Equal Opportunity / Housing Affordability

As of February 13th, 2009, I am proud to inform you that one of our attendees from our Homebuyer’s Workshop has closed escrow on his very 1st home purchase with the City of El Monte’s First Time Home Buyer Program. The Equal Opportunity and Housing Affordability Committee, in collaboration with the City of El Monte, provided a two-day Homebuyer’s Education Workshop in the fall of 2007. The workshop’s aim was to promote the City’s First Time Home Buyer Program while encouraging Housing Affordability to low and moderate income homebuyers. The First Time Home Buyer Program provides down payment assistance up to $110,000 in the form of a silent second at 0% to those who qualify. Qualifying for this program is not an easy task given the strict income limits and low debt to income ratio requirements set by HUD. Furthermore, applicants also had to meet the credit and reserve requirements set by the first mortgage lender. One of the benefits of qualifying for this program is that it may save a homeowner anywhere from $300 to $700 per month in mortgage payments and PMI. Luckily, favorable market conditions such as lower home prices and a low interest rate environment had worked in favor on this Happy New Homeowner! The Workshop was a wonderful success in providing step by step homebuyer education to more than 61 attendees; all of whom were certified through a HUD approved instructor and provided with valuable information on finding a home and obtaining financing. Only a handful pre-qualified for the program while others required preparatory follow up.

After a year of follow up and proper guidance, this new homeowner was able to pay off his debt, increase his savings, and qualify for a home mortgage. The success of this joint effort between the City of El Monte and the Arcadia Association of REALTORS gives hope and inspiration to those seeking an opportunity for a better life through homeownership.

Do you have a success story about a 1st Time Homebuyer? Let the AAR know . . .

By Mark Tzeng, Funding Access & Realty, Inc.