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Welcome to the CAAR Foundation Homeownership Breakfast

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How the CAAR Foundation Came to Be

CAAR Workforce Housing Fund created 2003
Downpayment assistance for teachers, nurses, police officers and firefighters
Late 2010s - CAAR decided to use proceeds from loan repayments to establish CAAR Foundation
Strategic Plan 2023 – focus on affordable housing
Executive Director hired 2024

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CAAR Foundation Programmatic Focus Areas

Funding (GIVE)

Volunteer Engagement (VOLUNTEER)

Education & Awareness-Raising (EDUCATE)

Policy Advocacy (ADVOCATE)

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for more info:�www.caarfoundation.org

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AFFORDABLE HOUSING INITIATIVES

GREENWOOD HOMES &

RIVERBEND DEVELOPMENT

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From the very beginning, inclusive growth has been one of our business goals.

Today, those commitments remain central as we partner with local organizations to expand access to housing and create attainable, high-quality homes that serve the broader community.

DEDICATED TO COMMUNITY FROM THE START

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SOUTH 1ST STREET

Currently in progress, this project is a collaboration with the Charlottesville Redevelopment and Housing Authority and Virginia Housing Alliance.

51 Units / CRHA will own and lease

Greenwood Homes and Riverbend Development are developing and building.

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ADU COMMITMENTS IN GREATER CVILLE

Proffit Square: 2026

11 condo units

Brookhill Square: 2026

~60 condo units

Victorian Heights: 2025

8 townhomes

Belvedere:

60 units over next 4 yrs

South 1st Street: 2025

51 units

Granger: 2027

31 condo units

Glenbrook: 2025

16 apartments

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VICTORIAN HEIGHTS

Construction is still underway on this project, a collaboration with the CAAR Foundation and Piedmont Community Land Trust.

Eight affordable, 16’ 1-car garage townhomes are available for purchase throughout the community.

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Frank Webster

frank.webster@virginiahousing.com

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CLT Pilot

February 2025

Getting the details on Community Land Trusts

New

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Community Land Trusts (CLTs) provide a permanent affordability solution supporting homeownership opportunities for households with low- to moderate-incomes through a shared equity model.

These entities are typically established and managed by nonprofits, or by state or local governments which support community investment, reinvestment, etc.

What are Community Land Trusts?

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_{CLT Overview}
_{Eligible Programs}
_{Loan Amount & LTV Calculations}
_{CLT Pilot Documents}
_{CLT Income Limits}
_{AUS Requirements}
_{Other Eligibility Requirements}
_{New Process}
_Questions

AGENDA

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A CLT entity purchases land and/or a single family property, completes construction and/or updating as needed
The home is sold at a subsidized sales price not including the cost of the land to a low- to moderate-income homebuyer
The CLT entity leases the land back to the homebuyer at below market rate

How does a CLT operate?

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CLT Property Pilot

OVERVIEW

Single-family residences secured by a leasehold estate owned by a Community Land Trust (CLT)
CLT Property must meet GSE and Virginia Housing property requirements (excluding fee simple)

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Eligible CLTs are:

Maggie Walker CLT
Virginia Statewide CLT
Piedmont CLT
Lighthouse Beloved CLT
New River Home Trust CLT

Each lender must be approved by Virginia Housing to originate CLTs

CLT Property Pilot

OVERVIEW

CLICK1: Maggie Walker CLT, Virginia Statewide CLT, Piedmont CLT, Lighthouse Beloved CLT, and New River Home Trust CLT are currently Approved. Additional CLTs will be considered upon verification the entity complies with GSE requirements. CLICK2
Each CLT must be on Fannie Mae’s Duty to Service (DTS) Certified Shared Equity list. This is true for both Fannie Mae and Freddie Mac loans – even Freddie follows Fannie Mae’s DTS list! And good news, all five CLTs are on the approved list!

As far as the location of the CLTs are --

Maggie Walker is primarily in Richmond, Chesterfield and Henrico.
Virginia Statewide could be anywhere within the Commonwealth (it’s affiliated with Habitat), but right now it’s in the Northern Virginia region.
Piedmont is in the Charlottesville area.
Lighthouse Beloved is a CLT in Lynchburg.
And New River Home Trust is a CLT in Blacksburg.

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LEASEHOLD VALUE

In general, the appraiser arrives at a fee simple value and reduces that value by the leased fee value

Appraiser must be knowledgeable and experienced in appraising CLT properties

Now let’s review a couple of items that are specific to CLTs – Leasehold Value and what it actually means…..

