Categories: Articles, Rev. Dr. Charles Butler,
Home Buying in Harlem
Be Prepared to Buy Now
Rev. Dr. Charles Butler
H
ousing market values are continuing to soar higher and higher. Interest rates are hovering around 6.5 – 7.0%. There is a very limited stock of affordable housing available in the community.
The question that remains on the minds of many prospective first-time home buyers, but no one has an answer, is this – “Who can afford to buy a home in Harlem?” The question that many of the members attending my first-time home buying workshop series offered by Harlem Congregations for Community Improvement, Inc. (HCCI) are asking.
I’m sure the frustration level of many prospective first-time buyers is now starting to boil over. As the unfortunate reality of not being able to purchase a home in your own neighborhood begins to sink in, the challenge of completing the home buying process has become more difficult than ever. For people of African American descent, it has always been difficult. Although fair housing laws have been put in place by the government, racism and discrimination still exist in this country.
I know many prospective buyers who are “mortgage ready,”’ meaning having an adequate amount of money saved for the down payment and closing cost and possessing a solid credit history, were denied a mortgage for no reason at all except for their skin color. In many cases, they were not given a valid reason for having their application rejected. The bottom line is racial prejudice is a strong factor in the mortgage decision-making process. These buyers are effectively being systematically excluded from the housing market.
So, what can you do to buy a home in Harlem? It will not be easy, but if you want to own property in this community, you must do the following: (1) Save more money. In order to have a comfortable mortgage payment, put more money down, at least 10-20%.
This means that you must begin aggressively saving as much money as you can each month. Eliminate all wasteful spending. Set a goal to save at least 15% of your income each month. Stay focused on completing the home buying process.
(2) Consider starting a part-time job or developing a talent/skill to create additional monthly income. Since the home values have increased, more money will be needed to purchase. What can you do to earn more money? Consider starting a business.
(3) Discuss purchasing a home with trusted family members or friends. There is strength in numbers. You may need to include some additional buyers on the mortgage to be approved for the larger home values. I am seeing the development of a recent trend where family members are combining their incomes and resources to purchase multi-family homes in Harlem. This strategy can work and allows low-to-moderate income families to achieve their dream of homeownership.
If you are interested in attending the HCCI workshop or have questions regarding the home buying process, contact Rev. Dr. Charles Butler at (212) 281 4887 ext. 231 or email cbutler@hcci.org.
