Setting kids up for future success: What can you teach children to help emphasize the importance of homeownership?

At United Housing, we believe that educating children about homeownership plays a crucial role in setting them up for future success. Homeownership not only provides stability and security, but also fosters financial responsibility and personal growth. By instilling the significance of becoming a homeowner, we can empower children to make informed decisions about their future housing choices. Here are four ways to get started. 

Build a foundation of financial literacy 

One of the fundamental aspects – and oftentimes obstacles – of homeownership is understanding finances. Teaching children about money management, budgeting and saving from an early age equips them with the skills they need to make informed financial decisions in the future. Encourage children to set savings goals, understand the value of money and make responsible choices when it comes to spending. By establishing a strong foundation in financial literacy, children will be better prepared to navigate the complexities of homeownership later in life. 

Share responsibilities of homeownership 

Owning a home comes with the responsibility of maintenance and upkeep. Teach children about the importance of taking care of their living space, whether it's by cleaning, gardening or basic repairs. Instilling a sense of pride in ownership can help children develop a strong work ethic and a sense of responsibility. Emphasize the value of a well-maintained home and the positive impact it can have on the overall quality of life. 

Help them understand the importance of community 

Homeownership provides a sense of belonging and community. Help children understand the importance of creating roots in a particular neighborhood or community and explain how homeownership fosters a sense of stability, belonging and connection to others. Encourage your children to participate in community activities and engage with their neighbors, helping them develop a strong sense of community and social responsibility. 

Explore housing options 

Introduce children to various housing options and the pros and cons of renting versus owning a home. Teach your children about the process and benefits of buying a home by explaining how it allows individuals to build assets and provide stability for themselves and their families down the line.

Are you ready to start educating your children about the benefits of homeownership? Now is the time to equip them with the knowledge and tools they need to thrive in their housing journey and create a brighter future for themselves and their communities.

The power of the sun

You’ve probably heard about the damage UV rays from the sun can do to your skin. If you park your car outside, you know that the sun can deteriorate paint and ruin seats over time. The sun is powerful, and it can impact your home in negative ways if you’re not diligent. Here are a few ways the sun might impact your home and ways you can combat its harmful effects. 

The sun can negatively impact your energy expenditure.

One of the ways that we all feel the effects of the sun in Memphis is in our energy expenses. As sun pours into our homes, you can feel the temperature rise. Our first response is to crank on the AC – which can drive your utility bill skyward in the dead heat of the summer. There are a few ways you can combat the sun’s heat in your home. The first is to install light-blocking curtains. Ikea, Walmart and Homegoods have inexpensive options you can install yourself. Drawing the curtains during the middle of the day can do a ton to help keep your living space cooler. You can also install ceiling fans or use portable box fans to keep air moving. Circulating air can feel up to 10 degrees cooler than still air, which makes an enormous difference when the temperature outside is approaching 90 degrees. Finally, you can consider trying to harness the power of the sun to offset your energy bills! Installing solar panels can be expensive, but might be worth the investment based on your situation. You can reduce your carbon footprint, save money on utilities and potentially get a tax break. That’s a win-win-win!

The sun can affect your home’s curb appeal. 

Curb appeal might sound superficial, but how your home looks from the street can impact your property value and contribute to the overall perception of your neighborhood. Over time, the sun will cause exterior paint to fade, can scorch landscaping and degrade decorative features like shudders. But there are things you can do to slow the sun’s progress! Make sure you are watering your lawn and landscaping adequately, especially during the summer months. Watering in the early evening when the sun is setting can help give the water time to soak into the soil before the sun rises again and evaporates any lingering water. To keep your house looking nice, choose paints and finishes designed for outdoor use. These usually are created to protect against aging from the sun. Darker, richer colors will look more faded over time, so if you want to keep your home looking fresh, choosing lighter finishes is a good option. 

The sun can degrade key features of your home. 

Around your windows, you’ll find a pliable glue-like substance called caulk. Caulk is really important to help your windows hold AC or heat within your home and keep the opposite out. But over time, the sun can dry out caulk around your windows, allowing air to flow in and out. Luckily, caulking your windows is something you can do yourself! You can remove old caulk with an exacto knife and then lay new caulk using inexpensive supplies from your local hardware store. If you want more instructions, check out these tips! Want to help keep your seals stronger for longer? Plant some trees! Placing small saplings around your home strategically can help cast shadows on your windows throughout the day – providing a reprieve for your windows!

The good news is that many materials you’ll purchase for the outside of your home are meant to withstand the sun’s rays. But making a conscious decision to protect your home from the sun can extend the life of those products further, maintain your curb appeal and help you reduce your energy spend. So, let the light shine in (but only when you want it to)!

Is multigenerational housing for you?

Multigenerational housing is when at least three generations are living in the same household. According to the Pew Research Center, there has been a steady increase in the number of people living in multigenerational households since the 1970s. Here are a few of the reasons why people choose this type of housing.

Many people are able to save more money. 

When you choose multigenerational housing, you are able to split monthly payments into smaller portions. However your household decides to divide the monthly expenses that come with owning the home, there is one thing that’s guaranteed — not one single person is going to be responsible for everything. If you were to go out and buy a home on your own, you would solely be responsible for your mortgage payments and utilities. By choosing to live in a multigenerational household, you would be splitting those payments yourself and anyone else living under the same roof — children, grandchildren, parents, etc.

Splitting up payments allows you to have the benefits that come with owning a home without the daunting responsibility of having to pay an entire mortgage payment by yourself every month. When you spend less of your paycheck on monthly expenses, there is more left over for you to put into savings. Maybe you have a long-term goal of owning your own home one day. Multigenerational housing can help you save for your down payment and future mortgage payments. 

It’s easier to finance your home. 