CLICK1

Leasehold value is defined better in Fannie Mae’s guidelines versus those of Freddie Mac. We recommend you follow Fannie Mae’s guidelines so it’s clear what you’re looking for on the appraisal even if using Freddie Mac’s LPA.

The leasehold value is the appraiser’s value with what Fannie Mae calls the market-derived capitalization rate factor applied. In general, the appraiser arrives at a fee simple value and reduces that value by the leased fee value. This value then equals the appraised value.

CLICK2

Lenders must ensure the appraiser is knowledgeable and experienced in appraising CLT properties in today’s market.

Note: Leasehold value and appraised value are interchangeable within this document and our program materials.

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Affordable LTV is a product feature tied to CLTs offered by the GSEs
LTV / CLTV ratios are based on appraised / leasehold value and not the lesser sales price

AFFORDABLE LTV

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ELIGIBLE PROGRAMS

First Mortgage Programs

Conventional Bond

Standard / bond income limits

Conventional

GSE 80% AMI limit

Specialty Programs

Plus Second Mortgage

Conventional Bond

Conventional

DPA Grant

Conventional Bond only

SPARC

Conventional Bond only

FirstHome Dream

Conventional Bond only

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DPA Grant

It’s grant, it’s not a soft second / mortgage!
First-time homebuyer only unless purchasing in a targeted area.
Reduced income limits.

Covers most of the down payment!

LTV	Eligible First Mortgage Programs
2%	Conventional Bond
2.5%	FHA Bond

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Plus Second Mortgage

It’s not a gift or grant, it’s a mortgage!
All borrowers must have 680 if second mortgage LTV exceeds 3% / 3.5%.
30 year fixed.

Covers the entire down payment!

LTV	Eligible First Mortgage Programs	Credit Score
3%	Conventional / Conventional Bond	< 680
3.5%	FHA / FHA Bond	< 680
4.5%	Conventional / Conventional Bond	> 680
5%	FHA / FHA Bond	> 680

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SPARC

Sponsoring Partnerships & Revitalizing Communities

SPARC is a special allocation of reduced rate funding made available by Virginia Housing to local governments, non-profits, & housing industry partners to support special housing needs.
1% rate reduction.
Eligible with bond programs.
Contact sponsor organization for more information.

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FirstHome Dream

Helping first generation homebuyers

FirstHome Dream is a special allocation of reduced rate funding by Virginia Housing for first generation buyers administered through sponsor organizations.
First generation defined as: Borrowers have never owned a home, even in targeted areas; borrower’s spouse has never owned a home, even if not a borrower, borrowers’ parents have not owned a home in the last 3 years.
First Generation Affidavit must be executed and notarized.
Not all SPARC sponsors are FirstHome Dream sponsors too.
2% rate reduction.
Eligible with bond programs.
Contact sponsor organization for more information.

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CLT

LOAN AMOUNT &

LTV CALCULATIONS

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MAX FINANCING

Applying Affordable LTV Special Feature

Maximum Affordable LTV is 97% of appraised / leasehold value

Max LTV is inclusive of any financed MI (and don’t forget MI coverage is always the lower MI!)

Loan amount cannot exceed:

100% of sales price when there is no down payment assistance applied and the loan meets the maximum Affordable LTV

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MAX FINANCING

Down payment assistance impact to loan amount

Any assistance provided towards down payment reduces the loan amount

This includes Virginia Housing’s DPA Grant and Plus Second Mortgage as well as other outside down payment assistance

DPA Grant:

The maximum LTV is 100% of sales price minus any dollar amount portion of the DPA Grant used towards down payment
DPA Grant can be applied towards down payment and/or closing costs for this pilot
Grant dollar amount percentage is based on the lower sales price

Now let’s look at HOW down payment assistance IMPACTS loan amounts! CLICK1

– Any Assistance provided towards down payment reduces the loan amount. This includes Virginia Housing’s DPA Grant and Plus Second Mortgage (SOMETIMES) as well as OTHER OUTSIDE DOWN PAYMENT ASSISTANCE.

Let’s take a deeper dive into how the DPA Grant will impact to the loan amount! CLICK2

– The maximum LTV is 100% of sales price minus any dollar amount portion of the DPA Grant used towards down payment.

- Yes, that is right! Unlike other VH programs originated with the DPA Grant, the DPA Grant may be used towards the down payment and/or closing costs for this CLT Pilot program.

The DPA Grant dollar amount percentage is based on the lower Sales Price and NOT the Appraised Value.

