2021 Homeownership Supplement

2021 Homeownership Supplement

Big Mama’s House:

Protecting Family Properties to Build Generational Security

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In Memoriam Dr. Calvin W. Rolark, Sr. Wilhelmina J. Rolark THE WASHINGTON INFORMER NEWSPAPER (ISSN#0741-9414) is published weekly on each Thursday. Periodicals postage paid at Washington, D.C. and additional mailing offices. News and advertising deadline is Monday prior to publication. Announcements must be received two weeks prior to event. Copyright 2016

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PUBLISHER Denise Rolark Barnes STAFF D. Kevin McNeir, Editor Ron Burke, Advertising/ Marketing Director Shevry Lassiter, Photo Editor Lafayette Barnes, IV, Assistant Photo Editor John E. De Freitas, Sports Photo Editor Dorothy Rowley, Online Editor ZebraDesigns.net, Design & Layout Mable Neville, Bookkeeper Dr. Charles Vincent, Social Sightings columnist Tatiana Moten, Social Media Specialist Angie Johnson, Circulation REPORTERS Stacy Brown (Senior Writer), Sam P.K. Collins, Timothy Cox, Will Ford (Prince George’s County Writer), Jacqueline Fuller, Hamil Harris, D. Kevin McNeir, Kui Mwai, Lee Ross, Dorothy Rowley, Brenda Siler, Lindiwe Vilakazi, Sarafina Wright, James Wright,

INTRODUCTION

What Does Home Mean to You?

A lot has changed for many of us in the past year, and one change that stands out to me is how we think about our homes.

Home has always represented a place for family, and that part hasn’t changed. But the experiences of the last year has brought a new significance to our homes. For many, home is the spot where we worked out, conducted our business and sent our kids to school. It has been our gym, our office and our school.

As we celebrate Homeownership Month during June, the Wells Fargo team is excited to be able to bring you a variety of resources and ideas to think about as you embark on your own homeownership journey, whatever that looks like for you.

5 Chuck Bishop, head of National Diverse Segments, Some of you are buying for the first time and have intensely felt the Wells Fargo Home Lending need for a backyard when there was nowhere else safe to meet with your extended family and friends. Some of you are ready to step into a bigger home with more amenities or a smaller home with fewer rooms to clean.

I also realize there are those of you for whom homeownership still remains a dream yet to be achieved.

As a lender, we are aware that homeownership may not be available to everyone and that the Black homeownership rate significantly lags behind the homeownership rate of other racial and ethnic groups. We also know that the past year has been a tough one that impacted jobs, income and overall well-being.

At our company, we are working to open doors to homeownership for more individuals and families, including those adversely affected by the pandemic. We have incorporated low-down payment financing options into our suite of products, placed in-market sales employees in communities to provide access and support to potential buyers and built out a new closing cost credit program.

In fact, we recently unveiled our Dream. Plan. Home. Mortgage, which provides a 3 percent down payment on a fixedrate mortgage to eligible customers. In some metro areas, eligible customers may also have access to the closing cost credit, helping remove that cost as a barrier to buying. The mortgage program and the closing cost credit are designed for consumers with income at or below 80 percent of the area median income.

Wells Fargo believes deeply in the value of homeownership and helping you achieve a home that Wells Fargo believes deeply in meets your ever-evolving needs. the value of homeownership We want your homeownership dreams to truly be part of an Amerand helping you achieve a ican Dream that can be achieved in home that meets your an equitable, sustainable way.

ever-evolving needs.

PHOTOGRAPHERS John E. DeFreitas, Ja’Mon Jackson, Shevry Lassiter, Roy Lewis, Jr., Robert R. Roberts, Anthony Tilghman

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Our House - Keeping Homes Black-owned in D.C.’s Wards 7 and 8

Exploring Black Homeownership in D.C.’s Ward 7 and 8 What’s behind the loss of Black homeownership and displacement in D.C.?

Gentrification is notably the number one cause for the displacement of low-income and Black residents in D.C. But how does gentrification happen?

And, what are the examples of gentrification causing long-time District residents to be pushed or priced out of their homes?

Why are some neighborhoods targeted to gentrify, and what are the long-term adverse effects of gentrification on building and sustaining wealth for Black D.C. residents?

Residents in Wards 7 and 8 have watched economic and housing growth across the city, and they are bracing themselves for a shift that is storming its way to their doorsteps. They foresee a takeover of what was once an affordable community to live in despite what others have historically viewed as neighborhoods that are geographically, economically, and racially unattractive.

American families in Wards 7 and 8. The project will also examine the short-and long-term consequences of the COVID-19 pandemic moratorium on mortgage foreclosures soon to be lifted in D.C.

The Washington Informer, in partnership with the Center for Public Integrity, announces a yearlong journalism study to determine the factors causing Black and low-income residents, including seniors, in Wards 7 and 8 to lose their homes. The project will also explore the sources of information and public or private resources to help residents save their homes.

Our House: Keeping Homes Black-Owned in D.C.’s Ward 7 and 8 is a year-long journalism project that will include a series of articles about gentrification, tax sales and foreclosure published in The Washington Informer, a bi-weekly e-newsletter, community events, data reports, and personal testimonies from residents to determine to what extent property tax sales – also known as the “gentrification tax” – are impacting homeownership among African

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Yes

No

Are you a homeowner?

Yes

No

If you are a homeowner, how long have you owned your home?

Years If you are a homeowner, what resources made it possible to purchase your home? (savings, homebuyers assistance program, inheritance, tax sale, other)

Do you live in a multigenerational household? Yes

No

“I am extremely excited to engage in this work that will address a critical issue – gentrification – that has played out across the District and how it is displacing residents east of the Anacostia River,” said Washington Informer Publisher Denise Rolark Barnes.

If you’re not a homeowner, what are some of the barriers or obstacles you have faced that prevented you from buying a home?

“This project will provide a newsletter offering a one-stop source of information about gentrification and resources available to help residents keep their homes,” Barnes added. “Data research and analyses provided by CPI will deliver added value to residents, community groups, policymakers, elected officials and financial institutions that play critical roles in the preservation and gentrification of Black neighborhoods.”

Do you have an older relative who owns a home in Ward 7 or 8?

Do they have plans for their property in the future? If so, what are they?

Times have changed though, and neighborhoods in Wards 7 and 8 are quickly becoming the hottest real estate markets in the city.

GENTRIFICATION IN D.C. HAS REACHED ITS LAST FRONTIER.

Do you live in Ward 7 or 8?

Interested in learning more about Black homeownership?

In The Washington Informer’s annual Homeownership Issue published Thursday, June 10, in recognition of Home Ownership Month in June, readers will find the project’s first survey soliciting residents’ perspectives on gentrification and its impact on their neighborhoods.

The Informer has also launched the Our House landing page, where the survey and other information is posted on the Informer’s website at www.washingtoninformer.com. Readers can also sign-up for the Our House Newsletter to be delivered bi-weekly by email.

What changes have you seen in your community since you’ve lived there?

Have they received inquiries from individuals asking to purchase your home?

Yes No If you found yourself faced with the likelihood of losing your home, do you know where to go to find help?

Are you aware of any neighbors who were on the verge of or lost their home due to unpaid property taxes?

Yes No If so, how did things turn out?

2021 WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT / www.washingtoninformer.com

You can also complete this survey online by using this QR Code

Decoding The Down Payment

By Ernest Campbell, Market Manager, Wells Fargo Home Mortgage

The tools you need for the path ahead You’ve worked hard, you’ve planned — now you’re on your way to buying or refinancing a home. Like any new project, having the right tools makes a big difference.

As a valued customer at Wells Fargo Home Mortgage, you’ll have access to a range of resources for new homebuyers, so you can equip yourself with the knowledge to make informed decisions about your loan. Our experienced home mortgage consultants are ready to support you and to answer any questions you may have along the way.

Working together, we’ll help you navigate the road home.

Let’s connect.

Information is accurate as of date of printing and is subject to change without notice. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2021 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801.

When it comes to buying a home, one of the things that always seems to give potential buyers pause is the worry about how much they need to have saved for the down payment and closing costs.

Certainly, buying a home is a major financial commitment, and lenders expect potential buyers to show their investment in the purchase by being willing to use some of their own money to help fund the purchase.

However, the Black community has traditionally fallen behind other racial and ethnic groups in homeownership rates, with the down payment being a significant hurdle.

