What you need to know about rent payments, mortgage payments and eviction

If you are facing difficult financial circumstances, know you are not alone. Last week, the federal government reported that more than 6.6 million Americans filed for unemployment. That is a staggering number that demonstrates COVID-19’s far-reaching impact.

Loss of employment and reduced wages may affect your ability to pay all of your bills. Luckily, many federally backed and privately operated organizations are adjusting payment dates and are stopping evictions. Here is what you need to know: 

1. Not all payments are automatically paused. Federally backed mortgages, like FHA mortgages, are halting payments. But not all mortgages fall within that category.

2. Ask before you skip a payment. On any loan or bill, talk with your loan provider to make sure you’re able to skip or miss a payment without affecting your standing as a tenant or homeowner.

3. Understand what your payment plan looks like. Some lenders are allowing borrowers to pause payments for up to a year, which adds an additional year to the life of your loan. Others are making monthly decisions about payment. When you talk with your loan provider, make sure you understand what your deferral program looks like so you can adjust your budget.

4. Federal support is coming. If you qualify, federal aid is coming. You can use these funds to help support your family, and if you’re able, make your rent or mortgage payments. Use these funds carefully to purchase essential supplies or make necessary bill payments.

5. Evictions are paused. Evictions for nonpayment are stopped for the time being. But we do not know when they will resume. This is why understanding your repayment plan is important. There may be a sum of money expected once life begins to return to normal, or your payment cycle might adjust from what you were accustomed to. You need to understand these adjustments so you can make payments on time.

Navigating this process can be difficult, especially if you don’t know who to contact. United Housing can help you understand your unique situation and create a plan. Contact us at 901-272-1122.

What should you consider when choosing a neighborhood?

Finding your perfect home is important, but your “wish list” shouldn’t just consist of a number of bathrooms and square footage. As crucial as it is to choose the right home, choosing the right neighborhood is just as significant. To get an idea of your prospective living space and potential neighbors, there are certain things you should look for in order to choose the perfect neighborhood:

Location

What’s the proximity of the neighborhood to locations you will frequent? Look into the walkability of places like emergency services, grocery stores and pharmacies. The commute time to your job could also be a factor, but as jobs are subject to change, don’t base your location assessment solely on this one factor. It can even prove to be beneficial to check out the schools nearby. You may not have kids, but you could some day — or a family member could. Neighborhoods with good schools usually correlate with home stability, meaning buyers stay in their houses longer and resell at higher prices. Remember, convenience doesn’t always mean complete and total comfort, for example, nearness to a highway might mean shorter car rides, but you may also be opening yourself up to 24 hours of traffic noise right outside your home. So, weigh the pros and cons of the area’s accessibility and determine which convenient locations are worth it and which ones aren’t.

Safety

While we can never guarantee total safety, checking into the security of a neighborhood is a great way to get peace of mind. You can ask your real estate agent, talk with other residents in the area or even use available online tools that utilize crime reports and other data to analyze an area’s safety. Also, it’s important to keep in mind that no area can be completely safe. Just because the neighborhood you’re looking into doesn’t rank No. 1 in the city’s most secure places to buy a home, doesn’t mean you are putting yourself in any danger.

Neighboring property

Neighbors and their homes are just as important as the neighborhood! Take a close look at the houses next door, across the street and around the block from the home you’re considering. Check out the level of property upkeep done by potential neighbors, as well as whether or not they are owners or renters. Study the area for houses in foreclosure or left vacant and whether or not there are any new homes being built, or spaces for them to be. Looking at the other homes that occupy a particular area is crucial in terms of resale value. It’s hard to try and peek into the future, but there may come a time in which you find yourself needing to sell your home and it is important to make sure you’re able to.

Protect your investment with a home inspection!

An often forgotten part of the homebuying process is the home inspection. This critical step in the process protects the buyer from purchasing a home that might have flaws or issues by uncovering and disclosing them before the final contract is signed.

For some mortgage types, home inspections are required. For others, it is an optional step. Regardless of your mortgage type, United Housing strongly encourages all homebuyers to have a home inspection. In fact, we have two home inspectors on staff! Will and Matt go out into the community, inspecting homes and reporting findings to current owners and future buyers alike. They’ve shared three reasons why a home inspection is important!

1. Home inspections protect your investment.

Every home has minor issues or quirks. They’re man-made, and inevitably time and weather will cause small leaks, cracks and mechanical failures in varying areas of your home. But there is a big difference between small, fixable issues – like a leaky window that needs new sealant – and major issues – like a problem with a home’s foundation. A home inspection will identify all issues, big and small, so you can understand the state of a home before you sign on a dotted line. Think about it – you’re about to spend tens to hundreds of thousands of dollars on a home. You want to make sure it’s in the best condition possible!

