2019 Homeownership Supplement

HOMEOWNERSHIP SUPPLEMENT

2019

a HOME of YOUR own:

VALUES & VARIATIONS IN BUYING AND IMPROVING PROPERTY PRESENTED BY:

TITLE SPONSOR:

CONTRIBUTING SPONSORS:

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Happy Homeownership Month!

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Cerita Battles SVP, head of Retail Diverse Segments Wells Fargo Home Mortgage

...Informing you everyday in every way

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Homebuying season is one of my favorite times of the year. This is when we normally see housing activity rise, whether it’s from first-time homebuyers, move-up buyers or even homeowners who think it’s a good time to do some renovations. Wells Fargo is proud to sponsor important publications like this one that provide helpful information to those who are seeking the American dream of becoming a homeowner.

Owning a home is a sense of pride for many Americans and we celebrate the benefits that homeownership brings to our families and our communities. For African Americans in particular, homeownership is the primary vehicle to build generational wealth. Now may be a good time to buy for those who are ready. Wells Fargo economists report in their March 2019 Housing Chartbook that momentum in the housing sector has improved modestly this year. Mortgage rates have decreased slightly and there have been some favorable changes in housing prices. According to the Chartbook, the median price of a new home has fallen 3.8% over the past year.

Despite some improvements, housing inventory and affordability remain major hurdles to homeownership. In addition, many find it hard to save for a down payment and/or closing costs. African Americans face additional economic hurdles like higher levels of unemployment and underemployment that keep homeownership at bay.

What the mortgage industry, government officials and housing nonprofits must focus on is removing those barriers and helping to close homeownership gaps that exist in this country. Census Bureau data show that African Americans still have the lowest homeownership rate of all ethnic groups at 41%. According to the National Association of Real Estate Brokers’ (NAREB) State of Housing in Black America, the gains in homeownership that African Americans made before the recession have been lost.

Wells Fargo continues to make progress on the $60 billion African American homeownership commitment we announced in 2017, which commits to help at least 250,000 aspiring homeowners purchase a home in 10 years. So far, we have helped more than 42,000 African Americans become homeowners with $10.6 billion in financing and provided $4.7 million to support homebuyer education and counseling efforts.

While we are closer to our African American homeownership goals, there is a lot of work to do in this space. The work to increase African American homeownership will not be easy and cannot be done by one organization. It’s going to take the mortgage industry, government officials and housing advocates working together to help remove those barriers and ensure everyone has equal access to homeownership. At Wells Fargo, we are dedicated to working with others and doing everything we can to help boost the African American homeownership rate.

It’s important to families, to communities and to the economy of this country. HS

www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2019

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FROM THE EDITOR

A Place to Call Home

Dr. Shantella Sherman Informer Special Editions Editor One of my guilty pleasures on a lazy weekend is watching the HGTV design show “Fixer Upper,” where home improvement gurus, Chip and Joanna Gaines transform either damaged homes or those in need of expansion, into repurposed showplaces.

With overcrowded spaces, restrictive budgets, and a conservative amount of time, the Gaines (and sometimes their children), seem to miraculously pull together the vision of the homeowners with their combined design tastes and renovation skills.

“Home is my favorite place on earth, but I’ve learned that not everyone feels the same way. I’ve realized that it’s not uncommon for some people to feel immobilized when they try to make their home a place that feels significant and unique to them. But I truly believe that this doesn’t have to be the case, and there is something in me that wants everyone to find a way to love the home they’re in,” Joanna Gaines told Parade magazine recently. She said design can be intimidating, but also rewarding when the practical and creative sides of remodeling come together. “I think there are some misconceptions out there that lead people to think that in order to create spaces you truly love you have to spend a fortune or have flawless taste; I don’t believe that’s true. When all is said and done, I think what matters the most is that you surround yourself with things that tell your story. It’s also important to remember that in design, just like in life, we try and

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fail and then try again, and eventually we figure out what works for us.”

This sentiment helped several of my close friends take on home remodeling jobs in the last year that saw them transform 40-yearold family homes into more modern and sleek spaces, converting a warehouse loft into an art décor flat with room for a photo lab, and the use of barnyard doors as outside seating for a newly minted deck. In each instance, the homeowner came up with a concept that was sketched out by a designer, sanctioned by planning commissions, and finally crafted and installed.

“There was some headache involved in me getting ahead of myself and not understanding the logistics of housing regulations – but that was down to my impatience, alone,” one friend, Tabitha Gilpin, told the Informer. “I am so proud of the final product and that I was able to bring my

vision to life. My home truly represents me which makes this space uniquely mine.”

Interior designers and planners can help create specific environments within a home, including more tranquil bedrooms and family rooms simply using color schemes, making the profession of high demand – with the industry generating more than $10 billion in revenue annually.

Our 2019 Homeownership Supplement gives Washington Informer readers an opportunity to stretch their creative muscles and consider adding to the existing frame or remodeling their homes in order to transform them into new spaces. With the increased value of homes based on remodeling, additions, and upgrades, a house can easily become both a home and an economic stronghold in shifting financial times.

Read, Learn, Enjoy!

Dr. S.

Homeownership By the Numbers Compiled by Lee Ross Special to the Informer Residential improvements spending experienced a robust growth in 2013-2018. It increased to $216.7 billion, hitting the new record high in April 2018, from around $116.0 billion in July 2013 The aging of housing stock, one of the consequences of modestly improving but still relatively low new construction during the past decade, has contributed to the growth of residential improvements.

50%

Half of owner-occupied homes were built before 1980, which require some replacements and/or additions of new amenities.

The aging of homeowners was another factor, as the share of remodelers undertaking projects to accommodate aging-in-place increased significantly between 2013 and 2017.

The National Association of Home Builders (NAHB) Remodelers reported that half of remodelers are currently experiencing shortages of labor – carpenters by over 60 percent, bricklayers & masons by 71 percent, concrete workers by 70 percent, and drywall installers by 65 percent.

While older households contribute heavily to home improvement spending, in recent years the home ownership and remodeling spending rates for individuals 35 years old or younger has increased.

A Harvard University Joint Center for Housing Studies (JCHS) report found that 7 million rental and vacant units were converted into owner occupancy in 2016 and 2017, with new owners in these units contributing $50 billion in improvement spending.

75%

Roughly 75 percent of renovations were making improvements or alterations and 42 percent were for repairs or maintenance.

Nearly half (46 percent) of renovating households reported that the cost of their renovation project was budgeted. On the other hand, more than a third (38 percent) of households went over budget.

Chip and Joanna Gaines make home remodeling and home design look easy on their syndicated HGTV show, Fixer Upper. / Courtesy photo

The average bathroom remodel costs $10,500. They also have the highest return on investment- about 102 percent; The average kitchen remodel costs nearly $4,400 and can bring a return of about 90 percent.

THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2019 / www.washingtoninformer.com

Today’s Homebuying Process May be Easier than You Think

John Jones VP, Market Manager Washington DC/Northern Virginia Market, Wells Fargo Home Mortgage

In today’s world where moving fast is the norm, you may think that finding the time to apply for a home loan is about as likely as finding the time to remove your jam-packed storage room of all the objects that don’t bring you joy.

The good news is the process is probably a lot less time-consuming than you think. Back in the day, when interest rates were 15-plus percent (before online banking was even a thing), getting a mortgage loan required a trip to the bank for a conversation with your lender and a long slog to gather copies of paystubs, tax documents and bank statements. The process may have even involved faxing documents to the bank. All that

documentation was for good reason and is still needed – it shows you have the ability to repay your loan and are assuming a financial obligation you can afford. But mortgage companies have found much easier ways to move you through the home lending process.

Imagine this: you’re perusing real estate sites and find a property you like. You call the real estate agent and get an appointment to see it tomorrow, but it’s a competitive market so you want to be ready with your loan so you can make an offer. You pull out your phone and select a mortgage lender, such as Wells Fargo. They have an online mortgage application, and because you’re already an online banking customer, you can log in and be presented your profile information like checking and savings account balances to help you move quickly through the application. Once your application is in quickly you’re ready to house hunt! There were no paper documents to track down and you never left the couch.

As you pick a lender, here’s how to help ensure your homebuying experience can be smooth and easy:

• Make sure your lender has a robust online application that allows you to easily apply and provide information.

• Just because you can do it all online, doesn’t mean you want to. Shop around for a full-service provider who can offer guidance throughout the process.

• Be sure you can apply for the loan when, where and how you want. Your mortgage company should meet you where you are. If you want a face-toface conversation with a mortgage consultant, you should be able to do that. If you want to do it all online, you should have that choice, too.

• Know that not all home-

buying situations are alike, and complicated financial situations may require a little more legwork. Work with a lender who will take the time to guide you through the process.

• Look for a lender who has a breadth of products and services and can offer the right options for your situation, as well as the convenience of digital tools.

