How homeownership can impact your family
Purchasing a home undoubtedly positively impacts the buyer, but what about the other family members living in the home? Fortunately, they reap the benefits, too! At United Housing, our mission is to make that improved well-being possible for the underserved families who may not realize homeownership is within reach. We strive to provide quality, affordable housing opportunities in an impoverished city that boasts more substandard rental units than owner-occupied homes, according to American Housing Survey.
Parents have a lot on their plates - kids, work, their own parents, bills and more. All these important things that they are responsible for can lead to quite a bit of worry. Owning a home offers a safe place to land amid the chaos of life and can serve as a solution to many of these issues. For example, did you know homeowners are known to experience higher levels of life satisfaction, self-esteem and perceived control over life? The positivity that stems from these areas is contagious and can create a happier, more stable environment for everyone involved.
The condition of the home matters as well. Because homeowners are economically invested in the property they inhabit, they are more likely to maintain their living space at a higher level. As a result, all family members living in the home experience a cleaner, higher-quality environment. Those in houses of poor quality are more likely to be exposed to harmful conditions and overcrowding, both of which can result in negative health effects. Realtor University’s report highlights a significant correlation between poor housing and health problems, especially respiratory conditions such as asthma, injury and exposure to toxic substances like mold, which can cause a variety of respiratory issues. These effects are heightened in Memphis, where energy burdens are among the top five highest in the country.
The benefits don’t stop there.
● Homeowners are more likely to vote according to A Place Called Home: The Social Dimensions of Homeownership.
● The National Association of Realtors reports girls growing up in homes are 40 percent less likely to get pregnant during their teenage years.
● A research report from California State University, San Bernardino states that children are 116 percent more likely to graduate from college.
● Homeownership helps create more wealth among families according to a 2017 article in the Huffington Post.
And, a recent study put out by Children’s Health Watch noted that the medical expenses accumulated by children living in unstable housing contributed $8 billion in avoidable health care and education costs in 2016. That’s a burden we all feel. Furthermore, over the next ten years, researchers project health and education costs to rise to $111 billion!
It’s crucial for United Housing to let families living in renter-occupied dwellings know that homeownership may not be easy, but it is possible and there are organizations out there to help them make it happen through financial education and credit counseling. To put it simply, preparing Mid-South residents to become homebuyers is the heart of everything we do. Purchasing a home is not just a luxury - it’s an important benefit to many aspects of life. The ripple effects of homeownership extend beyond the house, creating stable, healthy environments.
I want to buy a house… where do I start?!
You learn a lot of things in grade school. The mitochondria is the powerhouse of the cell. A rhombus is a quadrilateral with four sides, two obtuse angles and two oblique angles. Simple enough! While we’re able to recite a line of Shakespeare, many of us leave middle school, high school and even college without an idea of where to start the homebuying process.
What’s even worse is that, without guidance, many people jump into the process uninformed. They overextend themselves financially, become a victim of predatory lending, choose a home that doesn’t fit the long-term needs of their family, or settle on a home just because they feel like buying a home is the “right” thing to do.
So, how should you start the process? First, start with resources like those found on THDA’s website. THDA provides you with information about down payment assistance, loan options and homebuyer education course information. By reviewing these materials, you could learn about available resources that make homeownership possible or more attainable for your family.
Once you’ve learned about your options, enroll in a homebuyer education course, like those offered by United Housing. In these classes, you’ll learn about more than just the homebuying process. You’ll learn how to budget for a mortgage while building up your savings, how to improve your credit score, why homeownership matters, how to maintain your home, and so much more. Plus, you’ll learn from a well-educated teacher who can answer any of your questions (we know you have a ton!).
From there, you’ll be ready to meet with reputable community lenders and shop for mortgages. Your HBE teacher may even connect you with a few trustworthy agencies. You’ll need to review a few mortgages before deciding which lender is right for you, as the amount for which you are approved and interest rates will likely vary. This will give you a clear price range, which is essential before you start looking at homes.
Now, here comes the fun part! You’ve chosen a lender and have a clear budget, it’s time to connect with a licensed realtor. Your HBE instructor will likely have a few recommendations. Talk with your real estate agent about what you need and want (there is a difference!) in a home, what neighborhoods you want to consider and set clear boundaries on your budget. Then, let the tours begin!
Hopefully, by the end of this process, you’ll be able to look back on this from the comfort of your new living room! But, to get started, you need to connect with organizations like THDA and United Housing, who will provide you with in-depth information and guide you through the process. Connect with us through the links above today!
Affordable Housing in the Bluff City
Memphis has recently received accolades such as Best Place in the World to Visit in May by CNN Travel and was ranked 23rd on Indeed’s Best Cities for Job Seekers in 2018. These honors have allowed the Bluff City to gain attention on a national scale, which is a good thing. Right? It increases visibility, which increases tourism. Visitors fall in love with our great city, and more and more people are moving here. You get the point! But, there’s a catch.
As a result, houses and apartment complexes are popping up all over Memphis to accommodate the influx of new residents to the city. And, homes in the city’s core are selling almost as soon as they’re put on the market. These homes, however, aren’t always affordable. High-traffic areas, like Downtown, have list prices that are above the price range for your average Memphian. Memphis isn’t the only city struggling with affordable housing. NPR reported that an estimated 11 million Americans pay more than half their income towards rent, and according to Zillow, more people are renting now than ever before.
