Aaaarrrgh! My Income Is Just Too Low to Qualify to Buy A Home!

So, you hear all the stories from other people about how they bought their home, but you have given up hope of ever owning your own. Your income affords you a home that is barely livable, and you struggle to pay just for that every month. And, let's not even TALK about your heating bills you pay for this old, leaky place you rent! You may have had some credit issues in the past, and don't want to complain about the condition of your home because what if no one else will rent to you? Maybe the condition of the home you rent is okay, but more than half your paycheck goes to paying your rent. None of the generations before you have ever been homeowners, so why should you be different?

DON'T GIVE UP!!! There ARE possibilities there for you.

• There are Down Payment Assistance programs through the State of Oregon's Purchase Assistance Loan and the City of Medford Down Payment Assistance Loan. There is also the Oregon Bond Loan, presently offering a below market interest rate of 5.125% on the RateAdvantage program and 5.625% on the CashAdvantage program with a 3% credit toward closing costs or down payment. These programs will require you meet guidelines that are similar to most traditional mortgage programs. Maybe you apply for them, but your request is turned down.

DON'T GIVE UP!!! There are OTHER possibilities for you.

Have you considered a land/home package where you place a manufactured home on land you purchase? This is an affordable housing option some homeowners choose, and you may qualify for the State of Oregon programs listed above here, too. Going this route is more complex than purchasing an existing home, but may be a solution for you.

• Have you heard of Habitat for Humanity? Did you know there is a local affiliate here in the Rogue Valley? Habitat for Humanity/Rogue Valley is a Christian based, volunteer, non-profit housing ministry making homeownership possible by drawing together people of ALL faiths and backgrounds to build affordable homes in partnership with those in need.

Habitat for Humanity is not a charity or a handout program, but a handup program. Habitat for Humanity/Rogue Valley builds houses with Jackson County families in need. Volunteer labor is used to build houses to keep the building costs low for Habitat Partner Families. These families pay a monthly mortgage payment, and these funds go in to a revolving fund that helps build houses with other families. These families invest hundreds of hours of their own labor - "sweat equity" - into building their own houses and the houses of others.

Applications to become a Habitat homeowner are available through Habitat for Humanity/Rogue Valley's Application Orientation Day or may be obtained from their website. Their Family Selection Committee reviews the applications and recommends families to the Board of Directors on the basis of three main criteria:

1. The family is living in substandard conditions and/or their rent is 50% or more of their income
2. The family's willingness to become partners helping to build their home with sweat equity, and the homes of other Habitat families
3. The family has the ability to repay their no-interest mortgage with income that is between 30-60% of the HUD median income for Jackson County based on family size

In addition, families must be Jackson County residents for at least one year prior to applying for a Habitat home.

If you believe you meet the criteria and would like to be notified of the next Orientation Day for Habitat for Humanity/Rogue Valley, contact the office at (541)779-1983 and request they put your name on the mailing list.

So, you applied for a Habitat home previously, but were not chosen from the large pool of applicants. DON'T GIVE UP! If you still meet the basic criteria, you may re-apply at the next Orientation Day. Or, contact Rogue Valley Community Development Corporation, another affordable housing developer, and see if you meet their criteria which is a bit more stringent (they have a greater sweat equity requirement, stricter credit criteria, and have interest associated with their mortgages) than Habitat for Humanity/ Rogue Valley's, but still may be a viable option for you to reach your goal of homeownership.

No one ever said the road to becoming a homeowner is always easy. Most say the end result is worth it!

See you at the closing table!

Karen Cooper - Oregon/California Mortgage Consultant http://www.quality4loans.com/