AIR DATE MAY 4, 2023
Title: Purchasing Your First Home
Learn about the process of purchasing your first home and assistance available in Orange County.
Guests
NACA, Founder & CEO – Bruce Marks
Housing & Education Alliance, Founder/Executive Director – Sylvia Alvarez
Home Buying Can Be an Empowering Process
Currently, many households in Central Florida are paying more in monthly rent payments than they would with a mortgage. Empowering people to understand the process and what is required to achieve the goal of home homeownership is at the core of what the Housing and Education Alliance hopes to accomplish.
Founder and Executive Director Sylvia Alvarez recently spoke with me about the work her counseling agency provides. “They learn about credit, the importance of credit and what it, the value that it brings, not just to home ownership but to renting an apartment, to getting a job,” she said. “Even insurance rates. We teach the basics of financial literacy.”
Bruce Marks, the CEO and Founder of NACA, focuses on delivering support for first-time home buyers. “It’s tough for people to save the money, so there’s no down payment, there’s no closing costs,” he said. “We provide one mortgage, and it’s always at least 1% below the conventional interest rate.”
Many First-Time Home Buyers Have Some Misconceptions
People have many wants when looking for a first home, but many need to be more realistic about their budgets.
“We have this exercise where we have all these different things, features that people want in a home,” said Alvarez. “They want a fireplace; they want a pool; they want air conditioning, three bedrooms, and two baths. We have all these things, and there are 20 of them, so we say, ‘Let’s pick 12.'”
Families reach out to a housing counseling agency expecting results, but Marks says there is a verification process. “That makes it so that we can get it to the lender and get it done,” he said, “even though virtually 100% of the people coming through NACA get approved.”
Marks and Alvarez agree that it is always good to have savings. You never know when something might stop working at home, or the structure might require repairs. This journey starts by having at least one month’s reserve if the down payment requirement is absent when working with these agencies.
Trust, But Verify Each Step of the Process
Marks says he encourages people coming to NACA to verify their information before proceeding with a mortgage application or other services.
“If something sounds too good to be true, except NACA because of the advocacy and everything that we’ve done,” Marks said, “it probably is, but you got to check out everything out.”
Alvarez agrees, but adds that it is essential to remember HOA rules when looking for a home. “There’s nothing like knowing that I own this house, you know? And as long as you’re within the HOA requirements, you can do what you want, right?”
Even if you don’t live in an HOA, Alvarez adds that code enforcement still creates rules that must be followed.
Although all these elements come into play, the mortgage payment is still the most crucial aspect of owning a home. Marks told me that if you know that the amount is something you can afford five years from now, you’re good. Interest rates rise and fall, as do prices, so think about what you’re comfortable owning right now.
Classes are available through the Housing and Education Alliance, with more information at heausa.org. You can also get in touch with NACA for help by visiting naca.com.