By choosing multigenerational housing, you can typically qualify for a mortgage that is higher than what you would be able to afford by yourself. It’s always important to talk to your mortgage lender about your plans for financing. Maybe someone in your household has enough cash for a downpayment — like grandparents — and others are actively in the workforce bringing home money to pay for a mortgage — parents and children. Being able to supply your mortgage lender with as much detail as possible on your household’s financial plan will help find the best mortgage options and solidify your financing. 

Everyone shares the home’s equity. 

Your home’s equity is the difference between its appraised value and the amount of money that you owe the lender. As your household continues to make payments on the home, its equity will continue to grow. If there is a written agreement between the title holder of the home and the paying residents, everyone will be able to split the equity of the home. For example, if the house was ever to be sold, everyone would be able to get a share of the profits according to the terms of your agreement. 

It’s easier to care for your family.

Whether it’s children, parents or grandparents, it’s easier to care for family members when everyone lives under the same roof. In addition to finances, caregiving is the second most common reason that people choose to live in multigenerational housing. It makes it easier for children to care for their parents in their older age, and it’s like having a live-in babysitter. 

If you think that multigenerational housing is a good option for your family, the staff at United Housing can help you with everything you need to purchase a home. From financial education classes to loan options to community partnerships, it’s our mission to make sure that everyone who wants to own a home has the ability to do so. 

Adding to your rainy day fund

It’s inevitable — your house will need some kind of repairs. These repairs might be something expected like an old water heater or HVAC system needing to be replaced, but some can also come as a surprise. Inclement weather could cause your pipes to freeze and burst. Then, you would need to repair both the plumbing and anything else that was damaged – beyond what might be covered by your homeowners insurance. Having money set aside in a rainy day fund can help prepare you for when those repairs are needed. 

What is a rainy day fund?

A rainy day fund is similar to an emergency fund. Over time, your house is going to go through some wear and tear, and having money set aside in an account can help you pay for maintenance. Rainy day funds are typically reserved for the smaller-scale expenses. These expenses are typically something that you wouldn’t anticipate having in your monthly budget, so they could really throw you for a loop and leave you scrambling to find a way to deal with the cost. Having a rainy day fund keeps you from having to do the scrambling. You’ll have an extra financial security measure to fall back on. 

How much should you be putting in your rainy day fund?

The amount of money that you should have in your rainy day fund depends on the value of your home, so the amount of money in each person’s savings will be different. Realtor.com recommends keeping a reserve of 1-3% of your home’s total value. For example, if your home is veiled at $250,000, you should probably keep your rainy day fund around $2,500 to $7,500. Having a rainy day fund is all about diversifying your savings. While you’re not saving up for something specific, you are saving up for when that inevitable, unexpected incident occurs. 

While having a rainy day fund is important for homeowners, it is also a good practice for renters too. For someone who is currently renting with a longer-term goal of purchasing a home, it’s important to make sure that you start saving for all the expenses that come with the territory — mortgages, down payments and home maintenance. Home repairs — expected or unexpected — can have a large price tag attached. Your rainy day fund can help you pay for those without cutting into your monthly budget. It can prevent you from having to make a hard choice between keeping the lights on and buying groceries or repairing your air conditioner or roof. 

How to build a rainy day fund.

Because your rainy day fund is for saving and not for immediate spending, you can make wise decisions to protect (and even grow) your savings! Talk with a local bank or credit union about creating a savings account. These accounts usually allow you to earn a small amount of interest on the money that you put into the account. While it’s not going to earn you a ton of money, every dollar earned is helpful when an emergency happens! You can then talk with your employer about setting up a direct deposit to automatically add a small amount of funds to that account every time you’re paid. If the money never hits your spending account, it’s easier not to touch it! But, if you’re worried about spending from the savings account, you can always talk with your banker about protections you can put in place – like setting spending limits or not printing debit cards with access to the account. 

Entering into homeownership can be intimidating, but there are resources out there to help you along your way. United Housing, Inc. is here to help make sure that everyone has access to affordable housing. We can help you in your home search and with financing options. Most importantly, we can help educate you on the entire process. We offer homebuyer education classes every week. Remember — you are not alone. United Housing is a resource that is here waiting to help you in any way you may need. 

Creative ways to finance your home

When it comes to buying a home, financing options can be daunting. Thinking about loans, down payments and interest rates can be overwhelming, especially in a market that fluctuates as much as the housing one. However, the traditional ways for buying a home are not the only options. Here are some alternatives out there for becoming a homeowner. 

Consider shared equity financing.

In a nutshell, shared equity financing allows for multiple families, banks and community organizations to invest in a property together. Having multiple investors in a property is affordable, but it also allows the community to create standards for properties in their neighborhood. This could include preventing things like gentrification or rapid price swings in communities that can price people out of the market. In a shared equity financing agreement, there are different roles. One party will act as an investor, and the other party will be the occupant. However, the investor isn’t solely responsible for paying. The occupant will also pay a portion of the mortgage and other housing expenses, which is all determined in the signed agreement. Additionally, if the occupant ever decides to sell the home, the investment partner or partners will get a portion of the profits made from the sale. 

Look into adjustable-rate mortgages. 

Adjustable rate mortgages, or ARM, are a double-edged sword. While choosing an ARM today might mean that your interest rate and monthly payments are lower, there is always the potential that the price can rise. ARMs initially start as fixed-interest-rate mortgages – meaning the interest rate you agree to at closing will stay the same for as long as your mortgage agreement states. But after a certain number of years, your financing partner can change your interest rate. For example, you might have a 30-year ARM, but your fixed interest-rate period is only the first five years. This means that after the first five years of payments, your mortgage can increase or decrease based on interest rates. While ARMs can initially be a great deal for homeowners, it’s important to recognize and understand the risks that can come later down the line. If you’re considering an ARM, talk with your lender about the amount of time your rate will remain the same, how much your interest rate can move in a year once the rate becomes adjustable, or what it might look like to refinance in the future to a fixed-rate mortgage.