2. Home inspections give you bargaining power.

Inevitably you will uncover something in your home inspection that needs to be repaired. When these issues are uncovered, your Realtor can help you negotiate a lower sale price or ask for these repairs to be fixed. The seller can then decide whether or not they want to meet your requests. With the knowledge you gain from a home inspection, you might be able to save money on your all-in payment, and save yourself money on the back end by having the seller fix preexisting issues.

 3. Home inspections ensure you’re safe.

Older homes often have windows that are painted shut. This is a safety hazard – as every room in your home should have an emergency fire exit. Home inspectors are trained to identify necessary safety features and can point out any that are missing. Some mortgage types require safety issues to be resolved before you can close on the home, and oftentimes a seller will oblige and accommodate these issues.

 4. Home inspections can protect sellers, too!

If you’re thinking about selling your home, you can also work with a home inspector! Rather than waiting for a buyer to uncover issues, you can proactively have your home inspected and make changes BEFORE you put your home on the market. This saves you from losing negotiating power during the home selling process.

If you have questions about home inspections, or need a home inspector to take a look at your property, connect with United Housing! We can help you identify a qualified home inspector to meet your needs.

Want to buy a house? It’s time to get your finances in order!

If your financial situation kept you from buying a house in 2019, you’re not alone. The National Foundation for Credit Counseling found that half of Americans tried to buy a house but ultimately weren’t able to. There were several reasons why buying a house was difficult for Americans, including the cost of houses, a lack of down payment funds, existing debt and a low credit score.

While we can’t directly control the cost of houses in the market, we can work together to get our finances in order. By creating a budget to pay off debt, save for a downpayment and build strong credit, you can be well on your way toward purchasing a house in the near future. Your financial circumstance now does not have to dictate your ability to buy a home!

If you want to get your finances in order and start saving for a house, there are a number of things you can do. First, attend a local Homebuyer Education Course. In Memphis, United Housing offers multiple courses each month. In this class, you’ll learn how to build and keep up a budget – which can help you save for a downpayment while paying off your debts. You’ll also learn about the importance of building credit and how to monitor your credit score.

Homebuyer Education courses also help you understand the homebuying process. You’ll learn about mortgage types, the importance of working with a trusted Realtor and how to choose a neighborhood. Ultimately, you’ll leave feeling confident that homeownership is something you can achieve.

At United Housing, we understand how challenging it can be to buy a home, especially when you’re unfamiliar with the process. That’s why we offer support to Memphians – from Homebuyer Education to lending. If you want to start working toward becoming a homeowner, contact us today.

You can donate property and get a tax benefit!

One of Memphis’ biggest challenges is transforming unused, abandoned property in neighborhoods to productive sites for parks, homes, businesses and other community assets. Blighted properties hinder the community because they waste usable space and make the neighborhood seem unattractive to new families and investors. By donating blighted or abandoned property to organizations like United Housing, many of these issues could be resolved as these sites are repurposed!

How to donate property.

Donating property is a fairly simple process – and a lot of information exists online to help you through it! The IRS hosts a ton of information on their website for anyone considering donating property or buying donated property. They also have links to all of the appropriate forms. Donations of property can be made to the state or charitable organizations registered with the state of Tennessee. If you don’t live in the Tennessee, be sure to check with the rules in your state.

To whom should I gift my property?

When choosing your donation recipient, you must consider where your property is located and your preference for its future use. UHI accepts donated land in an effort to provide more affordable housing, better quality of life and increased neighborhood attraction. We can also work with local nonprofit partners to transform your gift into community assets – like parks and businesses.

There are other organizations to consider! If the property is in Shelby County, you can donate it to the Land Bank of Shelby County. Once donated, this organization is responsible for its upkeep, and they then turn that property into something productive for the community as quickly as possible! Another source for donation is the Blight Authority of Memphis. This organization seeks to convert vacant, abandoned, foreclosed or tax delinquent land into productive use. Doing so increases quality of life and property values, and it revitalizes the neighborhood.

Benefits of donating property = big tax benefits!

In addition to the good feeling that comes from making philanthropic gifts, donating land can lead to tax benefits. These benefits will vary by person, property and state, so we encourage you to talk with a licensed tax professional about the potential benefits of your donation.

If you have any questions regarding property donation, or any other housing needs, feel free to contact United Housing at (901) 272-1122 or at info@uhinc.org.

How do homes build generational wealth?

Homeownership is a large part of the American dream. While homes serve as your dwelling and shelter, the place you call home could metaphorically become a financial safety net for your family. Whether you’re single and just starting out, looking to start a family or already have a family of your own, homeownership is a credible way that you can pass down wealth to future generations.

Why is homeownership an investment in future generations while renting isn’t?  Renting is a good option for small periods of time, like when you’ve recently moved or when you’re job placement is temporary. But your rent payments are like daily transactions and don’t go toward an investment in your future – they go into someone else’s pocket. When you make a mortgage payment, you’re repaying a debt that eventually benefits you and your family. Paying a mortgage feels no different than paying rent, but the result is vastly different!

