Whether you’re an interested applicant or an inquisitive participant, as you learn more about what our program has to offer, chances are you may have questions. Hopefully this helps.
Frequently Asked Questions (FAQs)
Rocky Mountain Homes Fund’s Path To Homeownership program was created to address the housing crisis currently facing the professional workforce.
The endless spiral of cost-of-living increases being swallowed up entirely by rising rental rates can be particularly brutal on working professionals in critical areas such as public education, healthcare and public service.
RMHF participants enjoy up to 10 years of stable payments, which makes raises mean something again!
RMHF participants enjoy multiple routes to earn program equity! The principal portion of your on-time and in-full payments becomes program equity, including the payment you make on your very first day in the program. Also, our participants enjoy half of any appreciation of the home as program equity.
RMHF participants have the option to purchase when the time is right! Program success for us means our participants becoming homeowners. It is really that simple.
RHMF provides participants with a budget, connects them with one of our realtors and allows them to shop around to find a home that best fits their needs.
Homes that are generally eligible for purchase include single family homes, townhomes, twin homes and condos. Final selections are then approved by RHMF to ensure the home meets program guidelines.
RMHF has no preference for one area over another. Homes are selected by participants and subject to approval by RMHF.
A homeowners insurance policy is an included component of your RMHF payment. Participants are only required to carry a basic renters insurance policy.
Property taxes are an included component of your RMHF payment.
If you receive a property tax notice, or any other official notice regarding your RMHF home, please scan or take a picture of it and send it to your RMHF representative, and reach out to let us know.
No.
Participants may not rent out or otherwise lease out any portion of the home or property.
RMHF participants are responsible for paying all utility bills, even the ones RMHF sets up.
Equity
When we talk about equity, we mean stored value.
Appreciation Equity
Most homes increase in value over time. This increase is known as appreciation. The amount of increased value that is stored in a home is known as appreciation equity.
Example: When Cindy entered the program, the home was purchased at $300,000. Cindy’s home is now worth $350,000. To determine the appreciation equity, subtract the purchase price from the current value ($350,000 – $300,000 = $50,000). There is currently $50,000 of appreciation equity in the home.
Equity Split
The share of appreciation equity assigned to participants.
As your RMHF home increases in value over time, you share that equity with Rocky Mountain Homes Fund.
50/50 Equity Split
This is the type of equity split we use in our program. It means the participant is assigned 50% of the appreciation equity in the home.
Example: When Cindy entered the program, the home was purchased for $300,000. Cindy’s home is now worth $350,000. The appreciation equity stored in the home is $50,000 ($350,000 – $300,000 = $50,000). If Cindy is on a 50/50 equity split, the amount of appreciation equity assigned to her is 50% of $50,000, or $25,000.
Principal
Your RMHF payment includes a component known as “principal.” Each time you make an on-time and in-full payment, 100% of the principal portion of your payment is converted to program equity, including the payment you make on your very first day in the program.
Custodial Savings Account / CSA
The Custodial Savings Account, or CSA, is a 6-month, emergency reserve account.
When we talk about equity, we mean stored value.
Most homes increase in value over time. This increase is known as appreciation. The amount of increased value that is stored in a home is known as appreciation equity.
Example: When Cindy entered the program, the home was purchased at $300,000. Cindy’s home is now worth $350,000. To determine the appreciation equity, subtract the purchase price from the current value ($350,000 – $300,000 = $50,000). There is currently $50,000 of appreciation equity in the home.
The share of appreciation equity assigned to participants.
As your RMHF home increases in value over time, you share that equity with Rocky Mountain Homes Fund.
This is the type of equity split we use in our program. It means the participant is assigned 50% of the appreciation equity in the home.
Example: When Cindy entered the program, the home was purchased for $300,000. Cindy’s home is now worth $350,000. The appreciation equity stored in the home is $50,000 ($350,000 – $300,000 = $50,000). If Cindy is on a 50/50 equity split, the amount of appreciation equity assigned to her is 50% of $50,000, or $25,000.
Your RMHF payment includes a component known as “principal.” Each time you make an on-time and in-full payment, 100% of the principal portion of your payment is converted to program equity, including the payment you make on your very first day in the program.
The Custodial Savings Account, or CSA, is a 6-month, emergency reserve account.