Go through nonprofits like UHI. 

Another nontraditional housing option is to look into nonprofits – like United Housing, Inc. – that help homeowners find more affordable housing options. Depending on the nonprofit you choose, they could offer several affordable options for home loans and home repairs. These nonprofits also provide you with an extra support system to help you walk through the process and really understand all the decisions that you’ll have to make. 

At United Housing, we believe that everyone deserves a home. From affordable loans to educational classes, we want everyone to have the support and confidence they need to become homeowners. If you’re ready to make the big purchase, give us a call today. 

The benefits of multifamily housing

Townhouses, condos, and duplexes – these are just a few examples of multifamily housing options that exist in communities around the world. When we think about multifamily housing in Memphis, we often think of apartment complexes that house mostly renters. But, people can own a portion of a multifamily housing unit in the Bluff City, and United Housing is advocating to create more of these opportunities! Here are some of the benefits that multifamily housing offers to not only homeowners but the communities in which they’re built. 

Affordability meets location. 

Single-family homes in urban and suburban areas can be pricey. The cost of land to build a home can be expensive, especially in neighborhoods where the property is limited. Multifamily homes in these communities can use density to their advantage. By creating multiple units on a lot that may traditionally house only one family, developers are able to divide the land costs among multiple owners. This can lead to lower-cost housing options in high-demand neighborhoods, increasing access to key community amenities, job opportunities and schools, all while creating a more socioeconomically diverse community. 

Sizing makes sense for certain families.

Some homebuyers don’t need a ton of space to make their house feel like home. Many are even looking to buy a home that has fewer bedrooms and bathrooms than you might be able to find in a single-family house. In this instance, a multifamily unit may be a perfect fit. But one of the great things about multifamily units is that they come in all shapes and sizes. Small units can be optimized to feel more spacious than they are on paper, and some townhomes and condos offer just as many bedrooms and bathrooms as a ranch home in the suburbs. Simply put, there are a lot of size and space options available in multifamily units that are attractive to homebuyers.

Opportunity for supplemental income. 

If you can afford it, purchasing a duplex or triplex could be a great way to earn some supplemental income. If you purchase the entire multifamily complex, then you can rent out the other unit or units that you’re not living in. Of course, prioritizing your budget is most important, and this may not be an option that is available to most families. But if it makes financial sense for you, it could be a great way to become a local landlord. 

Group amenities and shared spaces can add value. 

Some multifamily communities have shared amenities and spaces that you can access as a resident. This could include things like community centers, pools, gyms or other features. Even if your unit or community doesn’t have these assets, you’ll likely share a yard, garden or patio with other homeowners or renters within your unit. This can provide value without making you solely responsible for upkeep and maintenance. It’s always nice when you can split the costs of things like yard maintenance with your neighbors! 

Housing density can strengthen housing markets and increase access. 

Middle housing is a topic we’ve mentioned this year as Memphis is missing a lot of middle housing opportunities. Density, or creating opportunities for multiple family units to live in a space that may have traditionally been reserved for one, can revitalize neighborhoods and bring new homeowners into the fold. 

How much space do I need in my house?

If you’re going to start looking at houses to buy, one of the first qualities you need to consider is how much space you want. Generally, people measure a home’s space by three metrics: square footage, the number of bedrooms and bathrooms, and the acreage of the lot on which the house sits. These numbers can vary widely, but when combined, they paint a really clear picture that can help you find the perfect house for your current and future needs. We break down what to consider when evaluating a home based on these metrics and how they play together. 

How space is measured

To understand how a house’s space is measured, it’s best to start by defining the terms.

• Bedrooms: Counting a home’s bedrooms might seem straightforward, but there are a few things you should know about what counts as a bedroom. For a room to count as a bedroom, it has to have at least 7 feet of horizontal distance, two forms of entry/exit (usually a window and a door), 7-foot ceilings and some sort of heating/cooling elements. Some states require a closet for a room to be considered a bedroom, but not all. 

• Bathrooms: A “full bathroom” is a washroom that includes a toilet, sink and shower or bathtub (or a shower/tub combination). You may also encounter a home with a half-bathroom or a powder room. Usually, this is a smaller bathroom that doesn’t have a shower or bathtub. If a home has two half bathrooms, the listing shouldn't combine them to list a full bathroom. Make sure you understand how many bathrooms are in a house and how they break down between full and half bathrooms by reading the property description. 

• Square footage: A home’s square footage is calculated by measuring the length and width of a room and multiplying the two measurements together. You repeat this process throughout all of the rooms and add the figures together to determine the total square footage. It’s important to consider a home’s number of rooms alongside the square footage to get a clear picture of how big a home is. Some homes have many smaller rooms while others will have a few bigger spaces. Both arrangements have pros and cons – it really depends upon what you need and want in a house.

• Lot size: You should not only consider the size of the house you’re looking to buy, but also the size of the lot on which it sits. Sometimes lots are measured in square feet, and other times they’re measured by acreage. Regardless of the metrics used to measure, take some time to drive around and look at the lot size in the areas you’re considering. This can help you determine how much or how little land you want.

Current vs. future space needs

Now that you understand the metrics, it’s time to start thinking about how much space you need. A good way to get started is to think about your current living arrangement. Does everyone in your family who needs a bedroom have one? If not, you may want to consider homes with more bedrooms than you currently have. Is there a bathroom in your current space that often goes unused? Then maybe you could consider a home with one fewer. 

Then, think beyond bedrooms and bathrooms and envision how you’d like to use your new house. If hosting meals for family holidays is important to you, then a larger kitchen and a dining room might be features to look for. If you have an active pet and kids who enjoy playing outside, then a fenced yard may be an important priority. When you think about your needs and your wants combined, a clear picture of how much space you really need can come into focus.

