USCF Homeowner’s Benefit (HOB)
The USCF Homeowner’s Benefit makes homeownership easy and accessible for citizens seeking to purchase a home. The HOB implements safeguards to maintain housing market stability while mitigating the risk of homeowner insolvency. All home loans are acquired through the free market ensuring competitive home mortgages. Likewise, for these reasons, the functions and responsibilities of Fannie Mae, Freddie Mac, Federal Home Loan Bank, and other systems remain unchanged.
Citizens perusing the purchase their first home who have been employed for two years or more may borrow up to 80% of their home loan through a mortgage bank or lender of their choosing. Citizens can increase their home loan borrowing by 5% for each additional full year of employment in the same job making it possible to borrow up to 100% of their home loan including closing costs and other fees. The monthly payments including principal, interest, insurance and taxes may not exceed 25% of their pre-tax monthly gross income for income earners who are single. A married couple’s monthly payments cannot exceed 33% of their combined monthly gross income with the same requirements.
Under no circumstances will USCF secure a home loan that exceeds 100% of the assessed market value of the home. Additionally, under no circumstances will NINJA (No Income, No Job or Assets) loans be supported within USCF. Our elected officials enacting laws that forced banks to issue NINJA loans under the threat of heavy fines for each denied loan application resulted in the 2007-2009 U.S. housing market collapse and subsequent worldwide economic crisis. USCF citizens who are employed can utilize their Supplemental Income Pay to improve their loan borrowing potential. A citizen’s credit score may affect their home loan interest rate, but no citizen can be denied a home loan as long as they meet the USCF defined criteria.
It is highly recommended that USCF members with a low credit score work with their State Monitoring Service (SMS) to improve their credit score before applying for a home loan. SMS can help citizens set up automatic payments, manage their income, pay off debt, and other options to improve their credit score. USCF members are encouraged to have up to 6-months of savings to meet all of their normal expenses. USCF helps make this possible for every citizen while SMS can help individuals develop and implement savings options. Additionally, SMS will ensure citizens are obtaining the USCF benefits they are entitled to receive.
If a USCF member is unable to make their house payments due to illness, unemployment, or other circumstances their USCF will take over and make the house payments. When the citizen is able to resume their house payments, USCF payments end. When the citizen’s home loan is paid in full, they are required to continue making payments back into their USCF account until the borrowed house payments are reimbursed. When all transactions are complete the homeowner will receive a release of mortgage letter for them to pick up the deed to their home.