Osage County offers program to build new houses – Osage County Online | Osage County News

Osage County offers program to build new houses

The Osage County Economic Development Corporation has begun a moderate income housing program, in which down payment assistance of $10,000 will be provided to eligible participants.

The program targets households with less than 150 percent of the area median Income and that have the financial ability to own and maintain the home. In Osage County, depending on the size of family, maximum household income would be $67,500 for one household member and up to $104,100 for a five-member household.  All areas of Osage County are eligible for the program.

Sale prices of the homes will range from $165,000 to $175,000. The typical single family home is 1,200 square feet with three bedrooms, two baths, an attached garage, full unfinished basement, and energy efficient.

Anyone wishing to purchase a home must complete a real estate loan application. Lyndon State Bank has partnered with OCED to provide financing for the new homes. Once an applica­tion has been completed, the bank will underwrite and determine if the applicant qualifies for the program similar to typical home mortgage underwriting standards.

The applicant must have identified an appropriate building site with possible assistance from OCED or a real estate agent, obtain a mortgage commitment if not using the Lyndon State Bank as the end lender, and show capacity to pay all down payment and settlement costs.

The down payment assistance is in the form of a “soft” second mortgage with no payments or interest, and will be incrementally forgiven over five years of owner occupancy.

For more information, contact Stephanie Watson, Osage County economic development director, at [email protected] or 785-828-3242.

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