Mortgage lending has come a long way from the days of fax machines and pushing paper. Take time to find a lender who is accessible in the way you want, committed to simplifying the experience and can guide you down the right home financing path for you.

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Looking to get into a new home?

This is your way home.

Buying a new home is not a far-fetched idea when you get the financing and support you need.

You could be well on your way with low-down-payment options, personalized start-to-finish guidance, and a simpler online mortgage application.

Contact us to help you get started and show you the way.

Call, stop by, or click today!

1300 I Street NW 12th Floor Washington, DC 20005 (202) 414-3345 wfhm.com/loans/privatemortgagebanking washingtondc/index-branch.page

Information is accurate as of the date of printing and is subject to change without notice. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. ©2018 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. IHA 4920882

www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2019

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Thinking about buying a home?

We are here to help you explore your options Looking to explore your homeownership possibilities?

With our Home Loan Shopping Tools, you can quickly see how much you may be able to afford.

Ready to begin your home search? We can help you get preapproved for an estimated loan amount.

Got your eyes on the perfect place? We’ll help you compare loan options – including features, interest rates and payments. Together, we’ll find an option that meets your needs.

Want to track your loan’s progress? Whether you’re at home or on-the-go, know where you’re at in the home financing process with yourLoanTrackerSM. Ask us if a home loan is available with yourLoanTracker features.

Ready to apply? Apply online with a simplified mortgage application.

You can choose to connect the application with your financial accounts and easily upload documents.

Call, stop by, or click today!

1300 I Street NW 12th Floor Washington, DC 20005 (202) 414-3345 wfhm.com/loans/privatemortgagebankingwashingtondc/index-branch.page

Information is accurate as of the date of printing and is subject to change without notice. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. ©2018 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. IHA 4920882

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THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2019 / www.washingtoninformer.com

With personal support and helpful tools at your fingertips, you’ll confidently move through the home loan process.

Thinking About Buying A Home Together?

First, Consider these Questions with Your Significant Other

Donna Greene VP, Diverse Segments Market Consultant, Wells Fargo Home Mortgage

So you’ve decided as a couple that homeownership is your next step. Congratulations! Before you start looking at places to live, it’s important to agree on the direction you’re headed.

Talking with a mortgage loan officer will help you understand what it takes financially to buy a home. You can prepare by discussing these questions together in advance.

WHAT’S YOUR MONTHLY BUDGET?

The first thing a lender is likely to ask about is your budget. How much can you afford as a monthly payment, factoring in all your other expenses and maintaining a rainy day fund? (A good rule of thumb is to have enough savings to cover at least six months of ex-

penses.) You should also decide together what budgeted items you would be willing to eliminate or scale back in order to afford the home you want – for example, cable or streaming service, eating out, or going to concerts. You’ll also need to decide how much you can afford upfront for a down payment and closing costs.

WHAT DO YOU WANT IN A HOME?

Deciding what kind of home you want and where is not only a lifestyle choice – it also impacts costs and financing options. Do you have a single-family house, condo, townhome or co-op in mind? Urban, suburban or rural? Want to live in a particular city or school district? The type of dwelling can determine the kinds of financing options available. The neighborhood where the home is located may impact the availability of special programs that offer down payment assistance or other benefits, as well as other costs, such as property taxes.

Also, agreeing on “must-haves” will help you narrow down the choices.

HOW LONG DO YOU PLAN ON STAYING?

Taking steps towards owning a home Homeownership is woven into the soul of America. Owning a home puts down roots in the community and grows strong families where people are invested in and care about each other. Our goal is to help you take steps towards homeownership. We’ll work together with people and programs to educate and prepare you as a homebuyer and support you as a homeowner.

We’re here for you. Let’s take that first step.

Call, stop by, or click today!

1300 I Street NW 12th Floor Washington, DC 20005 (202) 414-3345 wfhm.com/loans/privatemortgagebankingwashingtondc/index-branch.page Information is accurate as of the date of printing and is subject to change without notice.

Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. ©2018 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801.

Do you plan to live in this home for a long time, or do you consider this a “starter home” with plans to move in a few years? Your vision for how long you’ll be there will help determine the mortgage terms that are right for you. It may also help you weigh what items on your wish list are open to compromise. If you plan to “move up” after a few years, your list of “must-haves” might get shorter.

WHAT ARE YOUR FINANCIAL SITUATIONS?

Understanding your part-

ner’s credit history and current financial situation, as well as your own, is crucial. Lenders examine customers’ entire financial picture to determine if they can repay the loan. Some of the factors considered include income, job history, debt and credit scores. Avoid surprises by researching and talking about it now. If either of you doesn’t know your credit profile, you can obtain a free copy of your credit report at www. annualcreditreport.com.

SHOULD YOU APPLY FOR FINANCING JOINTLY?

Married or not, couples can apply for a loan jointly, or one partner can apply as an individual. If you apply for financing together, the lender will consider both of your financial situations. If you both have good credit, applying jointly might bring advantages like a lower mortgage insurance cost. If one of you has a low credit score or a lot of debt, it could affect the loan amount or interest rate, or even prevent loan approval.

That may make it a good option for the person with better credit to apply in their name only.

But then the second person’s income won’t be factored into the ability to repay, potentially affecting the loan amount you qualify for, and there are other factors to consider about having only one partner on the loan. Ask your lender to walk you through each of the scenarios available to you.

Buying a home together is an exciting step in a relationship.

It can also create strain if the two of you aren’t on the same page. Set yourselves up for happy house-hunting with an open discussion about your finances and goals for homeownership.

Then sit down with a lender who can help you understand your options.

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www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2019

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Wells Fargo Advancing African American Homeownership

By Stacy M. Brown WI Senior Writer @StacyBrownMedia Cerita Battles knows well the challenges that face African Americans who are seeking a piece of the American Dream.

Battles, the senior vice president and head of Retail Diverse Segments at Wells Fargo, said that even with the banking giant’s eye-popping $60 billion commitment to aid African Americans in buying homes, she knows there are still plenty of obstacles.

But, why focus on the negatives when so much progress is happening.

“I’m delighted with the progress that we’ve made over the last couple of years with our commitment,” Battles said.

“And I just wanted to share a couple of reminders just around the why we did the commitment and what we think about our African American homeownership rate and the fact that it’s the lowest among all segments,” she said, before ripping off several statistics that added much to the conversation.

Among them: • The average U.S. homeownership rate stands at about 64 percent.

• African American homeownership rate is about 41 percent.

That adds up to an obvious need to focus there, which led Wells Fargo to roll out its commitment and make sure that they were a part of the solution, Battles said.

Announced in 2017, that commitment includes Wells Fargo lending $60 billion to create at least 250,000 African American homeowners by 2026.

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Wells Fargo also pledged to increase the diversity of its Home Lending sales team and support the effort with $15 million to assist a variety of initiatives that promote financial education and counseling over the next decade.

“We want to make sure that we are increasing the diversity of our sales force, with more African American home mortgage consultants because we know that when we mirror the community, we have a huge potential to serve those community,” Battles said.

Since 2017, Wells Fargo has delivered.

The company has impacted close to 43,000 African American households – all new homeowners.

Those nearly 43,000 households equates to $10.6 billion in volume which means Wells Fargo is on its way to fulfilling the $60 billion pledge.

To date, Wells Fargo also has provided $4.7 million in grants to nonprofit housing counseling agencies that are doing business in helping African Americans achieve homeownership.

Currently, 4.2 percent of African Americans comprise the company’s sales force – a figure some might consider low, without proper context.

“But when we looked at loan officers in the industry, African American loan officers represent less than 1 percent of the loan officers that we have out there in the industry doing this business,” Battles said.

“So when you think about Wells Fargo, we’re pretty much four times the industry, but we’re still not satisfied with that,” she said.

“This commitment is really about Wells Fargo holding them-

selves accountable to lending to the African American community,” Battles said.

Wells Fargo does not do this work alone. The company works with homebuying counselors and other experts who explain the sometimes-complex task of purchasing and maintaining a home, including providing explanations on down payment expectations, closing costs and interest rates.

“I think Wells Fargo has made a significant investment in the communities that we serve,” Bat-

tles said, noting the company’s NeighborhoodLIFT® program where the bank has conducted more than 67 LIFT events in the U.S. since 2012, creating nearly 20,000 homeowners.

“We recently held a NeighborhoodLIFT event in Washington, D.C. Nonprofit housing counseling agencies were there to provide education and counseling, and we provided assistance grants to qualified homebuyers, which often is a significant barrier to homeownership particularly for African

THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2019 / www.washingtoninformer.com

Americans.” Battles said. “More than 500 aspiring homebuyers attended the event with more than $600,000 awarded in homebuyer assistance grants.”

Battles continued: “Our goal is not just to the business, we want to make sure that we are positively impacting communities. And we know that in order to meet the needs of the community it will take more than Wells will take the collaboration of the entire village.”

