NeighborhoodLIFT Program Offers DownPayment Assistance

If you spend any time with people who work in housing or real estate, you’ll hear certain ‘catch-phrases’ repeated over and over.  One of the most pervasive phrases heard over the last couple of years is “All Real Estate is Local.”  There’s a lot of truth in that statement… and it’s one of the reasons why the Minnesota Homeownership Center’s Homeownership Advisors Network is so successful at preparing homebuyers for successful homeownership.  

The Homeownership Advisors Network is made up of almost 50 different community-based non-profit, governmental and tribal organizations throughout the state.  The members are fully engaged in housing issues in their local communities and work on finding innovative ways to promote successful homeownership.  Two members of our network, Community Neighborhood Housing Services in St. Paul and Neighborhood Housing Services of Minneapolis, who are also NeighborWorks America affiliates, have partnered with Wells Fargo to bring the NeighborhoodLIFT program to Minnesota.

The NeighborhoodLIFT program is a collaboration between Wells Fargo and NeighborWorks America designed to provide down payment assistance and homebuyer education programs to aid housing recovery in areas that have been heavily impacted by the foreclosure crisis. In Minnesota, this program includes a $9 million investment for down payment assistance grants and homebuyer education and counseling programs to help homebuyers achieve successful, sustainable homeownership in the cities of Minneapolis and St. Paul. 

Minneapolis and St. Paul are two of about two dozen cities throughout the country that will benefit from a total investment of over $170 million that Wells Fargo has committed to the NeighborhoodLift program (also known as CityLIFT in other areas).

The new initiative was announced August 28 at a press conference at a home in North Minneapolis that has recently been remodeled by Neighborhood Housing Services of Minneapolis:

L-R Glennis Ter Wisscha (Neighborhood Housing Services of Minneapolis); Dave Kvamme (Wells Fargo); Jason Peterson (Community Neighborhood Housing Service)
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Recently Remodeled Home in North Minneapolis (Press Conference)
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The program will include a free event for potential homebuyers on Friday and Saturday, September 7th and 8th at the Minneapolis Convention Center, (Hall A) from 10am – 7pm.  At the event, buyers who are interested in purchasing a home in either of the cities can work with a member of the Homeownership Advisors Network and other housing counselors to see if they qualify for any of the down payment grants available through the NeighborhoodLIFT program – up to $15,000 – even if they haven’t yet chosen a home.  There will also be opportunities for buyers to preview featured homes for sale in Minneapolis and St. Paul neighborhoods.  Consumers who would like more information about the homebuyer workshop or to register, visit www.neighborhoodlift.org.


Here’s some additional information about the NeighborhoodLIFT down payment assistance program:

• Grant amount up to $15,000 for down payment assistance for the purchase of a primary, owner-occupied residence in either Minneapolis or St. Paul (surrounding cities are not eligible).
• The grant has a 0% interest rate and is forgivable 20% each year for five years (after the fifth year of continued residence, the entire amount is forgiven).
• Household income cannot exceed 120% Area Median Income
• Purchaser does NOT have to be a first-time buyer
• Homebuyer education is REQUIRED (Home Stretch certificate is accepted if the course was taken prior to 8/28/2012.  After 8/28/2012, the Home Stretch certificate must be issued by either Community NHS or Minneapolis NHS).
• This down payment assistance can be used with OTHER down-payment programs (speak with a Homeownership Advisor at Community NHS or Minneapolis NHS for more details)
• Most importantly: this down payment assistance can be granted REGARDLESS of who you choose to use as your primary lender (you do NOT have to have a first mortgage loan with Wells Fargo to qualify for the assistance).

Two Minnesota Housing Agencies Receive Expansion Grants

NeighborWorks America invests in expanding services in Minnesota.

On Friday, September 23, NeighborWorks America announced $3.65 million in grant funding specifically designed for nonprofits to increase their services for underserved communities by expanding the geographic reach of programs that have already been successfully established. 

NeighborWorks America hopes this grant funding will help agencies with a track record of successful programs bring their initiatives to even more communities in need. Among the 25 organizations receiving grant funds are two Minnesota-based agencies: Southwest Minnesota Housing Partnership and Dayton’s Bluff Neighborhood Housing Services.

The Southwest Minnesota Housing Partnership works to provide a sufficient supply of adequate, safe, sanitary and affordable dwellings for the people of southwestern Minnesota and is a member of the Center’s Homeownership Advisor’s Network. 