Racial inequity has also created a wealth gap that makes it harder for Black families to build savings or put forth a down payment.

Having tools, strategies and facts to approach the down payment is a good way to plan for your home purchase and take some of the worry out.

To start, many potential buyers don’t know how much money they need.

According to the 2019 Profile of Home Buyers and Sellers by the National Association of Realtors®, the median down payment for homebuyers is 12 percent of the purchase price — which would be $24,000 for a $200,000 home, for example.

The Urban Institute, using Freddie Mac data, shared in a recent report that more than 1.7 million mortgage-ready young Black renters could afford a median-price home in the 31 most-populous metropolitan statistical areas if they could come up with a 10 percent down payment So, if you don’t already have significant savings in the bank, where do those funds come from?

A number of programs are available --- offered both through lenders and in many local communities – that can help substantially reduce the amount of up-front cash you need to buy your home. We work with customers to pick a loan op-

tion that meets their needs and layer in programs designed to help with the down payment and closing costs where possible.

Let’s start with loan options. The old adage is that you need 20 percent down to purchase a home, and that really isn’t so. Most lenders offer low down payment options that help potential buyers get past the down payment hurdle. Our Dream.

Plan. Home. Mortgage allows for as little as 3 percent down for borrowers with household income at or below 80% of the area median income.

We also offer VA loans, which don’t require a down payment at all for customers who meet all eligibility requirements. A home mortgage consultant can discuss current VA eligibility requirements, Dream.

Plan. Home. Mortgage eligibility requirements, and other loan options that may be available to you.

As you consider loan options, it’s important to know that if you decide to make a lower down payment, your monthly payment will likely be larger and you may need to purchase private mortgage insurance, often referred to as PMI. You will need to balance the down payment against what you want your monthly payment to look like and make a decision about what works for you and your budget.

Another thing to look for is down payment assistance programs, one of which is Wells Fargo NeighborhoodLIFT and other LIFT programs, a collaboration with the Wells Fargo Foundation, and NeighborWorks® America and its network members. The program has helped more than 24,700 Americans become homeowners through down payment assistance.

Some lenders offer closing cost credits as well, such as the up to $5,000 credit we offer in parts of the Washington, D.C., area to help cover non-recurring closing costs

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Walking with you on your home financing journey Thinking about buying or refinancing a home? It’s an important decision, sometimes as overwhelming as it is exciting.

When you choose to work with Wells Fargo Home Mortgage, you’ll learn about loan options for your unique needs, and the necessary steps to help you reach your goals.

Our knowledgeable, experienced team will provide personalized service and timely follow-through, so you’ll have the confidence you need to move forward toward closing.

Together, we’ll turn home financing ideas into a roadmap for action.

Let’s connect.

Information is accurate as of date of printing and is subject to change without notice.

Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2020 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801.

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2021 WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT / www.washingtoninformer.com

Wells Fargo Has Programs to Help African American Homebuyers in Sellers’ Market

By Stacy M. Brown WI Senior Writer @StacyBrownMedia

5 Chuck Bishop is the senior vice president and head of diverse segments at Wells Fargo Wells Fargo Home Lending.

Homebuying season is in full swing, and buyers face tough competition in a decidedly sellers’ market.

With demand for housing strong, fewer houses on the market, and mortgage interest rates at their lowest in years, African Americans and firsttime buyers face an uphill battle to secure a dream home.

“It is a sellers’ market for African Americans, particularly as we have such a huge gap in our ownership status,” said Chuck Bishop, the senior vice president and head of diverse segments at Wells Fargo Home Lending.

“African Americans are going to see strong competition for houses with shorter listing times because homes are selling at about 18 or 19 days, depending on the community,” he said.

Bishop continued: “When you have a hot real estate market like in Washington, D.C., and you see really quick turn times on listings, it tells the customers that they are going to have to be prepared as they embark on this journey.”

Professionals at Wells Fargo are working to assist buyers, particularly African Americans.

The banking giant expanded several programs to bolster minority homeownership.

The enduring power of home To help effect real and lasting change, we must forge the pathways to homeownership, generational wealth, and community stability, that for too long were barred to those who tried to walk them.

Because a home is not just four walls. It is the legacy of the past, the pride of the present, and the promise of the future.

When you turn the key for the first time, it’s more than the completion of a process.

It’s a family celebration, a joyful milestone, a highlight in the arc of a life.

When you’re ready to discover home, we’ll support you every step of the way.

Let’s connect.

Information is accurate as of date of printing and is subject to change without notice.

Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2020 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801.

In 2017, Wells Fargo pledged a $60 billion commitment to increasing Black homeowners by at least 250,000 by 2027. As part of the commitment, the company is dedicating $15 million in homebuyer education and counseling.

“A commitment in support of Hispanic homeownership is also in place, and each program is supported by extensive investment in financial education,” Bishop stated.

Bishop exclaimed, officials at Wells Fargo are keenly aware of racial disparities in homeownership, and the bank is committed to playing a role in closing the homeownership gap.

“While we don’t have the ability to impact home prices, we do have an opportunity to affect mortgage cost,” Bishop noted.

Among the programs touted by Wells Fargo is the bank’s Dream. Plan.

Home. Mortgage and Closing Cost Credit. The program contains components to assist potential buyers.

The closing cost credit, available in certain counties in the DC area, will provide up to a $5,000 credit that buyers can apply toward closing costs and use for items like appraisal fees, processing fees, title-related fees, recording fees, and local and state tax stamps.

Bishop said that borrowers with a combined income of up to 80 percent of the region’s median family income level are eligible for the program if they purchase a home in which they plan to live.

“That’s a healthy contribution for this market based on sales price,” he noted. Other components and programs offered by Wells Fargo include allowing buyers flexibility with a limited credit history, less-than-perfect

credit score, and those with non-traditional credit.

“Limited credit or FICO score doesn’t mean we are not creditworthy,” Bishop remarked. “It could mean that we want to avoid debt.

Look, my mother always said, ‘if you don’t have cash, there’s no need to get it now.’”

Bishop noted that for some loan programs, Wells Fargo would consider timely rent and other forms of non traditional bill payments when measuring creditworthiness.

“We want to help people who need help the most,” he proclaimed, adding that the District and surrounding areas have nonprofit agencies and HUD approved housing counselors that can help guide individuals to find grants and ways to secure down payment funds.

Bishop also underscored the importance of being prepared during a decidedly sellers’ market. “It is important for the customer to find the money first and focus on their bid,” he said.

“Make sure you get pre-approved and have all documentation in place, like tax returns, extension filings, bank statements, and paystubs.”

Bishop concluded: “When it comes to buying a home, it is an emotional initiative. You are talking about someone’s residence, their money, and their family. Buying a home is an emotional experience, and because of that, I encourage people to be really thoughtful and patient with the process. Have a plan, get pre-approved, and identify what’s critical and what is not critical in the home because, in this market, you will absolutely have competition.”

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one-time gift or an inheritance.

The down payment can be a hurdle in homebuying, no doubt. While this is important area for more focus by lenders, policymakers and more, there are resources and programs available now that can help. If this part of buying a home gives you worry, reach out to your lender or a HUD-approved (U.S. Department of Housing and Urban Development) housing counselor to talk about your situation.

Don’t let the down payment stand in your way.

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for eligible buyers with low- to moderate-income.

Finally, you may be able to use a gift from a relative, friend, employers or non-profit organization – a gift can be included in your down payment as long as the funds are not expected to be repaid. While many of us can’t rely on this as a way to pay for a down payment, it’s always heartening when a friend or relative wants to help you on your homebuying journey whether it’s a

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How Military Families Can Navigate Home Buying In Uncertain Times

By Leonard Campbell, Branch Manager and military veteran, Wells Fargo Home Mortgage Like many Americans, the recent pandemic may have you thinking a lot about your current living space – and also thinking about buying a home right now. If you’re a military service member, veteran or family member, both new and tried-and-true tools and resources can streamline the process.

To get you started, Wells Fargo Home Lending is providing these insights:

• ASSESS YOUR READINESS:

The decision to buy is personal.

Take into account your goals and financial circumstances. Interest rates are still very low, so if you feel financially ready, this is a great time to look.

If you decide to move forward, it’s important to be realistic about what you can afford, and having a rainy day fund to fall back on is a

good sign of your readiness. Don’t overextend yourself in buying.

