June is National Homeownership Month!

A FOUR-POINT STRATEGY TO REVIVE HOMEOWNERSHIP

It’s not looking good for homeownership these days. According to the U.S. Census Bureau, 63.7% of households owned their homes at the end of 2016, down from a peak of 69.2% in 2004. While there have been small increases in recent quarters, the homeownership trend since the financial crisis continues to veer downward. We need to reverse this pattern, and these four strategies will help.

First, we have to demystify the process. 

More than two-thirds of adults in an Oct. 2016 national household opinion survey from NeighborWorks America described the homebuying process as complicated. Our network’s counselors report that a common refrain from customers they help to achieve homeownership is, “I never thought I could do this.” Because the purchase process is so complex, many potential homeowners don’t even try, essentially self-selecting out of their piece of the “American Dream.” 

Increasing the homeownership rate in New Haven, CT will energize the local economy and create jobs from construction to retail.

Second, we have to return to rational credit standards.  

 

We return to the loose underwriting of the early 2000s. However, right now, credit standards are too tight and thus reduce the prospects for homeownership for many. A recent article by the Urban Institute noted that innovations in credit scoring practices could help up to 3 million first-time homebuyers across the country. The lending industry must seriously pursue such modifications.

Third, we need to do a better job in reaching out to low- and moderate-income consumers.

These are the first-time buyers of the future and they are unsure about the path to homeownership. Nonprofits housing organizations have had a “field of dreams” mindset: if we’re here, homebuyers will find us. That’s not working. The NeighborWorks survey mentioned above also found that fewer than 10% of consumers think of nonprofit’s like Neighborhood Housing Services of New Haven first when considering how to achieve homeownership. Our organization and others working to increase homeownership, especially among first-time buyers, need to behave more like businesses and seek out these types of customers. Word of mouth isn’t enough.

Fourth, we must overcome financial obstacles. 

Home prices are increasing in nearly all markets. Here in New Haven, the median price is approximately $160,800, and the stereotypical 20% down payment is out of reach for most first-time buyers. However, the truth is, consumers don’t need a 20% down payment to purchase a home these days. In some cases, just a 3% down payment is required. However, not every lender offers flexible mortgages. 

By working with Neighborhood Housing Services of New Haven and other housing nonprofits, consumers will learn about the lenders who offer 3% down-payment mortgages. In addition, they also will be made aware of the potentially millions of dollars in down-payment assistance funds available in this community and others. The NeighborWorks survey showed that only one-third of consumers are aware of down- payment programs for middle-income buyers. 

While there isn’t an unlimited supply of down-payment assistance, if more consumers knew to seek it and sought information from nonprofit organizations, the homeownership rate would increase. That’s good for individuals, families and Greater New Haven.

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Join Us! May 17, 2017 -- 11AM

We hope you can join us at a Ribbon Cutting for a new homeowner in Newhallville! 

Wednesday, May 17, 2017

11AM - 1PM

944 Sherman Avenue, New Haven, CT 

All Are Welcome!

PRESS RELEASE! NEWHALLVILLE RIBBON CUTTING!

For Immediate Release
May 4, 2017
Media Inquiries: Maria Perez-Martinez, 475-227-0530, mmartinez@nhsofnewhaven.org

RIBBON CUTTING CEREMONY TO CELEBRATE NEWHALLVILLEHOMEOWNER RETURNING TO HER CHILDHOOD HOME

WELLS FARGO AWARDS $150,000 IN PRIORITY MARKETS GRANT TO NEIGHBORHOOD HOUSING SERVICES OF NEW HAVEN

New Haven, CT — Neighborhood Housing Services of New Haven, positioning neighborhoods to succeed since 1979, announced today that they will host a ribbon cutting on one of their recently renovated properties thanks to a generous $150,000 Priority Markets Grant from Wells Fargo Bank, N.A.. As a partner with Wells Fargo, NHS of New Haven increases its ability to succeed at its mission, which includes affordable housing development, assisting first-time homebuyers, offering trainings on in-home maintenance and energy-efficiency, and extensive resident engagement.

