Housing nonprofit Home Sweet Home has received a $3,000 grant from the Grand Traverse Regional Community Foundation to support its innovative approach to the housing crisis, according to Home Sweet Home President John O’Neill.
The funding, which tripled from last year’s amount, will enable Home Sweet Home to introduce large Bridge Down Payment Loans.
“These will be interest-free and deferrable so that they don’t lower the homebuyer’s mortgage loan limit,” O’Neill said.
The grant will help Home Sweet Home provide loans ranging from $10,000 to $15,000.
Home Sweet Home, which launched in 2023, aims to offer “gap financing” for prospective buyers whose mortgage preapprovals fall short of their needs.
To ensure long-term affordability, buyers must sign a deed restriction agreeing to sell to another income-eligible household when they decide to move.
“This way we plan on preserving the community’s investment and help to stabilize neighborhoods,” O’Neill said.
Home Sweet Home, a nonprofit and Christian organization, serves residents and workers in Leelanau, Benzie, or Grand Traverse Counties. Buyers must select houses that meet HSH’s selection criteria.
“We will fund existing starter homes, not dream homes. We can help a family or individual for 10 to 25% of the cost of building new,” O’Neill said.
Home Sweet Home is an Equal Housing organization that follows both the spirit and letter of the law, according to a press release.
O’Neill suggested two ways interested parties can prepare for a Bridge Loan. First, they can apply for the USDA Rural Development Direct Loan, which offers first-time home buyer loans with interest rates as low as 1%. Previous homeowners may also qualify, and these loans require a down payment.
Second, applicants can pursue an Individual Development Account through Northwest Michigan Community Action Agency. “Participants save up $1,000 that is matched by another $3,000 from NWMCAA for a down payment. It’s a great help. People who have taken these two steps will be better equipped to buy their first home and will be more likely to be awarded a Bridge Loan.”
Home Sweet Home has already helped one household purchase a home and we are looking forward to more successes in the future,” O’Neill said.
People interested in donating, volunteering, or preparing to apply can contact johnoneillbackup@ gmail.com or by texting 231 835-0733.
