Top Ten Questions
About Homewise
What Is Homewise?
Homewise is
an exciting and innovative pilot program that will make homeownership
a reality for ten families in ten cities nationwide. More importantly,
Homewise will start thousands of other low- to moderate-income families
down the path to owning a home.
Who Created
Homewise?
The Homewise
program is a joint partnership between the U.S. Department of Housing
and Urban Development, the National Housing Endowment, the National
Association of Home Builders, Wells Fargo Home Mortgage, Fannie
Mae, Freddie Mac, and dozens of housing counseling agencies.
How Does Homewise
Work?
HUD turned over
ten homes from its inventory of foreclosed FHA properties to the
National Housing Endowment. The Endowment is working with local
homebuilder associations to make the necessary repairs using in-kind
donations of labor and materials and donated funds in the amount
of $100,000 each from Fannie Mae and Freddie Mac. HUD will hold
a lottery in each city, randomly selecting a winner in each location
from the applicants who meet all of our requirements. Those families
will be able to buy the home for half of its fair market value.
How Does a
Buyer Qualify for Homewise?
Buyers in all
of the cities must meet three important requirements: (1) their
total household income must be at or below limits established by
HUD and the National Association of Home Builders for the Homewise
program; (2) they must be first-time homebuyers; and (3) potential
buyers must sign up for a homebuyer education course offered by
Homewise-approved Housing Counseling Agencies.
Do Veterans
Get Preference?
In two of the
Homewise cities, Columbus and Seattle, eligible applicants must
also be service-disabled veterans with a disability rating of 10
percent or higher.
What Is Housing
Counseling And Why Is It Important?
Housing education
- or counseling - is critical to helping a family buy a home. Housing
education is equally important in helping a family keep a home during
tough times. Also, educated buyers are less likely to be victimized
by predatory lenders. HUD annually funds housing counseling programs
in every state and most major cities.
What Is A Homewise
Finalist?
Homewise finalists
are chosen in a random drawing in each city from the pool of applicants.
To be selected as a winning family, buyers must have sufficient
income and credit to qualify for a no interest, no down payment
mortgage offered by Wells Fargo Home Mortgage. All finalists whose
loans have been approved by Wells Fargo will be included in the
final drawing. Lottery drawings will be scheduled in participating
cities on various dates beginning in the fall of 2004.
Why Is Every
Homewise Applicant A Winner?
Through the
homeownership counseling Homewise requires, families will discover
that buying a home is not as difficult as they thought it was. They
will be more prepared than ever to buy a home, and empowered in
new ways to realize the American Dream of homeownership for themselves.
What Are The
2004 Homewise Cities?
7429
Hillsdale Drive |
St.
Louis, MO |
15
W 81st Terrace |
Kansas
City, MO |
3890
Dresden Street |
Columbus,
OH * |
20451
Picadilly |
Detroit,
MI |
1080
NW 185 Terrace |
Miami,
FL |
10440
18th Avenue, South |
Seattle,
WA * |
1418
W. 77th Street |
Chicago,
IL |
416
Fennel Way |
Atlanta,
GA |
6919
Buist Avenue |
Philadelphia,
PA |
4205
James Avenue, North |
Minneapolis,
MN |
* Properties in these cities will be available
only to eligible service disabled veterans.
Where Can I
Learn More About Homewise?
The U.S. Department
of Housing and Urban Development has created a special website for
the Homewise program. The site is located at www.hud.gov/homewise.
It offers addresses and photographs of each Homewise home, the program's
official rules, links to housing counseling agencies participating
in Homewise, a detailed FAQ, and other important information.
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