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DC’s DHCD: Thinking Bigger and Bolder to Expand Affordable Housing in the District

By Polly Donaldson Director of the DC Department of Housing and Community Development (DHCD)

I’m proud to say the DC Department of Housing and Community Development has created housing opportunities over the last four years in levels never seen before in the District of Columbia—thanks to the commitment and unprecedented investments made by Mayor Muriel Bowser.

As our Mayor says, every Washingtonian should have a fair shot to

live and thrive in the city, by having access to safe, stable, and affordable housing. DHCD’s mission is producing and preserving affordable housing for low- and moderate-income residents, providing more homeownership opportunities and revitalizing neighborhoods. Thus, our agency plays a key role in fulfilling her vision.

We’re charged with administer-

HOMES by

2025

“We won’t solve our housing challenges by only using the tools we already have—we must think bigger and bolder.”

— Mayor Muriel Bowser

THE DC DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (DHCD) Our mission is to produce and preserve affordable housing, spur homeownership and revitalize neighborhoods.

DHCD is working to implement the Mayor’s housing goals.

LEARN MORE AT DHCD.DC.GOV.

ing her commitment of $100 million annually to the Housing Production Trust Fund (HPTF) and have exceeded that mark three years in a row. Thanks to this fund and other housing resources, the District has produced and preserved over 7,200 units of affordable housing since 2015. This represents housing for over 16,000 Washingtonians.

We’ve also accelerated the use of new resources like the Affordable Housing Preservation Fund, which is on track to—within just one year—preserve nearly 1,000 housing units for residents with deep roots in the city. We are in the early stages of identifying properties that the District can keep affordable under the District Opportunity to Purchase Act (DOPA).

We continue to help more homebuyers get the keys to their first home. Our Home Purchase Assistance Program (HPAP) provides low- to moderate-income households with up to $84,000 in down payment and closing cost assistance, In Fiscal Year 2018, HPAP gave 362 households $20 million to buy homes—with an average purchase price of $337,500. Over its 40-year lifetime, HPAP has provided over $214 million in assistance to over 7,700 households.

HPAP helped the homeownership dreams of Dorothy Nkem come true. Nkem is a single mother who spent three years renting a cramped one-bedroom apartment with her three girls. Thanks to HPAP, they now have their own space in a three-bedroom home.

Our Inclusionary Zoning (IZ) program, which ensures that a certain percentage of affordable units are included in most new or substantially rehabilitated developments, has delivered more units over the last year than ever before: units like Jonathon Martin’s Southwest Washington apartment. Martin, a native Washingtonian and District Government employee, once was concerned that he could

not afford to live in the city because of rising rent costs. Thanks to IZ, he has an apartment across the street from his office—and says his next goal is to buy a home.

When he decides to do so, he can take advantage of both HPAP and the Employer Assisted Housing Program (EAHP) for District government employees, who can receive up to $20,000 in assistance— as well as matching grant funds.

There is also an extra incentive for first-responders.

Even with our historic accomplishments, housing affordability is still the number one concern of District residents. Therefore, the Mayor has set an ambitious goal for us to do even more in her second term. She laid the foundation in her January 2 inaugural address; by 2025, we will need to produce 36,000 additional units of housing in DC alone—with at least 12,000 being affordable. This will enable more individuals and families to share in the District’s prosperity.

To accomplish this ambitious goal in all eight wards, the Mayor has signed a Mayor’s Order on Housing calling for District agencies to think bigger and bolder and identify new policies, tools, and initiatives. The Mayor’s housing team—including the Deputy Mayor for Planning and Economic Development (DMPED), DHCD and the Office of Planning (OP)— is working on an implementation plan and is collaborating closely with regional partners from the Metropolitan Washington Council of Governments (COG).

The Mayor’s vision isn’t targeted just to policy and budget, however. District residents are a large part of the solution. We also are asking YOU—residents and stakeholders—to think hard about how you will can participate, so that more individuals and families have a Fair Shot in the District of Columbia.

You can learn more at dc2me.com.

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www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2019

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11th annual DC Housing Expo & Home Show Convention Center Saturday, June 15, 2019 | 10 am - 3 pm | Washington Hall D, 801 Mt. Vernon Place NW

NEW FOR 2019

$5,000 FURNITURE GIVEAWAY WHUR and Lillie’s Furniture Gallerie are partnering to raffle* a living room furniture set (sofa, chair, two tables, rug, and two pillows). *Furniture will be displayed on main stage. Raffle tickets will be at LFG booth; drawing will occur on main stage around 2:30 p.m. Winner does not need to be present to win. LFG will work with winner to arrange for furniture pick-up.

Also At This FREE Event       

Explore 100+ Exhibitors and Workshops Visit Home Design Center Learn About Smart Home Technology Stop by Small Business Marketplace Access Housing and Job Search Resources Get Free Credit Reports and Counseling Find Out About Home Purchase Assistance

Note: For a reasonable accommodation or interpretation, contact (202) 442-7251 or pamela.hillsman@dc.gov five days before the event.

   

Explore Tools for Tenants and Landlords Learn How to Stay Safe and Mobile at Home Get Kids and Teens Financially Fit Win Prizes and Giveaways Download

the Official Expo Event App.

The Event Code is 2019expo.

202-442-7200 dchousingexpo2019.eventbrite.com

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THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2019 / www.washingtoninformer.com

Millennials Find Power in Buying, Remodeling Properties

By Kaja Rae Lucas Special to the Informer Talk about millennials in the housing market shouldn’t be reduced to the claim that they’re “young people” with no buying power, or that they only rent and see no value in purchasing a home. Data from Realtor.com shows that millennials between age 19 and 37 are purchasing more mortgages than Gen Xers and Baby Boomers. Millennials will not be “killing the housing market” as many news outlets have reported, still, home ownership among African Americans under 30 rests at 17 percent, according to the Stanford Center

for Longevity.

There is no way to disconnect this from generational disparities, as studies show that home values for Black families are on average 81 times less than the median white family according to The Atlantic. Even more troubling, “the homeownership rate for married black household was down 5 percent compared with 3 percent for male and female headed single Black households,” the Urban Institute reported.

There is still work to be done to lessen the wealth gap between Black millennials and white millennials, but as historian Richard Rothstein said in an interview with the Washington Post, “we need equally explicit government

policies to remedy the imbalance.” But it is not impossible for Black millennial homebuyers to enter the market. In fact, it may even be encouraged thanks to low interest rates and the shifting of the market in favor of buyers.

Though renting has its benefits, and though purchasing a home is a long-term financial commitment, the benefits of homeownership are also a long-term boon.

For families with a stable income, buying a home is a necessary move to consolidate your assets.

Buying a home is part of the “American Dream,” and not without cause: homeownership is a fantastic starting point for developing generational wealth.

Homes will usually increase in

value, allowing families to grow a financial nest egg for their children. Doubly so, since the rate of a child becoming a homeowner increases by 8.4 percent if their parents were homeowners, according to the Urban Institute.

The economic and social benefits of home buying include the ability to defend against unanticipated changes in rent, more choice in surroundings, and no limits on your tenure. “Homeownership also provides a ready mechanism for families to borrow money and get credit,” the Center for Urban and Regional Studies at the University of North Carolina at Chapel Hill stated in recent findings.

“Homeownership is the key to wealth creation,” realtor Ericka S. Black said, “I encourage people to purchase if they can afford to do so.” Not only is homeownership the key to wealth creation, it also allows for social engagement, and thus, benefits. For prospective families, having stable housing is pivotal to allowing children to succeed. Civic engagement increases when families have stable housing, more so when they own their home.

“Many of my first-time homebuyer clients have been Black millennials,” Black told the Informer, “overwhelmingly, Black millennials are purchasing starter properties. They tend to lean towards condos and townhouses

within their price range.” Firsttime buyers benefit from buying starter homes because it allows them to build up equity, thereby making a purchase of their “dream home” more likely later.

Or, another option is to renovate or remodel a home to create your “dream home.” Often, remodeling a house will not only increase space or spruce up the area, but also increase a homeowner’s return on investment for the home itself.

Financial freedom, developing a good credit, maintaining a well-valued home, and the ability to participate in your community make buying a home a powerful option. Many millennials are beginning to realize this as they are settling down and starting families. The American Dream, no matter how contrived or unattainable it may seem, has permeated throughout the entire culture, the support of homebuying a consequence of it. But this permeation isn’t without cause: to buy a home is to have power over your own life. For Black millennials, escaping the uncertainty of renting, becoming free to choose where and how long you wish to stay somewhere, is not only a step to financial freedom, but to freedom itself.

