Creating affordable homes and
strengthening communities through the
wise stewardship of land and resources.
strengthening communities through the
wise stewardship of land and resources.
How to Buy a Home with the Land Trust
Land Trust Homeownership vs. Conventional Homeownership
Land Trust homeownership is similar to conventional homeownership, but the land beneath the homes is owned by Northern Communities Land Trust.
The Same
- The homeowner obtains a mortgage with a bank.
- The homeowner accumulates equity.
- The home can be inherited by the homeowner’s spouse or children.
- The homeowner pays property taxes.
- The homeowner can make alterations and improvements to the home & land.
Different
- The purchase price is lower—about 20-30% below the market rate.
- The CLT owns the land and the homeowner leases the land from the CLT for a nominal fee ($25/month).
- The Resale Formula ensures that the home will remain affordable when it is sold in the future.
- When a Land Trust house is sold, the homeowner receives 100% of what they have paid off on their mortgage plus 30% of the increased value of the home. Homeowners also receive the full value of any qualified capital improvements that have been documented during the time of ownership.
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