One pitfall homebuyers can fall into is not considering their future space needs when shopping for a home. If you plan to have children, have a significant other move in with you, care for older relatives or host guests, you may want to look for a home that’s a little bigger than your current needs. This can help make your home last longer for your family and keep you from having to move. 

Finding the balance between space and affordability

Some people might say that bigger is always better – but that’s not the case when you’re shopping for a home. The goal should be to find a home that has enough space to make sense now and into the future while also fitting within your budget. After all, you don’t want to pay more in a mortgage and higher utility bills for space you don’t really use. This is where working with a Realtor comes into play. A licensed real estate professional can help you determine what parts of town would be affordable based on the size of a home you’re looking for. 

They can also help you evaluate how well a house uses space. Some houses waste square footage because of poor design choices. Others have lower square footage but are much more functional for modern families. For example, Homes in United Housing’s neighborhood, Wolf River Bluffs, use universal design standards to maximize usable space and provide amenities that are both functional and affordable. 

Ultimately, it’s your decision! 

Whether you need a home with lots of space or a more compact economical house, it is your decision. Once you understand how space is measured and use our recommendations to determine your needs and wants in a space, you should be on your way to finding your dream home! 

5 things you need to know before buying a rental property

So, you want to buy a rental property? You’ve probably heard about the value of investing in property and the passive income you could be earning as a local landlord. Both of those statements are true, but there are a lot of other things to consider before you buy a rental property. United Housing supports people in becoming homeowners fully informed about the benefits and challenges – whether or not they plan on living in the house full time. In the spirit of education, here are five things you need to know about owning a rental property. 

Before we get started, not all rental properties are the same. Buying a home that you will lease to a family on a mid- to long-term basis is different than purchasing a rental home that will function as a short-term or vacation rental house. For the purpose of this blog post, we’ll only be talking about long-term rental properties.

• Your city may have zoning and property rules. 

The best way to avoid complications regarding zoning, ordinances and other legal challenges is to check out your local rules and guidelines before you purchase a rental property. States, cities and other municipalities can create their own regulations for landlords to follow. These can range from required zoning status and limitations on the number of inhabitants you can host in your home. To make a sound investment, you need to follow these rules carefully. Stepping outside of them can create costly challenges that might negate any profits you make on the purchase. Movoto outlined some common guidelines that you should talk through with a local representative. 

• There are tax and income benefits. 

One of the main reasons people pursue rental property ownership is the financial benefits that come along with it. If you can rent your property for more than you pay in a monthly note, you can quickly build wealth while your property appreciates in value. But, there are also some tax benefits for rental property owners. For example, some general expenses are considered deductible by the IRS, including landscaping, utilities you have to pay and general maintenance costs. Stessa outlines additional tax benefits – but don’t count your chickens before they hatch. It’s best to talk with a tax professional about potential benefits you could receive under the current tax code. 

• Renters have rights you must uphold.

As a property owner, you have rights. But the people you rent to also have rights that you must uphold. These rights vary by state but generally work to protect a renter’s rights to privacy and decency. Before you start listing your property, review your local regulations. There may be some upgrades you have to make for your unit to comply with the rights of renters. The state of Tennessee has a great online resource guide for landlords and tenants to refer to when determining what actions are a violation of tenant rights. 

• You can enroll in programs to help find tenants. 

In some respects, buying the property is the easy part. Finding a reliable tenant who will respect your property can be really hard and is one of the main reasons people don’t get into the rental property business. But, there are programs that can help, like the federal government’s Housing Choice Voucher Program. Housing authorities across the country partner with local landlords to place people in rental properties, and then payment comes to you through the housing authority. This ensures you get prompt payments that are at or above fair market value. 

• You may need to conduct repairs before you list your property. 

Few properties are picture perfect the moment you purchase them. To make a home decent and livable for your future tenants, you will probably need to make some improvements. Products like United Housing’s Home Repair Loan can help you make needed repairs at a low, fixed interest rate. These improvements can’t be cosmetic or luxury, but can help make your home compliant with local decency standards. 

Interest rates: What are they and how are they affecting homebuyers in 2022?

Interest rates have been in the news quite a lot this year. Eager homebuyers are navigating a challenging housing market while they watch interest rates soar, hoping to beat any further increases and finally sign a contract on the perfect home. Rising costs on just about everything, like food, gas and everyday services are worrisome for many. All of these things aren’t predicted to decrease in price any time soon, unfortunately. So how does all of this affect you, the hopeful homebuyer? We explain below. 

What is an interest rate on a home?

An interest rate is a set percentage rate that you pay on a loan (your mortgage). You begin with a principal loan amount (the amount you purchased your home for) and then pay interest to your lender on top of that price to be able to borrow the money. It’s broken down on your monthly mortgage statements, too. You’ll see the amount that was applied to your principal and the amount you paid in interest. As the amount owed decreases, the amount of interest you pay monthly will decrease. Your interest rate also depends on the economy and market conditions.

How is a homebuyer’s interest rate calculated?

Many factors go into calculating a homebuyer’s interest rate. Traditionally, a mortgage company will look at the length of the loan, the total loan amount, your credit score, inflation, housing market conditions, and your down payment among other things! The type of loan you’re getting, such as a conventional loan or FHA, also factors in. 

If you know anything about United Housing, though, you’re aware that we’re in the business of making homeownership possible by making it affordable! Our programs and resources are designed to keep housing affordable and provide attainable mortgages to those who may not qualify for traditional loans. Take our Cherry Mortgage for example. We created this loan with fair qualifications that we set because we’re your lender versus a large, national organization. And that includes the interest rate. So when traditional mortgage rates are on the rise, we work to ensure purchasing a home through UHI remains affordable.

Why does this matter now?