“I became a first-time homeowner at the age of 24” Black told the Informer. Her words of advice: “It’s worth it.” HS

www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2019

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Disparate Impact Helps, Not Hurts, Fair Lending

By Charlene Crowell In this, the 400th year since the first enslaved Africans were brought to the shores of Jamestown, Virginia, many Black Americans have noted the many changes and advances that our forefathers were denied. A series of 1960s federal legal protections collectively known as civil rights legislation addressed the ills of discrimination in education, employment, public accommodations, voting rights, and fair housing.

Despite decades of legal assurances, discrimination still continues, encouraged with a one-two punch of regulatory rollbacks and dwindling en-

forcement. Particularly when it comes to fair housing, regressive assaults are attempting to diminish, if not eliminate many hard-won rights.

For example, disparate impact, a long-standing protection that is deeply rooted in the law holds that landlords, real estate companies, municipalities, banks, and insurance companies should choose policies that apply fairly to all consumers. This protection has played an essential role in enforcing the Fair Housing Act, helping to ensure that harmful, inequitable, and unjustified policies are either prevented or recognized For all housing stakeholders, disparate impact has resulted

in fairer outcomes but must also be preserved if we as a nation are to continue along this progressive path towards fair housing.

An April 11 op-ed penned

by Rep. William Lacy Clay noted the importance of disparate impact to achieving real fair housing.

“At a time of increasing racial division, a rise in hate crimes, and persistent disparities in the housing market, we must recommit to the promise of the Fair Housing Act to prevent discrimination and open housing opportunities for all,” wrote Rep. Clay. “This is precisely why the Trump administration’s attack on a critical fair housing enforcement tool

is so problematic.”

Weeks later Nikitra Bailey, an EVP with the Center for Responsible Lending, noted in testimony delivered on May 8 at a Capitol Hill hearing, “Today, African-Americans have the same rates of homeownership as they did in 1968.”

Bailey added that “the white homeownership rate is 73.2% compared to 41.1% for African-Americans and 47.4% for Latinos.”

“The federal government’s role in fostering mortgage lending discrimination significantly contributes to the differences in today’s homeownership gaps between whites and people of color”, continued Bailey. “Strengthening our nation’s fair lending laws are a necessary step to address these disparities and close the racial wealth gap.”

Beyond homeownership’s racial disparities, the National Fair Housing Alliance (NFHA) found that more than a half million housing discrimination complaints have been processed since 2006, and further that most instances of housing discrimination are unreported.

NFHA asserts, “[t]he biggest obstacle to fair housing rights is the federal government’s failure to enforce the law vigorously.”

“Homeowners have used disparate impact to successfully challenge policies that redlined communities of color”, said Lisa Rice, NFHA’s President and CEO, in a recent op-ed column. “Mortgage applicants of color have benefitted from its use in preventing discriminatory lending criteria. This

protection has helped victims of domestic violence to retain housing when nuisance ordinances threaten to evict them for making calls to law enforcement to report abuse.”

With Rep. Clay, Ms. Bailey and Ms. Rice agreeing that disparate impact is an important component of fair housing, modifying or weakening this proven approach would be as ill-advised as it would be unnecessary. Further, it is a standard that has been in place under the Fair Housing Act for more than 40 years and was later affirmed by the U.S. Supreme Court in 2015.

In short, disparate impact is accepted and respected as settled law. Turning HUD’s existing civil rights regulations backward would bring costs and broad uncertainty that will not help consumers, lenders, or the nation. Lenders already comply with the measure, agreeing that it is an important fair lending tool.

“Racial disparities in education, employment, healthcare, transportation, the environment, and policing will be more difficult to challenge if this tool is weakened,” concluded Rep. Clay. “It is important to first stem the damage to fair housing enforcement, because other areas of civil rights are next in this administration’s sights.”

HS Charlene Crowell is the Communications Deputy Director for the Center for Responsible Lending. She can be reached at Charlene.crowell@responsiblelending.org.

www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2019

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LET US MAKE YOUR DREAM OF HOMEOWNERSHIP A REALITY George Mason Mortgage, LLC offers customized loan solutions for first-time homebuyers like you. ● Low or No down payment options ● Flexible credit requirements ● Affordable payments ● Wide variety of loan programs, including first-time homebuyer programs

GMM has offices across the greater DC and Baltimore metro region.

To find a Loan Officer in your area, please call 703-273-2600 or visit our website at www.gmmllc.com

ADVERTISING NOTICE – NOT A COMMITMENT TO LEND – SUBJECT TO PROGRAM AVAILABILITY. This is not a commitment to lend. All loan applications are subject to credit and property approval. Annual Percentage Rate (APR), programs, rates, fees, closing costs, terms and conditions are subject to change without notice and may vary depending upon credit history and transaction specifics. Other closing costs may be necessary. Flood and/or property hazard insurance may be required. To be eligible, buyer must meet minimum down payment, underwriting and program guidelines. George Mason Mortgage's NMLS ID is 153400.

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THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2019 / www.washingtoninformer.com

Making the Down Payment Possible

By Kevin Newton Senior Loan Officer, George Mason Mortgage, LLC

Homeownership is a pathway to multi-generational wealth. However, we are seeing a decline in homeownership rates for African Americans. Although there are often hurdles to overcome, purchasing a home is possible with the right information, access to affordable loans, and a knowledgeable lender to guide you through the process.

Saving for a down payment is often one of the largest hurdles in homeownership and given the persistent income disparities between minorities and whites, it can take an African American longer to save the down payment. Potential homeowners believe they need 20% of the purchase price for the down payment, which is not true. Although there are benefits to putting 20% down, including potentially lower interest rates and avoiding private mortgage insurance (PMI), there are

a number of government programs with down payments as low as 3%.

Many of these programs have flexible qualifying guidelines with credit score guidelines as low as 620, various options in mortgage insurance (Borrower Paid, Single Premium and Split Premium Mortgage Insurance) and options with debt-toincome ratio as high as 50%. In addition, there are a number of grant opportunities that assist with down payment and closing costs if you are a first-time buyer or have not owned a home in the last three years.

Below are a few of the grant and loan programs that help people realize the dream of homeownership.

Each program has its own guidelines for participation and the grant programs often have limited funds to gift.

• DC Open Doors-Offers qualified buyers home purchase loans

and down payment assistance.

• Virginia Housing Development Authority, VHDA-Helps Virginians purchase homes with a number of loan programs tailored for first-time homebuyers and homeowners who want to buy in Areas of Economic Opportunity.

• Fannie Mae Home Ready 3% Down payment-Designed for creditworthy low- to moderate-income borrowers, expands eligibility for financing homes in low-income communities.

• Freddie Mac Home Possible 3% Down payment-Offers low down payments for low-to moderate-income homebuyers or buyers in high-cost or underserved communities.

• Maryland Mortgage Program, MMP -Provides homebuyer assistance programs by offering mortgage loans, down payment, and

closing cost assistance, among other benefits, to eligible homebuyers with low-and- moderate income.

• Home Purchase Assistance Program, HPAP – Provides interest-free loans and closing cost assistance to qualified applicants to purchase single-family houses, condominiums, or cooperative units.

• Maryland Mortgage Program, MMP 4% and 6% Grants -Provides homebuyer assistance programs by offering mortgage loans, down payment, and closing cost assistance, among other benefits, to eligible homebuyers with low-and- moderate income.

I am proud to represent George Mason Mortgage, LLC as it continues to provide education and a wide range of loan products that help minorities realize the dream of homeownership, affecting the legacies we leave our next generation. HS

APPLYING FOR A MORTGAGE LOAN IS RIGHT AT YOUR FINGERTIPS WITH THE GEORGE MASON MORTGAGE INTUITIVE LENDING APP! Our online application is easy to follow and provides a secure way to upload your documents.

• Simplified, faster, more efficient process • Greater transparency • Secure, mobile experience

We are here to help make your dream of homeownership become a reality.

Call or visit us online today!

703-273-2600 or www.gmmllc.com ADVERTISING NOTICE – NOT A COMMITMENT TO LEND – SUBJECT TO PROGRAM AVAILABILITY. This is not a commitment to lend. All loan applications are subject to credit and property approval. Annual Percentage Rate (APR), programs, rates, fees, closing costs, terms and conditions are subject to change without notice and may vary depending upon credit history and transaction specifics. Other closing costs may be necessary.

Flood and/or property hazard insurance may be required. To be eligible, buyer must meet minimum down payment, underwriting and program guidelines. George Mason Mortgage's NMLS ID is 153400.

www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2019

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TURN YOUR DREAM OF HOMEOWNERSHIP INTO REALITY George Mason Mortgage, LLC offers customized loan solutions for first-time homebuyers like you. ● Low or No down payment options ● Flexible credit requirements ● Affordable payments ● Wide variety of loan programs, including first-time homebuyer programs

GMM has offices across the greater DC and Baltimore metro region.

