The Board of Directors has pledged to increase the number of families to own their private residential dwellings throughout the Commonwealth. Its end goal is to assist first-time homeowners and to ensure that all families across the income spectrum, especially the low to moderate income families, are given the opportunity to apply for housing assistance so they can invest in their own homes.

NMHC is comprised of several divisions, one of which is the Mortgage Credit Division which is responsible for the administration of three (3) residential loan programs. These programs described below, are designed for home-ownership, while a few are geared for home improvements or rehabilitations.

1. HOME Investment Partnerships (HOME Program)
2. Department of Veterans Affairs Native American Direct Loan (NADL) Program. 
3. Rural Housing 504 Program

Loans are extended to borrowers at a fixed interest rate for terms between twenty (20) to thirty (30) years, depending on the income category and repayment ability. Properties must have clear title and loans are secured with a first mortgage in most cases. Grants are occasionally made to eligible applicants who are in dire need of assistance, but lack the repayment ability. Applicants must meet certain conditions to be eligible for the grant assistance.

Up-front payment on loan closing fees is recommended; however, in cases where applicants lack the necessary funds, the fees may be financed partially or entirely, provided the clients have the repayment ability for this additional funding. 

The Northern Marianas Housing Corporation (NMHC), on behalf of the Commonwealth of the Northern Mariana Islands (CNMI), is pleased to bring you the HOME Investment Partnership (HOME) Program, made possible through annual funding allocations from the U.S. Department of Housing and Urban Development (HUD).

HOME was created by the National Affordable Housing Act (NAHA) of 1990, with the primary objective of expanding the supply of decent, safe, sanitary, and affordable housing, as well as, increasing home ownership opportunities for low- and low-income families.

Depending on individual housing needs, families determined eligible for financial assistance, may receive assistance through the following HOME activities:

• Homeowner Rehabilitation
• First-Time Homeowner
• New Construction

HOME funds are not limited to the above activities. Other activities include: demolition, property acquisition, relocation and finance costs. The HOME Program also allows up to 15% of HOME funds to be used for administrative costs to ensure immediate implementation and administration of the program.

However, due to the limited amount of annual funding allocations, the NMHC has chosen to administer “Homeowner Rehabilitation”activities including but not limited to sewage/disposal system (septic), water storage tanks, additional bedrooms, repair and/or replacement of deteriorating roofs, electrical and plumbing systems. 

ELIGIBILITY REQUIREMENT

To be eligible for HOME Program Financial assistance, applicants must meet, as a minimum, the following eligibility requirements:

• Gross annual household income must not exceed the “low-income limits” according to the size of household, as prescribed by HUD;
• Applicants must own or have at least a 40 year leasehold on the property to be improved;
• The property to be improved must be occupied as the principal residence of the applicant; and
• The “after-rehabilitation” value of the property must not exceed 95% of the HUD prescribed median purchase price for the type of unit (single-family unit).

TYPES OF FINANCIAL ASSISTANCE

1. Rehabilitation  Applicants that have been determined eligible for financial assistance may be extended a fixed low-interest rate of 0% to 3% rehabilitation loan from $1,000 up to $40,000  with a maximum repayment term of 20 years and a monthly payment of  $83.33 to $221.84.
2. New Construction or Home Purchase applicants may be extended a low interest loan at a fixed rate of 2% to 5% for a term of 30 years and a loan of up to $57,000.00 with a monthly payment of $210.68 to $305.99.
3. A Direct Grant is also available to elderly and persons with disability who are unable to obtain employment because of their disability and are within 30% of the HUD income limits.

STEP ONE:

STEP TWO:

The responsible loan officer will make an appointment to meet with you to go over the application and to request for additional documents if need be. Otherwise, if all required documents are obtained and all forms are completed, your loan officer will advise you to submit your application.

A “Good Faith Estimate (GFE)” will also be prepared for you within 3 days after our receipt. The GFE describes the different fees that you may have to pay if your loan is approved. These fees include, but not limited to: insurance, mortgage life/disability insurance, inspection fees, credit report fee, origination fee, Preliminary Title Report and Title Insurance Policy.

Your application will be processed to accurately determine if you qualify or are eligible for the housing program you are applying for as well as to determine if you are able to afford your requested loan amount.

STEP FOUR:

Approved Loan

Within thirty (30) working days after issuing your AL, your loan officer will inform you of your loan status. If your loan is approved, a commitment letter (CL) will be prepared and sent to you for your acknowledgment. The CL indicates the terms and conditions of your approved loan, as well as additional information that you will have to provide your loan officer. Approved borrowers will have fifteen (15) calendar days to comply with the conditions outlined in the CL. Approved borrower who do not meet the above deadline, will have their application placed in the inactive file. Please note that all loan approvals must come before the NMHC Board.

If you would like more information about how to apply for a loan please contact us here.

Department of Veterans Affairs
Native American Direct Loan (NADL) Program

The Mortgage and Credit Division also assists veterans with the NADL program which assists CNMI-descent veterans who are honorably discharged, with acceptable credit rating and repayment ability. Applicants must present their DD214 and Certificate of Eligibility for processing under this program. 

You may obtain the forms at the “Forms” section of our website. If you may have any questions or concerns regarding this program please feel free to contact our office. 

United States Department of Agriculture (USDA)
Rural Development (RD)
504 Housing (Renovation) Program

The Mortgage and Credit Division assists the USDA-RD with the application processing for the Section 504 Housing Program. The program assists families and individuals with loans up to the maximum amount of $7,500.00. This loan program has a fixed interest rate of 1% and the maximum loan repayment is 20 years. The program allows families and individuals to make home repair and renovations to improve or modernize their home, and make it safe or sanitary, remove health and safety hazards, or make it accessible to residents with physical disabilities. 

For more information you may obtain the USDA-RD 504 brochure and application in our “Forms” section of our website. If you may have any questions regarding this program you may contact the USDA-RD Area II Office in Guam at 1+(671)472-7361 or you may contact our NMHC office.