Models & Resources Supporting
Native Homeownership,
Homebuyer Education Overview
November 18, 2013
Presentation Overview
• Coalition survey results regarding
homebuyer education
• Types of homebuyer education
• Resources for homebuyer
education
2
COALITION SURVEY RESULTS
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Survey Methodology
• Online survey sent in June 2013 to 73
stakeholders including:
•
•
•
•
•
Tribal leaders,
Tribally designated housing entities,
State and federal representatives,
Lenders and Native CDFIs,
Nonprofits, and others
• 42% response rate
4
Obstacles to homeownership
in Native communities
1.
2.
3.
3.
4.
5.
Homebuyer readiness of clients (70%)
Infrastructure delays (66.7%)
Lack of local lenders (60%)
Lack of housing inventory (60%)
Hard to get construction financing (46.7)
Hard to access land (43.3%)
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Top three obstacles to
homebuyer readiness
Bad credit – 83%
Lack of credit history – 57%
Lack of info about process – 47%
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Top things Native homebuyers
want to know more about
Home buying process – 89%
How to repair credit – 78%
How to obtain and understand
credit report – 47%
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How tribes can support
homeownership
Make homebuyer education
mandatory for housing benefits – 50%
Offer homebuyer ed/credit counseling
an employee benefit – 48%
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TYPES OF HOMEBUYER EDUCATION
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Discussion Question
What types of homebuyer
education do you provide?
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Homebuyer Education Classes
Pros
Cons
• Provides overview of
home buying process
• Helps client understand
affordability
• Improves client’s ability
to maintain a home
• Provides guidance on
how to manage a
mortgage
• Difficult to get families to
attend
• Need instructors who
understand home buying
process
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One-on-one Homebuyer
Counseling
Pros
Cons
• Provides clients help
with each of their
individual situations
• Helps client to navigate
through the home
buying process
• Keeps client engaged in
the process
• Not as cost effective as
group classes
• Takes more staff time to
deliver
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Credit Counseling
Pros
Cons
• Helps clients to manage
their credit more
effectively
• Provides client with a
plan to improve credit
score
• Helps clients get out of
financial troubles
• Improves loan product
options and terms
• Some clients may not
feel comfortable
discussing financial their
financial situation with
counselors
• Takes a long time
• Must be delivered by
trained personnel
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Financial/Credit Coaching
Pros
Cons
• Helps clients reach selfdirected goals
• Customized to each
client
• Client-paced
• Provides accountability
• Addresses behavioral
economics
• Expensive to administer
• Clients may not
understand what
coaching is
• Takes strong
commitment from
clients
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Basic Financial Education
Pros
Cons
• Helps clients learn basic
banking skills
• Provides foundational
knowledge
• Explains the basics of
managing credit
• Difficult to get clients’
attention until they are
in trouble
• Must have trained
personnel
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Individual Development
Accounts
Pros
• Establishes savings
habits
• Helps clients prepare for
homeownership
• Matched savings for
mortgage downpayment
Cons
• Expensive program to
administer
• Difficult to find flexible
match funds and
operating funds
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HOMEBUYER EDUCATION
RESOURCES
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HUD Funding Sources
ONAP Programs
• NAHASDA Indian Housing Block Grant (IHBG)
• Administered by Tribe or TDHE
• Indian Community Development Block Grant (ICDBG)
• Competitive by ONAP region
“Big” HUD Programs
• Resident Opportunity Self Sufficiency (ROSS) grants
• Comprehensive Housing Counseling Grant
• Must be HUD Approved Housing Counseling Agency
• Neighborhood Stabilization Program
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Rural Development Funding
Sources
• 502 Loan Packaging
• Provides staff training
• Rural Community Development Initiative (RCDI)
• Matches funding of an intermediary to provide homebuyer
education
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SDHDA Administered Sources
• HOME – for homeownership development
subsidies
• Homeownership Education Resource
Organization (HERO)
• Serves as an intermediary in the state for:
• HUD Housing Counseling
• National Foreclosure Mitigation
• First-time Homebuyer Program
• Down payment assistance
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Ways to Build Staff Capacity
• NeighborWorks America www.nw.org
• Training scholarships through NeighborWorks affiliates
• National American Indian Housing Council www.naihc.net
• Training for NAIHC members and their partners
• Native Community Development Financial Institutions
(CDFIs)
• Can contract or partner with them to deliver homebuyer
education
• SDHDA Homeownership Education Resource Organizations
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Native Curricula
• Building Native Communities: Financial Skills for
Families financial education curriculum. Contact
Oweesta at (303) 774-8838 or www.oweesta.org
• Pathways Home: A Native Homeownership
Guide. Contact National American Indian Housing
Council at 202-789-1754 or www.naihc.net. Covers:
• The mortgage loan process
• How to prepare a family budget
• How to improve credit profiles
• How to avoid the pitfalls of predatory lending
• How to maintain a home and finances after purchase
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Individual Development
Accounts
• US Department of Health and Human Services (HHS) Office of
Community Service (OCS)
• Assets for Independence (AFI) funds IDA matches
• HHS Administration for Native Americans (ANA)
• Social and Economic Development Strategies (SEDS)
• Joint OCS/ANA
• Native Asset Building Initiative (NABI)
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Questions or
comments?
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