Community Housing Network Paving the Path to Affordable Homeownership

Through homeownership education and counseling with CHN, people better understand their options, avoid scams, and make more informed decisions

As a nonprofit organization committed to affordable housing, Community Housing Network (CHN) understands that homeownership is not just about having a place to live – it’s about building wealth, fostering community, and creating a sense of belonging.

Yet the dream of owning a home of one’s own feels out of reach for many Americans, especially people of color, young people, and people with low incomes who face historical and financial barriers to homeownership.

The challenges remain especially profound for Black Michiganders who are part of a stark 34-point gap in home ownership that has 79 percent of White households owning their home compared to just 45 percent of Black households – one of many findings that highlight racial disparities in the 2024 Michigan Statewide Housing Needs Assessment, published by the University of Michigan in partnership with the Michigan State Housing Development Authority.

The report, according to a recent University of Michigan News article, delves into a decade of data around the complexities of housing availability, affordability and accessibility – information city officials, urban planners, county commissioners, the pubic and anyone working in housing or in housing solutions can use to make informed decisions.

To that end, the report also details case studies that “highlight local innovations that respond to some of Michigan’s housing challenges.” Each case study features a housing-focused organization’s success story.

This month, during National Homeownership Month, CHN reaffirms its commitment to helping people purchase homes they can afford, including starter homes, regardless of their race, gender, class, age, language, disability, sexual orientation or gender identity, or any other social or cultural characteristic.

“Since CHN began, we have always been working towards providing homeownership opportunities in our communities,” said Kirsten Elliott, CHN President. “We know that homeownership is a vehicle for creating generational wealth and helping to lift families and individuals out of poverty. We continue to be committed to providing Avenues towards homeownership.”

But prospective homebuyers often don’t know or understand their financing options, and homeowners can encounter unexpected costs, struggle to maintain their initial payment plans, and encounter foreclosure rescue scams.

In addition, first-time homebuyers have been facing several challenges since the pandemic such as low housing inventory and interest rates driving double-digit growth in home prices causing heightened bidding wars between buyers.

For all of these reasons and more, CHN offers Homebuyer Education courses and confidential one-on-one housing counseling services. Research demonstrates that homeownership education and counseling, both for those considering a home purchase and for those who are already homeowners, can provide timely, powerful support as people assess their options and make decisions.

What You Gain from CHN’s Homebuyer Education Classes

• Learn how a credit score can make or break your financing ability.  
  A credit score is an important measure that lenders use when determining the risk of providing a mortgage loan. Most loan products have a minimum credit score requirement. If your credit is not up to par, it can limit your financing options. Some mortgage products base the mortgage interest rate on a buyer’s credit score.

• Preapproval is imperative to begin the home purchase process.
  Realtors and sellers will want to know that the buyer can proceed with a purchase if they find a home they want to buy. Mortgage lenders provide a preapproval based on the buyer’s income, debt and credit score.
   
• Choosing the right realtor is crucial.  A realtor who is knowledgeable and has plenty of availability will help a buyer find and purchase their home. It is best to find a licensed realtor who is familiar with the area the buyer is looking to purchase in. The buyer should be honest and upfront with the realtor regarding financing ability and their ideal home criteria.

• Home inspections are a vital part of the home buying process. While private home inspections are not typically required for a home purchase, they are highly encouraged. The inspection results can help a buyer determine if they want to proceed with the purchase, negotiate on the offer or back out of the purchase altogether. The buyer should indicate on their purchase agreement that they are opting to have an inspection and the offer is contingent on the results of the inspection. There is a small window of time in which the inspection must occur and any changes to the offer need to be made.

• Budgeting and saving should occur both pre- and post-home purchase.  Buyers should have a good idea of what income they have coming in and the expenses they have going out. Identifying areas that can be adjusted and having an emergency savings fund can help ensure that the mortgage payments continue in the event of an unforeseen emergency. An emergency savings fund is one of the best ways a buyer can protect themselves from foreclosure.

Beyond Homeowner Education and Counseling

There is a lot of attention being paid to the issue of affordable housing right now. Policymakers and individuals in the housing industry – including lenders, realtors, and builders who understand why we should be expanding homeownership opportunities – are looking for ways to do that, to provide new forms of credit and other supports to make homeownership accessible to everyone.

During the Mackinac Policy Conference at the end of last month, Michigan State Housing Development Authority (MSHDA) Chief Executive Officer, Amy Hovey, told the Michigan Advance that “there’s a misunderstanding and an underselling of exactly how bad the housing crisis is and who qualifies for affordable housing programs in the state.”

Hovey pointed to NIMBYism or the “Not In My Backyard” ethos, stating that it’s “alive in Michigan and MSHDA is working to clear the stigmas surrounding affordable housing projects.”

At the federal level, the U.S. Department of Housing and Urban Development (HUD) has taken decisive action to expand access to homeownership by supporting housing counseling and down payment assistance, reducing barriers for those with student loan debt, allowing positive rental history to impact someone’s chances of obtaining a Federal Housing Administration (FHA)-insured mortgage, and lowering mortgage insurance premiums on FHA mortgages.

Taken together, these strategic policy changes have helped millions of people become homeowners, including 2.5 million first-time homebuyers. But we know there is more to do. That’s why, this National Homeownership Month, CHN is joining organizations like HUD to double down on its work to advance homeownership opportunities for all who want them.

Weigh the Pros and Cons of Being a Homeowner
Pros	Cons
Great investment Home values tend to increase over time which allows a homeowner to make a profit when selling their home.	There is no landlord to call when repairs are needed. Home maintenance and yard care take time, energy, and money
Provides a sense of freedom, privacy, security, and pride	Housing is more permanent This can be a negative in the event a homeowner needs to relocate in a timely manner
Homeowners can modify their space and own pets	Homeowner association rules HOA’s may place policies and restrictions on exterior paint, fencing, gardening, snow removal, and trash
Paying a mortgage and not a landlord makes financial sense	Property taxes and insurance
Homeowners don’t have to share buildings or walls with neighbors	Upfront costs

Learn about eligibility, self-paced online classes, individual counseling, and registration on CHN’s Homebuyer Education page, or call (248) 824-7391 for more information.