frequently asked questions
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What is Proud Ground?
Proud Ground is a state-certified nonprofit organization that provides affordable homeownership opportunities for people who work and live in our community.
What do we do?
Working with community partners, lenders, builders, and others, we prepare families and individuals for homeownership; help them purchase existing homes at affordable rates; build new affordable homes; offer homeowners tools to be successful; and, we help manage the buying and selling of affordable homes.
What makes Proud Ground different?
With prices out of reach for many families, we believe that the best way to ensure that our children - and their children - have opportunities to buy a home is to keep homes affordable. So, a home bought through Proud Ground is affordable today and it will be affordable for future generations.
How are homes kept permanently affordable?
In exchange for a reasonable purchase price (about $60,000 to $100,000 less than a market-rate home), homeowners ensure that future buyers also have a chance to own an affordable home by limiting the home's appreciation. This way, owners enjoy increasing property values and the other rewards of homeownership - and they gain equity - while passing the affordability on to the next owner.
Permanent affordability is guaranteed through a legal agreement (either a land lease or an affordability covenant) between Proud Ground and the homeowner. Homebuyers review either of these legal agreements with an attorney independent of Proud Ground to understand all the details before buying a home.
For those who are locked out of homeownership the traditional way in today's market, Proud Ground offers a sure road to equity and stability. In fact, more than 70% of homeowners who buy through programs like Proud Ground go on to purchase market-rate homes as their next home (note: these are findings from a national study; there have not been enough Proud Ground resales yet to measure this locally).
Who buys through Proud Ground?
Parents and children, grandparents, young couples and single folks. All kinds of people. Proud Ground homebuyers are first-time homeowners who are income qualified (see www.proudground.org/buy for details). They have steady incomes and access to credit, but incomes that are not high enough to purchase a home the traditional way in today's pricey market. Each Proud Ground homeowner shares an important goal: to own a home of their own.
Homeownership through Proud Ground is similar to traditional homeownership in that ...
- You own your house.
- You have a mortgage with a bank.
- You accumulate equity.
- You enjoy the tax benefits of homeownership.
- You pay property taxes, though they may be less.
- You are free to remodel and improve your home and yard.
- Your home can be inherited.
Homeownership through Proud Ground is different in that ...
- The purchase price is much, much lower - usually about $60,000 to $100,000 less than a market-rate home.
- In exchange, if you sell your home, you agree to sell at an affordable price to the next homeowner.
What about tax benefits?
Proud Ground homeowners pay property taxes. However, given the unique agreement between Proud Ground and the homeowner, the property is often taxed at a reduced rate.
As with all Oregon homeowners, the property taxes and the interest portion of the mortgage payment are tax deductible on state and federal income taxes.
All homebuyers who buy in 2009 are also entitled to a First-Time Homebuyer Tax Credit on their federal taxes.
Want to learn more?
Attending a free information session is the best way to learn about our programs and is the first step toward buying a home through Proud Ground. Click here for a schedule, or email us or call 503-493-0293x10.
