Michigan Retiree Becomes a First-Time Homeowner at 65 Through Housing Assistance Program By Realtor.com

The saying "better late than never" applies to many situations—particularly the American dream of homeownership. And Beverly Evans, of Lansing, MI, couldn’t agree more. At age 65, she was able to buy her first home, despite being a retiree with health challenges.. 

Evans has a state grant to thank for that. The Ingham County Down Payment Assistance program provides qualifying Michigan residents with up to $30,000 toward a home purchase. It’s designed for single households with annual earnings of less than $56,480, but first-generation homebuyers get first dibs.

"They were able to get me to a place where I qualified for a mortgage, and then they started looking for money for me, and I was able to become a recipient of the money that was available, so here I am. So in May, I officially became a homeowner," Evans said in a Fox 47 news article. 

No matter your age or stage of life, you can follow in Evans' footsteps and become a homeowner. All it takes is some patience and knowledge about the resources at your disposal. 

How to find housing assistance programs in your area 

Several types of housing assistance programs can help turn your dream of homeownership into a reality. Unfortunately, most of them are underutilized because many people have no idea they exist.

Typically administered by state housing finance agencies, such as the Michigan State Housing Development Authority in Michigan, these programs strive to help residents buy their first homes. You may also find local grant and nonprofit programs that do the same.

Contrary to popular belief, housing assistance programs might also be available to you if you have a higher income.

"Homebuyers in higher-cost markets shouldn’t be afraid to explore down payment assistance options," says Sean Moss, executive vice president of product and operations at Down Payment Resource in Marietta, GA. "While many of these programs have both income limits and purchase-price limits, they are generally surprisingly flexible and are also market-adjusted based on local median incomes and prices, so even in higher-cost markets there can be plenty of these opportunities."

To learn about housing assistance programs that might apply to you, check out your state’s dedicated page on the U.S. Department of Housing and Urban Development (HUD)’s website. You can also reach out to the local housing authority in your area or ask a real estate agent or mortgage lender to steer you in the right direction. 

In addition, Realtor.com® has partnered with Down Payment Resource, an organization that connects homebuyers with down payment assistance programs to make this process a breeze. As you search for a home, you'll notice the down payment assistance or DPA module under the monthly payment section on some listings.

"We partner with many MLSs around the country to integrate DPA information into listings within their MLS just like we’ve done with Realtor.com, so those agents and their clients can see what’s available for a listing a buyer is interested in," explains Moss.

Three standout state housing assistance programs helping first-time buyers

There is no shortage of housing assistance programs available, but here are a few standouts that can provide real relief to first-time homebuyers:

Minnesota Housing Finance Agency Start Up

Available to first-time homebuyers who meet certain income and purchase-price limits, Start Up offers affordable mortgages with fixed interest rates. You may also qualify for down payment and closing cost assistance of up to $18,000.

Kansas Housing First Time Homebuyer Program

Offered by Kansas Housing, the First Time Homebuyer Program (FTHP) program provides a 0% interest loan for 15 to 20% of the purchase price of your home. You can use the funds to pay for your down payment, and it will be forgiven as long as you live in your home for at least 10 years.

CalHFA Conventional Loan Program

Run by the California Housing Finance Agency, the CalHFA Conventional Loan program allows first-time homebuyers to get a conventional mortgage with a fully amortizing fixed interest rate. It includes a 30-year loan term and may be paired with down payment assistance. 

Federal assistance programs every first-time buyer should know about 

In addition to state-run housing assistance programs, you can take advantage of federal options that help open the door to homeownership, such as:

FHA loans

Backed by the Federal Housing Administration (FHA), FHA loans are issued by banks, credit unions, and other private lenders. Not only do they have relaxed credit score requirements, these loans let you buy a home with as little as 3.5% down.

HomeReady and Home Possible 

WIth the HomeReady or Home Possible programs, homeownership can be yours with a 3% down payment, even if it comes from grants, gifts, and sources other than your own funds. You’ll also enjoy reduced private mortgage insurance, which can lead to big savings.

Good Neighbor Next Door 

Designed to support teachers, police officers, EMTs and other public servants, the Good Neighbor Next Door program offers 50% off the purchase price of a HUD-owned property in a revitalization area. To take advantage of this, you must agree to live in the home for at least three years.

These programs can come in handy, but they’re not guaranteed to last forever. In fact, if President Trump's proposals to privatize or restructure Fannie Mae and Freddie Mac come to fruition, these types of programs may become more limited or, in some cases, cease to exist.

The best assistance programs for veterans, single parents, and educators 

If you are part of a specific demographic, you may have access to additional homebuyer programs.  For example, as a veteran, you can leverage VA loans, which let you buy a house with 0% down and no mortgage insurance. If you’re a single parent, programs like Habitat for Humanity and local nonprofit grants can help make homeownership more accessible. USDA loans might be an option as well, if you prefer a home in a rural area. 

If you’re a teacher, homebuyer grants or employer-matched programs for school employees can come in handy. The Teacher Next Door Program is one option. Geared toward Ohio teachers, administrators, and school staff members, it offers grants of $1,000 or more to put toward a home—plus down payment assistance of up to $15,000.

"Call Eli Torres at (832) 430-2107, for your home buying and selling needs."

Source: www.realtor.com