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NeighborWorks Southern Colorado Shared Equity Homeownership Program

NeighborWorks is committed to making homeownership affordable and attainable for low- and moderate-income families using the NeighborWorks Southern Colorado Shared Equity Homeownership Program (NWSoCo SEHP) through deed restriction.

Not all Families are in a position to help, that’s why NeighborWorks created the NeighborWorks Southern Colorado Shared Equity Homeownership Program.

First Deed Restricted Shared Equity Home Sold in Pueblo, CO

The Jones Family Pictured left to right: April Jones, Wynter Jones, Dan Jones

NeighborWorks Southern Colorado is pleased to celebrate the closing of the first Deed Restricted Shared Equity home using the model deed restriction created by Ground Solutions Network out of Washington, DC. While Shared Equity has been around for years, this particular model was created in 2021 by Grounded Solutions with the help of Fannie Mae and Freddie Mac to create an affordable homeownership model that lenders could then sell on the secondary market, opening up many different lending options to the homebuyer.

NeighborWorks Southern Colorado, located in Pueblo, CO, was fortunate to receive technical assistance from NeighborWorks America through a Shared Equity Grant to work with a Grounded Solutions Network Consultant who assisted us with modifying the model deed restriction to fit the needs of our organization while still serving the best interests of the families we serve. Soon after finalizing, what is now known as the NeighborWorks Southern Colorado Shared Equity Homeownership Program, we received our Duty to Serve certification, placing our program on Fannie Mae Connect, as a certified program that meets the shared equity homeownership definition in the FHFA Duty to Serve rule.

NeighborWorks Southern Colorado hosted several Shared Equity lunch-and-learn sessions and educated local lenders, realtors, and title companies of our program. After partnering with local lender Thrive Mortgage, ensuring full understanding of the Shared Equity Program, we began the process of approving the first homebuyer and getting a full understanding of the underwriting process that is involved with purchasing a Shared Equity home. With the help of Grounded Solutions, Fannie Mae, Freddie Mac, Land Title Guarantee Company in Pueblo, and Thrive Mortgage, NeighborWorks Southern Colorado successfully closed on this home May 11, 2023! We believe this model of Shared Equity is not only beneficial to the organization by way of expanding our portfolio, but also to homebuyers as they look for safe, affordable homeownership opportunities and create a wealth building mechanism that is not possible through renting. Deed Restricted Shared Equity programs that can be sold on the secondary market, provides the opportunity for large scale affordable homeownership opportunities throughout the country.

Pictured left to right: Pete Lopez(NeighborWorks), Emily Garbiso (NeighborWorks), Tamara Pleshek (NeighborWorks),
Marlene Berrier (RE/MAX), Ashleigh Winans (NeighborWorks), April Jones, Wynter Jones, Dan Jones, Pam Gonzales (Thrive
Mortgage), Deanna Westerby (RE/MAX)

We’d like to thank the local team of Pam Gonzales with Thrive Mortgage, Micki Catalino with Land Title Guarantee Company, Marlene Berrier with RE/MAX of Pueblo, Inc., Deanna Westerby with RE/MAX Associates, and many others, in working together to make the dream of homeownership a reality for Mrs. Jones and her Family.

What is Shared Equity?

“Shared equity homeownership is a self-sustaining model that takes a one-time public investment to make a home affordable for a lower-income family and then restricts the home’s sale price each time it is sold to keep it affordable for subsequent low-income families who purchase the home.”  

Source: Grounded Solutions Network, 

The first family builds wealth and then “pays it forward” 

What are the advantages of using NeighborWorks Shared Equity Homeownership Program (NWSoCo SEHP)?

  • The ability for low to moderate income (LMI) buyers to qualify and purchase homes at a lower price and become homeowners while building personal wealth from equity that grows due to owning their home.  
  • Allows public investments to go further and build over time, helping familiy after family.
  • Strengthens communities by providing long term affordable housing.
  • Provides stability, reducing overall and financial stress for households

Shared Equity may be for you if...

  • You are a first-time homebuyer
  • Higher interest rates are pricing you out of the housing market

How does Shared Equity work?

Pueblo’s family-first mentality has been using a form of shared equity for generations to help families purchase their homes. Parents and Grandparents have often helped their children and grandchildren purchase homes by providing their own funds (Equity) towards the home in the form of a down payment. Generally, the family expects the financial assistance to be paid forward and continue to grow in generational wealth; helping families to become more fiscally secure and overall improve stability. This is what we call “Shared Equity”.

Program Requirements

Each home within the program has its own income limits based on HUD Guidelines and is identified in the home listing. 

  • Completion of a homeownership counseling program approved by the Program manager
  • Must Qualify for a first mortgage loan
  • Home must be owner occupied, restrictions apply
  • Household size must be appropriate for home
  • Homeowner must agree to all restrictions
  • May not own another home at time of purpose

See below chart for reference or view HUD income limits here