Message from the President

Hi! My name is Darrick and it’s my pleasure to serve as the President for Housing People. Thanks for checking us out!

Housing People is a very cool nonprofit that helps low income families secure zero-down, low-interest mortgages and construction loans.

We do this through a partnership with USDA/Rural Development to help administer a mortgage program called the RD 502 Direct loan. This mortgage program is designed to help low and moderate income rural households purchase or build their own home. I believe that the 502 direct loan is the best mortgage product on the market. The program is zero down, with interest rates as low as 1% over 38 years, with no principle mortgage insurance. That means monthly payments are extremely low, making homeownership affordable for many, even in the current real estate market.

Here is the really neat thing about this program. Many mortgages are locked in at a fixed payment, and you don’t have a ton of flexibility if something goes wrong with your personal finances. The Direct loan, is different. It’s based on income. When you take out the loan, it locks in at a ceiling rate. Let’s say 4%. However, if your income is lower, your payment may be as low as 1%. So, let’s say you get a 502 direct loan for $275k. The payment at the ceiling rate of 4% (including property taxes and insurance) would be approximately $1,350 per month. However, since you only make $35k per year, your payment is reduced so that you only pay $935 per month. Now, let’s say that 10 years from now, you’re making $100k per year. Well, your payment will go as high as the ceiling rate, but not above. On the other hand, if you’re doing well, but let’s say you lose a job, get sick and can’t work,  and for whatever the reason, your income drops. Well, then your payment drops as well and slides back down to as lower payment amount based on 1% interest.

So, I love this program. Not only is it affordable because it’s zero down with no principle mortgage insurance, it’s also a safe haven when things go wrong and you don’t have the ability to pay as much.

Where else can you find something like that?

Anyhow, not everyone will be eligible for the program. To be eligible for the USDA/RD 502 Direct Mortgage program, clients must be working and have stable income, not too much (you must be below 80% AMI), and not too little (you need to be able to make steady payments). We’ll need to take a look at how much debt you have. You can’t own another home when you take out the loan. You need to have decent credit, meet citizenship or eligible noncitizen requirements, and, agree to occupy the home as your primary residence.

Nevertheless, I really encourage you to apply. We help folks work through credit issues. And, if you think you make too much, or not quite enough, there’s no telling until we chat and explore your situation.

Think of this as the beginning of a journey. Maybe you’ll qualify right now and we’ll have you in a home in no time. Maybe there are a few issues you’ll need to address before you qualify. Either way, the journey begins by taking that first step. Give us a call, shoot us a message, or, visit our site for more information.

I look forward to chatting with you and helping you get into a home of your own!

Thanks!

Darrick Price

President

Housing People