PCLT FAQ

Some questions & answers about homeownership with PCLT

I'm self employed. How do I determine if I am income-qualified and how many years of tax returns do I need to show the lender?

The lenders require three years of self employment tax returns to be able to determine your income. For income eligibility purposes, we look at Schedule C of your tax returns. Look at the bottom line - the net income after deductions. Your income for that year will be that number plus any amount you deducted for use of your home and for depreciation. Some lenders also add other deductions back in as well. We do this for the past three years and then take an average of the three years. This average is considered your current income.

My household size is 3 people, but I am the only one that will be on the mortgage. Do I need to include my partner's income for income eligibility purposes even though he/she isn't going to be on the mortgage?

Yes, all household members over the age of 18 must be included for income eligibility purposes. PCLT needs to obtain and have on file recent pay stubs for each and every wage earner in the household to determine income eligibility. If you are currently living with someone and plan to have them move into your new home then they are part of your household and their income must be verified by PCLT for eligibility purposes. Failure to report income or household members is fraud.

I have filed bankruptcy in the past. How long do I need to wait after my bankruptcy before I can apply for a loan?

Three years if you filed for consumer debt, and two years if it was for medical debts.

I'm pre-approved with A&B Mortgage for $150,000. Can I purchase a land trust home with A&B Mortgage?

Unfortunately, PCLT can only work with specific approved lenders. If you want to buy a home through PCLT you will need to be pre-approved based on PCLT's lending criteria through one of our approved lenders.

My mom has offered to co-sign on a home loan for me. Does PCLT allow co signers?

PCLT does not allow co-signers. Typically, applicants that require a co-signer to obtain a mortgage do not meet PCLT's minimum guidelines for purchase.

My uncle is willing to loan me the money to purchase a land trust home. Can I purchase a PCLT home with this money?

Unfortunately, no. To purchase a home with PCLT you must use a permitted mortgage as described in PCLT's land lease. Private loans from friends and/or family members do not meet the guidelines of a permitted mortgage.

My sister wants to loan me $30,000 to help with a down payment on a home. Can I do that?

Yes - you definitely can utilize that money to help purchase a home through PCLT, but if the money is a LOAN and not a gift then the lender and PCLT need to include your monthly payments on that debt into your monthly housing costs. If the money is a GIFT and not a loan then there would obviously be no monthly debt payment considerations. The person giving the gift would need to provide documentation to your lender stating the money is a gift and there is no obligation to pay the money back. The giver would also need to show documentation to the lender that they have the ability to give the money (copy of bank statement or sale of stock, etc.).

What happens when I want to sell my home?

When you are ready to sell your home, first call PCLT. The next step is to notify PCLT in writing using Exhibit G from your land lease. At that time you let PCLT know whether you have identified a buyer. If you have identified a buyer PCLT must verify that the buyer meets income guidelines and is a first time homebuyer; if so, the buyer will go through PCLT's steps to become a homeowner. However, PCLT always retains the first right to purchase the home from you, even if you have identified a buyer. We have a waiting list of buyers who are in line, ready, and eager to purchase a PCLT home, and they may have priority.

Do land trust homeowners pay property tax?

Thanks to a tax appeal brought -- and won -- by PCLT in Oregon's magistrate court, land trust homeowners only pay a percentage of the assessed property tax. In other words, property taxes are based on the assessed value of the house, plus a small amount of the land value. We feel that this portion is reasonable since land trust homeowners do benefit from the public services paid for by property taxes.

When land trust homeowners sell, how many of them move to market-rate homes?

PCLT is still too young to have data regarding this issue. However, the Burlington Community Land Trust -- the country's oldest and largest land trust -- commissioned an independent study after its 100th resale to answer this question. In short, of BCLT homeowners who sold their land trust homes, 74% moved to market rate housing. Click here for the BLCT study.

Does PCLT have bi-lingual materials available?

PCLT has general information and Frequently Asked Questions brochures in Spanish. PCLT also offers its orientation classes in Spanish and other languages, and we work with translators when necessary. Please contact us for info.

If you have additional questions, please contact us at info@pclt.org or call the PCLT office at (503)493-0293.