Broker fha loan mortgage sponsor

When public-relations professional Erlene B. Wilson divorced nearly five years ago, she had little more than a dream of becoming a property owner. Refusing to allow the devastation of divorce to be a daunting factor, Erlene, in the hallmark tradition of African-American womanhood, forged "a way out of no way," the fruit of which is a Randallstown, Maryland, town house.

Erlene knows the satisfaction of having a home she can call her own. There was a time when women were routinely denied credit, especially when they had no husband to sign for them. Erlene, who is in her midforties, remembers the difficulties that her divorced mother experienced. Fortunately, those days are over, and not only are women getting the credit they deserve but many are also getting mortgages.

While there is still racial discrimination to surmount in obtaining home loans, for Erlene and many sisters like her, owning a home is the ultimate source of pride. And for the savvy sister whose confidence equals her planning and budgeting acumen, home ownership is attainable.

"You have to buckle down, you have to get yourself on a budget and adhere to it," Erlene says. "You must live a pretty frugal lifestyle. You must also make sure that you pay everything on time, and if you find yourself in a situation where you're a little strapped, then you need to communicate with your creditors.

It took Erlene some time to realize her objective, partly because of a credit history that was in a shambles from her breakup. She cautions against women saying "My credit is so bad, I'll never be able to get out of this mess." Positive thinking is the first step forward, and it goes a long way.

The numbers of single African-American women who have joined the home-ownership ranks are steadily increasing. Selwyn Prince, a licensed real-estate broker and a coowner of DLN Realty in Jamaica, New York, says, "So many divorced Black women come through the door who are purchasing homes to build financial security for their families. These women know that in years to come their investment will appreciate in value. Another outstanding benefit of owning a home is that mortgage interest can be a tax write-off.

TAKE THE PLUNGE

There is no better time than the present to jump on the home-ownership bandwagon. It's a buyer's market: The mortgage rate is at about 6 percent, and the recession has forced sellers to reduce their asking prices.

There are programs that can make purchasing a home easier than one would think. The Federal Housing Administration (FHA) has a very attractive program for home buyers whereby it's possible to put down as little as 3 percent on a home. Contact your local Housing and Urban Development (HUD) office for further information. State mortgage associations may also sponsor programs to assist the fledgling home seeker.

Donna Lewis, who is single with no children, had the courage to carry herself across the threshold. Nine years ago, when she was 29, her independent spirit and investment acumen helped her become the owner of a three-bedroom, one-and-a-half-bathroom town house in Maryland.

"After I graduated from Hampton and got my teaching job, I was renting a studio apartment," Donna says. "I wanted more space and wasn't all that keen on collecting any more rent receipts, so I started looking toward home ownership. "

Transplanted New Yorker and recent divorcee Cathy Houston McNail is a partner in the Chicago law firm McDermott, Will, Emery. Deciding that she could no longer take the inner city of Chi-Town to raise her daughters, Cathy, 32, began a search that took a year to find a house that was suitable for her, the children and her mother. "My goal, " explains Cathy, "was always to buy a house in a suburb where my daughters could go to public school." Cathy's brick-and-cedar ranch-style house sits on one acre in the suburb of Villa Park.

HOUSE-HUNTING

HOMEWORK

By following the steps listed below and by doing your own research, you, too, can own your own home. * Find the right real-estate agent. Ask friends and family to refer you to a reputable broker. Be aware that, traditionally, he or she is looking out for the seller's best interests. You also have the choice of hiring a broker who, for a flat fee or hourly rate, will help negotiate a deal that will be beneficial to you.

Determine how much you can afford. Rather than asking yourself how much you want to spend, figure out how much you can afford to pay. As a rule of thumb, your mortgage payments, including real-estate taxes and fees, should not exceed approximately 28 to 33 percent. of your monthly income. According to Tips and Traps When Buying a Home by Robert Irwin (McGraw-Hill, Inc., $12.95), there are three home-buying expenses to consider. One is the down payment. Down payments are made in cash and can range from 3 to 10 percent of the cost of the house, depending on the loan programs you choose. Mortgage qualifying is another expense. Rather than paying cash, most buyers secure mortgages or trust deeds in order to finance their purchases. The biggest determination of how much you can afford is how much you can borrow. Your bank will charge an application fee and other costs to determine if you qualify for the loan. Closing costs, which make up 6 to 9 percent of the selling price of your home, will be a factor as well. * Decide on the type of house you want. The choices are myriad, so be clear and realistic about what you will and will not accept. Also decide where you want to live. For example, if living in a diverse neighborhood is important, ask friends and your broker about the racial breakdown of the area. * Start your search for financing as soon as you start looking for the house. Cheek commercial and savings-and-loan institutions as well as mortgage banks. Mortgage brokers can also be a good source for attaining financing. * Negotiate as much as you can. Almost everything is negotiable when buying a house - price, financing, closing costs, occupancy (when you'll move in), painting, repairs. The list can be endless. When you find the house you want to purchase, make an offer. Keep this in mind: The asking price is sometimes 7 to 12 percent more than what the. seller will really accept. * Hire an engineer. Have the house you wish to buy inspected. He or she will assess the structural soundness by checking the foundation, plumbing and other basics. * Make it legal. If your offer is accepted, consider hiring a real-estate attorney to make sure the contract is fair. * Apply for your mortgage. Shop around to get the best loan package. Once you're approved, closing-the final part of the home-buying process-is right around the comer. From your initial bid to possessing the keys can take an average of 90 days.