Affordable house hunt - resources for home buyers - Brief Article

Black Enterprise, Feb, 2001 by Monique R. Brown

Q I am desperately seeking stability for my five children and myself. However, I can't come up with a down payment and closing costs at once. I have perfect credit and relocating is not a problem. Can I still find a home I can afford?

Melody Ramsey Lodi, New Jersey

A You bet! Fannie Mae (800-7FANNIE), a company that enables tow, moderate, and middle-income families to obtain homes by providing assistance with financial products and services, can identify a variety of nonprofit organizations in your area that provide monetary assistance. Also, inquire about their in-house programs, such as the Community 100 SM mortgage. Under this option, the 3% borrower requirement can come from a number of sources, including government agencies, nonprofit organizations, employers, or grants.

The United Homeowners Association (202-408-8842) can also make referrals. The organization's president, Jordan Clark, suggests that you contact local housing authorities, mortgage companies, and banks to inquire about the programs that are available in your area.

Also, consider properties with lease-purchase options that may come in the form of "delayed settlement" or "forced savings" agreements. Here, the seller agrees to lease the house to the buyer for a monthly fee that includes rent plus installment toward a down payment. Neither of these terms should be confused with a "rent with option to buy" arrangement, which does not guarantee the sale of the home.

Monique R. Brown

Mail your consumer questions to Ask Your Advocate, BLACK ENTERPRISE, 130 Fifth Ave., New York, NY 10011, or send an e-mail to brownmr@blackenterprise.com.