Leave yourself with the ability to weather economic cycles and afford run-of-the-mill expenses for home repairs and updates.

• BUILD YOUR TEAM:

Enlist the help of a home mortgage consultant who can help you navigate the process, as well as discuss financing options that fit your needs. This is especially true for military and veteran homebuyers.

A military lending specialist can help you make the most of the home loan benefits you’ve earned.

Consider working with a lender who understands the options available to military families.

• KNOW YOUR DOWN PAYMENT OPTIONS:

Not all financing options require you to put 20 percent down. For military service members and veterans, VA loans provide low- and no-down payment options for qualified borrowers, and do not require monthly mortgage insur-

ance. Other low down payment options to explore include Wells Fargo’s Dream. Plan. Home. Mortgage for borrowers with household income at or below 80 percent of the area median income, as well as FHA and rural lending programs. However, understand that more money down could reduce your monthly payments and interest paid over the life of the loan, and may also eliminate the need for private mortgage insurance or reduce your funding fee on a VA loan.

• LEVERAGE DIGITAL TOOLS:

While a recent realtor.com survey indicates that 63.6% of consumers looking for a home want to see a property in person before buying, many start the hunt online, and now you have better opportunities to do so.

And once you’ve found a property, lenders like Wells Fargo offer time-tested digital tools allowing you to handle many aspects of the loan process remotely, including signing

Four Things Vets and Service Members Need to Know When Buying a Home

By Leonard Campbell, Branch Manager and military veteran, Wells Fargo Home Mortgage If you’re a veteran, reservist or active duty service member, it’s important to know that there are

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special loan offerings you may be eligible for when buying a home.

As veterans and service members, we have earned the opportunity to become homeowners, and it’s crucial that we are well-informed about the benefits and options available to us.

The top four things to think about when buying a home: • Take advantage of free online resources that have been designed for military personnel and veterans so you can be a savvier home shopper. For example, Wells Fargo’s Hands on Banking for Military offers guidance on topics from banking basics and smart spending, to home buying and retirement.

• Before assuming you won’t qualify for a loan, talk to a lender.

Be sure to tell the lender that you have served or are currently serving in the military so that they can present the special options available to you, such as a Department

5 Leonard Campbell

disclosures, uploading documents and simply getting started. In the first six months of 2020, 53 percent of the Wells Fargo’s VA applications came through the online mortgage application. To contact a home mortgage consultant, visit wellsfargo.com/military. To access free resources that can help you be a sav-

vier home shopper, spend some time with Wells Fargo’s educational page, www.wellsfargo.com/myfirsthome.

For military personnel and veterans especially, rest easy in knowing that you have access to many resources that can make the home buying process a smooth one.

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of Veterans Affairs (VA) loan. This loan is a home loan guaranteed by the federal government, designed to help those who have served in the military obtain homeownership. The VA loan features no down payment for qualified buyers and allows for gifts or grants to be used in covering closing costs.

Plus there is no mortgage insurance required.

• A large portion of qualified loan applicants aren’t taking advantage of the low-to-no-down payment mortgage options available through VA loans. Indeed, in 2019, only 58 percent of veteran homebuyers used a VA loan, according to the National Association of Realtors. This may be due to the common myths such as that active duty servicemembers, National Guard members and reservists are not eligible. And many are also unaware that they can use their VA loan benefit multiple times by having their benefit restored by, for example, selling your home and paying the loan in full.

• Individual banks, not the Department of Veterans Affairs, offer VA loans, allowing you to work with a lender and a mortgage professional with whom you feel comfortable. You should feel empowered to shop around and find the lender that will best meet your needs.

At Wells Fargo, we have a specialized team that understand the unique military needs of military and veteran customers and are trained to help them make the most of the home loan benefits they’ve earned.

Developing a relationship with a lender you trust is also a good idea since you may later want to refinance and lower your payment using the VA Interest Rate Reduction Refinance Loan (IRRRL) program.

If homeownership seems daunting, know that the advantages of the VA loan can make it more financially and logistically viable. To learn more, visit wellsfargo.com/ military. HS

2021 WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT / www.washingtoninformer.com

The Case for Middle Income Housing

By Christopher E. Donald, Executive Director/CEO, DCHFA The District of Columbia Housing Finance Agency (DCHFA) is the city’s exclusive financier of affordable housing providing both debt and equity to facilitate the production, rental, and purchase of affordable housing. A significant portion of our work facilitates homeownership through programs like the Home Purchase Assistance Program (HPAP), DC Open Doors, DC4Me and the Housing Investment Platform (HIP)Equity Fund.

Middle income homebuyers are being squeezed out of the market. They are experiencing upward pressure from lower income buyers with access to grants and income restricted loans and properties. On the other end of the spectrum, market rate buyers are exerting downward pressure through all cash offers and/or significant down payments from the sales proceeds of their existing homes. Over the last 60-90 days it has not been unusual to see homes sell for more than 10-20

percent of their list price. The middle - fire fighters, teachers, nurses, EMTs, police officers, government employees and other entry-level white-collar professionals - are being pushed out.

The people who educate our children, keep us safe and run our city cannot afford to live here.

Home purchase opportunities for families earning between 60to 120 percent of the Area Median Income ($77,400 and $154,800) are evaporating. The median home price over the last year, May 2020 thru May 2021, has hovered around $650,000 and a 20 percent down-payment of $130,000 is out of reach for many first-time homebuyers. Down-payment programs in tandem with mortgage programs that allow higher loans limits with lower interest rates are essential to providing buyers access to homeownership.

In the past, Washington, D.C. has had land resources to facilitate the production of middle-income housing, and this continues to happen at District Towns on St. Elizabeth’s East

Campus (88 town homes), plans for homes at the Fletcher-Johnson School site (80+) and through the DC Department of Housing and Community Development’s Vacant to Vibrant property dispositions to developers. These public resources do have a limit. And despite these limits, Mayor Bowser has charged her administration to identify creative ways to address this challenge.

DCHFA has committed itself to solving the problem of middle-income homeownership through a two-pronged strategy: production and financing. The agency’s HIP program has committed $5 Million dollars to invest in building affordable single-family homes. This investment creates less expensive capital for homebuilders and in exchange these builders can offer lower priced homes.

To date, the program has delivered 30 town homes and has a pipeline of at least 50-100 more.

The second part of the strategy is the programs mentioned earlier, DC Open Doors, DC4Me, and

HPAP make homeownership more affordable through down payment assistance and higher loan limits than conventional loans. DC4ME specifically targets District government employees.

Homeownership has been the most frequent path to wealth building in our country: homeowners have a net worth of 80 times that of a renter.

Equity built through homeownership

HOUSING INVESTMENT PLATFORM

by the DC Housing Finance Agency

can help pay for college, create a business, and be passed along to future generations. The agency believes that equal access to beautiful, healthy, and affordable housing is essential to a strong, vibrant, and diverse city with thriving neighborhoods. The agency will continue to facilitate its mission through investments and loan programs that make this happen.

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Through the Housing Investment Platform (HIP), the DC Housing Finance Agency (DCHFA) is investing equity capital into development projects that produce workforce housing for middle class families in the District. The goal of the HIP program is to invest in real estate transactions that produce for sale houses, condos, and townhomes for people in the 60-120% median income range.

An investment from HIP significantly reduces the amount of capital the developer needs to contribute to the project, but in return the developer agrees to restrict sales to households making workforce incomes.

The Douglass - A Todd A. Lee Townhome Community 8 units, Ward 8

The Heights - A Todd A. Lee Townhome Community 33 units, Ward 7

The Anna - A Todd A. Lee Townhome Community 16 units, Ward 8

In addition, the program fosters neighborhood stabilization, increasing the tax base, the growth of the District’s small developer community who offers employment opportunities through the construction of homes.

Learn more at www.dchfa.org

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DC Open Doors makes homeownership in Washington, D.C. affordable by offering qualified buyers home purchase loans and down payment assistance.

• Open to first-time and repeat homebuyers • Open to all neighborhoods & wards • Residents and non-residents of D.C. can apply • Maximum Income: $151,200 • Maximum Loan Amount: $510,400

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2021 WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT / www.washingtoninformer.com

Maintaining Grandma’s American Dream

By Dr. Sophia Sparks WI Staff Writer It’s old, it creeks, and it leans hard to the right side of the property. So, why should you keep Grandma’s house? The short answer: The value is in the land. Land is not an infinite thing. The planet is mostly water, and no more land mass is being created.