As you continue to make payments toward your mortgage, you’re building equity, or increasing the portion of the home you own. If you sell your house in the future for $70,000, and you owe the bank $15,000 because of equity you’ve earned by making mortgage payments, you’ll pocket $55,000 that you can then invest in your family’s future. You’re reaping the benefits of paying on your mortgage for years.

Ultimately, homeownership is a way to save money by investing in a home that meets your current needs in a way that renting does not. So, what steps should you take to buy a house and officially become a homeowner?

The first step is to understand your options. It’s important to know which factors, like income, credit rating, current monthly expenses, down payment and interest rates, affect the affordability of a home. These terms may seem intimidating, but THDA offers several resources like pre- and post-purchase homebuyer education and homebuyer education counselors to help define these terms and explain how they fit in the process.

Using these resources not only can help you learn what you can afford but it’s also a way to know your rights as a homeowner. By educating yourself, you lower your chance of overcommitting financially or becoming a victim to risks like predatory lending. Don’t worry, we understand that the process of buying a house isn’t any less scary or unknown.

Once you understand your options and your rights, think about signing up for a local homebuyer education course, like those offered by United Housing. These courses explain the foundation of homeownership like the importance of credit, how to build your credit, how to qualify for a mortgage loan, choosing a house, working with a realtor and basic home maintenance (plus much more!).

A home is a place for families – current and future. You can build a solid foundation for your family, one that will exist today and in the future. Ready to become a homeowner? Sign up for one of our homebuyer education classes or call us at 901-272-1122.

Preparing to list your home? Here are a few things you can do to help increase the value!

As you prepare to list your home, there are a few things you might want to update before letting potential buyers take a look. Making even minor updates can seem overwhelming, but they don’t have to be! We’ve compiled a list of things you can affordably do to spruce up your home before listing!

#1 - Make your home attractive – inside and out.

Curb appeal is important to potential buyers – it is their first impression, after all. Consider mowing the grass, trimming the shrubs and straightening up your front stoop to attract buyers on their first look and increase your home’s value. Also remember that the kitchen is king! Adding new knobs to your drawers and giving your cabinets a fresh coat of paint could increase your home’s value and give you more money in the bank. According to a recent survey, 80% of homebuyers placed the kitchen in their list of top three most important spaces. Therefore, making some minor upgrades in the kitchen can provide long-term benefits!

#2 - Make energy efficiency a priority.

If you’re considering new appliances or windows for your home upgrades, keep an eye out for Energy Star certification. These items help lower your monthly costs and increase your home’s value to buyers. The less money that buyers have to invest in the home, the more money in your pocket after your house is purchased. Make sure you verbalize these upgrades and lower monthly bills to your Realtor as well, as these can justify your higher selling price.

#3 - Make your home an easy purchase for buyers by handling maintenance before you list.

Homebuyers don’t want a house that requires constant maintenance, so make upgrades that reduce maintenance frequency – like replacing the AC unit and having the wiring reviewed by an electrician. By doing this, you increase the value and give buyers some peace of mind when it comes to the amount of work that they would need to do. Large projects like new flooring, roofing or siding may cost you upfront, but that investment is reflected in your home’s selling price. Taking care of some of these bigger projects makes buyers more inclined to purchase a home with a higher value.

While these may seem like daunting tasks, they don’t have to be! Minor upgrades such as painting, replacing hardware and tidying up outside don’t take much time or money to complete. In the end, these minor adjustments could lead to a major increase in your home’s value!   

Shopping for a mortgage – here’s where to start.

If you’re in the market for a car, you’ll likely spend time researching and visiting dealerships to make sure you find the car and the deal that is perfect for you. While you can’t test drive a mortgage, for a purchase of that size you should absolutely shop around! Different lending institutions can offer different rates, accept individuals with different credit scores and can approve you for different loan amounts.

We know what you’re thinking – that sounds intimidating. And it absolutely can be! But like shopping for a car, you can come into the process feeling confident with a little research and preparation. Before you start shopping for a mortgage, here are a few things you should do first:

Know your current financial situation.

To qualify for a mortgage, you often have to provide a number of financial documents. Start gathering paperwork related to your financial situation – including pay stubs, investment statements and credit card statements. Have a clear understanding of what you have in savings, how much of a “rainy day” fund you have available, and all sources of revenue your family has available. Potential lenders will likely need to see this information to make sure you can afford to pay your monthly mortgage payments.

Understand what your credit score means.

In addition to financial information, your lending institution will evaluate your credit worthiness using your credit score. Your credit score uses a number of factors – outstanding debt, regular payments on outstanding loans, the amount of time you’ve had credit – to help financial institutions judge your ability to make prompt and full payments. If you don’t know your credit score, or worry your credit score is too low, United Housing offers credit counseling to help! We can help you understand what your score means and work to raise it.

Learn about mortgage options.

