By Megan SaylesAFRO Enterprise Writermsayles@afro.com
HomeFree USA, a number one homeownership growth and monetary teaching group hosted a homebuyer workshop on Oct. 17 at Bowie State College. The group is authorised by the Division of Housing and City Improvement, and the workshop was performed in collaboration with Wells Fargo. The occasion was designed to point out renters the best way to buy a house affordably, tackle credit score points, receive mortgage approval and safe down cost help.
Actors Kadeem Hardison and Darryl Bell from the hit sitcom “A Completely different World” served as panelists on the workshop, sharing their experiences with homeownership and giving steerage to college students.
“One of many key components of constructing wealth is homeownership. In the case of shopping for a house a lot of you might be pondering you’re too younger to be within the homebuying course of proper now,” stated Milan Griffin, chief folks officer at HomeFree USA. “It’s essential to consider these alternatives so you can begin getting your self collectively now for if you find yourself prepared to purchase a house.”
There’s a steep divide between homeownership for Black and White Individuals. In line with the Nationwide Affiliation of Realtors, 44 p.c of African Individuals are owners in comparison with 72.7 p.c of their counterparts. The speed of homeownership for the Black neighborhood has additionally solely elevated by 0.4 p.c within the final decade.
As homeownership is a pathway to wealth, owners considerably surpass renters in web value.
“Householders are 40 instances wealthier than renters. Householders have a web value of $300,000 in wealth versus a renter who has $8,000 in wealth,” stated Griffin. “No shade to renters, however renting is a pathway to broke-ness. I didn’t say poverty, I stated being broke. Being broke is waking up day-after-day, going to work, coming dwelling, getting a paycheck and never having something to point out for it.”
As owners make mortgage funds, they generate fairness, which will be leveraged to repay pupil loans and different money owed, begin or develop a enterprise, settle medical payments and finance different giant bills. Houses additionally admire in worth over time, which additionally boosts fairness.
However, many individuals have concern surrounding the homebuying course of. Some frequent considerations embrace an absence of financial savings, poor credit score, affording down cost and shutting prices and managing a mortgage with different money owed.
“A house is usually the most important funding you’ll make in your lifetime. For most individuals, it’s also the primary and singularly most essential cornerstone in constructing a steady monetary future,” stated Bell. “Not solely is a house the place you reside, nevertheless it’s how one can handle your funds for prosperity.”
The workshop pointed to a number of sources that make homebuying extra reasonably priced. Two included Wells Fargo’s Homebuyer Entry grant, which offers $10,000 in down cost help, and the Dream. Plan. House. program, which delivers as much as $5,000 towards closing prices. States and counties even have numerous grant applications for first-time homebuyers. Some may even be layered on prime of each other to maximise financial savings.
Pre-purchase counseling can also be out there to people seeking to purchase a home whether or not by means of state applications or organizations, like HomeFree USA and Wells Fargo. It covers subjects, like making a price range, acquiring a mortgage, the prices related to homeownership, stopping foreclosures and managing credit score.
“If we don’t personal our minds, our our bodies and our properties, we are going to eternally be broke,” stated Griffin. “It’s about time that our communities cease giving all the cash away to everyone else, and we maintain it in and develop it for our households and neighborhood.”