Don’t forget – the DPA Grant can only be used if the first mortgage is Conventional Bond.

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MAX FINANCING

Down payment assistance impact to loan amount

Plus Second Mortgage:

The maximum LTV is 100% of sales price minus any dollar amount portion of the Plus Second Mortgage used towards down payment (instead of closing costs)
Plus Second Mortgage dollar amount percentage is based on the lower sales price

*Helpful tools: CLT Maximum Loan Amount Example Calculations Matrix

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MAX FINANCING

Closing Cost assistance impact to loan amount

Any assistance provided towards closing costs only does not reduce the loan amount

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MAX FINANCING

Closing Cost assistance impact to loan amount

Plus Second Mortgage:

If all of the Plus Second Mortgage is applied towards closing costs, then the max LTV allowed remains at 100% if Affordable LTV maximum is met
If some of the Plus Second Mortgage is applied towards closing costs and some towards down payment then the max LTV allowed is 100% of sales price minus the dollar amount of Plus Second going towards down payment

*Helpful tools: CLT Maximum Loan Amount Example Calculations Matrix & CLT Mortgage Amount Calculation Worksheet

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KNOWLEDGE CHECK

Affordable LTV

Affordable LTV is a special feature allowed on CLTs offered by the GSEs allowing the LTV to be driven off of the appraised value.

FALSE

TRUE

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KNOWLEDGE CHECK

DPA Grant & Plus Second Mortgage

The DPA Grant and Plus Second Mortgage dollar amounts are calculated off of appraised value and not the lesser sales price.

FALSE

TRUE

Max dollar amounts of Virginia Housing assistance is determined by lesser sales price

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KNOWLEDGE CHECK

Loan Amount Calculation

The homebuyer is not receiving any down payment or closing cost assistance. Applying the Affordable LTV feature, what is the maximum loan amount?

$300,000 Sales Price

$330,000 Appraised Value

$300,000

$291,000

Acceptable because it does not exceed 97% Affordable LTV and does not include closing costs

97% of sales price

100% of sales price

$305,000

100% of sales price + closing costs

A)

B)

C)

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NEW CLT

DOCUMENTS

In addition to standard Exhibits etc. that are required for a first-time homebuyer, the following are also required:

CLT Mortgage Amount Calculation Worksheet

(page 1 of 2)

CLT Underwriter Certification

(page 2 of 3)

CLT Closer & Shipper Certification

(page 3 of 3)

Let’s review the three new CLT Documents! CLICK1

The CLT Mortgage Amount Calculations Worksheet was developed to aid in the calculation of maximum loan amount applying the Affordable LTV feature. This doc will be required after the loan is registered and locked as part of the loan amount override request.
CLICK2 - The CLT Underwriter Certification calls out specific requirements as a reminder for the underwriter as he/she completes the review. This Certification must be completed and uploaded into MC by the underwriter as part of the final review and approval.
CLICK3 – The CLT Closer & Shipper Certification must be completed and uploaded into MC by the closer and shipper when the loan is submitted for purchase.
All three documents are meant to compliment one another and provide additional support.
Let’s Take a quick peak at the documents to review when they are needed and how the documents support one another!!

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	Conventional	Conventional Bond
Income Limit Type:	GSE 80% AMI limits for qualifying income	Standard limitsfor all household member income
with Plus Second Mortgage:	GSE 80% AMI limits for qualifying income	Standard limitsfor all household member income
with DPA Grant:	N/A - Ineligible	Lower limits for all household member income

INCOME LIMITS

Slightly different than the norm!

The CLT has their own different household income limits/requirements for the homebuyer to be approved by the CLT. Lender should contact CLT directly for questions. The borrower must also meet our income requirements to be eligible for Virginia Housing financing.

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KNOWLEDGE CHECK

CLT Income Limits

A Conventional Bond CLT loan with Plus Second Mortgage is subject to Virginia Housing’s lower income limits.

FALSE

TRUE

The Conventional Bond program with Plus Second Mortgage is subject to Virginia Housing’s standard / bond income limits

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KNOWLEDGE CHECK

CLT Income Limits

A Conventional Bond CLT loan with DPA Grant is subject to Virginia Housing’s lower income limits.

FALSE

TRUE

The Conventional Bond program with DPA Grant is subject to Virginia Housing’s lower income limits.