Quite the contrary, it is projected that some land mass will be underwater due to global warming in a few short years. This makes land a valuable asset that can start generational wealth and a path to the American dream.

According to the Federal Reserve, the biggest transfer of wealth is happening now as the Baby Boom generation die and pass on their assets.

Generational wealth is any asset passed down from generation to generation and in the case of Grandma’s house, has equity which can be leveraged to finance family business ventures and improve overall financial hygiene.

Compass Realtor, Sunny Jones said determining whether to sell or keep an elder’s home should be faced with one question in mind? How will the decision impact the next generation’s financial outlook? “If you plan to sell Grandma’s house and blow through all the money on clothes, cars, and living it up, you might want to rethink your options. If your plan is to pay off debt and invest that money in other income generating vehicles that work for your lifestyle, selling may be the best option,” Jones notes. “Let’s say for example you will buy an apartment building to build a larger portfolio and larger returns. This can be a smart strategy to accelerate the wealth building process for your family.”

The COVID-19 pandemic has reemphasized the need of generational wealth. Access to these assets were the lifeline for most after losing their jobs or receiving a pay cut.

Emily Moss and her colleagues at Brookings found that though wealth

accumulates with age, the persistence of wealth gaps at every stage of the life cycle of African Americans further reflects disparities in the intergenerational transfer of wealth via inheritances. In addition to selling family properties – they were often done so at a loss, due to devaluing Black-owned property.

“Majority-black neighborhoods hold $609 billion in owner-occupied housing assets,” Brookings research concluded in 2018, and “in the average U.S. metropolitan area, homes in neighborhoods where the share of the population is 50 percent Black are valued at roughly half the price as homes in neighborhoods with no Black residents.”

The more involved answer to the question of whether or not to keep Grandma’s house: Invest in your history, if possible and work to renovate and maintain ownership. Historian Saul Dorsey said that because gaining access to property and maintaining

family homes proved particularly difficult for Black families, undiscovered histories can be found in the bricks and mortar of Grandma’s home.

“We were born and died in our family homes, and many of those houses were built by the Black males of the family and community. These homes survived racial hostilities, banking discrimination, and city rezoning, in some instances,” Dorsey said. “We owe it to our forefathers and foremothers to hold fast to their properties.”

Dorsey and Moss suggest finding funds to modernize family homes, especially if they are located in historical districts. In many instances, local historical societies will assist in maintaining these structures. Applying for grants (money provided for a specific purpose, like adding solar panels), is also a good way to add equity to the home and keep it viable.

Finally, build on Grandma’s legacy through budgeting efforts, saving, and investing. Ensure future generations

do not lose the wealth by preparing the successors to maintain it. Provide Black youth with an education not only in a trade or profession (plumbing or electrical work) that can ensure the upkeep of the home, but also in the economics of homeownership.

Lastly, have your final affairs in order.

Much generational wealth is lost due to fees associated with probate court.

Create a will or trust and protect your family’s future.

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First Time Homebuyers Club Homeownership is a vital tool for building generational wealth.

Purchasing a home for the first time can be a daunting task if you don't fully understand the home buying process.

The GWUL Homebuyers Club, supported by Capital One Bank, will counsel you on how to get started buying your first home. Our certified housing counselors will walk you through the entire home buying process from loan to closing.

Take your first step and apply today. You won't want to miss this program full of the essential information you will need to get you in your first home!

Apply at gwul.org/homebuyersclub or email HousingServices@gwul.org www.washingtoninformer.com / 2021 WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT

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Chase Expands Grant Program to Help Families Buy a Home and Stabilize Minority Communities Chase expands program to offer $5,000 for upfront costs as part of its $30 Billion Path Forward commitment Chase Home Lending has expanded its grant program to $5,000 to help more customers cover closing costs and down payment when buying a home in 6,700 minority neighborhoods nationwide.

Qualified customers can receive an additional $500 by completing a certified education course and getting a DreaMaker mortgage through Chase.

Increasing the grant to $5,000 and expanding it geographically is another step in the firm’s $30 billion Path Forward commitment to help close the racial wealth gap. That includes helping an additional 40,000 Black or Latinx families buy a home over the next five years.

“This grant is a positive step in helping to stabilize and revitalize communities across the country,” said Cerita Battles, head of Community and Affordable Lending at Chase. “We’ve hired more people to reach Black and Latinx communities and are redesign-

ing our mortgages to help more families achieve homeownership.”

The grant is designed for properties in the 6,700 communities identified by the U.S. Census as majority Black because they have lower homeownership rates and wealth creation. In the fourth quarter of 2020, the U.S. Census reported the black homeownership rate was 44 percent, the lowest among all minority groups. We will continue to expand our programs to help increase homeownership nationwide.

For more information, or to find a Chase Home Lending Advisor in your area, please visit www.chase.com/communitylending.

Chase’s 2021 Homebuyer Grant: • Available on DreaMaker, Standard Agency, FHA and VA mortgages • $5,000 can be used toward closing costs and down payment • Can be combined with $500

Chase homebuyer education benefit (available on income-based DreaMaker mortgage) • Based on property Census tract requirements • Eligible for purchase mortgages on a primary residence only These tips can help consumers as they begin the homebuying process: • Research grants and other down payment assistance; there may be more options than you think • Build a team of trusted advisors to help you throughout the process – such as a real estate agent, home lending advisor and friend or family member • Assess your current financial situation to understand what you can afford • Use free digital tools to build your budget and understand your credit For more information or to find a Chase Home Lending Advisor in your area, please visit www.chase.com/communitylending.

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JPMorgan Chase Helped One Area Man Realize the American Dream of Homeownership

By Stacy M. Brown WI Senior Writer @StacyBrownMedia Two years ago, Daniel Davis wanted to buy a house, so he enrolled in a Greater Washington Urban League housing class.

Despite a decided sellers’ market where homebuying is as challenging as ever, and through the support and assistance he received from the Urban League and JPMorgan Chase, Davis counts among the District region’s newest homeowners.

“I benefitted from Chase, in general,” Davis said in a telephone interview with the Washington informer.

“Once the property was under contract – and I’m a first-time homebuyer – it took a little longer to close, but Robert really helped and made it a [great process].”

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Robert Kirkland, Chase Divisional Community & Affordable Lending Manager, said the goal is to make the home buying experience easier for first-time homebuyers – particularly those in communities of color.

That goal became more reachable earlier this year.

That is when Chase announced it would double its homebuyer grant program where qualified homebuyers in predominately Black and Latinx neighborhoods could receive a $5,000 grant to help with costs associated with purchasing a new home.

“A lot of clients get discouraged when seeking first-time homebuyer assistance,” Kirkland stated.

“A lot of times, those monies you receive from third-party sources come with additional time to close the loan.

We kept all of our resources internally when it was a matter of getting [Davis]

funds for a down payment,” Kirkland explained.

He continued: “This did not delay [Davis’] timeframe, which made him competitive.

At Chase, we offer a 21-day close guarantee. In this competing environment, it also provided him a leg up. We were able to put together a package for him that allowed him to move fast.”

The Chase grant helps cover a substantial portion of an applicant’s down payment or closing costs, which often acts among the biggest hurdles for new homebuyers, Kirkland remarked.

The grant program also counts as part of the bank’s $30 billion Path Forward commitment to help close the racial wealth gap.

That includes helping an additional 40,000 Black or Latinx families buy a home over the next five years, Kirkland said.

It is designed for properties in the 6,700 communities identified by the U.S. Census as majority Black because they have lower homeownership rates and wealth creation.

Chase’s 2021 homebuyer grant is available on FHA, VA, Standard Agency, and so-called DreaMaker mortgages. Eligibility is based on Census tract requirements.

“The program is simple on purpose,” Kirkland said.

“It is designed to reinvest in communities that are underserved. By design, it is to provide more resources for those in Black and Latinx communities.”

He continued: “We have added about 6,400 new Census tracts to our program, and more than 50 percent of lending is going to Black and Latinx communities.

Kirkland stated that Chase would

2021 WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT / www.washingtoninformer.com

continue to increase equity, affordability, and access to housing.