If you recently went through the process of getting prequalified for a traditional mortgage, it’s possible that you found – based on current market interest rates – it won’t actually be affordable at all. Even if a homebuyer is prequalified for a certain amount, the rising interest rates can push them out of that amount because as those rates rise, so does a buyer’s monthly payment. Or, maybe all of the negative news around interest rates has discouraged you from even trying. But as mentioned above, our Cherry Mortgage is meant to be a solution to this very challenge. If you’ve hit roadblocks with a mortgage lender, partnering with United Housing may be the option that helps you achieve your dream of homeownership. 

To learn more, we encourage you to check out our Homebuyer Education Courses. It’s a great first step for any new homebuyer and is also a requirement of our Cherry Mortgage. We host classes Tuesdays, Thursdays and Saturdays, so sign up now.  

What is middle housing and why is it needed?

Housing needs are unique to every person and family. Some families need more room for grandparents and children that live under the same roof – and as multiple adults bring in active income, they can afford a more expensive home. Other people live independently and would prefer a smaller home that comes with a lower monthly note. Because everyone’s situation is different, a healthy housing market has homes available for sale of all sizes and price points.

But that’s not really what the market looks like right now in many American cities. New neighborhoods are being built in suburban communities, and the footprints tend to be large. In city centers, houses are being bought and renovated at a premium, pricing out the average resident. Modest, affordable houses are not being built or maintained.

That goes against what most Americans say they want. According to a Zillow survey, the majority of individuals would prefer that more affordable housing be built in their neighborhoods. In urban areas, that often requires that we get creative with how we use what little land is available. One of the best options is to build middle housing to create strategic density. But what does that mean and who does it serve?

What is middle housing?

Throughout Memphis, you might see housing blocked together with space for three to four families. It can be in the form of a duplex, triplex, an old home converted to accommodate many people or detached multi-story homes in a single neighborhood. This type of housing is called middle housing because it’s not quite single-family housing, but it’s also not a large, multifamily complex. Hence, middle housing!

Middle housing went out of fashion in cities across the country, including Memphis. Zoning restrictions kept people from converting larger single family units into duplexes in an effort to preserve neighborhoods. But in the process, this kept people from being able to build townhomes, duplexes and other multifamily housing options that make sense when there isn’t a lot of land available.

Why is it important to have middle housing?

The main benefit of middle housing is affordability. “We need a greater mix of housing types to meet differing income and generational needs,” said Debra Bassert of the National Association of Home Builders. “This is where missing middle housing can change the conversation.”

Higher-end properties have a larger price tag, which makes it nearly impossible for first-time homebuyers to afford. Apartments or condos may be more affordable, but may not have the space for a family and may not provide access to schools or other amenities that a family needs. Middle housing can provide space, affordability and neighborhood desirability.

According to the Zillow research results mentioned above, there are many positive factors of middle housing. A burgeoning neighborhood will attract more amenities. Neighborhoods bring residents, and residents bring commerce. This opens up neighborhoods to the live/work model. In this type of arrangement, restaurants, office buildings and retail stores open up within walking distance of neighborhood centers.

A sense of community is important for many. In developments like the live/work model, duplexes and triplexes, there is a higher likelihood of interaction and relationship building with neighbors. Getting to know the individuals in your neighborhood provides you with the opportunity to learn about other cultures and viewpoints. The sense of community that comes with knowing and trusting your neighbors is invaluable.

Middle housing can fill a housing gap for families and individuals looking to purchase a home. If you’d like to learn more about middle housing, the team at United Housing can help! Give us a call today at 901-272-1122.

Shared equity housing: Maintaining neighborhood standards

One of the most exciting parts of buying a house is learning about the neighborhood you’re joining. The architectural style of the homes, how people tend to their yards, the local schools and closest eats can all contribute to a neighborhood’s charm – and housing prices. 

A healthy housing market has neighborhoods with homes that vary in size and price. Ideally, there is plenty of stock available at affordable prices for first-time buyers and also larger homes for families to settle into later in life. But that’s not always how things shake out. Sometimes, prices can rise dramatically quickly, which changes the entire fabric of the neighborhood. 

Why wouldn’t you want values to rise in your neighborhood?

That’s a fair question. At United Housing, we talk a lot about a house and property as an investment that appreciates in value over time. We DO want your investment to grow. But when property prices grow exponentially in a short period of time, it can hurt overall affordability. Your annual taxes could rise, increasing your monthly mortgage, sometimes substantially. It’s better for home prices to rise incrementally over the course of several years, allowing you opportunity to advance in your career, increase your earnings and feel comfortable with potential tax increases. 

Is there anything I can do about rising prices in my neighborhood?

Yes! Neighborhoods around the country are investing in shared equity housing. That’s a complicated way to say that neighbors are pooling resources to manage property ownership and sales in their communities. When neighbors take on properties and sell them, they can set terms, manage overall prices, maintain the charm of the property and most importantly, keep outside investors out of the neighborhood. 

In Memphis, one great example of this is Binghampton Community Land Trust. Recently, they bought a house in their neighborhood that was in pretty bad shape – the roof was caving in, and it was an eyesore. They razed the property with the help of United Housing, and built a new, affordable home in its place. They were able to sell the home to a local family, recoup their investment plus some, and maintain the property value in the process! Now, they can seek another property to do the same thing with in the future. What’s so cool about this opportunity is that it beautifies the neighborhood, provides an affordable housing opportunity for a family, and strengthens the community without pricing people out of their homes.

Community land trusts are only one type of shared equity housing. Recently, the Tennessee Housing Development Agency shared information about other options for communities across the state. If you’d like to learn more about shared equity or about housing preservation in general, the team at United Housing would be happy to chat! Give us a call today at 901-272-1122.

