Download - Models & Resources Supporting Native Homeownership, Homebuyer Education Overview November 18, 2013
Models & Resources Supporting Native Homeownership,
Homebuyer Education OverviewNovember 18, 2013
Presentation Overview
•Coalition survey results regarding homebuyer education
•Types of homebuyer education
•Resources for homebuyer education 2
COALITION SURVEY RESULTS 3
Survey Methodology
• Online survey sent in June 2013 to 73 stakeholders including:• Tribal leaders, • Tribally designated housing entities, • State and federal representatives, • Lenders and Native CDFIs, • Nonprofits, and others
• 42% response rate4
Obstacles to homeownership in Native communities
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1. Homebuyer readiness of clients (70%)2. Infrastructure delays (66.7%)3. Lack of local lenders (60%)3. Lack of housing inventory (60%)4. Hard to get construction financing (46.7)5. Hard to access land (43.3%)
Top three obstacles to homebuyer readiness
Bad credit – 83%
Lack of credit history – 57%
Lack of info about process – 47%
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Top things Native homebuyers want to know more about
Home buying process – 89%
How to repair credit – 78%
How to obtain and understand credit report – 47%
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How tribes can support homeownership
Make homebuyer education mandatory for housing benefits – 50%
Offer homebuyer ed/credit counseling an employee benefit – 48%
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TYPES OF HOMEBUYER EDUCATION
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Discussion Question
What types of homebuyer education do you provide?
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Homebuyer Education Classes
Pros• Provides overview of
home buying process• Helps client understand
affordability• Improves client’s ability
to maintain a home• Provides guidance on
how to manage a mortgage
Cons• Difficult to get families to
attend• Need instructors who
understand home buying process
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One-on-one Homebuyer Counseling
Pros• Provides clients help
with each of their individual situations• Helps client to navigate
through the home buying process• Keeps client engaged in
the process
Cons• Not as cost effective as
group classes• Takes more staff time to
deliver
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Credit Counseling
Pros• Helps clients to manage
their credit more effectively• Provides client with a
plan to improve credit score• Helps clients get out of
financial troubles• Improves loan product
options and terms
Cons• Some clients may not
feel comfortable discussing financial their financial situation with counselors• Takes a long time• Must be delivered by
trained personnel
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Financial/Credit Coaching
Pros• Helps clients reach self-
directed goals• Customized to each
client• Client-paced• Provides accountability• Addresses behavioral
economics
Cons• Expensive to administer• Clients may not
understand what coaching is• Takes strong
commitment from clients
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Basic Financial Education
Pros• Helps clients learn basic
banking skills• Provides foundational
knowledge• Explains the basics of
managing credit
Cons• Difficult to get clients’
attention until they are in trouble• Must have trained
personnel
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Individual Development Accounts
Pros• Establishes savings
habits• Helps clients prepare for
homeownership• Matched savings for
mortgage downpayment
Cons• Expensive program to
administer• Difficult to find flexible
match funds and operating funds
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HOMEBUYER EDUCATION RESOURCES
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HUD Funding Sources
ONAP Programs• NAHASDA Indian Housing Block Grant (IHBG)• Administered by Tribe or TDHE
• Indian Community Development Block Grant (ICDBG)• Competitive by ONAP region
“Big” HUD Programs• Resident Opportunity Self Sufficiency (ROSS) grants• Comprehensive Housing Counseling Grant• Must be HUD Approved Housing Counseling Agency
• Neighborhood Stabilization Program18
Rural Development Funding Sources• 502 Loan Packaging• Provides staff training
• Rural Community Development Initiative (RCDI)• Matches funding of an intermediary to provide homebuyer
education
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SDHDA Administered Sources
• HOME – for homeownership development subsidies
• Homeownership Education Resource
Organization (HERO)• Serves as an intermediary in the state for:• HUD Housing Counseling • National Foreclosure Mitigation
• First-time Homebuyer Program• Down payment assistance
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Ways to Build Staff Capacity • NeighborWorks America www.nw.org• Training scholarships through NeighborWorks affiliates
• National American Indian Housing Council www.naihc.net• Training for NAIHC members and their partners
• Native Community Development Financial Institutions (CDFIs)• Can contract or partner with them to deliver homebuyer
education
• SDHDA Homeownership Education Resource Organizations 21
Native Curricula
• Building Native Communities: Financial Skills for Families financial education curriculum. Contact Oweesta at (303) 774-8838 or www.oweesta.org
• Pathways Home: A Native Homeownership Guide. Contact National American Indian Housing Council at 202-789-1754 or www.naihc.net. Covers:• The mortgage loan process• How to prepare a family budget• How to improve credit profiles• How to avoid the pitfalls of predatory lending• How to maintain a home and finances after purchase
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Individual Development Accounts
• US Department of Health and Human Services (HHS) Office of Community Service (OCS)• Assets for Independence (AFI) funds IDA matches
• HHS Administration for Native Americans (ANA)• Social and Economic Development Strategies (SEDS)
• Joint OCS/ANA• Native Asset Building Initiative (NABI)
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Questions or comments?
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