He said the bank would accomplish that goal by: • Originating 40,000 new home purchase loans for Black and Latinx households through an additional $8 billion commitment in mortgages • Helping an additional 20,000 Black and Latinx households achieve lower mortgage payments through refinancing loans totaling up to $4 billion • Financing an additional 100,000 affordable rental units through a $14 billion commitment in new loans, equity investments, and other efforts “The market is extremely competitive, and there are a ton of new homebuyers out there, and all of them are competing with each other,” Kirkland declared. “We see open houses with 30 people waiting in line outside to see the same place.

For more information or to find a Chase Home Lending Advisor in your area, please visit www.chase.com/communitylending.

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Stay Alert – Rental and Mortgage Scams Continue Submitted by NeighborWorks America As the COVID-19 pandemic continues, millions wonder when it will end. The traumas of a pandemic go much further than the obvious health implications of countless Americans. For many, the threat of homelessness is also top of mind as the end of federal foreclosure and eviction moratoriums will happen eventually.

The economic and financial impact of COVID-19 has made housing security even more uncertain for many Americans.

With forbearance relief programs ending and up to 21% of renters at risk of eviction, many families

are seeking solutions and finding themselves at risk of being taken advantage of through questionable programs and unscrupulous lenders.

In response to consumer need, NeighborWorks America, a nonprofit that creates opportunities for people to live in affordable homes and provides homeowners and renters financial counseling and coaching, is working to help protect consumers against foreclosure and eviction scams by giving consumers the resources they need to find trusted help and report illegal activity to authorities.

NeighborWorks has launched www.StopHomeScams.org to provide consumers with knowl-

edge to defend themselves against home scams.

“We want to emphasize how important it is for consumers to know the signs of a housing scam and quickly report any scam activities,” said Marietta Rodriguez, president and chief executive officer of NeighborWorks America.

“The Stop Home Scams campaign makes it easier for homeowners and renters in distress to protect themselves and help shut down scammers.”

Since the pandemic’s inception, authorities have seen an increase in housing scam activity targeting homeowners and renters particularly among seniors, low to moderate income families, and com-

munities of color.

One of the best ways that consumers can protect themselves is by knowing the warning signs.

Five of the most common warning signs that indicate you may be dealing with a scammer include: 1. A company/person asks for a fee in advance.

2. A company/person promises they can stop a foreclosure or eviction.

3. A company/person advises you to stop paying your mortgage

lender or landlord and pay them instead.

4. A company/person claims to be a part of a reputable agency.

5. A company/person asks for identifiable, personal or financial information.

Visit www.StopHomeScams.org to find more educational resources and necessary tips to help recognize and report a housing scam.

Knowing how to spot a scam before it happens is your best defense.

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With forbearance relief programs ending and up to 21% of renters at risk of eviction, many families are seeking solutions and finding themselves at risk of being taken advantage of through questionable programs and unscrupulous lenders.

www.washingtoninformer.com / 2021 WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT

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www.StopHomeScams.org

TOP 10 TIPS TO AVOID HOME SCAMS Knowledge is your best defense against home scams. The Stop Home Scams campaign has 10 tips to help homeowners and renters avoid them:

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1.

Avoid promises of success or anyone who guarantees to assist with payment or prevent foreclosure or eviction. No one can make this promise.

2.

Avoid companies that tell you to stop paying your rent or mortgage. Being told to stop paying is a sure sign of a scam.

3.

Reach out to your landlord or mortgage company when you are struggling with your monthly payments, to ask any questions or share concerns about your home.

4.

Do not pay any money to anyone who is not your mortgage company or landlord.

Never pay this person or business in cash or with a wire transfer, as this is a sign of a scam.

5.

Do not pay up front for a service that hasn’t been completed. A “money-back guarantee” is unnecessary when advance fees for mortgage assistance are illegal.

6.

Never give out financial, identifiable, or personal information without verifying the identity and credentials of who you are speaking with.

7.

Never sign any documents without having them reviewed by a lawyer or legal expert. A scammer may try to rush you into a binding agreement.

8.

Learn about the real options available to you as a homeowner or renter by speaking with a Housing Advisor at a HUD-approved counseling agency.

9.

Report suspicious activity to the appropriate authorities, such as the Federal Trade Commission (FTC) or Consumer Financial Protection Bureau. Visit our website for more info.

10.

Find more resources to protect yourself from scams by visiting: www.StopHomeScams.org.

We can provide helpful information including how to report a scam.

2021 WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT / www.washingtoninformer.com

Update on the Housing Market

By Bill Landon, CEO, George Mason Mortgage, LLC The impact of the pandemic has forever changed the way we approach our personal and professional lives.

One bright spot in the economy is housing. Low rates, driven by quantitative easing (QE) by the Federal Reserve helped fuel a boom in both mortgage refinancing and purchases, making 2020 the second best year in US history.

The Mortgage Bankers Association has forecasted that although the average rate for a 30-year mortgage will gradually increase over the next few years, it will remain historically low.

This means lower mortgage payments and bigger home buying budgets, which is great news for homebuyers.

The massive move to work-fromhome has many thinking about a place with enough space to accommodate a home office, or simply spread out a little now that everyone spends more time in their homes. New work-from-

home policies have also given many the freedom to reconsider where they live, allowing them to relocate to less expensive or otherwise more desirable areas without sacrificing their jobs.

These cultural changes combined with low rates and a shortage in the single family home inventory across the county has also generated a competitive housing market. But as America returns to work, supplies for build-

ers will return to needed production levels, new home construction will continue to rise, and ultimately the supply-demand imbalance will improve. In addition, the government is proposing multiple housing initiatives for low and moderate income buyers, which will increase the nation’s housing supply.

Homeownership remains linked to an effective way to build long-term wealth. Paying toward the balance of a mortgage, month by month, builds your equity instead of someone else’s.

Owning a home embodies the promise of individual autonomy and is the basis for several positive social, economic, family and civic outcomes.

Whatever your reasons for entering the housing market, 2021 could be your year to become a first-time home buyer. Find a mortgage lender you can trust, know your budget, and put your best foot forward in your offer. Then enjoy the beauty of owning your own home.

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Homeownership strongly remains linked to an effective way to build wealth. Paying toward the balance of a mortgage month by month builds your home equity and your investment rather than someone else’s. Owning a home embodies the promise of individual autonomy and is the aspiration of most American households.

Homeownership often allows households to accumulate long-term wealth and is the basis for a number of positive social, economic, family and civic outcomes.

A HOME COULD BE MORE AFFORDABLE THAN YOU THINK

THINKING OF BUYING A HOME?

Download our FREE Guide to Buying Your First Home!

1 (800) 864-6859

www.HomeWithGMM.com

George Mason Mortgage | NMLS ID: 153400 | Equal Housing Lender | Advertising Notice - Not a Commitment to Lend - Subject to Program Availability. All loan applications subject to credit approval. Annual Percentage Rate (APR), programs, rates, fees, closing costs, terms and conditions are subject to change without any notice and may vary depending upon credit history and transactions specifics. Other closing costs may be necessary. Flood and/or property hazard insurance may be required. To be eligible, buyer must meet minimum down payments, underwriting and program guidelines.

www.washingtoninformer.com / 2021 WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT

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WHY RENT WHEN YOU

CAN OWN

INVEST IN YOUR FUTURE Contact us today for a mortgage pre-qualification. or to Download Your Free Homebuying Guide

1 (800) 864-6859

www.HomeWithGMM.com

George Mason Mortgage | NMLS ID: 153400 | Equal Housing Lender | Advertising Notice - Not a Commitment to Lend - Subject to Program Availability. All loan applications subject to credit approval. Annual Percentage Rate (APR), programs, rates, fees, closing costs, terms and conditions are subject to change without any notice and may vary depending upon credit history and transactions specifics. Other closing costs may be necessary. Flood and/or property hazard insurance may be required. To be eligible, buyer must meet minimum down payments, underwriting and program guidelines.

H-15 HS-15 2021 WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT / www.washingtoninformer.com

Setting Yourself Up for Success in Today’s Housing Market

By Michelle Fields-Hall Senior Loan Officer, George Mason Mortgage, LLC. As we navigate into what feels like the long-awaited end of the pandemic, the housing market has made a major comeback. Low interest rates, which were part of the economic strategy to persevere through COVID-19, are making many consider taking advantage of this silver lining. If you are interested in buying a home, knowing what to expect and standing out as a qualified prospective buyer will give you a leg up in the current seller’s market.