How to prevent foreclosure

Purchasing a home can be an exciting process. While you’re visiting properties, weighing pros and cons and evaluating neighborhoods, you’ll need to take a step back and carefully consider what home makes the most sense for you financially. Foreclosure is emotionally and financially devastating, but for the most part, it can be prevented with forethought and planning.

So, what is foreclosure? Simply put, foreclosure is a financial process where the lender reclaims a home from the borrower because of an inability to make payments. The immediate implication is the loss of your home and property, but the ripple effects – like a hit to your credit score, inability to purchase a home for five to seven years, and emotional distress – can be felt for years.

United Housing is committed to helping Memphians achieve homeownership. But beyond that, we want to help our neighbors remain in their homes and build wealth. Here’s what you can do before you buy to help prevent foreclosure.

Attend a Homebuyer Education course

Fully understanding the cost of owning a home can help you better determine how much money you can afford to spend on a home, consequently preventing you from overextending yourself financially. Homebuyer Education courses, provided by organizations like United Housing, paint a holistic picture of the homebuying process and the costs associated with buying and maintaining a home. If you’ve already purchased a home, it’s not too late! We can still help you through our Post-Purchase Homeowner Education classes.

Create a budget and stick to it

Once you know how much homeownership costs, you can build a budget to ensure you have the money needed to cover your mortgage payment. United Housing’s HBE course helps you start the process, providing you with the tools you need to lay out your expenses and set your spending priorities.

Prioritize saving

Simply put – life happens. Even sound budgets can be shattered when economies change, babies are born or jobs are lost. Having a solid savings account will leave you time to reallocate your funds without missing payments on your mortgage.

What to do if you’re facing foreclosure?

If your mortgage payments are mounting, seeking help early can keep you in your home. UHI offers foreclosure counseling where our team of caring, trained professionals can help you evaluate your options. You don’t have to lose your home, and we can help you find a solution.

Creating a home for the holidays

A key conversation that often gets lost in the topic of homeownership is the importance of rental homes. Although it seems counterintuitive to the goal of homeownership, renting a home is an important step while you save for a down payment or shop around. Another reason that having access to rental homes is important is because homeownership, although valuable, is not always the best option for every person.

Placing value on rentals

For some people, renting a safe, well-maintained home is more worthwhile and accessible. Rental homes can come with special features, such as included lawn care, planned essential maintenance and even access to amenities. Rental units, especially those that are part of an apartment or condominium community, also often have more safety features and accessibility options, since they must adhere to a separate code. Renting a property also makes it easier to live in places that are close to work or appointments, and residents can more easily move if their needs change.

Most importantly, rentals are a more affordable option for some people. There’s no need to have a down payment, pay real estate taxes or worry about fluctuating property values since they aren’t a permanent stakeholder in the property. There’s also less liability for unexpected costs, like repairs or replacements, which can range from hundreds to thousands of dollars.

Making space for rentals

The benefits of rental homes are especially evident for people on fixed incomes, like seniors and people receiving disability payments. The consistency and flexibility fits their needs better than homeownership, which is why many long-term renters identify within these groups.

However, long-term renters often struggle to find affordable, yet safe and well-maintained homes. They are also at risk of being taken advantage of by landlords as they may not have the resources to leave or resolve the issue fairly. This forces them to choose to live either in unfit homes or lose valuable autonomy by living with family members. United Housing recognizes this inequality, and is working against it with our Home for the Holidays campaign, which helps maintain the 45 properties we rent to seniors and individuals with disabilities.

More specifically, the goal of Home for the Holidays is not to simply repair rental homes, but to provide dignified and fair housing to long-term renters. The funds raised during the campaign help to ensure that these 45 rental homes always have safe, clean and functioning features for their residents, without transferring the cost of upkeep to rent increases and other fees. This not only creates reliable housing for vulnerable groups, but also helps to make housing more accessible and equitable in Memphis. Learn how you can assist in the effort here.

Budgeting for the holidays.

The holidays may be the most magical time of the year, but they can come with a lot of expenses On top of the cost of parties, decorations, feasts and fun outings, there’s also pressure to snag the perfect gift for all your loved ones and more. Buying gifts for everyone on our list can quickly become expensive and cut into regular, essential budgets.

To help shoulder this financial burden, you might be tempted to put off your essential bills to create a budget for the holidays. But this can cause even more financial stress later on. Below, we outline a few things to keep in mind when shopping for your holiday gifts.

Picking the right way to pay it off.

Predatory lenders earned their name for good reason – they dangle benefits without telling consumers the potential consequences of their services. Predatory lenders come in many different shapes and sizes, but two of the most commonly used during holiday shopping are payday and buy-now-pay-later lenders.

Both options sound great at first, but lenders don’t clearly outline the exorbitant interest rate, unexpected fees and other fine print that can ruin your credit score. Buy-now-pay-later lenders, usually in the form of popular apps, are especially dangerous thanks to trendy and clever marketing. Consumers can quickly rack up debt and have difficulty paying the loans off if the service is used irresponsibly.

Instead, many stores offer layaway programs that allow customers to pay off the item interest-free over several months and pick up the item when payments are complete. This is a safer alternative to short-term loans and can help families make large purchases without sacrificing essential expenses or using debtors with high interest rates.

Protecting your assets.

Some loans don’t appear to be loans at all – making them all the more predatory. These often come in the form of second mortgages or car title loans, which put the most valuable and essential assets at risk. When you take out a second mortgage or sell your car title for extra cash, you use your home or vehicle as collateral. This means if the loan is not paid off, lenders can take possession of your home or your car. Car title loans are especially risky because they usually don’t come from a reputable lender and typically have such high interest rates that paying them off is nearly impossible. Unless you’ve received advice from an accredited financial expert, you should never use your home or vehicle as collateral for extra cash.

Finding the real meaning of Christmas.