To find a Loan Officer in your area, please call 703-273-2600 or visit our website at www.gmmllc.com

ADVERTISING NOTICE – NOT A COMMITMENT TO LEND – SUBJECT TO PROGRAM AVAILABILITY. This is not a commitment to lend. All loan applications are subject to credit and property approval. Annual Percentage Rate (APR), programs, rates, fees, closing costs, terms and conditions are subject to change without notice and may vary depending upon credit history and transaction specifics. Other closing costs may be necessary. Flood and/or property hazard insurance may be required. To be eligible, buyer must meet minimum down payment, underwriting and program guidelines. George Mason Mortgage's NMLS ID is 153400.

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THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2019 / www.washingtoninformer.com

Tips to Get Approved for A Home Mortgage Loan Michelle Fields-Hall, Senior Loan Officer with George Mason Mortgage Buying a home can be an exciting step towards financial security, but sometimes the process can be stressful. Here are some tips to help navigate the process and make the benefits of homeownership become a reality.

FIND A LENDER YOU CAN TRUST:

One of the largest investments many individuals will make in their

lifetime is purchasing a home. It is important to find a lender who will guide you through the lending process while providing a professional lending experience. Competitive rates and a variety of loan options are all important, but the key factor starts with the dedication and expertise of your loan officer. A good loan officer…

1) Communicates: The loan officer will ask you questions and listen to your answers before suggesting loan products.

2) Educates: The loan officer will clearly explain the mortgage lending process and present you

with loan programs and rates that fit your specific needs.

3) Has your best interest at heart: The loan officer will work to find a loan product and loan amount that you are comfortable borrowing.

KNOW YOUR CREDIT SCORE:

Your credit score can determine if you qualify for a loan, the interest rate you are offered, and how much you are able to borrow. The credit score needed to qualify is determined by the loan product. For example, FHA loans allow borrowers to have a credit score as low as 580 to qualify and conventional loans require a score of 620.

If you are looking for ways to improve your credit score, work towards paying down your credit card balances and make sure all payments are made on time.

Consider paying down the highest interest cards first, but maintain minimum payments of your other accounts. Setting up payment reminders may help, too.

You can get a free copy of your credit report and credit scores from annualcreditreport.com.

HAVE ENOUGH CASH TO CLOSE:

A common misconception is that you need to put 20% as a down payment to finance your new home, but that is not true.

The down payment is determined by the loan program and typically runs between 3% and 20% of your home’s sale price. However, if your down payment is less than 20%, it may mean you pay a higher interest rate and pay for mortgage insurance. Be sure to talk to your loan officer to compare loan scenarios.

In addition to your down payment, you will need cash to close.

This amount typically runs between 2%-5% of your loan – start saving early! Consider saving tax refunds, overtime pay and setting up an automatic savings plan.

There are also state and federal down payment assistance programs that help qualifying borrowers with their closing costs, tax credits and/ or down payment assistance. Each program has its own guidelines for participation and the grant programs often have limited gift funds.

Keeping the lines of communication open with your loan officer will help ensure a positive and efficient lending experience. HS

LET US MAKE YOUR DREAM OF HOMEOWNERSHIP A REALITY George Mason Mortgage, LLC offers customized loan solutions for first-time homebuyers like you. ● Low or No down payment options ● Flexible credit requirements ● Affordable payments ● Wide variety of loan programs, including first-time homebuyer programs

GMM has offices across the greater DC and Baltimore metro region.

To find a Loan Officer in your area, please call 703-273-2600 or visit our website at www.gmmllc.com

ADVERTISING NOTICE – NOT A COMMITMENT TO LEND – SUBJECT TO PROGRAM AVAILABILITY. This is not a commitment to lend. All loan applications are subject to credit and property approval. Annual Percentage Rate (APR), programs, rates, fees, closing costs, terms and conditions are subject to change without notice and may vary depending upon credit history and transaction specifics. Other closing costs may be necessary. Flood and/or property hazard insurance may be required. To be eligible, buyer must meet minimum down payment, underwriting and program guidelines. George Mason Mortgage's NMLS ID is 153400.

www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2019

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Planning to Buy? Homeowner?

Take Advantage of DISB Services June is National Homeownership Month and whether you dream of one day being a homeowner or already are one, the Department of Insurance, Securities and Banking (DISB) has free programs and services that can help. Securing and maintaining safe, decent and affordable housing is one of the most significant financial decisions you make. As part of Mayor Bowser’s commitment to create pathways to the middle class, DISB has a variety of programs for dreamers and homeowners alike.

OUR FINANCIALLY FIT DC PROGRAM

is designed to help residents understand and improve their financial health and well-being. The program offers online financial assessment and education tools to help connect you to resources that can be personalized to your financial situation. Consumers learn how to take control of everyday finances, identify short-term needs, set plans to reach long-term goals and ultimately achieve financial freedom. Topics include making a budget, building wealth through savings, understanding and managing your credit profile, preparing to buy a home, planning for retirement and helping the next generation plan for their financial future. Start by testing your financial wellness at: https://financiallyfitdc.com.

INSURANCE TIPS

for homeowners and renters are provided through consumer guides and alerts produced and distributed by the Department. Homeowners insurance covers losses and damages to an individual’s home and personal property such as furniture, electronics, clothes and other valuables within the home, and provides liability coverage against

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accidents on your property. Similarly, renters insurance protects renters against damage or theft of their personal property, and liability coverage for accidents on the rented premises. It is important to note that damage to one’s home or belongings caused by flooding is not typically included in the homeowner’s policy. A homeowner can inquire about flood insurance through the federal government’s National Flood Insurance Program. Remember, before you sign an application for insurance, take a few minutes to contact DISB to confirm that the company is legitimate. You can reach us at 202-727-8000 or online where you can view our guides and alerts at disb.dc.gov.

avoid foreclosure and navigate the foreclosure process including housing counseling referrals and legal aid referrals. Call the District’s Foreclosure Prevention Hotline at 202-265-CALL (2255) or 1-855-449-CALL (2255) or call DISB at 202-7278000 for assistance in accessing these resources.

For more information on ways DISB can help you with homeownership, visit disb.dc.gov or follow us on Twitter @DCDISB and on Facebook. HS

Protecting Your Home and Belongings

A REVERSE MORTGAGE

is a mortgage loan that enables the borrower to access built up equity in his or her home and defer payment of the loan until the borrower dies, sells or moves out of the home. Because there are no required mortgage payments, interest is added to the loan balance each month and borrowers are still responsible for property taxes and homeowners insurance. Reverse mortgages can help some seniors stay in their homes and receive additional retirement income. However, reverse mortgages are complicated and are not for everyone. Counseling is strongly recommended.

DISB offers counseling referrals, printed information and community-based workshops to help consumers make the best possible decisions when considering reverse mortgages.

THE FORECLOSURE MITIGATION AND MEDIATION PROGRAM

Whether you are a homeowner or a renter, getting your own place is one of the biggest financial decisions you will make.

The Department of Insurance, Securities and Banking (DISB) understands the importance of sorting through all of the options before making financial decisions.

As the District’s financial services regulator and consumer advocate, DISB offers programs, financial education resources, tips and other tools to help residents understand financial products and services.

Get answers to your home-related financial concerns. DISB can help connect you to resources for: • • • • • •

Buying a home Help with late mortgage payments Renters and homeowners insurance Understanding reverse mortgages Flood and sewer insurance riders Tips for selecting a contractor for home improvements

provides access to several free resources to help District residents

THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2019 / www.washingtoninformer.com

1050 First St. NE, Suite 801 | Washington, DC 20002 (202) 727-8000 | disb.dc.gov | @DCDISB

Rising to the Challenge of National Homeownership Month Marcia Griffin, Founder & President HomeFree-USA

June is National Homeownership Month, a time when we celebrate the benefits of owning a home. However, National Home-

ownership Month also challenges us to do all that we can to make the dream of homeownership accessible to as many Americans as

GET STARTED ON YOUR JOURNEY TO HOMEOWNERSHIP TODAY

We Make it Easier and Faster

HOMEBUYING GUIDANCE CREDIT IMPROVEMENT FORECLOSURE PREVENTION HELP HOMEOWNERSHIP ADVICE YOU CAN TRUST ALL THE WAY HOME HomeFree-USA is a nonprofit organization specializing in homeownership guidance. Since 1995, HomeFree-USA has created 26,113 new homeowners through its national network. We celebrate a 0% foreclosure rate amongst members who participated in our Fast Track to Homeownership™ program. For more information visit HomeFreeUSA.org or call (301)-891-8400

possible.

On that front, we have a lot of work to do.

For diverse communities, homeownership is a cornerstone of family wealth. Yet, for many minorities, homeownership has become a dream deferred. For Black Americans in particular, homeownership rates aren’t any better today than they were 50 years ago.

But it doesn’t have to be that way. Many more Americans can step into their power to create a better life through homeownership if they have the support and the tools that they need.