A SELLER’S MARKET

Tight supply conditions and strong demand due to low interest rates have made the housing market highly competitive and fast-paced. When interest rates are this low, you can often afford more home for your money. This could mean lower monthly mortgage payments, the potential for a bigger

home buying budget, and even could save you thousands of dollars over the life of your mortgage loan.

While a lot of buyers are actively searching for a new home, there are significantly fewer homes listed for sale today than a year ago. Supply and demand is causing homes to sell rapidly while increasing home values simultaneously. Quick sales and mul-

tiple offers are now the new normal for many properties.

How to “Win” the Deal Getting Pre-Qualified is the first step you should take before beginning your search for a new home. It allows you to focus your home search on properties you can afford and gives sellers and their real estate agents confidence that you are ready to buy the home.

After receiving your pre-qualification and you have found the home of your dreams, you will need to move quickly and make your offer stand out from the crowd. Here are a few ideas you may want to consider when drafting your offer to position yourself for success: • Determine in advance how much over the asking price you are willing to pay (if any).

• Make a clean offer. It is best not to include contingencies if possible or have other financial constraints.

• Submit an earnest money deposit (EMD) showing you are a serious buyer.

• Cross your “t’s” and dot your “i’s”.

Double-check you are not missing any disclosures or important information for the purchase agreement.

• Be flexible with your closing date.

ABOUT GEORGE MASON MORTGAGE AND MICHELLE FIELDS-HALL

At George Mason Mortgage, we are here working for you. As a digital mortgage leader, we have the technology and security resources to make your home buying experience as

smooth and as safe as possible.

Whether you’re buying, selling, refinancing, or building your dream home, I welcome the opportunity to earn your business. Market conditions and mortgage programs change frequently, so quick and accurate real estate financing advice is crucial to making the best decisions.

With over 15 years in the mortgage business, I have helped many people achieve their goal of homeownership.

I take great pride in helping my clients determine the absolute best loan program to meet their individual mortgage financing needs. HS

Contact me with any questions you may have or to get started on your journey home – Michelle Fields-Hall Senior Loan Officer NMLS#: 270722 Phone: (443) 798-6112 Email: MFields-Hall@gmmllc.com www.gmmllc.com/michelle-fields-hall

How to “Win” the Deal: Getting Pre-Qualified is the first step you should take before you begin searching for a home. Not only does this help you focus your home search on properties you can afford, it gives real estate agents and sellers confidence that you are an earnest buyer and you will likely be able to go through with a purchase.

www.washingtoninformer.com / 2021 WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT

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IMAGINE YOUR FIRST HOME...IMAGINE ALL THE MEMORIES

YOUR FIRST HOME COULD BE MORE AFFORDABLE THAN YOU THINK Contact Us to Speak to a Mortgage Advisor or to Download Your Free Homebuying Guide

1 (800) 864-6859

www.HomeWithGMM.com

George Mason Mortgage | NMLS ID: 153400 | Equal Housing Lender | Advertising Notice - Not a Commitment to Lend - Subject to Program Availability. All loan applications subject to credit approval. Annual Percentage Rate (APR), programs, rates, fees, closing costs, terms and conditions are subject to change without any notice and may vary depending upon credit history and transactions specifics. Other closing costs may be necessary. Flood and/or property hazard insurance may be required. To be eligible, buyer must meet minimum down payments, underwriting and program guidelines.

H-17 HS-17 2021 WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT / www.washingtoninformer.com

11 Answers to Questions About Wills & Trusts

By Dr. Sophia Sparks WI Staff Writer

ney’s, corporate executors, and friends as the executor of their wills.

The family’s experience in distributing your assets after your passing is affected by how well the legal document was prepared. Transferring ownership of heirlooms, property, and other assets upon death is an involved process. The Informer interviewed several attorneys to determine whether a will or a trust best fits your needs. Here are 11 questions that will help you decide what is right for you.

Q: When can I file a will?

A: Wills cannot be filed until after death. In the District of Columbia, a will must be filed within 90 days of death.

Q: Can I write a will myself?

A: Yes. The District of Columbia requires the signature of two witness and include an attestation clause.

Q: Can a will be invalid?

A: Yes. If you hand mark through sentences of a signed will, it is invalid.

Q: Do I have to name my children or spouse as the executor of my will?

A: No. People have named attor-

Q: Does a will prevent the probate process?

A: No. The courts facility the distribution of the deceased assets, which includes creditors. The court process cannot be circumvented as you need the order from this process to access the deceased bank accounts if you are not a signer on the account.

Q: How much is probate court?

A: It depends on the type and value of your assets. In general, it is a flat percentage of what your assets are worth.

Example of fee paid during the probate process: attorney fee, court fees, executor fees, and asset appraisal fees.

Q: What actions are needed if my parents pass away and owned real estate in other states?

A: You will need to do a probate in each state the deceased owned property or assets.

Q: Are there any state taxes associated with inheriting assets?

A: This is state dependent. The District of Columbia amended its estate tax in 2020. If the estate appraises under $4 million per person, no tax is due.

Q: Does the federal government tax gifts and property transferred from one person to another?

A: There is inheritance tax applied by the federal government. You must file the estate tax with the IRS if the estate appraises for more than $11.7 million.

Q: Can my parent who has dementia sign their will?

A: No. The individual must be mentally competent to sign a will. If not, the will can be contested. This is one of a few ways that a will can be contested.

Q: Is a living will and living trust the same thing?

A: No. A living will describes your medical treatment wishes only. A living trust describes dealing of assets or financial affairs.

Q: If my will is not submitted to the

courts, then what?

A: Your assets will be treated as if you never wrote a will (Interstate). In this scenario, the state law dictates how the deceased assets will be distributed.

Choosing the right executor is important as it is their responsibility to file the will upon your death.

For additional information, please seek legal advice. Many firms offer free webinars, including The Collins Firm (https://mikecollins.com/) or PK Law (https://www.pklaw.com/).

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Contact our HUD certified housing counselors for free support at 855-449-2255 or (202) 265-2255 or housingetc.org/foreclosure-prevention Counselors will assess your financial status, negotiate with lenders and determine if you are eligible for up to 5 hours of free legal assistance.

These services are provided by the DC Department of Insurance, Securities and Banking in partnership with Housing Counseling Services, Inc.

www.washingtoninformer.com / 2021 WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT

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Give your A/C a break this summer Save energy and save money on Peak Savings Days.

This summer, save money by saving energy and raise the temperature on your thermostat. On Pepco’s Peak Savings Days, the less energy you use, the more money you could save on your bill.

Learn more at pepco.com/Peak © Potomac Electric Power Company, 2021

www.washingtoninformer.com / 2021 WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT

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JUNE 14-18, 2021

SPOHSKROW TNEMEGANAM YENOM

Have you always wanted to own a home?

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Live out your dream!

SIGN UP FOR OUR ONLINE WORKSHOPS June 14, 6-7 p.m.: Understanding Your Financial Relationship June 15, 6-7 p.m.: The Art of Budgeting June 16, 6-7 p.m.: Take Charge of Your Credit!

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DETAILS AND REGISTRATION Email info@caab.org or visit https://www.caab.org/en/starting-the-journey-tobecoming-a-home-owner to sign up.

Brought to you by Capital Area Asset Builders and the Greater Capital Area Association of REALTORS®.

2021 WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT / www.washingtoninformer.com

Speak The Language of Homeownership Equity & Finance

By Dr. Sophia Sparks WI Staff Writer COVID-19 has proven to all age groups that the end could be now. Death is not for the old and is one thing everyone has in common. Leave a legacy by being prepared for your passing. Assist your loved ones in transitioning into a life phase without you by having your affairs in order with either a will or trust. In preparing either of these legal documents, you may encounter many unfamiliar terms. The effectiveness of your documents depends on your understanding of the subject matter. Here are some key terms that will help in preparing for this process.

BASIC TERMINOLOGY OF A WILL

Bequest – a provision that leaves property to someone.

Bequeath – verb referring to leaving something to a beneficiary.

Example: “I bequeath my lawnmower to my grandchild Victor.”

Beneficiary – someone who receives an inheritance through a will.

Codicil – A document that amends an existing will.

Executor – the person selected to distribute assets according to your will after you pass.

Intestate – person who dies without a will.

Probate – the legal process through which a court examines, approves, and enacts the terms of a will.

Testator – one who makes and executes a last will and testament.

Testamentary trust – trust created through a will.

Will/ Last Will and Testament – communicates one’s final wishes as it pertains to their assets (house, car, or other owned assets) and dependents.

