At the end of each year many people add “Buy a House” to their list of resolutions for the New Year. But for most, that dream is far from attainable. Across America, families still face obstacles that prevent them from achieving the American dream of home ownership.
Unfortunately, their struggles aren’t unique. In fact, the barriers to home ownership are very well-documented. We know why people can’t qualify to purchase homes of their own, yet few programs exist to effectively help people get over or go around the obstacles standing in their way.
At Equity & Help, we’re committed to helping families get into homes. With the help of our investors, we’ve been able to place more than 200 families into homes across America! Read on for some of the ways our unique program combats the most common barriers to home ownership in America:
Lack of a Down Payment
One of the biggest obstacles to home ownership is the inability for prospective buyers to scrape together the down payment for the home they want to buy. While many lenders do not require you to put down 20% on a home, most programs require at least 3.5%. And as of December 2018, the median price for a home in the United States on Zillow was $225,900. Which means that the average home buyer needs to save almost $8,000 in order to put 3.5% down on their home – and that’s not including closing costs!
At Equity & Help, we make it affordable for families to purchase a home of their own by requiring a down payment of just $2,000! Yes, you read that right – just 25% of the national average!
Poor Credit Scores
According to a 2017 report from the Urban Institute, the median credit score for borrowers is 779, compared with the pre-crisis median of 692. And even the median credit scores of FHA borrowers has risen in recent years to 671. Yet only 58% of Americans have a credit score of 650 or more!
For those with less-than-satisfactory credit, improving your score takes time. Which means months or even years of paying rent with money that could be invested into a home of their own.
Our program allows families to buy a home using financing from our investors with a monthly payment that is often less than the local cost of rent. The families are then responsible for fixing up and improving the properties themselves, which allows them to increase the value of the home they will eventually own outright!
Many Americans carry significant debt in the form of student loans, car payments, medical bills, and credit card debt. When they go to apply for a mortgage, the amount of debt they carry is weighed against their income to get a debt-to-income (DTI) value. Most lenders want to see a DTI of 30% or below. If a prospective buyer has a DTI higher than that, they may not be approved for a loan even if they’ve been keeping up with the payments.
These tough lending restrictions keep hard-working Americans from owning a home of their own. Yet there are homes all across America sitting vacant! Our program allows those who have otherwise been turned away by the bank a second chance at homeownership and these vacant homes a second chance at life.
Affordability issues have plagued American families over the last five years. Rising home prices as a result of low inventory conditions mean that many prospective buyers have found themselves unable to afford even a median priced home in their area. Now with several interest rate hikes already and more on the way, this affordability problem is poised to get worse, not better.
Once again, our real estate investment program makes home ownership affordable. With only a small down payment required and low monthly payments after that, we help families get into homes without any scary loan programs like adjustable rate mortgages!
Our mission is to open doors to people wishing to live in their own homes. Want to learn more about investing with us and becoming a philanthroinvestor? Give us a call at (844) 552-8828!