Kent McClun, Wells Fargo Area President for Greater Connecticut, will speak alongside Jim Paley, NHS Executive Director, in front of a newly rehabilitated home at 944 Sherman Avenue in Newhallville. Homebuyer, Robyn Handy, will be in attendance to cut the ribbon to her childhood home. Robyn was raised in the home as a teenager, but after the passing of her father, her family was forced to sell the property. Robyn is absolutely thrilled to have the opportunity to re-purchase her family home!

“We could think of no better location to receive our award from Wells Fargo,” said Bridgette Russell, Managing Director of NHS’ HomeOwnership Center. “Robyn Handy’s parents were well-respected community members, her brother-in-law is an active minister in Newhallville, and her sister had an established dance studio in the city. This is truly the perfect example of the type of homeowner who will create real and lasting change as a resident of the Newhallville neighborhood.”

“Wells Fargo’s funding of Neighborhood Housing Services of New Haven’s revitalization efforts clearly demonstrates the bank’s strong commitment to giving homeowners stunning and energy-efficient homes that will last for decades to come,” said NHS Executive Director James Paley. “We are proud to acknowledge this award, which is a strong reaffirmation of the bank’s support for our work in New Haven.”

“No matter where life takes us, there’s no place like home,” says Kent McClun.  I’m thrilled that Robyn will be able to return to the home she shared with her parents growing up, now as a homeowner and a community leader in her own right.  Days like today are a great reminder of the good things that can happen when the private and nonprofit sectors work together for the communities where we live and work.” 

The ribbon cutting and open house will be held on Wednesday, May 17 at 11AM in front of 944 Sherman Avenue in New Haven. Guests will be invited to take a tour of the home after the presentation is complete.

944 SHERMAN AVENUE (BEFORE AND AFTER)

Neighborhood Housing Services of New Haven
Neighborhood Housing Services of New Haven was incorporated in 1979 with a mission to revitalize selected neighborhoods in New Haven. Over time, our mission has evolved to focus on positioning New Haven’s neighborhoods to succeed by increasing homeownership; making homes beautiful, energy-efficient, and affordable; and helping residents take charge of their neighborhoods. During the course of our 37-year history, NHS has fully renovated and sold more than 275 houses to low- and moderate-income families. www.nhsofnewhaven.org

About Wells Fargo
Wells Fargo & Company is a diversified, community-based financial services company founded in 1852.  Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,600 locations, 13,000 ATMs, the internet and mobile banking, and has offices in 42 countries and territories.  With approximately 269,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo’s corporate social responsibility efforts are focused on three priorities: economic empowerment in underserved communities, advancing diversity and social inclusion, and environmental sustainability. www.wellsfargo.com

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It's That Time of Year Again...Are You in the Mood to Buy A Home?

NHS of New Haven is committed to ensuring that each and every prospective homeowner goes into their purchase with their eyes wide open. Understanding the mortgage process, understanding your numbers, understanding everything that comes along with being a homeowner is what we teach best!

For a quick guide, check out this graphic created by NeighborWorks America. Or click on the  If you have any questions, you can reach out to any NHS staff member and we'll be happy to help!

 

NHS of New Haven is a NeighborWorks America chartered member. 

NeighborWorks America Post: Helping Consumers Avoid Pitfalls of Payday Loans

Nonprofits Can Help Consumers Avoid Pitfalls of Payday Loans 

Originally posted on NeighborWorks' site. 
Written by Marietta Rodriguez, Vice President of National Homeownership Programs | 5/16/2016 

 
Payday loans are bad deals for consumers. That's why NeighborWorks is excited to see that Google announced it would no longer accept ads from payday lenders. These ads attracted financially troubled consumers and trapped them in unexpectedly long-term bad deals for short-term money.

Traditional lenders don't often offer short-term, low-balance loans people may need to cover a financial emergency in a pinch. There are lots of people who have little or no emergency savings to pay for a car that suddenly breaks down, or to replace an appliance that quits the proverbial "one day after the warranty expires." But payday loans are actually anchors that can drag consumers into a sea of debt - not stabilize their financial boat.

A 2016 survey from NeighborWorks America found that more than 28 percent of adults have no emergency savings to cover these sudden costs. The Consumer Federation of America and Pew Charitable Trusts released similar results. That's one reason that payday and title loans are used so frequently. These loans often seem affordable, but when looked at closely, their costs are outrageous.

