Our Home Mortgage Program is administered as a “home ownership housing” program as defined under section 202 of NAHASDA. The Home Mortgage Program offers member tribes opportunities to construct turn-key homes, and then offer them to tribal members with affordable payment rates.
How Does the Home Mortgage Program Work?
The home mortgage program operates with the intent of facilitating the conveyance process using a “Promissory Note” as a credit instrument, and a “Deed of Trust” as a security instrument for the value of the credit provided to the home buyer.
What Does this Mean for the Home Buyer?
There are 3 parties involved in the Home Mortgage Program conveyance process. The trustor(applicant), the beneficiary (AVCP RHA by delegated authority of the tribe), and the trustee (FIDELITY TITLE AGENCY OF ALASKA).
What this means is that FIDELITY TITLE AGENCY OF ALASKA is trusted with the legal title to the property, for the sake of enforcing contractual obligations of the home buyer until the contract terms have been met.
During the conveyance process, the home buyer receives equitable title for the property. Once the terms of the contract have been fulfilled the home buyer obtains full legal title to the property.
Home Buyer Responsibilities
To be in the home ownership program the individual or family living in the unit has responsibilities. These responsibilities include:
- Making house payments in full and on time each month
- Maintain the structure, keeping appliances in good repair
- Provide materials, equipment, and labor for repairs when necessary (you may hire somebody to do repairs)
- Use the dwelling as your primary residence
- Participate in the annual income certification process
- Participate in the annual home inspection process
- Comply in full with the guidelines established in the Home Buyer Agreement
Non-Compliance
What happens if a homebuyer is not in compliance with the Home Buyer Agreement?
If a home buyer is not in compliance, we will begin the “Notice Process” for the homebuyer to begin addressing area or areas of non-compliance. If no action is taken by the homebuyer in the Notice Process, it can lead to the termination of the home buyer agreement which can lead to eviction from the unit.
How to Apply
Fill out a copy of our Housing Program Application Package and submit to: AVCP Regional Housing Authority – PO Box 767 – Bethel, Alaska 99559
Definitions
conveyance – The legal process of transferring property from one owner to another.
credit instrument – Document that serves as an evidence of debt, such as a promissory note or an IOU.
promissory note – A signed document containing a written promise to pay a stated sum to a specified person or the bearer at a specified date or on demand.
security instrument – Mortgage deed or trust deed that (unlike a promissory note or other credit instrument) evidences pledging of an asset or property as security.
deed of trust – A document which pledges real property to secure a loan, used instead of a mortgage in Alaska, Arizona, California, Colorado, Georgia, Idaho, Illinois, Mississippi, Missouri, Montana, North Carolina, Texas, Virginia, and West Virginia. The property is deeded by the title holder (trustor) to a trustee (often a title or escrow company) which holds the title in trust for the beneficiary (the lender of the money). When the loan is fully paid, the trustor requests the trustee to return the title by reconveyance. If the loan becomes delinquent the beneficiary can file a notice of default and, if the loan is not brought current, can demand that the trustee begin foreclosure on the property so that the beneficiary may either be paid or obtain title. (See: mortgage, reconveyance, foreclosure)
equitable title – a person’s right to obtain full ownership of a property or property interest. This is often contrasted with or used in conjunction with the term “legal title.” Legal title is the actual ownership of the land.