Land Bank Helps Transform Lease Purchasers Into Homeowners

Cuyahoga Land Bank News

Land Bank Helps Transform Lease Purchasers Into Homeowners

The housing crisis has meant millions of prospective homebuyers have been shut out of their dreams of owning a home. None were more disappointed than those 150 to 200 families participating in the nationally recognized Lease Purchase program, sponsored by the Cleveland Housing Network (CHN), many of whom had passed financial scrutiny and were ready to step into their new roles as homeowners.chnlogo
Now those families can celebrate, thanks to a $500,000 loan from the Cuyahoga Land Bank to CHN to capitalize its revolving mortgage loan fund. Lending the money to CHN at 2.5 percent interest for 10 years enables CHN to provide short-term mortgages (two to three years) of approximately $10,000 to jump-start the families’ homeowning dreams.
mtgappimageThe Lease Purchase program has been a success since its inception, with 90 percent of CHN’s buyers completing the program and purchasing their homes before the credit crisis–some 400 new homeowners. “Without Lease Purchase, I would definitely not be a homeowner today,” said owner Gloria Cowsette, who nurtured her home for 15 years before taking ownership in 2003. “I’ve been on the job for 24 years, and I feel confident that I am well set to succeed as a homeowner.”
The Lease Purchase program has been a success since its inception, with 90 percent of CHN’s buyers completing the program and purchasing their homes before the credit crisis–some 400 new homeowners. “Without Lease Purchase, I would definitely not be a homeowner today,” said owner Gloria Cowsette, who nurtured her home for 15 years before taking ownership in 2003. “I’ve been on the job for 24 years, and I feel confident that I am well set to succeed as a homeowner.”