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AUTOMATED UNDERWRITING

Follow DU requirements, including:
Affordable LTV - allows LTV to be calculated on higher appraised / leasehold value
Leasehold (not fee simple)
Title held in a land trust

DU

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AUTOMATED UNDERWRITING

Follow LPA requirements, including:
Select “Community Land Trust” Program Identifier - allows LTV to be calculated on higher appraised / leasehold value
Leasehold (not fee simple)

LPA

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All borrowers must be a first-time homebuyer with or without a Specialty program
Only exception is if the property is in a targeted area

FIRST-TIME HOMEBUYER

HOMEBUYER EDUCATION

Required for all first-time homebuyers with or without a Specialty program

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Standard / Bond Programs

with or without Plus Second Mortgage

Expanded / Non-Bond Programs

with or without Plus Second Mortgage

Grant Programs

Down Payment / Closing Cost Assistance

All Household Sizes

Area

Income Limits

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	DPA / CCA Grant	Bond Programs	Non-bond Programs
Income Limit Type:	Lower limits	Standard / Bond limits	Expanded limits
Who to include:	All household members	All household members	All borrowers
What income to include:	All household member income	All household member income	All qualifying income

The Plus Second Mortgage follows the income limit of the first mortgage (bond or non-bond).
Higher income limits may apply using a bond program if property located in a targeted area if there is no Virginia Housing Grant.
Conventional (non-bond) Program: LLPA applies when qualifying income exceeds Fannie Mae & Freddie Mac’s 80% AMI and Charter MI is used.

Income Limits

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Metropolitan Statistical Areas

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Sales Price Limits

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Grants

Standard / Bond

Expanded / Non-bond

Area

Applies to Virginia Housing Bond and Grant programs.
Higher of sales price, gross loan amount(s), & acquisition cost.
Higher limits may apply if property is in a targeted area.

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MORTGAGE CADENCE

LOAN PROCESS

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Loans must be registered and locked following the standard purchase calculation (typically resulting in lower loan amount initially, but will be overridden later)
Complete the CLT Mortgage Amount Calculation Worksheet (page 1) and upload to Mortgage Cadence
Submit email to LockDesk@VirginiaHousing.com requesting loan amount override to allow the higher loan amount using the Affordable LTV feature

REGISTERING & LOCKING

Mortgage Cadence, Virginia Housing’s Loan Origination System, does not presently support the Affordable LTV feature allowing the LTV to be calculated using the appraised value when the appraised value is higher than the sales price. Lenders must do the following: CLICK1

- Loans must be registered and locked following the standard purchase calculation (LTV based on the lower sales price if applicable). CLICK2

- Once loan(s) are registered and locked, the lender will complete the CLT Mortgage Amount Calculation Worksheet (page 1) and upload the completed worksheet in to MC Attachments. CLICK3

- Lenders will then submit an email to the Lock Desk requesting a loan amount override applying the Affordable LTV feature. - - The Lock Desk will then forward the request to the designated Manager to perform the loan amount override in Mortgage Cadence.

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Lender underwriter must complete the CLT Underwriter Certification (page 2) and upload to Mortgage Cadence –

at time of Delegated Confirmation or include in the loan package submitted for purchase (delegated), or
at submission to Virginia Housing Underwriting (non-delegated)

If the loan amount or any of down payment/closing cost assistance changes the CLT Mortgage Amount Calculation Worksheet (page 1) must be updated accordingly and uploaded to Mortgage Cadence

UNDERWRITING

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Lender closer must obtain additional items and ensure documents are uploaded to Mortgage Cadence:

CLT Ground Lease is fully executed
CLT Ground Lease Rider (Fannie Mae Form 2100 / Freddie Mac Form 490) is fully executed

(The CLT Ground Lease Rider must be recorded with the CLT Ground Lease or Ground Lease Memorandum)

Ground lease paid-in-full for current calendar year showing on CD
CLT Mortgage Amount Calculation Worksheet matches final loan amount – if it does not obtain updated worksheet and ensure it’s in closing package submitted to Virginia Housing
Complete the CLT Closer & Shipper Certification (page 3)

CLOSING

The Lender’s Closer will follow the applicable Conventional first mortgage closing requirements, as appropriate. CLICK1

Let’s go over the list of additional Closing Requirements: CLICK2
The CLT Ground Lease must be fully executed (Borrowers & CLT Entity); CLICK3
The CLT Ground Lease Rider (Fannie Mae Form 2100 or Freddie Mac Form 490 if using DU, either Ground Lease Rider is acceptable; if using LPA, you must use Freddie Mac Form 490) must also be fully executed (Borrowers & CLT Entity), CLICK4
On a side note, the CLT Ground Lease Rider must be recorded with the CLT Ground Lease or Ground Lease Memorandum; CLICK5
The Ground Lease Payment for the current calendar year must show as paid-in-full on the CD; CLICK6
The CLT Mortgage Amount Calculation Worksheet’s loan amount must match the final loan amount. If it does not, obtain an updated worksheet from the Underwriter and ensure it is in the closing package submitted to Virginia Housing; CLICK7
The CLT Closer & Shipper Certification must be completed and included in the loan package submitted for purchase

