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Serious question:
What are the benefits to Affordable homeownership vs Affordable rental programs, assuming same income guidelines etc.?
What are the benefits to Affordable homeownership vs Affordable rental programs, assuming same income guidelines etc.?
Also assuming that the affordable rental program admin won’t evict people the same way that an affordable homeownership program wouldn’t foreclose on people that fall behind on their payments.
Some thoughts: having a yard is nice, maybe more likely to have 3+ bedrooms, garages are handy, more privacy, pride of ownership
In reality, Affordable homeownership programs seem to have higher income requirements. For example, Guadalupe Neighborhood Development Corporation works with families at max 80% MFI, has clients cover closing costs & have $3k cash on hand, more info: https://static1.squarespace.com/static/5a722d46f43b5558938c7bfc/t/5ccc721daa8bde00016402f2/1556902429732/GNDC+Home+Ownership+Eligibility_Final.docx
Because Affordable homeownership precludes the opportunity to significantly profit on the sale of your home’s land, it’s very similar to renting as far as I can tell. Main difference is the type of structure.
More thoughts: Habitat’s model is nice because the loans are 0% interest. So in exchange for assuming the risks associated with owning a home (repairs, maintenance, etc.), all of your monthly payments are essentially payments to yourself.
Also, unlike many rental programs, if your income goes up past the income guidelines, you will still be able to stay in your home if you want to.