According to the Federal Trade Commission, a $15 fee for a $100 payday loan carries an annual interest rate of nearly 400 percent. And most payday loans are not for $100 but rather for $300 or more. When they are due in two weeks or less, in full, recipients must continue to borrow to pay other loans. What's more, borrowers incur overdraft and bounced-check fees when lenders run their post-dated checks through the system.

In April, Consumer Financial Protection Bureau chief Richard Cordray said the agency continues to prepare regulations for the payday lending market. These regulations are likely to incorporate an ability-to-repay principle.

The convenience of these products masks their costs, and consumers who are cash-strapped could easily see these loans as the best solution to the question: How do I get money right now? However, there is a better solution than these high-cost products, and it starts with better information and better planning. That's where financial capability coaching and counseling come in.

Financial capability counseling — often provided free or at very low cost — is an approach that combines financial education, counseling and coaching. Tax season is a great time to start this kind of program and implement strategies that maximize monthly cash flow, set a savings plan and minimize the risk of needing one of these high-cost loans.

The trouble is, not enough people are aware of the availability of financial capability services, especially from nonprofit organizations like those affiliated with NeighborWorks.

In a 2015 NeighborWorks America survey, three-quarters of adults said they were unaware of free or low-cost services like financial coaching in their communities. We have to make more people aware of these services because financial capability coaching and counseling works. A project spearheaded by NeighborWorks America found that more than half of clients who didn't have savings before working with a coach or counselor had set aside a median amount of $668 after coaching. That amount goes a long way toward establishing an emergency fund. Importantly, the interaction also had a positive effect on people who already were savers. The median increase in savings for these clients was more than $900. In short, working with a financial coach or counselor helps people prepare for unexpected financial emergencies, enabling them to better avoid high-cost lending products such as payday and title loans, or the need to get their tax refund now instead of waiting a few days.

The centerpiece of financial capability counseling is looking ahead. A great first step in setting personal financial goals — whether they be allocating money for emergencies, developing a strategy to start a business or saving for college education — is to retain a financial capability counselor. It's easier to avoid payday and other high-cost lending traps if you're looking ahead.

September 2016 Newsletter!

Five Tips to Empower Renters

Five Tips to Empower Renters (from NeighborWorks America and NHS of New Haven)

Renter households increased from 34 million in 2005 to nearly 43 million in 2015. With the probability that more families will seek this housing, planning ahead can make the process easier. Working with trained staff at NeighborWorks organizations such as NHS of New Haven can help people become informed consumers of rental homes. 

Following these five tips can make renting a lot less stressful: 

1. Avoid rental listing scams.Scammers often advertise rentals that don’t exist or aren’t available, often known as phantom rentals, to trick people into sending money before they find out the truth. Signs you may have encountered a scam include a person telling you to wire money or they want the security deposit or first month’s rent before you’ve met or signed a lease. Report a scam by contacting local law enforcement and the Federal Trade Commission (FTC).

2. Get your finances and credit in shape.

Protect your money and pay as little as you can for the apartment you want by strengthening your credit. Nearly half of renters are paying more than 30 percent of their incomes in rent, according to arecent report by the Joint Center for Housing Studies of Harvard University. Financial counseling helps individuals strengthen their credit and establish savings goals. These habits can help you save enough money for a security deposit and help to improve your overall credit score. A good credit score is important because most landlords use a credit check to vet potential renters. Many NeighborWorks organizations offer financial coaching.  

3. Consider renter’s insurance.
Avoiding scams and strengthening your credit are essential. It’s also important to protect your belongings from loss or accidental damage.
Renter’s insurance protects the valuables inside your home whether you're living in an apartment or renting a house. If there were an incident like a fire or water leak, a landlord's insurance would cover the building itself but you would still need to replace your own belongings if damaged.

4. Select a moving company carefully.If your friends or family are not assisting with the move, research moving companies and find a trustworthy one. Read online reviews and check social media, along with asking friends and family for a recommendation. The right moving company can make your relocation go smoothly. Get estimates from a few moving companies to compare prices.            