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Final Title Insurance Policy uploaded to Mortgage Cadence and must confirm:

Recorded CLT Ground Lease or Ground Lease Memorandum including the CLT Ground Lease Rider
Mortgage is a first lien on leasehold estate and the improvements
No existing mortgages or other liens on the fee estate unless permitted under ground lease rider
Ground lessor’s reversionary interest is subordinate to CLT mortgage
No related CLT ground lease occupancy restrictions that “run with the land”, and have been recorded apart from the ground lease, except as may be permitted under ground lease rider (Fannie Form 2100 / Freddie Mac Form 490)

FINAL DOCS

For Post-Closing Requirements, follow the Conventional first mortgage requirements, as applicable. CLICK1 In addition to standard documentation, the FINAL Title Insurance Policy must confirm the following: CLICK2

The CLT Ground Lease or Ground Lease Memorandum and Ground Lease Rider must be recorded; CLICK3
Virginia Housing’s Mortgage must be a first lien on the leasehold estate and the improvements; CLICK4
There must be no existing mortgages or other liens on the fee estate unless permitted under the Ground Lease Rider; CLICK5
The Ground Lessor’s reversionary interest must be subordinate to the CLT Mortgage; CLICK6
There can be no related CLT Ground Lease Occupancy Restrictions running with the land that have been recorded apart from the Ground Lease, except as what may be permitted under the Ground Lease Rider.

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CLT Pilot Property Guidelines
CLT Mortgage Amount Calculation Worksheet (page 1)
CLT Underwriter Certification (page 2)
CLT Closer & Shipper Certification (page 3)
CLT Maximum Loan Amount Example Calculations Matrix

-EMAILED TO YOU DIRECTLY-

-Please forward to appropriate staff-

Where is all of this information located?

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CLT GUIDELINES

The guidelines provide specifics related to CLTs and should be used in conjunction with the first mortgage and specialty program guidelines as well as the GSE Selling Guide

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VIRGINIA HOUSING CONTACTS

Gigi Houchins Business Development Officer, Eastern Region	Georgette.Houchins@VirginiaHousing.com (804) 343-5609
Regina Pinkney Business Development Officer, Northern Region	Regina.Pinkney@VirginiaHousing.com (804) 343-5748
Frank Webster Business Development Officer, Western Region	Frank.Webster@VirginiaHousing.com (804) 343-5668
Joni Moncure Business Development Officer, Central Region	Joni.Moncure@VirginiaHousing.com (804) 343-5595
Dan Kern Business Development & Training Manager	Dan.Kern@VirginiaHousing.com (804) 343-5992
Mindy Hall-Sexton Loan Programs Manager	Mindy.Hall-Sexton@VirginiaHousing.com (804) 343-5709
Erin Ward Loan Program Underwriter	Erin.Ward@VirginiaHousing.com (804) 343-5851
Melissa Whitlow Assistant Director of Homeownership Loan Programs	Melissa.Whitlow@VirginiaHousing.com (804) 343-5995

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VIRGINIA HOUSING CONTACTS

Underwriting:	Underwriting@VirginiaHousing.com (800) 227-8432 or (804) 783-6725
Locks/Reservations:	LockDesk@VirginiaHousing.com
Mortgage Cadence LOS:	HomeownershipSupport@VirginiaHousing.com
Purchase Review/QRA:	PurchaseReview@VirginiaHousing.com
Servicing:	LoanServicing@VirginiaHousing.com (800) 235-6938 or (804) 783-6729

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Ways to Support the CAAR Foundation and Our Work

Make an online donation using this QR code:

(or by visiting http://tinyurl.com/DonatetoCAARFoundation)

Write us a check! CAAR Foundation, 550 Hillsdale Dr.,

Charlottesville, VA 22901

Donate to the CAAR Foundation when you renew your CAAR dues this fall

Invite us to your brokerage or company for a presentation on the Foundation

and…

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Attend our “CAAR Foundation Concert for Affordable Housing”

September 4, 2025 at Pro Re Nata with Gone Country!

(Stay tuned for ticketing & sponsorship info.)

Presenting Sponsor