The saying ‘it takes a village’ can carry many meanings. For Aberdeen resident Michael Mitchell, it meant multiple organizations coming together to help homeowners like him find and purchase an affordable home.
Through a partnership between USDA Rural Development, Homes Are Possible, Inc (HAPI), GROW South Dakota, and the Aberdeen Housing Authority, Michael was able to move into a new two-bedroom, one-bathroom home with an affordable mortgage and no upfront closing costs.
“HAPI and GROW South Dakota provided more than $12,000 towards closing costs and HAPI provided $20,000 towards the purchase of the lot,” said Roxanne Woodring, Rural Development’s Loan Specialist in Single Family Housing. “Michael also qualified for a Housing and Urban Development voucher through the Aberdeen Housing Authority to help offset his monthly mortgage. Using multiple programs like this can make homeownership possible for low-income people.”
HAPI also built Michael’s home. “We had built it as a speculative (spec) home and our previous board president knew Michael was looking to move back to Aberdeen,” said Darin Beckius, HAPI’s Executive Director. “The timing really worked well. Word of mouth has brought a lot of buyers to HAPI and Michael is just another example of that.”
HAPI started in 1999 when a group of Aberdeen citizens realized a need for regional housing assistance. The program has since expanded to provide rehabilitation grants, build homes, and help with closing costs. “Our program has expanded as new needs were identified,” said Darin. “Because of partnerships with Rural Development and others, we’re able to provide even more services to those in need.”
When it comes to partnering with Rural Development, Darin said Roxanne has been invaluable. “She has a heart of someone willing to go the extra mile and help someone through a complex situation,” said Darin. “We’re always reassured if we send someone her way, she’ll do whatever she can to help them.”
Brenda Waage, GROW South Dakota’s Housing Loan Officer, said both programs offer more than financial support to homebuyers. “Both HAPI and GROW offer homebuyer education courses so potential borrowers are better prepared for the challenges of homeownership,” said Brenda. “The course is the same for both HAPI and GROW. We provide rental counseling, budget counseling, and teach them about finding the right kind of insurance. It’s important to know the ins-and-outs before you buy a house.”
The homebuyer education courses are mandatory for HAPI and GROW borrowers, but Brenda said anyone can take the classes. “We encourage anyone interested in learning more about purchasing a home to reach out,” said Brenda. “We’ll connect them to a financial counselor who can get them started on the program.”
While not everyone will qualify for programs through Rural Development, HAPI or Grow South Dakota, Roxanne, Brenda and Darin each encourage potential borrowers to still reach out. “Sometimes the homebuyer’s income might be a little higher than our limits,” said Roxanne. “But if our program isn’t the right fit, we’ll help connect borrowers with other organizations that may be able to assist.”
Communities, business owners and homebuyers all benefit from relationships between Grow South Dakota, HAPI, Rural Development and others. “Our groups really have the best interest of communities in mind,” said Brenda. “Borrowers may not have the savings needed to make the down payments, so our combined effort allows them to still purchase a home.” Local businesses also see the benefits. “When a person buys a home versus renting, they’re more likely to stay in the community, which means businesses have reliable staff for longer periods of time,” said Brenda.
Michael said he really appreciates the work everyone has done to help him purchase his new home. “Roxanne has been so helpful and always answers my questions,” said Michael. “And the folks at HAPI and GROW reminded me of the things I needed to do as I bought this place.”
Roxanne has worked with many homeowners since joining the Single-Family Housing program 20 years ago. She said working with homeowners like Michael makes her job so enjoyable. “He knew going into this it was going to take a little longer because of the number of partners,” said Roxanne. “But he was so patient, kind and fun to work with. It really makes my work very rewarding.”
Rural Development offers multiple programs for homebuyers and homeowners. The Single-Family Housing Direct Loans, like which Michael qualified, offers low or very-low income families in eligible rural areas with affordable loans. The Home Repair Loans and Grants offers funds for very low-income homeowners who need repair, improve or modernize their existing home to remove health and safety hazards. In many cases, Rural Development programs can be combined with programs from other organizations.
Source: usda.gov
Photo Credit: istock-alexlmx
Categories: South Dakota, General