Second Chance Homes

Second Chance Homes are adult-supervised, supportive group homes or apartment clusters for teen mothers and their children who cannot live at home because of abuse, neglect or other extenuating circumstances. Second Chance Homes can also offer supports to help young families become self-sufficient and reduce the risk of repeat pregnancies. They provide a home where teen mothers can live, but they also offer program services to help put young mothers and their children on the path to a better future. Several federal resources are available to help state and local governments and community-based organizations create Second Chance Homes that provide safe, stable, nurturing environments for teen mothers and their children.

Second Chance Homes programs vary across the country, but generally include:

• An adult-supervised, supportive living arrangement
• Pregnancy prevention services or referrals
• A requirement to finish high school or obtain a GED
• Access to support services such as child care, health care, transportation, and counseling
• Parenting and life skills classes
• Education, job training, and employment services
• Community involvement
• Individual case management and mentoring
• Culturally sensitive services
• Services to ensure a smooth transition to independent living

Perpetual insurance

Perpetual insurance is a type of homeowners insurance policy written to have no term, or date, when the policy expires. From the effective start date, the coverage exists for perpetuity. The insured deposits money, called a deposit premium, with the insurer for insurance for the life of the risk. The deposit is usually ten times larger than the cost of a non-refundable, annual premium for an equivalent policy with a one-year term. The insurer must earn enough income from investing the deposits to cover losses and operating expenses for the model to be economically viable. Upon cancellation, the insured is entitled to a full refund of the initial deposit premium, usually without interest. Perpetual insurance, first issued in the U.S. in Philadelphia in 1752, is still used for fire and home­owner's insurance.

In the United States, there are also tax advantages to perpetual insurance. The deposit premium does not yield any income to the insured. However, the expense of the annual premium for term homeowners insurance is eliminated. Therefore, the tax-adjusted, equivalent rate of return to the insured homeowner on the deposit premium can be calculated by taking the gross amount of money he or she needs to earn to net the amount of an annual premium for a term policy, divided by the amount of the deposit premium. For example, a house which costs $150,000 may typically be charged an annual premium of $1,000 for a term policy. That same house would likely require a $10,000 single deposit premium for a perpetual insurance policy of equivalent coverage. A person in the 28% Tax bracket would need to earn $1,389 in gross income to pay the annual premium. Since that amount no longer needs to be paid annually, the tax-adjusted, equivalent rate of return to the insured homeowner on the single deposit premium would be $1,389, less the after-tax returns that would have been earned on investing the deposit premium (or $600, assuming a 6% after-tax rate of return) divided by $10,000, in other words, 7.89%.

Home Loan Guarantee Program

What is the Section 184 Loan Guarantee Program?

The Section 184 Indian Home Loan Guarantee Program is a mortgage product specifically for American Indian and Alaska Native families, tribes, Alaska Villages or tribally designated housing entities. Congress established this program in 1992 to facilitate homeownership in Native American communities. List of Participating Tribes

With a Section 184 mortgage borrowers can purchase a home with a low down payment, no monthly mortgage insurance and flexible underwriting.

* 2.25% down payment requirement for loans over $50,000;
* 1.25% downpayment requirement for loan under $50,000;
* No monthly mortgage insurance
* A one-time, 1% loan guarantee fee that can be added to your financed loan
* HUD underwriters and Loan Guarantee Specialists are familiar with the unique issues and circumstances that Native Americans face when trying to obtain a mortgage in Indian Country.

The Section 184 Loan Provides You With Numerous Options to Suit Your Needs

* Purchase of an existing home
* Construction of a home (stick-built or a manufactured home on a permanent foundation)
* Rehab loans
* Purchase and rehab
* Refinancing (Rate and Term, Streamline, Cash Out)

Getting Started

To qualify for a home loan, its recommended (but it's not mandatory) that applicants first find out if there are homebuyer education classes available through their tribe, housing department and/or in their community.

Homebuyer classes prepare you for the home buying process, so that when you meet with a lender you'll have a better understanding of what it takes to qualify for a home loan.