2004 Homewise Program

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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?

* 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.