Mon Valley Initiative

This could be your next home. Beautiful new, or almost new, homes for less than you imagined. From a contemporary condo to a sweet single floor home or a yard big enough for friends and family, these are stylish homes with large kitchens, open floor plans,hardwood floors, vintage details, fenced yards and welcoming front porches. Each home is constructed to be beautiful and energy efficient, resulting in lower utility bills, and a more comfortable house. A one-year home warranty protects your investment and gives you piece of mind. Most MVI homes are reserved for households whose income does not exceed 80% or 100% of the Area Median Income (AMI) and will include the addition of forgivable second mortgages. Additional incentives are available to 50% AMI buyers, call for more information. Second mortgage amounts will vary based on buyer income and could be used to reduce the sale price for buyer’s with lower incomes, second mortgage amounts will be added to listed prices to equal the contract price, buyer’s will be responsible for listed price or less based on income. Downpayment assistance may be available. See below for more details. Call or email for details, Christa Ross, RE/MAX Select Realty, 724-309-1758.

The Mon Valley Initiative (MVI) is a non-profit 501(c)(3) organization that works to deliver high quality new construction and rehabilitated homes in the eastern suburban / mon valley communities it serves. MVI homes have had investments made in them by various government organizations to allow for them to be renewed, and then sold for what the market in the area can support to buyers with certain income levels. In almost all cases the investment in the home is greater than the price the buyer is being asked to pay. Homes are marketed at the price the buyer is responsible for, however the contract price will usually be closer to the actual investment made in the home or the highest amount the home would reasonably be able to appraise for in a given area. The difference between the listed / buyer responsibility price and the contract price is made up by a Soft Second Mortgage (also referred to in this document as simply a second mortgage or soft second). Buyer’s that are considering MVI home should understand that when they buy a MVI home they are being asked to be part of a partnership in the improvement of their soon to be community, and the structure of these deals is one way that property values can be increased while at the same time making high quality homes affordable for moderate income buyers.

The most important thing to realize is that when purchasing a home with a Soft Second Mortgage, the buyer’s (also referred to as owner’s in this document) investment in the home is protected, in that from the proceeds of a sale the owner would have their first mortgage paid, their down payment paid back and the principal they paid during ownership paid back, BEFORE they would ever have to pay back anything on the second. While there is no guarantee, like any other home, what a owner can sell their house for in the future, there is assurance that the owner’s mortgage and investment in the home is paid back first. For many owners that live in the home the full term of the soft second this money acts like more of a grant than a loan because at the end of the term the second mortgage is forgiven. During the time the buyer occupies the home they will make no payments and pay no interest on the second mortgage.

Most of the MVI’s homes come with either an 80% or 100% AMI (Area Median Income) limitations which requires buyers to not exceed certain income limits, based upon household size, shown in chart below. In some case the buyer may be able to purchase for less than the listed price based on their income. Completion of the income verification form will be required shortly after an agreement on the home is signed and the buyer will be contacted by MVI to complete the income verification documents and submit to the county for approval. The county may choose to lower the listed price / buyer responsibility amount of the purchase and increase the second mortgage amount if they deem that the buyer is using too much of their available income on housing costs. The county will review income documents within 10 days and notify parties if there is a change.

Any lender can be used when purchasing MVI homes but we suggest you consider contacting one that has experience working with second mortgages to avoid problems. Your agent can help advise you of the best options.

We hope you have found the information above helpful. Please don’t hesitate to contact us for more information. We think you will find that for the price MVI homes are a wonderful option and we will do everything possible to make the transaction a smooth and positive experience.

This information is for explanation purposes only and is not a substitute for a proper review of the soft second mortgage documents or other details of the MVI homes. Soft second mortgage documents are available upon request. This information is not guaranteed to be accurate or account for all scenarios, terms of the MVI homes can change at any time, without notice.