5. Decide between a large managed property or apartment complex, or renting from an individual landlord.
Do your research and determine which one is best for you. Read online reviews, and if possible talk to current residents and ask what they like and don’t like about the property. Be sure to know your rights as a tenant, which can vary from state to state.

Debunking Three Home-Buying Myths!

Debunking Three Home-Buying Myths! 

 

According to research from NeighborWorks America, 90% of consumers consider owning a home an important part of their American Dream. But the homeownership rate is falling nationally, and buying activity is simply not where it should be. That's because three major misconceptions about what it takes to become a homeowner – down payment, credit and lender approval – are combining to hold back many qualified consumers from taking the first steps towards that dream. Mortgage rates have been consistently low for a while now, but many potential homebuyers are on the sidelines because they believe the wrong facts about homeownership and what it takes to be a homeowner. 

Myth #1: "I need to save 20 percent" 
Reality: Many potential homebuyers believe they need a 20% down payment to qualify for a mortgage. Nothing is further from the truth. Lenders throughout our community have mortgages for people who have saved as little as three percent of the down payment. Importantly, there are special lending products in our market where a qualified buyer with only a three percent down payment may not have to pay mortgage insurance. Not everyone is eligible for these loans, but attending a homebuyer education workshop is the best way to learn what it takes to qualify. 

Myth #2 "I Need perfect credit" 
Reality: It's not necessary to have perfect credit to qualify for a mortgage. Although weaker credit usually means that a buyer may not receive the lowest mortgage rate available, the difference in rate typically doesn't slam the door on homeownership. Moreover, by attending the homebuyer education workshop, a consumer will learn how to most successfully find a mortgage lender that matches their credit profile. While perfect credit isn't necessary to qualify for a mortgage loan, homebuyer education will help a homebuyer manage their credit during the process. Lenders are checking credit practically up to the time of home purchase. By not paying attention to credit during this process – for example missing a single payment for 30 days – may severely damage a credit report. Homeownership counselors at NHS of New Haven work with consumers every step of the way.

 

Myth #3: "One lender said no, they'll all say no" 
Reality: Mortgage lenders are not all the same. One lender that says no, does not mean that all lenders will. The NeighborWorks survey found that most Americans are confident that they could find the mortgage that is right for them, but one-out-of-five are not confident at all, and two-thirds of consumers say that the entire home buying process is complicated. NHS of New Haven homebuyer education workshop is here to help make the process smoother, including helping a consumer find the lender that will help affordably get a home today and for the long-run. 

NeighborWorks® Week 2016: Creating Opportunity to Succeed

Our Community Building & Organizing Staff Getting Ready to Fire Up the Grill!

Day 6 of our NeighborWorks Week activities (Thursday, June 9, 2016)! Creating Opportunity to Succeed with our HomeOwnership Center's Money Management Workshop! 

Participants of the class were surprised with a BBQ dinner prior to the workshop. The Money Management workshop covers the importance of managing money and understanding credit so that participants will be a wiser consumer and avoid financial pitfalls.

NeighborWorks® Week 2016: Creating Opportunity to Thrive

June 2, 2016: 5:15pm-8:15pm

We caught Tom Citarella on his way to prepare to teach our Pre-Closing Education class!

This class provides an overview of the range of financial and practical topics that a homebuyer should understand before completing the homeownership process. 

Interested in learning more about our classes? Visit our website: www.nhsofnewhaven.org

Rehab & Repair Your Home

Discussing New Haven Homeownership With Bridgette Russell

On April 6th, Bridgette Russell, Managing Director of our HomeOwnership Center, spoke on the WNHH radio show, Mornings with Mubarakah. You can listen to the show in its entirety here.

On the show, Mubarakah asked Bridgette to share some tips that future homeowners should be taking before they purchase a home. We thought it'd be great to share those steps with you on our blog.




Tip #1: Finding a Great Coach
One of the greatest changes to NHS' HomeOwnership Center has been the implementation of our online portal, COMPASS. Gone are the days of paper applications and hundreds of phone calls! When you visit the NHS website, you will see a box on the left-hand side titled "Compass". Upon clicking that link, you will be able to create a profile, start an application, upload documents, and register for classes.

