Affordable Homeownership Tools and Resources: Making the Dream of Affordable Homeownership a Reality
A home is one of the largest and most meaningful purchases a person can make. April 2023 marks 55 years since the Fair Housing Act of 1968 set a precedent to make the sale, rental and home financing process nondiscriminatory. Yet, borrowers in underserved communities are often at a disadvantage when it comes to awareness of tools, resources and affordable offerings available to help them achieve homeownership.
State of the housing market
To understand the current state of the housing market, KeyBank undertook a Fair Housing Month poll, which surveyed 1,000 homeowners in households earning less than $75K annually. Of those surveyed in the first quarter of 2023, nearly one-third (31%) of homebuyers did not seek out any information on fair home lending offerings, information or resources before purchasing their homes.
Access to education, advice and resources that ease the homebuying process is critically important— particularly for buyers and families who may be more likely to face barriers on their path to homeownership. Below are considerations and tips to empower prospective homebuyers to achieve their dream of affordable homeownership and move forward on their financial journey.
Insights from Borrowers and Homeowners
Amid a fluctuating housing market and a challenging economic environment, KeyBank’s poll explored the sentiment and priorities of homeowners across the country, revealing lingering uncertainties about the home-buying process and key motivators for homebuyers today. Key findings indicate that borrowers and homeowners are:
- Questioning Whether They Received a Fair Market Value Price. Less than half (47%) of respondents who purchased their homes in the past five years felt confident they received a fair market value price, pointing to a gap between the factors that are important to those homeowners and the reality of their homebuying experiences.
- Unsure About the Fairness of Their Home-buying Experience. Nearly one-third (30%) of homeowners were unsure whether they had an unfair experience when buying a home or are certain they had an unfair experience, highlighting that some homeowners are left questioning whether they paid too much for their home.
- Continuing to Prioritize Location. More than one-third of homeowners listed location (38%) and home price (37%) as their top financial factors when deciding to purchase their homes in the past five years. This objective of being in a location of one's choosing perhaps also indicates a desire to be close to friends, family, schools and communities that make a difference to their lives.
Pathways to Affordable Homeownership
The process of purchasing a home can be complicated and overwhelming. As prospective borrowers and homeowners set out on their home-buying journey, they may have questions about where to begin, who to consult with and how to assess their options.
Prospective homebuyers can get in touch with their dedicated KeyBank Mortgage Loan Officer (MLO) to discuss their unique financial situations, identify whether they may qualify for any affordable homeownership programs or resources, and address any questions or concerns.
Examples of questions that borrowers can share with their lenders:
After discussing your financial situation, your loan officer can recommend the mortgage that will best fit your needs. Make sure to identify any key financial goals, such as "low monthly payments" or "paying the mortgage off quickly."
For example, KeyBank has further committed to helping all potential homebuyers make their dream of owning a home a reality by expanding its Special Purpose Credit Programs for qualifying properties — introducing the Key Opportunities Home Equity Loan and expanding the Home Buyer Credit℠ (offered in select areas) to up to $5,000 in value.
While a down payment is typically 5% to 20% of the loan amount, certain programs, like FHA loans or Key Community Mortgage are specifically designed for those who could benefit from a lower down payment.
Down payments, closing costs, moving expenses, and fees for processes like origination and underwriting can add up. Before meeting with your loan officer, use our Mortgage Affordability Calculator to identify a comfortable loan and payment amount, including down payment, principal, interest, property taxes and homeowners insurance.
For additional insights and resources on home buying and other financial topics, visit the KeyBank KeyBank Mortgage Center.