There isn’t a one-size-fits-all mortgage. There are different products that financial institutions offer depending upon your life stage and financial situation. It’s important that you understand the different mortgage types and which products are (and are not) a good fit for your family. We want you to avoid getting your hopes up about a loan product (and then a future home) that is out of your financial reach. This is what we teach in United Housing’s Homebuyer Education course! We break down available mortgage options in the current market and which options are available based on your circumstance.

Research financial partners.

Your mortgage lender will be part of your life for the next 15 to 20 years, so you want the relationship to be a good one. Do research and look to partner only with stable, trustworthy institutions. And, these institutions aren’t always banks! Community Development Financial Institutions, like United Housing, sometimes have loan options that you can consider when shopping for a mortgage!

National Homeownership Month – We answer your homeownership FAQs!

Happy National Homeownership Month! Owning a home can cause you to be filled with questions you had never even thought to ask before. Don’t worry, we’ve got you covered! We’ve answered a few burning homeownership questions below:

1. What’s better about buying than renting?

A home is an investment. When you make your monthly mortgage payments, the money is going toward something that can serve you and your family for years. While renting is a great option for many, especially for small periods of time, when you rent, your money doesn’t go toward an investment into your future. The money you use for rent payments is gone forever just as other everyday transactions.

2. I’ve always heard you need 20% for a downpayment, is that true?

While 20% down has been the tried and true recommendation, it’s actually not needed, and not always the best option. You shouldn’t have to save for years and years before you can even think about making that down payment. There are many loan programs specifically for first-time homebuyers, and even some through the government, that allow you to put down as little as 5% or less.

3. How does my credit affect buying a home?

The better your credit score, the lower the interest rate your lender will give you. While a low credit score doesn’t prevent you from buying a home, it could require you to make higher payments than you had originally expected.

4. Should I use a real estate agent?

Using a real estate agent is a great idea. Not only does a Realtor help you with the whole process, but he or she can assist you in the most important step — price negotiation.

5. What other costs, other than mortgage payments, should I think about?

Unfortunately your mortgage won’t be the only charge you’ll have to worry about when it comes to the homebuying process. There are several extra costs that come along with being a first-time homebuyer, such as moving costs, repair costs and closing costs.

With all the unfamiliarity homebuying can bring, we know we didn’t cover every single one of your FAQs. That’s why United Housing offers homebuyer education courses and other resources that will give you the knowledge and tools you need to embark on the journey of buying your first home. Contact us today to find out more.

However — if you have a burning question you need answered ASAP, comment below and we’ll help!

The Eviction and Foreclosure Moratoria

What the new update means and how it impacts residents.

At its most basic definition, foreclosure is a legal process that allows lenders to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property. When a borrower signs a mortgage loan agreement, they’re giving the lender the right to foreclose the home should they fail to uphold the terms of the mortgage document, such as missing multiple mortgage payments. Although staying on top of mortgage payments is important, unexpected loss of income can make it difficult to avoid foreclosure.

Due to complications of COVID-19, many Americans have experienced this unexpected loss of income, and have also had continued difficulty finding another job. In response to this, the government issued an order to halt all evictions. The halt initially started in September 2020 and was extended to end in July of this year, but President Biden recently proposed an extension specifically for the areas in which transmission was rapidly increasing. However, the Supreme Court denied the moratorium extension on August 26 and announced that evictions would resume, even in the areas with soaring rates of virus transmission. So, what does that mean for homeowners?

What’s the difference?

The first thing that homeowners need to understand is the difference between the current CDC guidance on evictions and the Supreme Court decision. The initial eviction moratorium issued by the CDC was backed by a presidential order that made it legally binding. The same order was extended to July 2021 through congressional voting. However, the CDC’s most recent moratorium acts simply as a suggestion, because, while the CDC does have some legal authority, they do not have the power to extend the eviction moratorium without congressional, presidential, or Supreme Court approval. 

What does this mean for foreclosure?

The second thing that homeowners need to understand is what the recent Supreme Court decision means for foreclosure. In the initial eviction moratorium, qualifying homeowners were protected from foreclosure to a certain extent. Although this protection has now ended, several federal agencies such as the HUD, USDA and VA announced additional measures to help qualifying individuals pay their mortgage, thus avoiding foreclosure. The end dates of these protections vary by agency. However, the federal government has also allocated nearly $10 billion to the Homeowner Assistance Fund, which provides states with funding to help homeowners catch up on overdue payments to avoid foreclosure. Most states, including Tennessee, will start accepting applications for these funds in the fall of 2021. 

What now?

United Housing understands that waiting for state and federal aid may not be an option for people who are close to foreclosure. If foreclosure is inevitable, it’s important to seek help as soon as possible to minimize any consequences. You can contact your lender or local organizations like United Housing to find out about mortgage assistance options. In fact, most mortgage lenders want to help you avoid complete foreclosure, and are often willing to give you options even after multiple missed payments. United Housing also offers COVID-19 mortgage assistance for qualifying individuals. This program is a great way to prevent foreclosure while awaiting state or federal funds. 