While layaway is a relatively safe way to spread big purchases out, it's not the only way to avoid debt around the holiday season. As the clichéd saying goes, the true meaning of the holidays is about more than the latest toys. There are plenty of ways to give beautiful, meaningful gifts and stay within your budget.

Many toys, electronics and even clothes can be purchased secondhand from reputable sellers at a lower cost. Planning ahead and shopping sales throughout the year can also help you stay within budget and avoid last-minute overspending. Gifting something meaningful can also help prevent overspending. Try making a casting of a pet’s paw, framing a special photo or finding something in a thrift store that reminds you of a favorite memory. After all, showing others that you care is what gifting is all about.

Budgeting for the holidays can feel overwhelming, but planning ahead and educating yourself on safe purchasing habits can save you money. For more information on predatory lenders in general, check out our May blog or attend one of our homebuyer education courses.

Local landlords – why we need them

Renting is a crucial part of the homebuying process. Future homeowners need an affordable housing option while they find their future home or save money for a down payment. Rental properties fill these needs. Because rental properties are essential, it’s important to develop and preserve a healthy market share of affordable rental units. One way that we can drive fair, decent renting is by encouraging local residents to invest in rental properties and become landlords. Below, we outline a few of the benefits of sustaining rental property management within the local economy.

Preserve community integrity

Historical homes and buildings make a city more interesting to visit and live in. They tell a story of the city, and more importantly, the neighborhood they’re located in. Preserving the culture and history of cities and neighborhoods is important to maintaining value and avoiding becoming a non-place. 

Non-places refers to areas where authenticity is replaced with anonymity. When foreign investors develop in a city, they tend to purchase large swaths of property. In these purchases, they are more inclined to tear down historic or culturally significant properties to build generic residential areas. This not only interrupts the historical aesthetic of a city, but removes the valuable and unique culture built over time. However, for local investors purchasing individual properties, the cost of renovating a singular existing building is more feasible. Their deeper understanding and appreciation for a neighborhood's original architecture often means that these renovations will align with community standards and renter preferences.

Improve tenant experience

The key part of having a local landlord is just that, locality. Rather than investing in a development then moving on to the next city, locally based landlords remain in the area which makes them more available to address problems. With local landlords, tenets are able to contact them directly, rather than going through multiple channels or large management companies. Direct contact, proximity to the property and contacts with local trade professionals help ensure serious issues are resolved quickly and rental properties stay in good condition. On top of this, local property owners tend to manage fewer properties which means they give more attention to issues when they arise, making it an all-around better experience for the tenant.

Remain invested.

When you shop locally, you’re keeping money within the community – living at a locally owned property is no different. Rent paid to a local landlord stays within the city’s economy through taxes, purchases or additional investments. This is beneficial to the community's economy in several ways.

First, locally based landlords pay taxes on their personal property and income, in addition to their rentals, which circulates directly back into improving the community. Additionally, local landlords make purchases within the community, which support businesses within the city. Finally, locally based landlords reinvest in more properties, which helps discourage out-of-state, large investors and sustain an independent local economy.

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.

Mortgage assistance to get back on track

Most people hear “mortgage assistance” and think of individuals trying to keep their homes. However, many individuals still need help after falling behind on mortgage payments, regardless of proximity to foreclosure. Although they may not be in jeopardy of losing their home just yet, the inability to stay up on mortgage payments makes it impossible to move and can render them unable to reach life milestones, make exciting new changes or invest in their futures.

Relocation

If someone is looking to relocate, they won’t be able to sell their home without covering the losses. That can make buying their next home more challenging. Relocation isn’t just something people do frivolously or when they’re looking for a change. It can be a major factor in the trajectory of a person’s life. For example, you might want to take a job opportunity that requires you to find a new place to live, or you could even be looking for a safer neighborhood. Whatever the reason, you should be able to do so without the financial burden of late mortgage payments.

Downsize or expand

Over time, a home can sometimes become too small or too big! If you have a family that’s growing in size or a roommate that’s moving out, you might be looking to move to a space that better fits your needs. Whether you’re planning for the future or adapting to new circumstances, mortgage payments shouldn’t hold you back.

Gain capital

Another reason individuals may be looking to move is a need for additional capital. When you purchased your home, you made a significant investment. If you were to sell it, there’s a possibility you may make more than you initially paid for it. This extra capital could go toward your savings or even a down payment on a new place to live. But once again, you can’t sell your home for additional capital if you’ve fallen behind on paying your mortgage.

While the inability to stay up on mortgage payments can make dreams of moving or changing seem impossible, United Housing is here to help. Through our COVID-19 Mortgage Relief Program, we’re helping people like you keep your home, relocate, downsize or to sell. To learn more or to see if you qualify for mortgage assistance, click here. And if you’d like to hear more about the other homebuyer resources we offer, visit our website today.

CARES funds part two: the human impact

Over the last year, grant programs and funding options have become available to nonprofits to help us alleviate our clients’ burdens caused by COVID-19. UHI secured varied funding to provide emergency support to our clients and maintain housing stability in Memphis. One avenue of CARES support came through our Home Repair Loan program. Read stories from UHI clients about the impact this program had on their lives:

Senior UHI client, Joyce, found herself in need of major home repairs. Not only did her foundation need to be stabilized, but most of her plumbing had to be repaired or replaced. As a former real estate agent, Joyce had a lot of experience in financing home repairs, and was familiar with many programs like UHI’s Home Repair Loan program. However, her experience was like none she had ever had before:

“In over 50 years of working with the public, I have never had the type of help that I received from United Housing,” said Joyce. “It’s a great program, not only for seniors, but for anyone that can qualify.”

Another one of UHI’s Home Repair Loan recipients, Barbara, discovered a wiring issue in her newly purchased home that created a fire hazard. Unable to get the money or loans for repairs, Barbara was left in a dangerous home without options. Luckily, she found UHI and was able to apply for our Home Repair Loan which covered the cost of her essential repairs.