That’s why HomeFree-USA is so very excited to announce the launch of Step into your Power: Prepare for Success through Homeownership, a groundbreaking initiative designed to empower diverse communities to move past the psychological and economic challenges that have been holding them back.

National Homeownership Month is about celebrating successes and rewarding economic gains. That makes this the perfect time to launch this innovative program because Step into your Power is designed to help potential homebuyers reach their fullest potential. This life-transforming movement will start in Baltimore and later be rolled out to other cities across the country.

At the heart of the Step into your Power program are the ideas of planning and preparation. Every achievement requires some level of preparation. Preparing families to be financially sound is what HomeFree-USA and our network of partners do best. In order to become successful homeowners, consumers must master their credit and finances so they can not only qualify for a mortgage loan but gain the skills and knowledge to maintain a home.

This program is particularly

powerful because it has the backing of some business and financial heavyweights who have stepped up to the plate to give minority homebuyers the push that they need to succeed.

Author, educator and leadership development expert Stedman Graham has been teaching self-actualization principles that help people discover who they can be, and he will bring those insights to energize Baltimore residents as they prepare for success. “Having a strong sense of and belief in self provides the foundation for maximizing our potential,” Graham says. “We’ll begin in Baltimore where the need is great and the climate is perfect for the good of the people.”

Wells Fargo is showing its commitment to Baltimore by offering qualified Baltimore City homebuyers up to $15,000 for down payment and closing costs through a program called Neighborhood Lift. The move falls under Wells Fargo’s goal of creating 250,000 African American homeowners by 2027.

Freddie Mac is also providing financial support to ensure that Step into your Power reaches as many potential homebuyers as possible.

As we go into National Homeownership Month, we know: • We all have the power to achieve.

• We all have the power to do better.

• We all have a responsibility to make homeownership as affordable and accessible as possible.

Through Step into your Power, we’re rising to the challenge of National Homeownership Month and creating a new pipeline for minority homeowners. We hope others will rise to the challenge and join us.

Lear more at www.homefreeusa.org.

HS

www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2019

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THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2019 / www.washingtoninformer.com

Avoiding Disappointment with Home Renovations, Additions Proper planning help to eliminate headaches and disagreements between contractors and homeowners. / Courtesy photo

By Stacy M. Brown WI Senior Writer @StacyBrownMedia Renovations can be expensive, but will usually add value to your home, according to experts who offered some insight on navigating the process of home additions.

“Some contractors will offer a monthly payment plan to spread out the entire cost over a period of time, rather than settling for something short of what your full vision is,” said Glenn Wiseman, sales manager at Top Hat Home Comfort.

Wiseman suggests that those seek-

ing renovations and additions ask providers if they offer a similar plan to accommodate your lifestyle and budget better.

“Avoid disappointment by paying close attention to the details and terms of your contract. Good contractors will work hard to make sure that the expectations are highlighted within the contract and that the job is done to this standard,” Wiseman said.

For homeowners, it’s vital that anyone they hire provide a written and agreeable services contract which should include the scope of the work agreed upon – including confirming house plans, pulling permits from

the city, ordering materials and getting equipment onsite, said Shawn Breyer of Breyer Home Buyers.

“Don’t just assume that your idea of a quality end-product and the contractor’s is the same. You may be expecting a move-in ready, professionally cleaned bathroom,” Breyer said. “Meanwhile, the contractor usually leaves the bathroom in broom swept condition with dirt and dust everywhere. Sometimes you can even encounter a contractor that gets 90 percent finished and proceeds to pull his crew off to work on the next home while sending back people as they free up,” he said.

Breyer continued, “This would

leave you with an incomplete build.

Make sure that your contract with the contractor has a section stating that they will complete the work in accordance with the local laws and settle on the condition of the bathroom when it is completed.”

John Bodrozic, the co-founder of Digital Home Management said a detailed budget of all materials, appliances, equipment, fixtures and finishes for the project should be kept.

Homeowners should do this before a contractor is hired because it usually forces individuals to decide on different products and brands for the items in the addition.

Bodrozic said it’s also important to get at least three qualified bids from contractors and compare pricing.

“Keep track of all the actual costs, receipts, invoices, before and after photos, product warranties, owner’s manuals for everything installed in your home addition,” Bodrozic said. “This helps keep the contractor accountable and it helps you get things replaced a year later if things are not working because they should still be under warranty.

“You also need all this digital information at tax time because you can assess the costs of this addition and how it impacts your taxes and you need this information if you ever decide to sell the home, because

it will be helpful in marketing your home and your taxes the year in which you sell it,” he said.

Not only do home additions make your home more enjoyable for you, but they also increase your home’s market value and when deciding which additions are right, each homeowner should consider the weather and design an addition that provides the greatest return on investment, said Craig Ricks, Jr., president of Acadian Windows and Siding.

“Screened-in porches are a great addition to homes in areas with months of warm and moderate weather … invest in a sunroom if you live in an area that experiences extreme weather; because the insulated sunroom blocks out harsh weather while still providing views and a porch-like experience,” Ricks said.

Homeowners also might consider creating a comfortable space rather than a fancy one or sacrifice a glossy paint finish to build a spacious area they’ll want to occupy,” Ricks said.

“Electrical is a low priority, including recessed lights, low voltage lighting, and sconce lighting is costly without significantly increasing your home’s resale value,” he said, adding also that pressure-treated wood makes your home addition last longer.

“This initial investment cuts costs of repairs,” Ricks said. WI

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DCHFA Invests in Workforce Housing

Artist rendering of phase 3 of Cynthia Townhomes Washington, D.C. has experienced an economic resurgence that has resulted in the population growing from 571,776 in 2000 to 702,445 in 2018. The District’s growth has attracted a large number of higher income households and recent studies have named the city the fastest gentrifying in the country.

Unfortunately, the reality of high housing costs is that the District is at the point where middle income households are under excessive pressure and are unable to qualify for traditional affordable housing due to their income. Members of middle income households in Washington, D.C. are being forced into long commutes from other municipalities.

The DC Housing Finance Agency (DCHFA) created the Housing Investment Platform (HIP) as its laboratory for addressing housing challenges outside of DCHFA’s traditional bonds and tax credits business lines. HIP launched in May 2017 and its first activity was a pilot investment building five workforce homes in Ward 8, Elvans Road Townhomes. HIP co-invested in Elvans Road Townhomes in partnership with a local minority-owned developer H2 Development and City First Bank to produce five new three bedroom townhomes restricted to households earning up to 120 percent of MFI. These homebuyers earn enough income to purchase a house but struggle to

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find high quality homes in their price range. The new owners at Elvans Road Townhomes include a D.C. public school teacher, a retired U.S. Army veteran, and an employee of the local sports and entertainment authority.

Following the success of the pilot program, DCHFA formalized its for-sale workforce housing investment activities by creating the Single Family Investment Fund (SFIF). SFIF was created as the first innovation launched under HIP to take a new approach to how housing finance agencies can solve housing challenges.

DCHFA’s model is to enter into joint ventures with local developers on projects and to provide equity capital at required return rates lower than traditional private equity capital. This innovative approach incentivizes developers to build and sell workforce housing by allowing them to invest significantly less capital while receiving returns comparable to market returns.

The District and Mayor Muriel Bowser have placed an emphasis on housing affordability and production of housing for all income levels. DCHFA has partnered again with H2 Development and City First Bank to construct Cynthia Townhomes in Ward 8’s Marshall Heights community. The first phase, five townhomes, will be completed this year followed by two additional phases with five homes all priced affordable for middle income homebuyers. WI

LEARN HOW YOU CAN PURCHASE YOUR HOME IN D.C. USING A DC OPEN DOORS MORTGAGE PRODUCT, HPAP AND/OR THE MORTGAGE CREDIT CERTIFICATE

DCHFA 815 FLORIDA AVE., NW WASHINGTON D.C. 202.777.1600 www.DCHFA.org #DCHFAINNOVATES

THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2019 / www.washingtoninformer.com

Aging in Place: Converting a Family Home into Senior Friendly Living Space Aging in place becomes easier with home modifications that can include handrails, guardrails, and stairlifts. / Courtesy photo

Lee Ross Special to the Informer Like a growing number of Baby Boomers, Diane Morgan-Brown faced the dilemma of caring for her aging parents while living more than 400 miles away from them. Brown’s parents, Rupert and Estelle Morgan,

refused to move into a senior living facility, despite her dad’s limited mobility due to hip replacement surgery, because “they believed they were too vibrant to settle into senior-hood.”

They also would not hear of moving in with either of their two children.

“My parents are very independent and want their privacy. The idea of

living with other people, especially in my home with two small children, was not a viable solution for them,” Morgan-Brown said.

Additionally, Morgan-Brown’s job would not allow her to relocate to be nearer her parents.

A solution, however, came late last year with the introduction of U.S.