If you or a loved one is experiencing foreclosure, United Housing is here to help. UHI offers several options to either prevent foreclosure from happening, or getting you through it when it does. From our homebuyer education courses that address important topics like credit and foreclosure, to our post purchase educational class that teaches mortgage budgeting, we also offer access to HUD-certified counselors that can address your specific situations. To learn more about United Housing’s resources, call us today at (901) 272-1122.

Making a Plan for Your Home

Estate planning is not a topic that anybody wants to address, but it’s one that should be addressed. Just as it’s important to create a plan for your possessions should you pass, it’s important to create a plan for your home. Planning for your home in the case of incapacitation or death is the only way to ensure that your property passes to your intended recipient smoothly.

Homes are important financial assets; the value of real estate typically appreciates over time. Passing your home down to loved ones builds generational wealth and helps facilitate long-term housing for future generations. Without proper planning, your home could go into probate after you pass, which is a potentially costly and lengthy procedure for beneficiaries to gain legal ownership of the property.

There are several ways to make a long-term plan for your home in the state of Tennessee. Below, we outline a few of these methods. 

Willing your home.

Wills are a document to help make sure that your property goes to the intended recipient after your death. A will is not legally required for property to pass to your loved ones. But without a will, state laws determine the distribution of an estate's assets, which may not match your intentions for the property. 

Although wills must be confirmed in a probate court before going into effect, having one helps speed up the process and helps prevent the property from becoming fully probate. To will your property in Tennessee, you must create a hard copy of a will, designate the proper witnesses, executors, and beneficiaries, then sign it. Ensuring you designate one beneficiary is important, as your property could pass equally to multiple children without a clear beneficiary, leaving them with tough decisions to make after you pass. Although certain circumstances make wills more complicated, they are generally an accessible way to help make sure your property is passed down to your intended recipients.

Living trusts.

Living trusts are similar to wills in that you create a document to pass the property to an intended person. In the case of living trusts, the document is called a trust document and it significantly decreases the possibility of a property becoming probate. To make a valid trust document you must create it in accordance with state laws, name your intended successor within the document, then properly transfer ownership of your assets (the property) to the trust. 

While Tennessee does not require an attorney to make a living trust, it is beneficial to get professional input because living trusts can be complicated. Additionally, unlike wills, living trusts must be notarized. 

Joint ownership. 

Joint ownership allows a property to pass directly to the surviving owner when the other owner passes. Joint ownership requires proof of paperwork, but the property does not need to pass through probate with this method. 

There are two types of joint ownership in Tennessee: Joint tenancy and tenancy by the entirety. Joint tenancy can be held by non-married or married couples and requires that the pair each have equal ownership of the property in life. Tenancy by the entirety is for married couples only and recognizes the couple as a singular unit. 

Although joint tenancy is an effective way to avoid probate, it does require that you gift half of your legal rights on the property to another person if you are the sole owner. Therefore, it is important that the joint ownership is in a trusted individual’s name. 

Navigating heirship and planning for your estate can feel overwhelming but preparing in advance can help make sure that your loved ones and your home are taken care of. For more information on property ownership in general, check out our blogs or attend one of our homebuyer education courses. 

Affordable Housing: A Way for Women to Gain Financial Freedom

Politics, religion and money – three things we are told to avoid in conversation with others. While the rules surrounding the first two have begun to relax, discussing money is still considered taboo. And, this sense of taboo only increases when discussing women’s financial health.

 Especially for women, understanding your finances – where your money goes and how to get the most out of it – is essential. Women are more likely to experience gender-based pay discrimination, lower wages and societal pressures that affects their earnings. Women are also more likely to have lower levels of financial knowledge, which can negatively affect their ability to achieve financial freedom and success. United Housing is committed to identifying these unique challenges and helping women overcome them, starting with affordable housing. 

Housing is a basic human need, and therefore a vital part of any budget. As an essential expense, housing has the power to significantly impact one’s financial freedom and quality of life. Unfortunately in most cities, housing options within people’s budgets are often unavailable. In fact, 7.2 million more affordable housing units are needed in the U.S. to meet the needs of low-income families. This lack of affordable housing causes people to stay in living arrangements that don’t work for their family, or to overextend themselves and their budgets to pay for a place to live that does meet their needs. Studies show that there is no state or county where a renter working full-time at minimum wage can afford a two-bedroom apartment. 

 In addition to an overall lack of affordable housing units in the U.S., women often face unique circumstances that make the search even more difficult. In comparison to men, women are more likely to live as single parents, making it challenging to find housing that is large enough to accommodate children while still staying within budget. This also renders many single moms unable to live safely and comfortably in traditionally affordable spaces, like studio apartments. Along with being more likely to have children, women are also more likely to be victims of assault. That means they must take area safety into consideration when looking for housing. Meaning, housing within their budget may be available, but they are less likely to purchase or rent if it offers inadequate protection or is located in an unsafe area.

