By Gwendolene Newton, Real Estate Managing Broker @ C21 SGR
Buying, selling or investing in homes might seem confusing because there’s a lot to learn and understand.
But real estate is one of the best ways to build wealth that can last for generations. Too many overlook the wealth of free resources available within their communities that can help make the process easier.
Using these tools, you can learn to navigate the world of real estate successfully and set up a secure financial future for yourself and your family.
Consult HUD Counseling Agencies
One of the most valuable resources available is certified HUD counseling agencies. These agencies provide expert guidance on everything from understanding mortgage options to navigating foreclosure prevention.
Whether you’re a first-time homebuyer or facing financial challenges, HUD counseling agencies offer personalized advice to help you make informed decisions.
To find a HUD counselor, visit tinyurl.com/Find-a-HUD-counselor-near-you.
Finding the Money and Securing the Bag
When pursuing homeownership, your bank can be one of your most valuable resources, offering a wide range of financial products and support programs tailored to help you succeed. Many banks provide workshops, seminars, and special loan products, particularly for low-income or first-time homebuyers.
These resources are often coupled with various grants that can significantly reduce your financial burden.
For instance, BMO offers grants up to $16,000, which can be combined with other grants totaling $29,000 or more and are forgivable at the time of closing. These grants are state-specific and offer an additional $8,000 for HBCU graduates, available in all 50 states.
Associated Bank provides the Path Grant, which offers first-time homebuyers $5,000, 100% forgiven at closing. This grant can be layered with other grants, such as those from the City of Chicago.
Bank of America features several programs, including America’s Home Grant® (up to $7,500), Chicago Housing Authority Down Payment Assistance Program (up to $20,000) and others that cater to different financial needs and geographic areas.
Additionally, Associated Bank offers funding through the federal home loan bank, with up to $10,000 forgivable after five years, although funds are currently exhausted for 2024 and will be available again in 2025.
53rd Bank offers a special-purpose conventional loan for Black and Brown borrowers, providing up to $10,100 for down payments, closing costs, appraisals, and home warranties. Meanwhile,
Chase provides up to $7,500 towards a down payment, with an additional $20,000 if the loan doesn’t close within 21 days.
Numerous other banks and mortgage companies offer similar incentives, grants, and down payment assistance programs. These programs often have specific guidelines, such as income limits or property location requirements, so it’s essential to shop around and find the best program for your situation. Given that availability and qualification criteria can change, staying in contact with your bank is crucial to finding the best solutions.
Many states, cities, and nonprofit organizations offer grants, forgivable loans, or low-interest loans to help cover upfront costs for qualified buyers. These programs can significantly reduce the financial burden of purchasing a home, making homeownership achievable for more families. The down grants can be combined with the bank or mortgage company programs. Contact a lender, HUD agency or licensed real estate broker for more details.
Find the Right Broker
Finding the right licensed real estate broker is also essential. Referrals will always be my #1 way to find a Broker. If someone has used a Broker, getting their feedback can save you time and money. Check your local city’s real estate association for certified brokers in your area. The National Association of Real Estate Brokers is one resource for finding a licensed broker in your area: www.nareb.com. Your local realtor websites are another alternative. If you have no luck with a referral, use a search engine to find a real estate broker in your zip code.
Brokers not only have the expertise to guide you through the buying and selling process, but they also have access to market insights and listings that may not be readily available to the public. They can negotiate on your behalf, ensuring you get the best deal possible.
Use Community Resources
When it comes to saving “Big Momma’s House” or investing, community resources can be instrumental.
Local nonprofits, housing authorities, and advocacy groups can offer support programs for homeowners facing foreclosure or financial hardship. They provide counseling, legal assistance and resources to help negotiate with lenders and explore alternative solutions to foreclosure.
Contact Your Local Alderperson
Another essential step is contacting your local alderman or city council representative.
These elected officials often have access to valuable information about housing initiatives, neighborhood revitalization programs and grants to support homeownership and community development. They can connect you with resources and advocate to ensure your housing needs are met.
Empower Your Real Estate Journey
Navigating the real estate market can be complex, but with the proper guidance, it becomes a pathway to achieving your dreams. Leveraging the expertise of a licensed and knowledgeable real estate broker, consulting certified HUD counseling agencies, engaging with local officials, tapping into support programs, and exploring down payment assistance are key steps toward confident and successful homeownership.
These resources are not just tools—they are your allies in preserving homeownership and fostering community stability. By making the most of these opportunities, you can turn your real estate aspirations into reality, creating a secure and prosperous future. Plus, you can begin to build generational wealth.
Whether you’re just starting out or needing expert advice along the way, having a trusted partner in your real estate journey can make all the difference. Remember, the first step is often the hardest, but with the proper support, you’re never alone.
If you have questions, email your Real Estate Advisor at [email protected]. You can also connect with me, Gwendolene Newton, on LinkedIn.
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