LIVING TRUST BASIC TERMINOLOGY

Estate Tax – tax on your right

to transfer property at your death.

After the net amount is computed, the value of lifetime taxable gifts (beginning with gifts made in 1977) is added to this number and the tax is computed.

Funding the trust – transferring assets into the name of the trust.

Gift Tax – tax combined with the federal estate tax.

Grantor/Trustor – person creating the trust.

Irrevocable trust – trust that cannot be changed or altered by the settlor. A living trust manages assets during life and after death.

Pour over will – will used with a living trust.

Revocable/living trust – trust that can be changed, altered, or even cancelled by the grantor at any time.

Beneficiary– person or entity for whom the trust was established.

Successor Trustee – manages and controls the assets upon death of the trustee.

Trustee – manages and controls the assets HS

FROM PRE-APPROVING YOUR MORTGAGE TO CLOSING DAY, WE WANT TO GET YOU HOME. At Sandy Spring Bank, we appreciate the value a real relationship brings to the mortgage process. A more thorough understanding of the local market. Thoughtful answers to your questions. And a trusted advocate to help you arrive at the best solution for your needs. Whether you’re looking to upsize, downsize or build a new home, you need a mortgage lender who treats you as not just a client, but a partner.

That’s real banking for real life.

Call 800.399.5919 or visit sandyspringbank.com/yourhome

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Member FDIC. Sandy Spring Bank NMLS # 406382. Wealth and Insurance products are not FDIC insured, not guaranteed, and may lose value. Sandy Spring Bank and the SSB logo are registered trademarks of Sandy Spring Bank. Real banking for real life.SM © 2021 Sandy Spring Bank. All rights reserved.

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Recent & Recommended Books on Black Homeownership

By Lee Ross WI Staff Writer Race for Profit: How Banks and the Real Estate Industry Undermined Black Homeownership / By Keeanga-Yamahtta Taylor By the late 1960s and early 1970s, reeling from a wave of urban uprisings, politicians finally worked to end the practice of redlining. Reasoning that the turbulence could be calmed by turning Black city-dwellers into homeowners, they passed the Housing and Urban Development Act of 1968, and set about establishing policies to induce mortgage lenders and the real estate industry to treat Black homebuyers equally. The disaster that ensued revealed that racist exclusion had not been eradicated, but rather transmuted into a new phenomenon of predatory inclusion. Race for Profit uncovers how exploitative real estate practices continued well after housing discrimination was banned. The same racist structures and individuals remained intact after redlining's end, and close relationships between regulators and the industry created incentives to ignore improprieties.

The Color of Law: A Forgotten History of How Our Government Segregated America / By Richard Rothstein Widely heralded as a “masterful” (Washington Post) and “essential” (Slate) history of the modern American metropolis, Richard Rothstein’s The Color of Law offers “the most forceful argument ever published on how federal, state, and local governments gave rise to and reinforced neighborhood segregation” (William Julius Wilson). Exploding the myth of de facto segregation arising from private prejudice or the unintended consequences of economic forces, Rothstein describes how the American government systematically imposed residential segregation: with undisguised racial zoning; public housing that purposefully segregated previously mixed communities; subsidies for builders to create whites-only suburbs; tax exemptions for institutions that enforced segregation; and support for violent resistance to African Americans in white neighborhoods.

The Hidden Cost of Being African American: How Wealth Perpetuates Inequality / By Thomas M. Shapiro Over the past three decades, racial prejudice in America has declined significantly and many African American families have seen a steady rise in employment and annual income. But alongside these encouraging signs, Thomas Shapiro argues in The Hidden Cost of Being African American, fundamental levels of racial inequality persist, particularly in the area of asset accumulation-- home equity and other investments. Shapiro reveals how the lack of these family assets along with continuing racial discrimination in crucial areas like homeownership dramatically impact the everyday lives of many black families, reversing gains earned in schools and on jobs, and perpetuating the cycle of poverty in which far too many find themselves trapped.

Know Your Price: Valuing Black Lives and Property in America’s Black Cities / By Andre M. Perry The deliberate devaluation of Blacks and their communities has had very real, far-reaching, and negative economic and social effects. An enduring white supremacist myth claims brutal conditions in Black communities are mainly the result of Black people’s collective choices and moral failings. “That’s just how they are” or “there’s really no excuse”: we’ve all heard those not-so-subtle digs. But there is nothing wrong with Black people that ending racism can’t solve. We haven’t known how much the country will gain by properly valuing homes and businesses, family structures, voters, and school districts in Black neighborhoods. And we need to know. Noted educator, journalist, and scholar Andre Perry takes readers on a tour of six Black-majority cities whose assets and strengths are undervalued, including Washington, D.C. He provides an intimate look at the assets that should be of greater value to residents—and that can be if they demand it. HS

NATIONAL HOMEOWNERSHIP MONTH DISB HELPS PROTECT YOUR FINANCIAL INTERESTS

Take advantage of free programs and resources available through the District of Columbia Department of Insurance, Securities and Banking (DISB) that will help you prepare for homeownership and maintain your home. u Looking to buy a home? Create a budget with Financially Fit DC at welcome.financiallyfitdc.com. u Having difficulty paying your mortgage? Facing foreclosure?

Call our foreclosure prevention hotline at 202-265-2255. u Has COVID-19 hurt your finances? Get in touch with a Financial Navigator who will help you access free resources.

Call 202-231-7908, email fn@upo.org or complete a form at finnav.org/interest-dc. u Have questions about your homeowners insurance policy?

Tune into DISB’s podcast on your homeowners insurance policy declaration page at disb.dc.gov/service/podcasts. u What is the difference between flood and water damage? Do you need flood insurance? Join DISB’s virtual forum on Jun 24 at 4 p.m. to learn how to protect your property and what to do if damage occurs. Visit bit.ly/3hqeloJ. u June 21-25 is DC Flood Awareness Week! Learn more about events and resources that will help YOU be prepared!

Visit ready.dc.gov/floodweek.

H-23 HS-23 2021 WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT / www.washingtoninformer.com

Appraisals – Buyer Tips for a Competitive Market

By Maceo Clark NMLS#807001 In today’s crazy real estate world and bidding wars, things tend to get out of hand as always in a seller’s market. In fact, Redfin reports nearly two-thirds of offers nationally have ended up in bidding wars, with 42% of homes selling above asking price. Offering below list price is just not an option right now, meaning homebuyers face one more challenge…a lower than expected appraisal.

In effect, the appraisal is the collateral for the loan. Lenders follow the li-

censed professional’s guidance no matter what anyone else says. Appraisals ensure that your new home is worth what you agreed to pay, and they help the lender know how much money to lend. Unless you pay in cash, an appraisal will come up in the transaction.

I offer four insider insights for buyers who may just be entering the housing fray.

MAKE IT QUICK…

In a seller’s market, a quick turntime on all aspects of the loan process will make a big difference. Especially

Let’s work together.

Mortgage bankers building community.

EagleBank’s Residential Lending team is dedicated to serving the needs of Washington DC’s home owners and buyers -- all with personalized service and options that meet your needs. Contact us to learn more.

if a seller has agreed to a contingency, a short timeframe will definitely be appreciated and may win the contract. A bank with a local panel such as EagleBank’s is made up of appraisers who are nearby and familiar with the market. They can accommodate rush requests even during busy times.

MAKE IT GO AWAY...

For conventional loans, an automated underwriting system is used.

A Fannie Mae or Freddie Mac automated report will often waive the appraisal requirement up to 80% loanto-value (LTV). (Super pro tip alert!

Sometimes an appraisal waiver will happen on higher LTVS up to 90%.)

This is especially true if the home has changed hands in the past five years, and a previous appraisal is on file.

If all parties agree to the value established by the waiver, no further appraisal report is needed.

MAKE IT RAIN…

There’s a greater chance in a hypedup market that a value will come in low. If that happens, be prepared to make up the entire difference. A realtor’s analysis can often predict a price close to the final value, but an appraiser’s report compares recent home sales nearby and takes into consideration the condition and replacement cost.

Knowing the financial impact of an escalation beforehand can make the appraisal process less stressful.

In other words, don’t let escalation clause win the contract but break the bank. Go for a home that fits the family budget. Renegotiating is not a sure bet these days.