Dayton’s Bluff Neighborhood Housing Services provides owner-occupied rehab lending and construction management, homeownership education counseling, financial entry assistance, purchase-rehab-resale and new construction. Both of these organizations are making valuable contributions towards enabling successful homeownership for residents of Minnesota. 

Congratulations to both organizations on receiving a NeighborWorks America grant to continue and expand your good work!

For more information and a list of all 25 grant recipients, visit the NeighborWorks America news site.

Foreclosure Counseling - NFMC Report

Last week, NeighborWorks America released its 6th report to Congress on the National Foreclosure Mitigation Counseling program (NFMC).  The full report is available here.


Once again, the most recent report shows that while foreclosures continue to impact the nation's housing market, foreclosure intervention/prevention counseling WORKS.


Here are just a few of the highlights from the report:

• Homeowners who receive foreclosure prevention counseling are 70% more likely to cure their foreclosure than similar homeowners that don't receive counseling.
  
• Counseling clients that received loan modifications were able to reduce their monthly loan payments an additional $260 MORE than homeowners that don't work with a counselor.  The cumulative savings for struggling homeowners?  More than $560 Billion (with a "B") dollars PER YEAR.

One of the interesting shifts highlighted in the report is the fact that, for the first time, a majority of the clients nationwide that sought foreclosure counseling (53%) hold fixed-rate mortgages with interest rates below 8%.  In October of 2008... only 30% of homeowners were in the same situation.  The foreclosure crisis in the U.S. is definitively no longer just a sub-prime issue.  Over 60% of homeowners cite unemployment or underemployment as the primary reason they are struggling with their mortgage payment.

All of this information is very similar to the information we've seen in Minnesota.  The Center's 2010 report on the foreclosure prevention counseling is available here.

Given that foreclosures in Minnesota have once again begun to tick upwards... it is vitally important that homeowners seek the help of a certified non-profit Housing Counseling agency when they're struggling with their mortgage.  Do you know someone that's struggling to make their mortgage payment?  Let them know about free counseling in Minnesota by having them visit: www.hocmn.org for more information.

IDA Homebuyers Weathering The Crisis Better Than Others

There’s new research out on the foreclosure rates on low-income buyers that have participated in an IDA (Individual Development Account). The research study, involving over 800 IDA homebuyers, found that nearly all of these buyers were still in their homes and that they had fared far better than similar homebuyers in terms of foreclosure rates and mortgage terms.

The full report, funded by NeighborWorks America and the Ford Foundation, can be viewed here.

Individual Development Accounts are special savings accounts that can be used only for specific qualifying purchases such as a first home, starting a business, or for educational or job training expenses.

Accounts are held at local financial institutions and contributions/deposits made by lower income participants are matched, in some cases 3-to-1, using both private and public sources.

So what makes an IDA homebuyer different from other low-income buyers? Your input is welcome in the comments… but here are some ideas:

• IDA buyers must take financial literacy classes as a requirement of their participation
• IDA buyers must take an approved homebuyer education workshop (like HomeStretch) before purchasing their home
• IDA buyers, through their participation in the program, have learned to work with support network (volunteers, non-profit staff, bankers, etc.) and so they know where to turn for help when facing a financial struggle

Any other ideas? And what does this study mean for other low-income buyers? We welcome your comments!

Pre-Purchase Education Training Opportunity

The Minnesota Home Ownership Center will be offering NeighborWorks® Home Buyer Education Methods: Training the Trainer (HO229) for housing professionals that conduct Home Stretch workshops in Minnesota, or other professionals interested in pre-purchase education. The training is designed to:

• Teach participants how to deliver a comprehensive homebuyer education workshop in a group setting;
• Use the best materials and methods to train homebuyers to get a mortgage loan, improve their budget and credit profile and shop for a home;
• Improve facilitation skills and deliver an interactive training based on adult education methods.

Participants interested in obtaining a Certificate of Professional Recognition in homebuyer education training (issued by NeighborWorks®) are required to complete an online exam following the training.

This training is open to the public however priority registration will be given to Home Stretch providers.

The training will be offered at Bremer Service Center in Lake Elmo, MN
Cost: $430 (Plus any accomodations)
To Register: http://trainingthetrainer2009.eventbrite.com


PLEASE NOTE: While this training is required for all professionals that offer the Home Stretch workshop in Minnesota, completion of this training in NO WAY certifies you to be a Home Stretch provider. There is an application processs that must be completed before being able to offer Home Stretch workshops. For more information about the training, or becoming a Home Stretch provider, please contact: Brooke Walker at brooke@hocmn.org or 651-659-9336 x 106