First Time Homebuyer Resources

Happy Labor Day to all!

Despite our momentum the past month was challenging. Our service mark for Pythia was in danger of being cancelled until just a few days ago. I hadn’t realized how important this project has become and what it might mean to our longevity until we were at risk of losing it.

Six years later… we will continue to chip, or chop away at this project until we have a minimum viable product to release. We do not yet have a release date, but if you would like to join our group of 100 early adopters you can sign up here.

We will enjoy the long weekend but I would like to share a not yet exhaustive list of resources for first time homebuyers. We will continue to update this post with more resources moving forward.

U.S. Department of Housing and Urban Development (HUD) – Federal Housing Administration (FHA)

New Jersey Housing and Mortgage Finance Agency (NJHMFA)

NYC Housing Preservation and Development HomeFirst Down Payment Assistance Program

Fannie Mae HomeReady Mortgage

Freddie Mac HomePossible Mortgage

U.S. Department of Agriculture Single Family Housing Programs

U.S. Department of Veterans Affairs (VA) Housing Assistance

My Home by Freddie Mac

HUD Good Neighbor Next Door (GNND) Program

National Homebuyers Fund, Inc. (NHF)

Neighborhood Assistance Corporation of America (NACA)

Consumer Financial Protection Bureau (CFPB)- Key Terms

In addition to the above resources many banks and lenders have similar programs to assist FTHB in making the leap into ownership.

Having and executing a financial plan may be the difference between knowing what kind of home to target and simply hoping for the best. Use our worksheets or contact me directly to start a conversation.

Happy J’ouvert!

Homeownership in the U.S.

According to the April 2023 National Association of Realtors (NAR) study Wealth Gains by Income and Racial/Ethnic Group, a typical homeowners wealth is as much as 40x greater than a renters. A vital part of wealth accumulation for most, home ownership is a key milestone on the path to achieving the American dream.

74.4% of non-Hispanic White households own homes, while just 45% of black HHs own a home. Since 2016, those individuals under 35 saw the greatest increase in home ownership.

We learned in November from our Income in the U.S. post:

“The median income of some 131mm households in America is $70,784… Looking at the data by race, half of 102mm white HHs earn more than $74k, while that number for 17mm black HHs is just $48k. Earning potential appears to be heavily dependent on educational attainment as the median of some 49mm HHs who have earned a bachelors or higher is $115k. It is worth noting as individuals approach the age segment of 25-34 earnings seem to accelerate then plateau somewhere in the $90k area.”

We encourage you to read the commentary from NAR President Kenny Parcel, How prospective first-time homebuyers can succeed in today’s real estate market. To highlight some key data points:

First time home buyers made up 26% of the market in 2022
The average first time homebuyer is 36, oldest age recorded
The average annual income needed in order to afford a home is $90,000

According to the above survey from MoneyWise most Gen Y and Zers struggled to define home buying terms.

Join us August 24th at 7pm as we offer first time homebuyers resources for navigating a challenging market, highlight down payment assistance programs and discuss where there may be opportunities to take the leap into homeownership.