A 2015 report conducted by the Tennessee Housing Development Agency found that the median income for Memphians is $36,445. This is 19.4 percent lower than the state average of $45,219. And, according to research from the University of Memphis, the Bluff City has a poverty rate of 26.9 percent. Using a lower budget to illustrate the reality of many Memphians’ financial situations, if you were following a three-to-one income-to-rent ratio and made $1,500 a month, you would have an estimated $500 to spend on rent. That leaves only $1,000 to cover utilities, groceries, transportation, health care, and the list goes on and on -- clearly a tight budget for a single family.
According to Zillow, the median rent price in Memphis is $890 per month, lower than the Tennessee median of $1,275. Why are the prices lower? It’s because Memphians make a median salary of $36,445 compared to the state of Tennessee as a whole, which makes $44,297. Lower salaries call for lower rent, but the median salary isn’t even able to afford the median rent price!
The problem not only lies in the lack of affordable housing but in the failure to educate soon-to-be renters and buyers about options for financial assistance. More often than not, people believe that owning a home is impossible in their current position. United Housing’s education programs exist to help Mid-Southerners better understand homeownership, mortgage loans, the risks of predatory lending, foreclosure procedures and more. For complete details on the classes United Housing offers, click here.
Universal Design 101
If you were following United Housing in early 2017, you likely heard about our project with Home Matters. Over the course of several months, we rehabbed and redesigned a home in Frayser for Walter, a local U.S. Army veteran. One of his greatest desires was to spend more time with his mother in his home. Prior to being selected as the Home Matters home recipient, he lived on the third story of an apartment complex. His mother, who used a wheelchair, was unable to make the climb up the stairs to visit him.
A lot of the media coverage discussed Walter and his story. But, there was also significant coverage of the home for compliance with universal design. The term “universal design” may not mean much to the average person, but it can make an enormous impact on homeowners.
Simply put, universal design is the thoughtful curation of a space that makes living easier for all people in all stages of life. In Walter’s case, it meant that the walkway up to his home was sloped rather than paved with steps. His hallways were wide enough for wheelchair access. His shower had a flat entry rather than a lip or a tub.
You may say, “well, I’m able-bodied, so I don’t need to worry about universal design.” While it’s true that you may live in a home that currently suits your needs just fine, it is not certain that your home will suit your needs forever. Universal design is about proactively preparing your home for any situation life my throw your way, whether or not you “need” it now. This creates homes that are sustainable for homeowners in the long run.
Additionally, universal design differs from assistive design. Generally, assistive design incorporates materials and products that are specifically created to meet the needs of individuals with specific disabilities. Universal design thoughtfully integrates standard consumer items and construction techniques to make a home navigable for all stages of life.
Incorporating universal design in your home does not have to be expensive or a massive undertaking. In fact, there are many small things that you can incorporate over time on a limited budget. So, what simple changes can you make to your home that follow universal design principles?
1. Install brighter lights for enhanced visibility.
Switching to LED light bulbs can brighten your space, making it easier to navigate while reducing your home’s electrical footprint.
2. Switch door handles from knob to lever-style.
Knob style handles can be difficult to open, especially for older individuals. Installing lever-style handles make doors easier to open.
3. Install an adjustable shower head.
A visit to your local hardware store will offer a number of shower head options that comply with the principles of universal design. Adjustable shower heads accommodate people of all heights, make showering easier for individuals in wheelchairs, and are helpful when bathing children.
4. Choose faucets with levers instead of knobs.
Similar to number two, faucets that require turning knobs are more difficult to use. When making improvements to your bathroom, opt for faucets with lever handles.
5. Switch to rocker light switches.
Rocker light switches are easier to operate because they don’t require the same fine motor skills as traditional switches.
If you want to make these changes to your home but can’t afford to remodel your home, we can help! United Housing offers a variety of lending programs, including home improvement loans, that will allow you to make these changes for your family. Learn more about our home repair loans here, and apply by visiting this link.
Pardon our dust - UHI has projects in progress throughout Memphis
If you’re driving through neighborhoods in Memphis, it’s likely that you’ll see United Housing projects in the making! This spring, we have several projects underway across the metropolitan area that we’re excited to share with you.
Memphis currently has a lot of blighted residential properties, which are unfortunately uninhabitable. According to a 2012 study by the United States Census Bureau, Memphis had a vacancy rate of 11.2 percent, the sixth highest rate of the 75 largest metropolitan areas in the country. This is a problem, and it is an opportunity for organizations like United Housing to pour love and time into these homes to make them inhabitable.
UHI’s Project Reinvest seeks to solve this problem by taking previously uninhabitable homes and transforming them into affordable, livable housing. These homes are at different levels of disrepair - with some only requiring minor improvements to make them livable again.
While UHI also builds new, affordable homes, there are many benefits to renovating existing properties. Renovating a home improves its appearance while maintaining original architectural features that are unique to certain neighborhoods and communities. The cost of renovating a home can be much cheaper than demolition and rebuilding costs, especially for older properties where the presence of asbestos and lead-based paint can cause safety hazards and require additional care.
But most importantly, reinvesting in existing neighborhoods has an enormous impact on the well-being of the residents and the families who call these communities home. Families with stable housing have healthier children who are more likely to do better and stay in school. Reliable housing eliminates stressors that impact many lower-income workers. Homeowners statistically take better care of their homes, and neighborhoods where homes are well kept have lower crime rates. The impact of homeownership is truly far-reaching.
You’ll see many of our renovation projects in neighborhoods in Frayser and South Memphis. If you want to learn more about UHI homes that are being renovated or have been renovated, visit the list of available properties on our website.
If you’re interested in renovating a home you currently own, UHI can help! We have a home renovation loan program with affordable interest rates and 10-year terms. The loan amount is $15,000 and can be applied to the necessary improvements you need to make your home livable, safe and healthy for your family. Visit our home renovation loan page for more information.