Question: Are NHS' services offered for free?
Answer: You may register for any NHS class at no cost whatsoever. You don't need to be a New Haven resident either. However, should you choose to go through our Homebuyer Development program, you'll be asked to pay a small one-time fee. You can pay the fee online and at that time, schedule a one-on-one appointment with your very own housing specialist.

When you meet your housing specialist, they will do a soft-pull of your credit report. The housing coaches will always start there to get the best sense of your 3 credit bureau scores. Your coach will then give you a road map and put you on an action plan that will work specifically for your situation.


Tip #2: Do Not Fall in Love With a Home Before You Know What You Can Afford
Oftentimes, many homebuyers immediately go out and start "shopping" for their new home without fully thinking through how much they can afford. Then they're disappointed when they realize that the home may be a bit out of reach.

Start first with knowing and understanding your credit score. Take a look at your debt to income ratio. Prequalify with a lender so that you can fully understand how much you can afford. If you follow these steps, you'll be able to find the right home in the right price range for your budget.


Tip #3: Pay Down Those Credit Cards
Even if you're paying your credit cards on time every month, they could still be affecting your credit score. The magic number Bridgette likes to tell NHS clients is 30%. You want to have a balance on your credit card that is only 30% of your total limit. This will prove to your creditors that you are handling your credit wisely.


Tip #4: Take Advantage of Down Payment Assistance Programs
The NHS housing specialists know about all the programs available to future homebuyers. By looking at your particular situation, they can tell you which programs you're eligible for and which programs you can layer on top of one another, making your home purchase more affordable.

For this and many more tips: 

Visit www.nhsofnewhaven.org and create your COMPASS profile. Begin your homeownership journey with NHS of New Haven today. 

Know Your Numbers: A Guide to HomeOwnership

NHS of New Haven is committed to ensuring that each and every prospective homeowner goes into their purchase with their eyes wide open. Understanding the mortgage process, understanding your numbers, understanding everything that comes along with being a homeowner is what we teach best!

For a quick guide, check out this graphic created by NeighborWorks America. If you have any questions, you can reach out to any NHS staff member and we'll be happy to help!

 

Family by Family. House by House. Positioning Neighborhoods to Succeed.

phone: 203-562-0598

address: 333 Sherman Avenue, New Haven, CT 06511          

site: www.nhsofnewhaven.org

facebook: /NHSofNewHaven

twitter: @NHS_NewHaven

NHS of New Haven is a NeighborWorks America chartered member. 

Becoming a Homeowner This Spring!

The weather is warming up, the birds are chirping, the flowers are growing, and you're thinking of becoming a homeowner...NHS of New Haven wants to help! 

We have three tips to help ensure you find the right home for you.  

Mortgage rates are very low and home prices are stable or rising in New Haven and throughout all of Connecticut, so to get a leg up while you can! We recommend that prospective homebuyers follow three simple rules to help make one of your biggest purchases go smoothly.

1) Consult a housing counselor for your homebuyer "check-up". 

Knowing the numbers that matter when buying a home is extremely important. More than two-thirds of consumers in a NeighborWorks America survey said that the home buying process is complicated. 

The best way to get a thorough understanding of the entire process is to consult with one of our housing counselors. The staff at NHS are certified professionals who will walk you through:

• the different types of mortgages and interest rates; 
• the effect your credit score has on being approved for a loan; 
• how much down payment is needed for your purchase, and 
• how much home you can truly afford.

To be in the strongest position to make an offer that is accepted, you have to be prepared. That’s where initial consultation with a housing counselor is vital, even before meeting with any other professionals involved in the process.

Check out our Know Your Numbers video here:

To schedule a meeting with an NHS counselor, create a profile here. 

2) Build a budget

There’s no better way to know how much money is coming and going than with a budget, and

becoming a homeowner without a clear budget could be a recipe for disaster. Did you know that national surveys have shown that less than one-third of consumers have a budget?! Give yourself a leg-up on the competition: go into home buying with a budget that includes:

• potential commuting costs after you move into your home;
• home maintenance expenses (there will always be something!); and 
• even estimates for changes in your life, such as becoming a parent or paying for college 

Keeping all these numbers in your budget before you buy your home will provide you much-needed peace of mind.