 United Housing is here to help women, and all Memphians, overcome housing inequality and reach financial independence. Through our Homebuyer Education Courses and housing counseling, we work to provide our clients with the necessary tools and knowledge to gain or maintain financial wellness. If you want to work toward financial wellness or learn more about our work toward affordable housing for all Memphians, give us a call at 901-272-1122 today.

How to perform a quick home safety check in your house

Whether you’re moving in for the first time, or you have been in your home for years, it is always a good idea to perform a routine safety check. Your safety and the safety of those who live with you is a top priority. So, you should be frequently inspecting your home and performing regular safety checks. Not sure what to look for? Try adding these safety scans to your list of other regular home maintenance duties.

Start with the small stuff

Look closely at cords and wires to ensure that none of them are frayed or in areas where they could be potentially hazardous. Cords shouldn’t run under rugs or through doorways where they’re a fire and tripping hazard. Inspect outlets to ensure they are not too hot, which could be a sign of an electrical problem. If you’re using outlet extenders, make sure there are not too many appliances plugged into one outlet. Additionally, study ceilings and walls for abnormalities you might not notice if you weren’t paying attention, such as cracks, stains, or leaks, which could be symptoms of a larger problem.

Fires

An integral part of your safety check routine should be testing your smoke and carbon monoxide detectors. It is crucial that you confirm their functionality, that you know what they sound like, and that you keep track of their battery replacement timeline. It is recommended that you have a fire extinguisher in your kitchen and on each floor in your home. If you are just moving in, make sure your home has a fire extinguisher that is not expired, or add one to your shopping list.. Even if you have been in your home for a while, make sure you always know where your extinguisher is and that everyone in the house knows the right way to use it.

Outside

There are a few things you can do regarding your home’s exterior during a safety check. For example, check that your house number is visible from the road. It should be reflective or large enough that emergency service personnel can see it. You should also inspect  your landscaping. Large bushes or limbs on the side of your home could not only provide a hiding place for an intruder, but also could inhibit any efforts to quickly exit your home or open a window in events like a fire. They also could come crashing into your home during a severe weather event.

Planning Ahead

Part of your safety check could consist of making sure you and other members of your house know how to act in the unlikely event of a home emergency. It is not a bad idea to create an  escape plan, put extra flashlights in bedside tables and or create an updated list of emergency numbers.

Keeping your home safe is your responsibility. Though these checks aren’t hard, they do take time. But, a little bit of preventative work could save a life and prevent major damage to your home. Just as you consistently maintain your house’s cleanliness and tidiness, put the same emphasis on maintaining its security.

Picking a home that will suit your needs now and in the future

When buying a home, everyone is looking for what serves their needs at their current stage of life. Of course, no one is going to purchase a house that negatively affects the way they live now. However, something that many potential homeowners don’t consider is what their needs will be later on. Life can change and fast! That’s why it’s a good idea to think long-term before purchasing a home. What future needs may arise? Will your family grow? Do you have an aging loved one who may have trouble with a multilevel abode?

Location

A location may seem perfect for your present situation, but what if that changes? For example, you may find a house that isn’t close to anything you usually frequent, but you sacrifice that because it is right next door to your job and you can’t pass it up. What if you change jobs one day? Or, what if your job moves office spaces? Try not to let  current employment keep you from the location you want to live in now so you aren’t stuck in the future.

Future Projects

Be careful buying a home with features you don’t like solely based on the idea that you will renovate it in the future. Things you think you will have time for now may not always end up being feasible. Life and all the busyness that comes with it can sometimes get in the way.

Size

A home that may seem to be the perfect size now could end up feeling quite the opposite down the road. Be sure you keep in mind whether or not you might have children or even a relative joining you, as that may require an extra bedroom or two. People are not the only thing that can make your space seem like it’s closing in on you. If you work from home with a job that is increasingly demanding, you could end up needing more “office” space. In addition, consider yard size. Do you envision having a furry friend that would need space to run and play?

Resale

You may think this is the place you will live forever, but you never know, which is why it’s important to always consider a home’s value in terms of resale. Look at it through the lens of the average homebuyer instead of just in terms of you and your family.

Affordability

A mortgage payment that seems mostly doable now could turn into a real stressor on your budget. When looking to buy a home, make sure the mortgage payments and other fees are payable in any situation, for example, temporary unemployment, unexpected medical bills, etc. Wishful thinking isn’t always the best to cling to when it comes to home payments.

These are just a few things you need to consider before signing on the dotted line. Just remember, when it comes to buying a home that’s going to be with you for a while, the future is just as important as the present.

Outdoor Rehab You Can Do This Spring

Get rid of wintry gloom and embrace the fresh feel and bright colors of spring! Give the exterior of your home some seasonal TLC when the season changes with these outdoor rehab ideas.

