NRHA's Home at Last Program Highlighted in the Reno Gazette Journal
NRHA's Home at Last Program Highlighted in the Reno Gazette Journal
Refrigerators aren't exactly high on the list of things that cause excitement for your average guy. But 34-year-old Sparks resident Jason Stancil sounded positively tickled as his new fridge was delivered on a recent Thursday afternoon. "I'm excited that I get crushed ice now-- and a water filter," Stancil said with a chuckle. "I'm so sick of emptying ice trays."
Then again, Stancil's excitement was likely being amplified by an even bigger purchase. Just like a
regular car stereo suddenly looks certifiably awesome when one gets their first car, a refrigerator can also feel life-changing when bought in conjunction with one's first home.
Stancil credits one program for his ability to get a house ahead of schedule. The program known as Home At Last not only provided him with down payment assistance, it even helped streamline the approval process for his mortgage, Stancil said.
"I was working with a banker for a year and a half before I learned about this program," Stancil said. "At one point, I actually needed to have five accounts with the same bank in order to meet all these new requirements. With Home At Last, it was pretty quick and simple process. I was actually able to get my new home in just three weeks."
NOT A BAILOUT
Designed as a program to help first-time home buyers and veterans, Home At Last isn't your typical home buyer assistance program.
For one, the program doesn't rely on bailout money. Instead, Home At Last uses the sale of bonds to
finance itself, said CJ Manthe, chief operating officer of the Nevada Rural Housing Authority. "Because we're able to sell bonds at a lower interest rate, we're able to pass that savings to the home buyers, who then pay back those bonds through their mortgage payment," Manthe said. "So this program doesn't use bailout money. It's a self-supporting program."
Because Home At Last is designed primarily as a program for rural areas, it can only be used to buy houses in town and cities that have a population of less than 100,000. Although that means Reno homes don't qualify under the program, Sparks homes are still eligible, Manthe said.
So far, the limit to rural areas hasn't dampened the program's impact. Since starting in 2006, Home At
Last has helped nearly 700 families. The program has also helped finalize more than $120 million worth of mortgages, along with $4 million worth of down payment assistance.
Just because the program helps first-time home buyers and provides down payment assistance doesn't mean its customers are high risk either, Manthe said.
"Participants go through the normal loan underwriting process," Manthe said. "They need to provide the same documentation, they need to have the same minimum credit scores, and they even need to take home buyer education. These are responsible homeowners who would make good neighbors."
In addition to providing down payment assistance, Home At Last also provides a second option to forgo down payment help in exchange for a lower interest rate.
Homes bought through the program typically have an average price of $150,000. The average annual income of program participants is $50,000.
Unlike many of the loan programs that fueled the lead up to the housing bubble, Home At Last doesn't rely on creative financing terms and uses traditional terms such as 30-year, fixed-rate mortgages. Although helping first-time home buyers and veterans is the main thrust of the program, the purpose of Home At Last goes further than that, Manthe said.
"Because of the downturn in the economy and, certainly, the housing industry, we currently have a lot of foreclosures out there in the market," Manthe said. "To help aid the recovery, we need to get the housing inventory down by selling homes. So this is just another way for us to help the community."
For Stancil, that help meant being able to get his first home a few years earlier than he expected thanks to the down payment assistance option. Stancil used the program to get a home that's fairly new in the Wingfield Springs area for $125,000.
With a 30-year mortgage and a fixed rate of 4.5 percent, Stancil's monthly payment is $700, just $145 more than what he was paying for rent in his last apartment. One day after starting the move to his new home, Stancil still couldn't believe he is now a homeowner.
"Last night was the first night I slept here," Stancil said. "It was a little scary at first to go from a
one-bedroom apartment to a house. But let me tell you, what a neat drive I have going into Reno in the
morning and seeing the sun rising. Now I got my own yard and a gas stove -- just all these little things.
And it was all because of this program."
Home at Last is a $25 million bond program that offers a free cash down payment and competitive mortgage rates to first-time homebuyers and veterans. Here's an example of how the program might work for a family buying a $150,000 home:
Option 1: With down payment assistance
A free $4,500 cash down payment grant that does not have to be repaid.
4.50 percent 30-year fixed mortgage rate with a Federal Housing Administration (FHA), Rural
Housing Service (RHS), or Veterans Administration (VA) loan
This translates to a monthly payment of about $760; add mortgage insurance, taxes and other costs and the amount goes up to about $1,060 per month.
Option 2: Opt out of down payment assistance
3.99 percent 30-year fixed mortgage rate with an FHA, RHS or VA loan
This translates to a monthly payment of about $715; add mortgage insurance, taxes and other costs
and the amount goes up to about $1,015.
REQUIREMENTS
First-time homebuyer or qualified Veterans who will live in the home as their primary residence. Must not have owned a home in the past three years. Must meet income qualifications and normal FHA, VA or RHS underwriting requirements.
MAXIMUM HOME VALUE LIMITS
Washoe and Storey: $363,375
Carson City: $358,875
Clark: $360,000
Douglas: $421,875
Elko, Eureka and Nye: $292,500
Lyon: $298,125
All other areas: $243,945
DEADLINE
The deadline to apply for the program is November 10, 2011, but the money is available on a firstcome-
first-served basis. The Home at LastTM Bond Program is just one of many programs available for those looking for assistance in buying or renting a home.
Thank you to the Reno Gazette Journal for allowing NRHA to share this story.
