Purchasing a home is the ultimate goal for many U.S. households. The thought of choosing to paint rooms any color under the rainbow, hammer nails into the walls to hang favorite photos and art pieces, and simply having a safe space that doubles as a personal investment is shared by many.
In pricey markets including the DMV area, many think the prospect of becoming a homeowner is far-fetched. Rising home prices, increasing interest rates and the harsh reality of real estate race disparities can be discouraging setbacks. Luckily, homebuying guidance and preparation can turn those obstacles into homeownership opportunities, according to Milan Griffin, Chief Operating Officer of HomeFree-USA. HomeFree-USA, in collaboration with lending partners like Wells Fargo, are helping renters become homeowners.
“When people are ready to start the homebuying process, they usually call a realtor or loan officer first, instead of a HUD-certified Homeownership Advisor,” said Griffin. Doing so, hurts homebuyers by limiting their access to money-saving mortgage programs and increases the likelihood of loan denial. There are so many things’ people don’t know about the process,” Griffin added. “Homebuyers get stuck because they are overwhelmed with the amount of required paperwork, lender requirements, programs, steps, etc. Homeownership Advisors make the process easier by helping homebuyers overcome the four biggest obstacles to homeownership – credit, debt, savings, and downpayment.
“Studies show Black mortgage applicants are denied a mortgage 84% more often than white applicants. Credit is the biggest barrier to approval but it’s not just a low score holding buyers back. Surprisingly, we see buyers who come to HomeFree-USA with a 700-credit score after being denied for a mortgage because their debt is too high. A quick financial review with a Homeownership Advisor, before meeting with a loan officer, helps to ensure buyers are truly ready for mortgage approval. Ninety-six percent of buyers that HomeFree-USA refers to lenders are approved the first time.”
“When homebuyers go straight to realtors, they run the risk of being connected to one lender instead of being presented with additional mortgage options. Starting with homeownership guidance positions
buyers to research, qualify for, and access affordable loan and downpayment programs many don’t know exist. More options mean bigger savings and money to cover expenses as a new homeowner. HomeFree-USA members secure an average of $18,000 in downpayment assistance.”
Founded 30 years ago by her parents, Marcia and Jim Griffin, CEO and Co-CEO respectively, HomeFree-USA is a nonprofit organization created to build the foundation to close the wealth gap by educating and developing financially-prepared, sustainable homeowners. Approved and certified by the U.S. Department of Housing and Urban Development (HUD), HomeFree-USA offers an array of services including step-by-step homeownership guidance, foreclosure prevention counseling, property development, neighborhood revitalization, and training for emerging real estate developers.
HomeFree-USA’s Center for Financial Advancement (CFA) provides financial education and recruitment for HBCU students. Thanks to partners like Wells Fargo, 12,000+ students from 15 HBCUs have learned the tenants of credit, homeownership, and leadership while accessing internship opportunities in the mortgage and real estate finance industry.
Wells Fargo’s latest effort to help homebuyers is its Homebuyer Access Grant totaling $10,000 [https://sites.wf.com/accessgrant/]. For those eligible, repayment is not required, and the grant can be combined with additional programs. For this and most grants, housing counseling is required to qualify.
Affording a Home
Today’s housing market is expensive. A recent Forbes Magazine article [https://www.forbes.com/advisor/mortgages/real-estate/median-home-prices-by-state/], shows the median home prices by state. Despite the fact that home prices and interest rates may seem prohibitive, Griffin says that should not deter those considering homeownership.
“When it comes to high-priced markets, like D.C. and Atlanta, there’s still opportunities to purchase a home,” she said. “When you speak to a Homeownership Advisor, they will strategize ways to reduce debt and suggest downpayment programs to boost your buying power. Even those receiving a Housing Choice Voucher (formerly known as section 8), can use it to buy a home and receive monthly assistance to meet homeownership expenses. For more information on HomeFree-USA’s homebuying program, visit https://homefreeusa.org/homeowners/ or call 855-493-4002.