Categories: Rev. Dr. Charles Butler,
The good news is home values in Harlem are stabilizing. The bad news is the home values are still high. This is good for existing homeowners, but very bad for prospective first-time buyers. The question going into this new year remains can anyone afford to buy a home in Harlem?
Unfortunately, the answer is not clear, homeowner does not appear to be available for most low-to moderate income families. However, there are some affordable Housing Development Fund Cooperative (HDFC) units available on the market. These units can serve as a starter home. You can build up some equity to later purchase your dream home. The one challenge with HDFC units is if sold for a profit, usually you will have to pay a flip tax meaning a portion of your equity must be given to the cooperative.
The first step in the home buying process is to an approved housing counseling program. Harlem Congregations for Community Improvement, Inc. (HCCI) offers a free monthly virtual seminar series. The program meets on Thursday evenings from 7:00 – 9:30 p.m. To register, go to our website – www.hcci.org – at the top of the homepage click on the tab for programs and services then home buyer education. Once you complete the registration form you will receive an auto response email confirmation and a link for the workshop. We have an open enrollment policy, which allows you to start at any point in the cycle.
The workshop is designed to help you with understanding the steps in the home buying process, how to assemble your home buying team of professionals to assist you through the process and provide you with terminology used in the industry. You will learn to calculate your debt-to-income ratio (DTI), the various mortgage products, FHA, SONYMA, Conventional, and Veterans. The workshop will provide you with websites to use in conducting research on potential properties. You will learn how to negotiate an offer and the different types of properties from single to multi-family homes, cooperative and condominium units.
Start now by creating a monthly household budget. This is the primary tool to help you with this calculation. The bank will determine your pre-approval amount based on your gross monthly income, but your budget is based on net income. Your other monthly living expenses will also have to be factored into the equation. These are crucial steps in the home buying process because you want to make sure that you will be able to meet your monthly mortgage obligation and these other expenses.
Your budget is the primary tool in the home buying process, it will tell you how much you can save, how much you can afford, and how soon you can buy. This again emphasizes the importance of saving as much money as possible to successfully buy in Harlem.
For more information on the home buying process contact Rev. Dr. Charles Butler at (212) 281-4887 ext. 231 or email cbutler@hcci.org.
