Can you imagine a mortgage payment that is less than the amount that you are currently paying for your monthly rent? Well, it is possible and thanks to the help of the Mon Valley Initiative, a local woman and her family are now living in a house of their own.
This past January, an employee for the Allegheny County District Attorney’s office was paying $760 a month to rent a house on Chalfant Street in Pittsburgh. Following housing counseling at the Mon Valley Initiative in Homestead, the mother of three is now paying about $100 less a month to service her mortgage as a homeowner.
“I feel wonderful about this,” Keira Haywood said, who recently closed to purchase her newly-constructed MVI home in Homestead. “I couldn’t have asked for more of a blessing. I’m getting a brand-spanking new house for less than what I was paying in rent.”
NEW HOME—Keira Haywood in front of her new house in Homestead.
Haywood’s path from renter to homeowner began when she contacted Mike Mauer, MVI’s NeighborWorks certified housing counselor. Funded partially through grant monies provided by the U.S. Department of Housing and Urban Development and the Pennsylvania Housing Finance Agency, MVI’s housing counseling program has helped hundreds of families become homeowners over the last four years.
For Haywood, the counseling sessions went easier than for others. Following an initial intake that included the review of her credit report, income and monthly obligations, Mauer and Haywood developed an action plan that, if followed, would make her mortgage-ready in less than six months.
“The time I have to spend with each client varies on their situation,” said Mauer, whose counseling efforts at MVI have helped more than 130 families into homes since Oct. 1 of this year. “Keira was unique in that she’d never had any credit cards. Because she had so little debt to address, she was quickly able to clean up her credit report and qualify for a mortgage pre-approval less than four months after enrolling in the program.”
As part of a renewal program on East 13th Street stewarded by the MVI and the Homestead-Area Economic Development Corp. and Allegheny County, Haywood’s house is one of five recently built in the area that has turned former eyesore properties into tax-generating revenue for the borough. The effort also fills an area need for affordable family housing.
“I’m proof of that,” Haywood said about her reduction in housing expenses. “I will be able to use the extra money to help buy things for my family.”
Since Haywood’s property taxes are escrowed through her mortgage backed by the Federal Housing Administration, funds are collected from her monthly payment and paid annually to her municipal governments and school district. Estimated over the next 10 years, this will mean an added $25,000 for the borough of Homestead, Allegheny County and the Steel Valley School District.
In addition to a $15,000 second mortgage made available through Allegheny County, Haywood’s financing package also features participation in the Allegheny County Housing Division’s Single Family Mortgage Revenue Bond Program. When it came time to sign on the dotted line, Haywood needed zero dollars to close on her new house.
“With the help of Mon Valley Initiative, I get to show to my family what it is like to stand on your own two feet,” Haywood said. “If I had to do this by firing my landlord, so be it.”
Those seeking counseling as Haywood did have the opportunity to do so now.
Future homeowners can schedule face-to-face appointments with MVI’s housing counselor and get information on upcoming MVI new home construction. This includes homes being built in Homestead, Munhall, Braddock, North Braddock and Rankin.
On Sept. 13, the MVI will host a free pre-purchase housing workshop from 9 a.m.-4 p.m. at 305 East 8th Ave. in Homestead. All participants who successfully complete this U.S. Department of Housing and Urban Development curriculum will receive a certificate which is required to obtain community development mortgage loans from local lenders.
(For more information and registration, call MVI’s housing counselor at: 412-464-4000, ext. 4008 or visit www.monvalleyinitiative.com.)