3) Be determined, but stay informed

Finding the right mortgage and the right home takes time, and it’s natural to want to shorten the

process. However, making a winning bid on a home that isn’t right, and cutting corners to do so, could lead to some serious trouble. For example, forgoing a home inspection to speed things up, or not fully understanding the terms of the mortgage are ingredients for problems down the road.

Once again, trust your NHS mortgage counselors to guide you along the way. Ask as many questions as you want -- throughout the entire process, let us join you on your journey toward homeownership, and we'll take you exactly where you want to be.

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Family by Family. House by House. Positioning Neighborhoods to Succeed.

phone: 203-562-0598

address: 333 Sherman Avenue, New Haven, CT 06511          

site: www.nhsofnewhaven.org

facebook: /NHSofNewHaven

twitter: @NHS_NewHaven

NHS of New Haven is a NeighborWorks America chartered member. 

Join Us! Ribbon Cutting: 141 Newhall St!

Happy New Year! Upcoming Events at NHS!

Happy 2016!

Now that the new year is upon us, it's a great time to look ahead at all of the upcoming events brought to you by Neighborhood Housing Services of New Haven. If you have any questions about any of these events, please feel free to contact us at 203-562-0598.

Winter Garden Series

(January 23 - March 26)
Join Advanced Master Gardener, Rachel Ziesk, for a series of classes that will cover everything you need to be a successful gardener come Spring! Individual classes are just $20 or $100 for the entire 6-session series. Scroll below to see a full description of each class.

Newhallville99

The Newhallville99 project is designed to celebrate the rich and vibrant history of New Haven's Newhallville neighborhood, and to highlight recent initiatives and accomplishments within this community. Newhallville99 is a way for everyone, whether they reside in Newhallville or not, to be inspired to engage with their communities, be proud of where they live, and look forward to a future of never ending possibilities.

NHS is current accepting submissions for the Newhallville99 project. Nominate your favorite person, place, or project in Newhallville! All we need is a photo and a short blurb. To nominate someone, simply email newhallville99@gmail.com

HomeBuyer Education Workshops

When it comes to deciding who to work with when you are in the market for a new home, NHS of New Haven knows that you have lots of options. So why work with us?

We use the information you provide to create a home purchase package that is unique to you. Our housing specialists understand that the process of purchasing a home can be stressful and confusing. When you work with us, you can rest assured that we will arm you with the resources and knowledge to make informed, unbiased decisions. We ensure that you are prepared for the responsibilities of homeownership and are more resistant to default and foreclosure. At NHS, it's our goal to make sure that you're purchasing a home that you can not only afford to buy, but afford to keep.

Click here to begin your journey to homeownership! 

Winter Garden Workshops (full descriptions)
January 23, 10am-12pm: Soil & Garden Planning
The most important component for a successful garden is soil health. Learn how to make and keep your soil healthy, as well as how to plan your garden for the most productive season.

January 30, 10am-12pm: Cool Weather Crops
Learn about starting your garden as soon as the snow is gone! Cool Weather crops don't mind the cold and give you a head start on the season. Most can be planted directly in the ground, saving any space you use for seedlings for other crops.

February 13, 10am-12pm: Warm Weather Crops
Everything you'll need to know about warm weather crops: which ones are best started indoors, or direct seeded into the ground. What fertilizers to use, what conditions each crop prefers, all the information for a productive growing season.

February 27, 10am-12pm: Container Gardening & Seed Starting
Some people have no access to garden space -- that doesn't mean you can't grow your own vegetables. Container gardening can be rewarding and supply you with more food than you thought! Learn the in's and out's of using containers for your growing needs. The class will also go through everything you need to know to start your own seedlings. Everyone attending will get to plant a six pack of seedlings to take home with them.

March 12, 10am-12pm: Edible Landscaping
Attractive plants or food? Why not have both? Lots of edible plants are beautiful additions to even an ornamental garden. Learn which plants will perform well in either a vegetable or ornamental garden, which ones not only produce food but create attractive areas in your garden. Also learn about weeds that are edible and nutritious, and invasive plants and how to get rid of them.

March 26, 10am-12pm: Pests, Diseases and Organic Controls
There are lots of pests and diseases that can affect your garden. Learn about the prevalent ones and what organic controls you can use to combat them for a healthy, productive garden.