State’s shared-equity home loan fund seeks another $3 million to expand ownership access

Senator Vickers presented the state’s shared-equity revolving home loan fund program, described prior state contributions and asked the subcommittee to consider a one-time $3 million appropriation to expand the program.

Vickers said the state contributed $5 million in the program’s first year and $3 million last year; the current request was another one-time $3 million. He described the program’s model: equity partners join with a homebuyer to reduce the required down payment and monthly payment, allow principal reduction to accrue in the homeowner’s account, and share appreciation at sale or refinance. Vickers said the program targets veterans, active military, and public-service professionals as a priority.

Steve Waldrop, senior adviser to the governor on housing strategy (and a program cofounder in prior work), explained the mechanics: no down payment is required, the program sets up payroll withdrawals for mortgage payments, and the fund provides low-interest shared equity so that a $400,000 home can have a monthly payment on the program roughly around $2,100 instead of higher conventional payments. He said homeowners accumulate principal-reduction benefits and can refinance or buy out the fund’s share after a set period.

The subcommittee heard the presentation and no appropriation vote on the request was recorded during the Feb. 7 session; the RFA will be ranked for prioritization.