. According to Fannie Mae, community land trusts buy homes in their communities and sell them to income-eligible buyers while keeping ownership of the land; owners lease the land with a long-term ground lease at affordable monthly ground rents; and the lease includes provisions that preserve affordability, such as limits on the future sales price and on future owners' incomes.

   Sources 1 · Selling Guide B5-5.3-01, 'Community Land Trusts': 'purchasing homes in their communities, then selling the homes to income-eligible buyers while retaining ownership of the land'; 'lease the land from the community land trust using a long-term ground lease with affordable monthly ground rents'; 'restrictions on the future sales price of the home and income levels of future homeowners' · Checked October 31, 2026

3. According to Fannie Mae, resale restrictions may last in perpetuity or for a number of years, bind current and future owners and stay in effect until removed, modified or terminated under their terms, such as at a foreclosure sale or a deed-in-lieu; and Fannie Mae will not buy shared equity loans where the borrower must arbitrate disputes with the program unless that clause becomes void when the loan goes to Fannie Mae.

   Sources 1 · Selling Guide B5-5.3-01, 'Income and Resale Price Restrictions': 'a right in perpetuity or for a certain number of years and are binding on current and future property owners'; 'terminate in accordance with their terms, such as at a foreclosure sale or upon acceptance of a deed-in-lieu'; 'Overview': 'Fannie Mae will not purchase shared equity loans where the borrower is required to submit to arbitration to resolve disputes with the shared equity program unless' · Checked October 31, 2026

4. According to Fannie Mae's Selling Guide (B5-5.3-02), the lender must confirm that the land trust's ground lease is based on a Grounded Solutions Network or Institute for Community Economics model, or that the program is on the certified program list; the lease must limit future buyers to certain income levels and cap the maximum sales price; those restrictions must end automatically at foreclosure or a deed-in-lieu; and the lease term must extend at least five years beyond the loan's maturity.

   Sources 2 · Selling Guide B5-5.3-02, Shared Equity Transactions: General Requirements: 'based upon either the Grounded Solutions Network 2011 CLT Network Model Ground Lease or the Institute for Community Economics (ICE) Model Ground Lease'; 'Certified Shared Equity Program List'; 'must include restrictions to limit future property buyers to those with specified income levels and limit the maximum sales price'; 'must terminate automatically upon foreclosure ... or acceptance of a deed-in-lieu'; 'must extend for at least five years beyond the maturity date of the loan' · Checked October 31, 2026

5. According to Habitat for Humanity, each local affiliate manages homebuyer selection and applications; Habitat follows a nondiscriminatory selection policy and is accountable to mortgage lending laws; Habitat does not give away houses: future owners partner with the local affiliate and volunteers to build or rehabilitate a home and pay an affordable mortgage; and buyers complete financial education before owning.

   Sources 3 · Apply for a Habitat house: 'Habitat manages the homeowner selection and application process at the local level'; 'We follow a nondiscriminatory policy of homebuyer selection and are accountable to mortgage lending laws'; 'Habitat does not give away houses; instead, future homeowners partner with local affiliates and volunteers to build or rehabilitate a home and pay an affordable mortgage'; 'Homebuyers complete financial education before owning a Habitat home' · Checked October 31, 2026

6. According to Habitat for Humanity, besides meeting certain income requirements, applicants must need affordable housing, be willing to partner with Habitat and be able to pay an affordable mortgage; in the U.S., household income must not exceed 60% of area median income as defined yearly by HUD; need may mean substandard housing, rent or a mortgage above 30% of gross monthly income, unhealthy conditions such as mold, or a home that is inaccessible for a disability; partnering includes 'sweat equity' (helping build your home or others', taking classes or volunteering at a ReStore) and homeowner classes; Habitat ensures the monthly payment does not exceed 30% of gross monthly income at closing; selection does not consider race, sex, color, national origin, religion, familial status, age, marital status, disability or public assistance income; and you can call 1-800-422-4828.

   Sources 4 · Qualifications for a Habitat homeowner: 'In addition to meeting certain income requirements, applicants must be in need of affordable housing, willing to partner with Habitat and able to pay an affordable mortgage'; 'household income must not exceed 60% of the area median income'; 'rent or mortgage that’s greater than 30% of their gross monthly income'; 'homes with mold and asthma triggers'; 'performing “sweat equity,”'; 'volunteer work in a Habitat ReStore'; 'homeowner education classes'; 'monthly mortgage payments do not exceed 30% of the homebuyer’s gross monthly income at closing'; 'Race, sex, color, national origin, religion, familial status, age, marital status, disability and income from public assistance are not a factor'; '1-800-422-4828 (1-800-HABITAT)' · Checked October 31, 2026

7. According to Habitat for Humanity, each local affiliate's family selection committee chooses homeowners based on three criteria: their level of need, their willingness to partner with Habitat and their ability to repay a mortgage through an affordable payment plan; and buyers invest hundreds of hours of their own labor alongside volunteers and other Habitat homeowners.

   Sources 5 · Habitat for Humanity FAQ: 'Each local Habitat’s family selection committee selects homeowners based on three criteria: The applicant’s level of need. Their willingness to partner with Habitat. Their ability to repay a mortgage through an affordable payment plan'; 'Habitat’s homebuyers invest hundreds of hours of their own labor, called sweat equity' · Checked October 31, 2026

8. According to HUD, the Self-Help Homeownership Opportunity Program (SHOP) makes competitive grants to nonprofits experienced in self-help housing, to develop non-luxury homes for low-income families who otherwise could not buy; buyers must contribute a significant amount of sweat equity to construction, with volunteer help; and homes are sold to eligible low-income buyers below market price.

   Sources 7 · Self-Help Homeownership Opportunity Program: 'competitive grants to national and regional nonprofit organizations and consortia that have experience in providing or facilitating self-help housing opportunities'; 'non-luxury housing for low-income families and persons who otherwise would be unable to purchase a home'; 'Homebuyers must contribute a significant amount of sweat equity'; 'community participation through volunteers'; 'sold to eligible low-income homebuyers at prices below the prevailing market price' · Checked October 31, 2026

9. Under HUD's rule (24 CFR §982.625), the voucher program's homeownership option assists a family living in a home bought by one or more of its members; the housing authority may provide monthly assistance payments or a single down payment grant; and it may choose to offer one, both or neither, except when needed as a reasonable accommodation for a person with a disability.

   Sources 6 · 24 CFR §982.625(a): 'The homeownership option is used to assist a family residing in a home purchased and owned by one or more members of the family'; (c)(1): '(i) Monthly homeownership assistance payments; or (ii) A single downpayment assistance grant'; (d)(1): 'The PHA may choose to offer either or both forms ... or choose not to offer either form'; 'must offer either form ... if necessary as a reasonable accommodation for a person with disabilities' · Checked October 31, 2026