Complete Affordable Housing Strategy for Mortgage Lenders Working with
First-Time, Low- and Moderate-Income Homebuyers
The Roadmap to Homeownership toolkit consists of a customizable PowerPoint presentation that explains the homebuying process in simple language and outlines the homebuyer’s responsibilities in applying for a loan, closing the loan and maintaining homeownership successfully. Interactive worksheets allow borrowers to calculate their financial eligibility and budget for their future home. A glossary defines complicated mortgage terminology in clear language, and the toolkit also offers useful web resources and recommendations.
“Most first-time homebuyers find the process confusing and even frightening,” said
The Roadmap to Homeownership also features information on Arch MI’s mortgage insurance solutions for affordable housing, which focus on helping lenders qualify homebuyers with low to moderate incomes, student loan debt, and other issues that can be challenging from an underwriting standpoint. “It covers both ends of the affordable challenge – educating borrowers on the facts of homebuying, and giving lenders the solutions needed to work with them effectively,” Gibin said.
“For most new homebuyers, the biggest problem is the down payment,” she continued. “The millennial generation especially finds it difficult to accumulate 20% of the purchase price in markets with rising home prices and employment rates more fragile than before the Great Recession. With Arch MI’s MI solutions – ranging from our support for the GSEs' affordable loan and Down Payment Assistance programs to our own PicketFenceSM program, tailored to meet first-time homebuyer needs – lenders have the flexibility and confidence to approve more affordable loans.”
Gibin also notes that the toolkit can be used to strengthen ties not only between the lender and the borrower, but between lenders and local real estate agents, key players in the homebuying process. “It gives lenders an excellent opportunity to cultivate those valuable Realtor® relationships,” she said. “They can invite local real estate professionals to join the seminar presentation and offer their own recommendations on the homebuying process. It’s a winning combination for the audience, who can see first-hand how lender and Realtor work together to make homeownership achievable for buyers.”
Arch Capital Group Ltd.’s