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Verne’ Mann, Realtor 443-622-2390 VerneMann@yahoo.com Andrea Dalton, Realtor 443-278-5061 Ms.RealtyAndreaD@gmail.com

5 Simple steps to the home buying process: • Contact a lender for loan preapproval • Contact a realtor to assist you with the home purchasing process • Get a home inspection to insure there are no major issues with your desired property • Get an appraisal to insure the value of your desired property • Attend settlement and get your keys!

Department of Housing and Urban Development grants to convert multi-family housing developments in nine states to assisted living or service-enriched environments for elderly residents.

While the Morgan’s home, as a single-family unit, did not qualify for the initial grants, it did provide the family with an option of renovating the family home into a more senior-friendly space, rather than moving the family.

“HUD’s conversion program promoted seniors ‘aging in place’ – meaning new features were added to existing homes to make them safer and more accessible for seniors whose mobility was compromised or simply declining. My husband and I thought that with a few thousand dollars, we could transform my parents’ home into a place that mimicked assisted living safety,” Morgan-Brown, 54, said.

Millions of Americans each year tackle similar renovations. For the Browns, widening doorways, fortifying stairwells with extra railings, and refitting the bathroom did the trick.

For those faced with the same dilemma, remodeling experts recommend assessing, first, whether a home is suitable for remodeling. In many instances, poorly cared for structures require stabilizing efforts before remodeling can begin, causing costs to skyrocket. In some instances, moving into senior living facilities or moving in with family, may be a more cost-effective option.

QUICK AND (NOT SO COSTLY) RENOVATIONS

One of the most common ‘age in place’ renovations is widening doorways to accommodate wheelchairs and walkers. This is not a do-it-yourself job and requires a contractor, who will know how to do the job according to housing guidelines. And one cannot consider wheelchairs and walkers without also taking into consideration the dreaded stairwell.

Stairwells pose a particular challenge to many seniors, but adding

the electronic chair lifts – that literally glide seated riders from the one floor of their homes to another – can prove more costly than most budgets can secure. This was the case for the Morgans.

“My parents live in an old Victorian-style home with a pretty narrow stairway. We considered a number of renovations, but would have had to expand the width of the stair to landing and move them somewhere else while the renovations took place. It was also way too costly to do that just to add the chair lift,” Morgan-Brown said. “We opted instead for additional railings.”

Railings can be fitted to existing stairwells and throughout most homes at waist-length to aid those who, while not on a walker or in a wheelchair, may occasionally need to steady their balance. Similarly, light switches, countertops, and closets can be altered to accommodate wither wheelchair maneuvering or easier access.

Another key area of ‘age in place’ remodeling is the bathroom. Bathtubs, showers and sinks are typically redesigned together to ensure space, accessibility and safety in a room that is often slippery and therefore a hazard to seniors. Walk-in styled bathtubs and showers are common, but sometimes the bathroom simply requires that the height of basins and toilets be raised and support handles and bars be installed.

“This is the room we were most concerned about because it posed the most problems for seniors and so it is where we concentrated our efforts and funds,” Morgan-Brown said. “We went ahead and redid the entire bathroom with a seated walk-in shower and bannisters.”

“I believe there was a certain amount of inner turmoil my parents were feeling about moving out of their neighborhood and living among strangers. By improving their home, rather than moving them somewhere else, I think we saved money, benefitted their overall mental and physical health, and made everyone happy,” Morgan-Brown said. HS

www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2019

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Recommended Books on Home Remodeling

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Compiled by Lee Ross Special to the Informer Remodelista, Julie Carlson

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The website Remodelista is the go-to, undisputed authority for home design enthusiasts, remodelers, architects, and designers. Unlike sites that cater to all tastes, Remodelista, the book, has a singular and clearly defined aesthetic: classic pieces trump designs that are trendy and transient, and well-edited spaces take precedence over cluttered environments. High and low mix seamlessly and getting the look need not be expensive. Remodelista decodes the secrets to achieving this aesthetic, with in-depth tours and lessons from 12 enviable homes; a recipe-like breakdown of the hardest-working kitchens and baths; dozens of do-it-yourself projects; “The Remodelista 100,” a guide to the best everyday household objects; and an in-depth look at the ins and outs of the remodeling process. In a world of design confusion, Remodelista takes the guesswork out of the process.

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Home Remodeling: Planning Design Construction, Fine Homebuilding

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While new construction has slowed to a crawl and upgrading to a bigger house is no longer a sure thing, more and more homeowners are choosing to remodel. They’re actively looking for information on how to make their current home a better place to live.

This collection of 36 articles from the experts at Fine Homebuilding, the most respected residential construction magazine in the country, lays out detailed information on every stage of remodeling--from planning and design to building and installation, upgrades, finishing, and clean-up.

Coverage includes interior and exterior design and building strategies, as well as information on additions and tips for living comfortably through a remodel.

Need to get things

DONE?

Not So Big Remodeling: Tailoring Your Home for the Way You Really Live, Sarah Susanka, Marc Vassallo

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Sometimes small changes can have a big impact. But many homeowners looking for more living space still insist on building expensive additions or completely rebuilding their home. In the latest groundbreaking step in the Not So Big revolution, Sarah Susanka and Marc Vassallo demonstrate how carefully chosen tweaks and simple additions can make a home seem much larger and more inviting. They avoid high-end architectural solutions, focusing instead on how Not So Big ideas can dramatically improve even the most modest home. The authors show readers how to think like an architect, so they can accurately assess their homes shortcomings, apply Not So Big principles to their remodeling plan, and phase in their project incrementally over time.

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Your Eco-Friendly Home: Buying, Building, or Remodeling Green, Sid Davis

More and more people are becoming interested not just in living green, but particularly in living in a home that’s ecologically sound. With thousands of new eco-minded houses being built, and the real estate market becoming more attuned to homebuyers’ interests, demand for ecologically efficient living spaces is still exceeding the supply. Yet few resources exist for those wanting to build, buy, or remodel their own home to use less energy and be environmentally sensitive. Your Eco-Friendly Home shows readers how they can: find, finance, and buy eco-friendly real estate, work with eco-conscious agents and brokers, use environmentally friendly materials and techniques for interiors and exteriors, make their homes and landscaping more efficient, and take advantage of tax incentives for going green This practical, reader-friendly guide gives readers all the guidance they need to easily become ecologically responsible homeowners. HS

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Don’t dip into your savings.

A Home Equity Line of Credit can be a smart choice to handle home improvements, debt consolidation and other important needs. And it gives you the flexibility to borrow money now and in the future.

STAR (Steps Toward Achieving Results) Home Equity Loans* are also available to help meet financing needs.

Get started at AtlanticUnionBank.com/homeequity

Formerly Union Bank & Trust

NMLS # 551889 nmlsconsumeraccess.org

*The STAR Home Equity Loan is available to Virginia, North Carolina and Maryland residents who have property located in a low- to moderate-income census tract and/or have an income below 80% of the area median income as identified by the U.S. Census Bureau. Loan amounts range from $2,500 to $9,999. Visit a branch to apply.

THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2019 / www.washingtoninformer.com

Tips for Room Extensions

Knowing what housing additions you want and the projected costs, time, and regulations of the job make for easier, hassle-less extensions and additions. / Courtesy photo

Kaja Rae Lucas Special to the Informer For the growing scores of people who are settling down, having children and sending them to local schools, many want more space. In this case, a settled family may begin room extensions, rather than opting to move into a new home.

While renovations like this are expensive, a good plan, budget, and an understanding of the process will save time, money, and gray hairs.

Options for extensions are manifold but their requirements vary, some even necessitating permits or caution towards zoning requirements.

The three basic steps for a room extension or renovation are sim-

ple: research and plan, choose a contractor carefully, and hold your contractor accountable.

In the planning process for renovations, especially the more expansive renovations, take note of these things: first, integrated planning.

Make your renovation look like it is a natural part of the house.

This can be done with assistance

Homeownership is important.

We’re here to help first-time homebuyers navigate the mortgage process and make buying a home affordable, even if you have: • Little money for a downpayment • Little or “less-than-perfect” credit history • A recent job change To get started, call 1-888-253-0993 or visit mtb.com/mortgage.

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from designers or architects, or, if you think you have the skill, your own experience. Second, stick by your plan to the letter. The fastest way to make the renovation explode in costs is to move away from your original plan and make other changes. When you plan, plan in detail. Third, know the regulations surrounding your renovation.

Fourth, when planning, consider where your family will stay during the renovations.

Room additions and extensions are considered “building out.” This kind of renovation may require attention to zoning restrictions and may reduce lawn space. In the process, the hired contractor will dig up the part of the yard where the room addition or extension will go, adding a new foundation or slab. A change like a room extension or addition is no small task. It’s expensive and the return of investment is not always as high as one would hope.

There are other options, however.

There’s the option of “bumping out,” where space can be added if your home’s finished floor is above the landscape. Bumping out is less costly and can still offer enough space to add furnishing, and to expand the space of the room. Reusing materials also makes renovations less costly.