Entryway

First impressions can be tough, so make them easier by giving your home’s entryway a more welcoming feel. Start by adding a fresh finish or new handle to your door. Spruce up the path leading up to your door by introducing some stepping stones or new potted plants. Next, grant a new coat of paint to your mailbox or fix that dent that’s been there for too long! Think about replacing your house numbers with shinier ones or polishing the existing ones.

Landscaping

Don’t let things get too rough around the hedges. When adding new, beautiful flowers or plants to the outside of your home, remember to trim tree branches and bushes, as well as pull weeds. If you don’t have much of a green thumb, consider choosing low-maintenance plants that still spruce things up. Additionally, maintain a mowed and watered lawn so the grass is greener on your side.

Maintenance

Outdoor maintenance isn’t as fun as planting a rose bush, but it’s even more important because it improves your home’s curbside appeal and longevity. Clean the gutters, fix concrete cracks and remove cobwebs or smudges from exterior windows. Inspect the safety levels of outdoor fixtures, such as the sturdiness of railings and fences, or trees close in proximity to electrical lines. Keep an eye out for water leakage and broken shingles.Fixing small things now could save the headache later.

Final touches

Lights can make the world of difference in brightening (literally and figuratively) your home’s exterior. The addition of a new light or lamp to your porch can give it a glowing and more homey appearance. How about some front door décor? Try a fun wreath or a cute welcome mat. These inviting touches are usually relatively inexpensive and easy to find. Finally, try some outdoor spring cleaning. Old items in your garage or a patio chair that you rarely use are all things that might be better elsewhere and can reduce the possibility of a cluttered-looking exterior.

Let these tips help you to reflect the excitement of spring on your home! It’s the perfect time to amplify curbside appeal.

How interest rates impact mortgage rates

For those on the hunt for a home, there is always a great deal of talk about interest rates and mortgage rates. All the numbers that are swirling around can become jumbled. To cut through the fog, let’s break down two of those figures - interest rates and mortgage rates.

●      Interest rate: Expressed as a percentage of the total amount of the loan, an interest rate is a fee you are charged by a lender for borrowing money.

●      Mortgage rate: A mortgage rate is the amount of interest paid on a home mortgage.

So, how do the two relate? When the Federal Reserve adjusts interest rates, it can have an indirect impact mortgage rates. In 2018, interest rates increased four times, ending the year at 2.5 percent after a 0.25 increase in Q4. For example, sometimes mortgage rates increase when short-term rates rise because the central bank’s action can have a ripple effect on all other interest rates. If you have a fixed-rate mortgage, the changes will not affect you, of course; however, borrowers with adjustable-rate mortgages (ARMs) and home equity lines of credit (HELOCs) will find themselves paying more interest on their mortgage loans because they are indexed to short-term rates.

On the contrary, there are times when mortgage rates have fallen after the Federal Reserve raised rates. Take 2004 for example. Beginning in June, the federal funds rate, which is the interest rate banks charge each other for overnight loans to meet reserve requirements, was raised 17 times in just two years! After that, in the summer and fall of 2004, mortgage rates fell. Why is that, you ask? At the time, rate hikes did not cause investors to worry about inflation. The decreased rates did not last long, though. After the two-year period when the rates were heightened 17 times, mortgage rates rose to levels that were higher than they were prior to when the period started.

How can you support the development of affordable housing in Memphis?

If you find yourself waking up this morning with a roof over your head and a bed in which to sleep, consider yourself fortunate! Home insecurity is a difficult reality for many members of our community, and a severe lack of affordable, decent housing is partly to blame.

There’s no need to feel any guilt. We would love for everyone to wake up in their warm beds, especially during this winter season! But we do want you to recognize how fortunate you are while thinking about how you can help others overcome housing insecurity.

So, what can you do to help support the development of affordable housing in Memphis? First, you can share your knowledge with your friends and neighbors. If you know families who are renting and think homeownership may not be an option for them, let them know about United Housing. We can supply the knowledge that families need to actualize their dream of homeownership.

Next, be sure to vote! Many organizations like United Housing receive government support that makes our program possible. Without this support, we’re limited in how much aide we can provide to families. Your candidates, especially local officials, might also take stances on development in your community and city. Consider candidate positions on housing and development when you head to the polls.

Finally, you can make an enormous impact by becoming a regular donor to United Housing. As a not-for-profit organization, we invest every penny beyond our operational costs into programs that support families striving toward homeownership, and we even build affordable homes for families to purchase! When you support United Housing with a one-time or recurring gift, you’re investing in families, the education of children, the revitalization of neighborhoods and a reduction in crime, all of which are impacted when we have more homeowners in our community.

The State of Memphis’ Housing Market is...

You guessed it – strong! Since the housing market crashed following the recession in 2008, things have slowly been inching onward and upward in Memphis. Earlier this year, several news outlets, including Forbes, reported that the local real estate market was booming. Sheldon Rosengarten of Memphis’ Marx-Bensdorf Realtors told WMC-TV that he has never seen anything like the current Mid-South market in his 40 years of experience!