MAKE IT WORK FOR YOU…

EagleBankCorp.com 202.292.1568

Many people think private mortgage insurance (“PMI”) is to be avoided at all costs. However, PMI can be a terrific tool for first-time buyers and those who don’t have a 20% down payment. On a conventional loan, a buyer can ask of the lender that the

MI be removed when 20% equity is achieved.

PMI can also overcome a low appraisal without drastically increasing the expected monthly payment or requiring buyers to significantly add more to the down payment. A onetime buyout of the mortgage insurance does not increase the monthly payment and may be surprisingly cheaper than the alternatives.

FINALLY, MAKE IT HAPPEN.

A low appraisal is an exception and certainly not a given. If you’re interested in buying a home, consider doing it now while interest rates are low. This can translate into tens of thousands of dollars in savings over the life of a loan.

Now, that is a thing of great value.

For mortgage payment calculators, go to EagleBankCorp.com/mortgages. Detailed info on credit can be found at https://myhome.freddiemac.com/resources/creditsmart.html.

Maceo Clark (NMLS# 807001) has extensive experience in the mortgage industry as a community lender and loan originator. He is also a long-time volunteer youth soccer coach, so EagleBank’s partnership with DC United truly hits close to home.

Maceo’s ongoing goal as a lender is to provide the best mortgage options and achieve the highest levels of satisfaction for his customers. He offers expert knowledge of Affordable Housing and First-Time Home Buyer resources, as well as refinance services. Maceo can be reached at MClark@EagleBankCorp. com or 301-850-2655.

EagleBank Residential Lending is not a credit counseling or financial advisement firm. This information is for educational purposes only and is not to be taken as guidelines or guarantees to improve your credit or financial situation or eligibility to secure a home loan. EagleBank is an Equal Housing Lender. NMLS# 440513. HS

All loan applications are subject to credit and property approval. NMLS# 440513

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Pathway to Purchase Home Ownership Program Funded with Over $760,000 To Assist First-Time Home Buyers The Prince George’s County Council recently approved $761,553 in funding for the Department of Housing and Community Development and the Redevelopment Authority’s home ownership assistance program, “Pathway to Purchase.” This program offers first-time home buyers up to $10,000 in down payment and closing cost assistance toward the purchase of their home. Home buyers can purchase a home anywhere in Prince George's County. Eligible residential properties include: new construction, resale, short sales and foreclosures.

Pathway to Purchase is a 0% interest loan program that must be paid back when the home is sold, transferred or ceases to be the primary residence of the buyer(s).

However, the loan repayment has a 10% decrease per year and after 10 years, it is forgiven and the lien is released.

“We are excited that we can continue to support this opportunity,” said Aspasia Xypolia, Director of the Prince George's County Department of Housing and Community Development. “This dedicated funding will help people get on the path to home ownership.

We are eager to continue our prog-

ress in helping families begin their pursuit of the American Dream.”

The maximum purchase price of homes utilizing Pathway to Purchase assistance is $361,000 for resale homes and $399,000 for new construction. Home buyers may use one of the following loan programs with Pathway to Purchase: FHA, Maryland Mortgage Program, VA or Conventional Loans.

The home must pass a Housing Quality Standards (HQS) Inspection as part of the application process.

The Redevelopment Authority of Prince George's County will administer the program. Home buyers must work with an approved mortgage lender to submit an application.

Since 2017, Pathway to Purchase, along with the Prince George’s County Purchase Assistance Program, helped 600 firsttime home buyers purchase their home.

For information on program income limits, buyer contribution, area median income and debt requirements, call the Redevelopment Authority on (301) 8835456 or visit: Redevelopment. mypgc.us WI

“We are excited that we can continue to support this opportunity,” said Aspasia Xypolia, Director of the Prince George's County Department of Housing and

If you are a firsttime home buyer, you could be eligible for up to $10,000 in down payment and closing cost assistance toward the purchase of your first home.

PATHWAY TO PURCHASE First-Time Home Buyers Assistance

Pathway to Purchase is a 0% interest, deferred payment loan. The loan is forgiven after 10-years as long as the home is your primary residence and you do not sell or transfer the home during the 10-year period.

Purchase Price Limits

•

$361,000 Resale

•

$399,000 New Construction

ELIGIBLE PROPERTIES

Any residential property including: • • • •

New Construction Resale Foreclosure Short Sale

LOAN TERMS

Purchaser may pay back the loan in full when the home is sold, transferred or ceases to be the primary residence of the buyer(s) within a 10-year affordability period.

For Information Call, 301-883-5456 or visit www.princegeorgescountymd.gov/865

Community Development. “This dedicated funding will help people get on the path to home ownership. We are eager to continue our progress in helping families begin their pursuit of the American Dream.”

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Home Buying Guide for Millennials

By Lisa Miller Scott for Literacy Institute for Financial Enrichment (LIFE)

Homeownership more affordable.

M&T has options to help you achieve homeownership.

You may be eligible for solutions to help: • • • •

Buying a home is a noteworthy accomplishment at any age, but recent years have seen this milestone achieved by younger buyers more and more.

According to the National Association of REALTORS® (NAR), millennials (persons age 22-40) continue to make up the largest share of home buyers at 37%, with Younger Millenials (age 2230) contributing 14% 1 Of course, not every recent grad is focused on becoming a home owner. Modest income, anticipated job changes, lack of credit history, and high student loan debt are just a few of reasons many millennials opt to continue to rent (or live with their parents.)

The first question many prospective home owners ask is “How do I know if I’m ready to buy?” Your financial footing is likely strong enough add home ownership if you have a stable income and an emergency fund, your debt-toincome ratio is low, you’ve paid down any high interest loans, and you’re consistently saving for retirement.

Once you’ve made the decision to buy a home, consider ways to make the venture more affordable, both during and after the purchase.

Opt for a low down payment. Requiring mortgage insurance makes down payments as low as 3% for conventional loans and 3.5% for FHA loans possible. Zero down payment loans are available through the Veterans Administration, the USDA Rural Development Program, and some credit unions.

Take advantage of assistance programs. Research state, local, and private programs that provide funds to reduce your down payment and closing costs. These may take the form of grants or no/low interest second mortgages.

Save money using sweat equity. A structurally sound home that needs cosmetic upgrades can provide more bang for your buck. Making upgrades yourself and adding wish list items over time not only conserves cash, but allows you to customize the home to your taste.

Make it income-producing. Renting space in your home, whether a room or a whole level, is a great way to defray the monthly payment. Of course, you should purchase a home that you can comfortably afford whether or not you have a tenant.

Develop your budget BEFORE selecting a house. Mortgage qualification only factors debts on your credit report, not your personal budget.

Keeping your budget front and center as you search will ensure that your new housing expenses are affordable and in line with your lifestyle.

1 2021 Home Buyers and Sellers Generational Trends Report, National Association of REALTORS® Research Group Established in 2003, LIFE is a 501(c)3 non-profit Organization that conducts financial literacy workshops for youth and adults. Our community-centric mission is to enable consumers to expand their financial knowledge, avoid and reduce excessive debt, develop self sufficiency, and create, preserve and transfer wealth. For more info, visit www.financialenrichment. org. HS

Reduce the cash needed at closing Lower monthly payments Save thousands by paying less interest Qualify with a less-than-perfect credit history

Get started with one of our mortgage specialists by calling 1-888-253-0993 or visit us at mtb.com.

Equal Housing Lender.

Certain restrictions apply. Subject to credit and property approval. ©2021 M&T Bank. Member FDIC. NMLS# 381076. 57100 210510 Washington Informer: 5.85” x 5.5”

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A happy place to call home Bank of America takes a strong stance in helping better our communities. We focus on issues that fundamentally connect to economic mobility — like workforce training, affordable housing and addressing basic needs. By partnering with organizations that drive local solutions, we can help people build better lives and create strong, sustainable local communities.

Visit us at bankofamerica.com/en/local/washington-dc.

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The enduring power of home To help effect real and lasting change, we must forge the pathways to homeownership, generational wealth, and community stability, that for too long were barred to those who tried to walk them.

Because a home is not just four walls. It is the legacy of the past, the pride of the present, and the promise of the future.

When you turn the key for the first time, it’s more than the completion of a process.

It’s a family celebration, a joyful milestone, a highlight in the arc of a life.

When you’re ready to discover home, we’ll support you every step of the way.

Let’s connect.

Information is accurate as of date of printing and is subject to change without notice.

Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2020 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801.

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