“I would not be at my current home if not for United Housing,” said Barbara. “Without United Housing, I do not know where I would be.”

UHI client Pam was searching for funds to repair her mother’s house. Pam’s elderly mother uses a walker, which meant she required an accessible bathroom. She also had uneven floors in her kitchen which posed a falling hazard. Pam was able to get in touch with UHI and apply for the Home Repair Loan. Her mother’s newly repaired home has given her self-confidence:

“The home repairs have given my mother back her dignity and pride,” said Pam. “Now, she’s able to do a lot of things for herself.”

If you’re interested in learning more about our home improvement repair loan, click here. If you or a loved one is in need of home improvement, don’t wait, visit our website and apply today.

Housing and young adults: Be wary of predatory lenders

Predatory lending is the unethical practice of offering loans to individuals at rates they will not be able to pay back. This catches vulnerable people in a vicious debt cycle, harming their credit score and making a debt-free future feel impossible. Predatory lending is dangerous for everyone, but if you’re a young adult, such as a new high school or college graduate, it can be especially dangerous for you.

Payday loans have the highest interest rates in the industry with average annual percentage rates between 391% and 521%. This massively increases the total repayment price, meaning only about 2% of payday borrowers can actually afford to pay back the loan. To make matters worse, predatory lenders are often given direct access to borrowers' checking accounts so they can withdraw money before the borrower is able to pay necessary bills and other expenses.

Young people possess many of the characteristics payday lenders target. For example, young people on average have lower salaries than their tenured, older peers, and are more likely to rent than own their homes. A study conducted by Pew Charitable Trusts found people making less than $40,000 were 62% more likely to utilize payday loans, and that renters were 57% more likely to borrow from predatory lenders compared to homeowners. Additionally, the National Education Association noted that payday loans are increasingly being marketed to young people because they’re more likely to have student loan debt.

Unfortunately, Tennessee has the highest number of predatory lenders in the country. Our state has more than 1,200 predatory lending locations in 89 of Tennessee’s 95 counties. Additionally, Shelby County has one of the highest rates of predatory lending in the country. Our home county leads the state with the highest number of predatory loan locations with more than 232. Shelby County also has the second highest concentration of predatory lenders per capita at 25 lenders per 100,000 residents.

But predatory lending doesn’t only come in the form of payday lenders. Many financial institutions specifically target young people through the homebuying process through inflated, unnecessary fees and charges, or misrepresentation of the loan’s terms or risks. Other predatory lending tactics include convincing borrowers to continually refinance their home, with no benefit to them, using coercive sales tactics and even encouraging borrowers to lie about their finances so that they can get a loan.

There are several tips you can follow to avoid and spot predatory lending at any age. For example, never let anyone convince you to make false statements on your loan applications, and ensure you read anything you’re given thoroughly and ask a lot of questions.

However, one of the best ways that you can avoid predatory lending as a young person is to contact United Housing so that we can help you get started off on the right foot. UHI offers a loan product specifically for refinancing predatory loans, in addition to general financial counseling services, homebuyer education courses, loan products and more. UHI can provide personalized advice and support to guide you through any financial situation. Give us a call today at 901-272-1122.

Meeting essential needs through CARES funds

Since the beginning of the pandemic, United Housing has aimed to alleviate our clients’ burdens caused by COVID-19. Over the last year, many grant programs and funding options have become available to nonprofits to help us do just that. UHI secured varied types of aid funding so we can provide emergency support to our clients and maintain housing stability in Memphis. Here are some of the areas in which needs have been met so far:

In November, UHI partnered with the City of Memphis’ Department of Housing and Community Development, as well as other HUD-certified counseling agencies around the city, to launch the COVID-19 Housing Assistance Program (CHAP). CHAP offered mortgage and rental assistance to Memphians who were facing eviction or foreclosure because of the pandemic. While the CHAP programming did not guarantee housing continuity, it did provide needed relief to families across the city, alleviating financial burdens and helping people find housing stability. Through CHAP, UHI was able to help 300 families mitigate eviction and foreclosure.

In addition to its CHAP programming, UHI supported homeowners and renters in Memphis and Shelby County through Emergency Utility Assistance. Individuals who missed MLGW payments due to financial hardship brought on by COVID-19 were able to apply and receive essential funds to cover back payments. Additionally, UHI used its CARES funds to aid in home repair. Over 30 homeowners who have had much needed repairs for quite some time were finally able to make them with assistance from UHI.

One loan recipient shared her story, and it demonstrates the importance of repair funding for homeowners. Before UHI’s help with her home repair, Pam Gray’s mother was living in unsafe living conditions. Her bathroom floor was sinking, creating a fall risk. With the help of UHI, her mom was able to make essential repairs that have impacted their entire family.

“The impact UHI’s home repair loan had on me is intertwined with the impact on my mother,” Pam said. “It has given her self-confidence now [as she can] get around in the bathroom and kitchen. It has also given her dignity and pride, she could do a lot of things herself.” 

In its latest effort toward crucial support through CARES funds, United Housing launched its COVID-19 Mortgage Relief Program. The program provides counseling and financial assistance to Mid-South residents facing foreclosure because of a COVID-19 related hardship and was funded in part by the City of Memphis and the Community Foundation of Greater Memphis. Some applicants to the Mortgage Relief Program may not be eligible for financial assistance, but they are still connected with one of UHI’s HUD-Approved Housing Counselors who will help them create a plan that leads to long-term housing security.

Despite the curveballs 2020 threw, and the challenges that are still arising because of it, United Housing was and is prepared for the job. We remain committed to providing quality housing opportunities to Mid-South residents through financial education, mortgage lending, home building and renovation. But most of all, UHI is dedicated to the support of its clients, whether it is through the purchase of their first home or the fear of foreclosure, UHI promises to be with you every step of the way.