Quick facts courtesy of Zillow:

●      Price per square foot: $68

●      Home value: $83,400*

●      List price: $109,900

●      Days on the market: 62

*Home values have gone up 6.5% over the past year.

According to Realtor.com, Memphis has been a seller’s market for most of 2018 (but that can fluctuate, so check this link to see the current state of the market). This means those looking to purchase a home outnumber those who are selling their homes. Because demand is high and supply is low, this type of market is more advantageous for the sellers rather than buyers. Zillow reports that homes are only on the market for 62 days. And, with so many being on the hunt, buyers often get into bidding wars, which oftentimes results in homes being sold for far more than the asking price (and sometimes, more than they’re actually worth).

Although it is a seller’s market, there are still some positive takeaways for home buyers. For example, the median list price of homes still falls well below the national average, with Memphis’ coming in at $109,900 and the national average at $275,000. And, to make matters even sweeter for those looking to buy, homes in the Bluff City typically sell for $10,300 less than the list price even with the current state of affairs.

Don’t let a seller’s market deter you! If you’re interested in purchasing a home, United Housing is here to help. From homebuyer education classes and credit counseling to mortgage lending and down payment assistance, we can help make your dream of owning a home a reality.

Raising your credit score

When preparing to purchase a home, many questions arise. Luckily, we’re here to help! One of the most common topics we discuss with our clients seeking homeownership is credit scores. So, how does your credit score impact your ability to get a mortgage loan? Here’s the scoop.

Your credit score, which is calculated based on the information in your credit report, is a key ingredient in determining two things when it comes to securing a mortgage loan. Not only does it determine whether or not you qualify for a mortgage loan, it also dictates the interest rate you will pay each month. Before we dive too deep, let’s break down credit score ranges to give you an idea of where you stand.

●      750-850 is considered "excellent"

●      700-749 is considered "good"

●      650-699 is "fair"

●      300-649 is "poor"

Your credit score is calculated based on the information in your credit report, including your lending history, length of credit accounts and any incidence of collections, among other things. If you have a higher credit score, you may be eligible for lower interest rates and are more likely to be approved for your mortgage loan. The lowest credit score to purchase a home with a Federal Housing Administration (FHA) loan is 600, according to credit.com. FHA loans are great for first-time homebuyers and require a minimum down payment of 3.5 percent.

 Now, just because a credit score of 600 will likely secure your home does not mean you should stop working toward improving your credit score. Part of our education program at United Housing is our credit counseling. Raising your credit score is extremely important as it can lighten financial burdens for years to come. So, how do you do it?

Pack your patience. Your credit score didn’t plummet overnight and it won’t skyrocket overnight either, but don’t panic! Raising your credit score is definitely doable, and we are here to help. Here are a few tips.

1. Contact your creditors to set up a payment plan.

2. Pay your bills on time every month. If possible, pay more than once in a billing cycle to speed the process of raising your score.

3. Pay off credit cards that are “maxed out” first.

4. Do not close unused credit card accounts. If you must close accounts, close those that are newer.

For more information on how your credit score plays into purchasing a home or on United Housing’s credit counseling services, give us a call at 901-272-1122.

Homeownership is an A+

Last month, we discussed the impact stable homeownership has on children's health and wellbeing. But, it’s not just the physical health that’s impacted – a child’s social development and education are linked to his or her housing situation.

Consider this scenario – a grade-school aged child lives in low-income rental housing. Though his home has two parents who are invested in his well being, he is subjected to frequent moving as his parents struggle to find a renting situation that is safe and stable. Each move changes his school zoning, and puts him in a new classroom with a new teacher, sometimes in the middle of an academic year. Progress tracking is inconsistent, teachers can’t identify challenges and he fails to meet educational milestones as a result. This scenario doesn’t even begin to touch the implications of social development that occur when children are forced to frequently abandon and make new friends.

Statistically, children in under-resourced communities lag behind their peers in standardized tests. There are a few causes that shape this trend: residential instability, absenteeism and comparatively worse schools. Homeownership can have a positive impact in each of these areas.

Homeowners stay put. A study by National Association of Home Builders shows that the average homeowner lives in their house for 13 years. Coincidentally, that’s the length of time a typical US child spends in the public school system. Residential stability allows students to progress through schools where teachers and administrators know them and are invested in their education. They also keep a similar group of peers, spurring strong social development during crucial formative years.

Health and homeownership are linked in children. If you haven’t already, read our recent blog post on homeownership impact on health in children. Absenteeism can be greatly reduced if students are healthy and able to go to school. 

Homeowners invest in their neighborhood, including schools. When it comes time to vote and pay taxes, homeowners contribute to the health and success of their local schools. Homeowners are twice as likely to vote, and electing local representatives who are dedicated to your schools can have a positive impact on school funding and opportunities.