Qualifying for PCLT programs

Attending a free PCLT Homeownership Orientation class is the first step toward buying a home with Portland Community Land Trust. We'll cover all the stuff below during the class and answer all your questions. Click here to find the class schedule.

Qualifications

The home purchase process can take anywhere from a month to a year or more. Don't hesitate to call us, no matter where you are in the process--we are eager to work with you.

To qualify for buying a home through PCLT, there are a few things to know.

First-time homebuyer: You should not have owned a home previously by yourself within the past three years.

Income: Your total household income should be at or below 80% of the area median income adjusted for household size. The median income is the midpoint amount where half of Portland-area households earn more and half of households earn less.

People in household	Gross household income (before taxes, etc.) cannot exceed
1	$38,000
2	$43,450
3	$48,900
4	$54,300
5	$58,650
6	$63,000
7	$67,350
8	$71,700

Minimum household income: As a general rule, a household should have an annual income of at least $30,000 - $35,000 (or, $2,500 - $3,000 a month) -- or significant personal funds (e.g., $20,000+) to use toward a down payment.

Credit: You should have a good credit rating, with no bankruptcies within the past three years. We can help you find out your rating and ways to improve it.

Debt: Your total monthly debt payments (including your mortgage) should not exceed 40% of your gross monthly income (before taxes) when you purchase your house. Debt includes your minimum credit card payments as well as any long-term obligations (a repayment period of more than 6 months) such as car payments, child support and student loans. PCLT staff can help you determine this percentage during your initial meeting. Generally, monthly debt of more than $200-$300 in addition to housing costs may make qualification more difficult.

Employment: You should have proof of steady employment or income for the past year.

Savings: At closing, we suggest that you have $2,000-$3,000 in the bank, so that you have a cushion for needed future repairs. It can take time to build your savings. There are matching savings programs available to help you save--ask your lender or call us to find out.

Willingness to own a home through a community land trust: PCLT homeownership is similar to market rate homeownership in many ways, but different in very important ways. We will work with you to ensure your understanding of CLT homeownership, and the special requirements and goals of our program.

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