Categories: Rev. Dr. Charles Butler,
Housing market values are soaring higher. Interest rates are hovering around 6.5%. There is a limited stock of available affordable housing in the community. None of these issues are surprising. The question remains on the minds of most prospective first-time home buyers is simply this – “Who can afford to buy a home in Harlem?”
This is the question members attending my first-time home buying workshop asked. I’m sure by now the frustration level of many prospective buyers has boiled over. The bitter reality of not being able to purchase a home in your own neighborhood is difficult to accept.
But you can change your reality. You do not need to accept this outcome. With determination homeownership in Harlem can happen! Understand, the challenge of completing the home buying process is difficult. For African American families 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 but are unable to purchase because they were declined for a mortgage. The reason being they cannot find anything that they can comfortably afford in Harlem. The bottom line is their pre-approval amounts are not high enough to purchase most properties in Harlem. They are effectively being priced out of the 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 will need to do the following: (1) save more money. In
order to have a comfortable mortgage payment, put more money down, at least 20-25%.
This will mean that you must begin to aggressively save as much money as you can each
month. Eliminate all wasteful spending. Set a goal that you will save at least 15% of
your monthly income each month. Stay focused on completing the home buying process.
(2) Think about taking a part-time job or developing a talent/skill to create additional
monthly income. Since the home values are high, much more money is needed for the
purchase. So, what can you do to earn more money? Consider starting a business.
(3) Consider 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 a recent trend of family members
combining their incomes and resources just to be able to purchase homes in Harlem. This
strategy can work and allow low to moderate income families to achieve their dream of
homeownership.
If you are interested in attending the workshop or have questions regarding the home
buying process contact Rev. Dr. Charles Butler at (212) 281 4887 ext. 231or email at
cbutler@hcci.org.
