2021 remained a difficult year for prospective homebuyers with home prices remaining high, competition fierce and inventory at all-time lows. It was also a year of heightened awareness about racial wealth disparities and the homeownership gap amongst minority communities.
Though the housing market seemed bleak for some, our top-viewed blog posts demonstrate that not only are many committed to raising awareness of housing disparities and the homeownership gap amongst minority communities, but that most are also still interested in homeownership and ways to achieve it, even through these challenges.
The UHOUSI Initiative (UHOUSI), a comprehensive plan created to increase homeownership among African Americans, other minorities, and millennials, is pleased to announce that Timothy W. Wright III has joined the initiative as a National Co-Chair. Wright joins Pastor Phillip G. Goudeaux of Sacramento, Calif., in co-chairing the national program sponsored by CBC Mortgage Agency’s Chenoa Fund, committed to promoting homeownership education and housing opportunities.
Before deciding if homeownership is right for you, take some time to research the pros and cons of owning vs. renting. Our first tip is to make sure you are ready to take on a home loan. Did you know that most home loans span 15-30 years? It’s important to understand that, homeownership is a long-term commitment and while you may not need to stay in that home for the life of the loan, you do need to be prepared financially.
A foreclosure is a legal proceeding that removes a mortgagor's right of redeeming a mortgage property or estate. In short, it means that a lender can initiate certain legal steps to remove you from your home. It’s a process that is almost exclusively due to falling behind on mortgage payments for a certain period of time.
It’s no secret that for many, providing a traditional 20% down payment with today’s home prices can seem like a ghostly nightmare and nearly impossible. The challenge of a larger down payment is even more so if you are a first-time homebuyer, with no equity built from a previous home, or if you are a minority who has experienced historical and systemic challenges that prohibited you from acquiring generational wealth. Did you know that this year 72% of homebuyers put down less than 20% for their down payment?
In a recent press release on August 11, 2021, Fannie Mae announced “the company will unveil a new feature in its automated underwriting system to include consumers' rent payments in the mortgage credit evaluation process.” It further went on to say that starting September 18, 2021, with the applicant’s permission, “Fannie Mae’s Desktop Underwriter® (DU®) will…automatically identify recurring rent payments in the applicant’s bank statement date to deliver a more inclusive credit assessment…for those who may have limited credit history but a strong rent payment history.”