Second-story additions offer a great addition of space and will allow your family to live in the house while the renovations are underway. Another option for adding space is adding a dormer, a space in an attic that can easily be finished to add to the living space in your home. Finishing a room is also an option for adding space. To “finish” a space is to make it a new space to live in and adding heating and insulation. Basements and rooms over garages are usually a good bet

for a finishing job.

Cutting costs will likely be on any renovator’s mind. To keep costs down, make sure when you are planning, the renovation adds more value than the cost. Stick to off-the-shelf products instead of ordering madeto-order products, the price of the latter will build up and make the renovation more expensive. If you are trying to expand, survey the land you would be “building out” into, so look for trees, sewers or the like.

When searching for a contractor, consider what type of contractor you have found. There are four main types. There are chain stores, which frequently use subcontractors, have a permanent address, stand by warranties, and will likely remain in business. Commercial location contractors are often family-owned, or partnerships run out of a fixed location, meaning they will be far easier to contact. Travelling contractors, and anyone who comes to your door stating they want to help you make renovations, should be used cautiously.

Some questions to ask your prospective contractor: Do you do this type of work? Do you charge for an estimate? How long have you been in business? Do you have a license?

Can you give me references to other customers?

A final piece of advice, in your contract, make sure that there are the necessary notices that may be required by law depending on where you live. Make sure that the description of the work is in depth and clear. Ensure that the dates are correct, as well as the deposits and payments. Remember: room extensions and renovations in general are a big task and should be approached with caution. Know what you are getting yourself into and be careful. HS

Washington Informer: 5.65” x 6.1”

www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2019

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Strategies to Grow Black Homeownership

By Jeff Hicks President National Association of Real Estate Brokers and John Smaby, President, National Association of Realtors To many people in this country, homeownership is synonymous with the American Dream. Homeownership provides for stable communities, increases civic participation, and builds our feelings of self-worth and self-esteem. In fact, studies have shown that the children of homeowners go on to earn more as adults.

But, sadly, stark racial disparities in the rate of homeownership demonstrate that this dream remains out of reach for countless families and potential home buyers across the U.S. For example, the rate of homeownership for African Americans has returned to levels not seen since before the passage of the Fair Housing Act fifty years ago. The National Association of Real Estate Brokers, Inc. has documented the issue through its annual State of Housing in Black America reports.

In response to this continuing crisis, NAREB, the National Association of Realtors® and the Urban Institute recently convened a roundtable focusing on improving African American homeownership rates. A five-point framework that can be applied across all minority communities emerged and continues to be developed as we work to increase homeownership levels for all populations in America.

First, and perhaps most importantly, we are determining how to effectively advance relevant policy solutions at the local level. In any effort to address housing affordability and accessibility, the focus of our second principle, we believe state and local

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governments must take the lead on actions that will create additional opportunities for aspiring homeowners.

Specifically, these potential solutions emphasize the responsible expansion of small-dollar mortgages for purchase and renovation; the reform of local land-use and building codes; and the potential expansion implementation of property tax relief for low- and moderate-income taxpayers.

Additionally, as new Federal Housing Finance Agency Director Mark Calabria outlines his organization’s plans to reform – and end the conservatorship of – Fannie Mae and Freddie Mac, NAREB and NAR see an opportunity to secure an equitable and accessible housing finance system. This is the third principle in our five-point framework. All responsible and creditworthy Americans must maintain access to affordable and sustainable credit, and no American should pay more for or be unable to secure a mortgage simply because of where they live or the color of their skin. Responsible reform will maintain these critical tenants of our housing finance system.

Despite fifty years of genuine federal efforts in these arenas, white homeownership rates of 73.2% still significantly exceed black and Hispanic rates of 41.1% and 47.4%, respectively. A focus on sustainable homeownership and preservation for this nation’s minority communities represents our fourth point.

While rates for African Americans have regressed in spite of the presence of Fair Housing laws, it is clear that various institutional challenges must be faced and defeated in order to truly solve this problem. Namely, all mortgage lenders, staff at servicing companies and real estate agents must understand the importance of this issue and the impact housing discrimination can have on our nation’s economy.

By strengthening post purchase counseling; funding programs to prevent foreclosure for low- and moderate-income and vulnerable families of color; and building tools that help create early-warning displacement triggers, we can ensure first-time homebuyers have the knowledge and the resources to remain homeowners for the rest of their lives.

Finally, we believe accelerating outreach and counseling for renters and mortgage-ready millennials will be key to get our next generation of homeowners in the position to purchase property.

That can happen by revitalizing and improving tax credit incentives for renters who want to become owners; by expanding programs that automate saving for down payments; and by expanding the reach and effectiveness of financial education and housing counseling courses NAREB and NAR also strongly support the production of affordable housing and efforts to increase the supply of entry-level homes. We encourage states and municipalities to encourage African American home building entities, and we believe governments must consider the input

WWW.NAREB.COM

THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2019 / www.washingtoninformer.com

of local experts as they adopt zoning laws, building codes and other policies that encourage free market production of affordable housing units.

If America is to remain a nation of homeowners, we must address the persistent barriers that minorities continue to face. NAREB and NAR’s policy solutions and proposals represent a critical and much needed step towards ensuring the American Dream of homeownership is indeed available to everyone in this country.

For More information visit - www. nareb.com HS

Renovating and Upgrading Home are Key to Potential Financial Windfalls

By Stacy M. Brown WI Senior Writer @StacyBrownMedia

After renovation

Before renovation

One local expert, Jeffrey Watson of the District-based Quality Assurance Home Improvement Company, has for years touted that a two-story room addition he added to a client’s home increased the value of their home by nearly $300,000.

“My company installed two, two-story additions; one two-story addition on the left side of my

Adding value to your home usually yields a nice return on investments, and while some might believe additions and upgrades are mere vanity projects, experts say homeowners could reap huge financial benefits.

client’s home which included four rooms; and a second, two-story addition to the rear of the home with two rooms and a balcony off the bedroom,” Watson said of a major renovation project that allowed the homeowner to reap a large financial boost in value.

“Prior to installing, we assisted my client with going through a variance hearing because his prop-

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erty did not meet set-back requirements … after my client had his home appraised and found that the market value of the home had increased in value by an additional $300,000 as a result of the additional living space, my client was ecstatic,” Watson said.

It’s important that experienced, licensed and certified contractors perform such work because the outcome could have been disastrous, he said.

Research shows that by adding a deck, new windows, a bedroom, remodeling a kitchen or bathroom, or adding additional living space in the basement can increase home values between 75 and 91 percent of its cost, Watson said.

“As long as the home improvement project is properly installed by a licensed contractor like Quality Assurance Home Improvement Company, who ensures that set-backs are met, architectural drawings are done, proper permits are pulled, all applicable codes are met, and all state and local structural, electrical, and plumbing inspections are passed, we guarantee that the home owners will get up to a 100 percent or more return on their investment,” he said.

“This is evident by the homeowner receiving an updated tax and assessment on their home after the additions are completed,” Watson said.

As many observe National Homeownership Awareness Month in June, Watson knows that African Americans continue to receive the short end of the proverbial stick when it comes to homeownership.

That also holds true for making additions.

“In the African American community, people are often not aware of the mere fact that owning a home is a great investment,” Wat-

son said. “Ensuring that one maintains the appearance of that home inside and outside is critical to the return on their investment. Home improvements also beautify the community and motivate the neighbors to invest and beautify their homes as well.”

Additionally, improvements often command the attention of potential homeowners who might desire to live in a particular community.

“One would be surprised how much their property value increases by investing in a home improvement project. So, it is important to the entire community to invest in home improvement projects to maintain and increase the value of a home,” Watson said.

Watson advised that homeowners should consider the additional amount of living space they will receive when adding a room addition without investing in a new home.

They should consider adding decks and sunrooms to increase their living space, and also contemplate total renovations to upgrade electrical, plumbing, flooring, bathrooms, kitchens, insulation, windows, roofing, smoke detectors and drywall to bring the house up to current code for insurance purposes, he said.

“Homeowners should consider making their homes more adaptable and accessible to meet ADA compliance regulations for disabled Veterans, elderly, and handicapped individuals, specifically remodeling bathrooms, kitchens, and wheelchair ramps,” Watson said.

“Also, I’d suggest homeowners consider investing in energy efficient replacement windows. It is important for homeowners to take advantage of investing in modernizing their homes which statistics show also increase their value,” he said. HS

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Taking steps towards owning a home Homeownership is woven into the soul of America. Owning a home puts down roots in the community and grows strong families where people are invested in and care about each other. Our goal is to help you take steps towards homeownership. We’ll work together with people and programs to educate and prepare you as a homebuyer and support you as a homeowner.

We’re here for you. Let’s take that first step.

Call, stop by, or click today!

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