The Homeownership Opportunity Program (HOP) provides short term financing for the acquisition and rehabilitation of vacant properties that are not in mortgageable condition, or properties that are in imminent danger of foreclosure and/or in a Foreclosure Impacted Area.
The Homeownership Opportunities Program is open to households with annual incomes of 80 percent or less of their area's median income. The income level is adjusted for the size of your household and the borrowers must be a ﬁrst time home buyer. The funds provided to a homebuyer are subject to repayment in the event that the assisted homebuyer does not continue to own and occupy the property purchased with HOP assistance for the required "period of affordability." Funds provided under the HOP program will be secured by a Note and Deed of Trust executed by the homebuyer. The portion of the loan that is not forgiven is a zero interest loan held by a note that is due upon eventual sale, or refinancing of the home.
The advantages of Homeownership Opportunity Program for cities are it increases homeownership and the number of owner occupants reducing the number of investors. It also reduces the number of unmortgageable vacant buildings and often the most difficult to sell homes. Moreover, it increases investment or stability in the cities.
Homeownership Opportunity Program assistance may not be used to reduce the amount of the primary loan for which the homebuyer otherwise qualifies. But, its assistance for first mortgage buydown should be provided only if the primary financing and any other secondary financing available is not adequate to satisfy the financing requirements of the qualifying home to be purchased.