HOMEBUYER PROGRAM | CHAMBER OF COMMERCE

ADVANCING BLACK HOMEOWNERSHIP

THE NOIRBCC HOMEBUYER EDUCATION PROGRAM - FREE

“Economic and Financial Stability Through Homeownership”

AND

THE NOIRBCC EHOME AMERICA HUD CERTIFIED CERTIFICATE COURSE - $99
Certificate Can Be Used Toward HUD Loans & City's Down Payment Assistance Programs To Cover Closing Costs.

WHAT

NOIR BLACK CHAMBER OF COMMERCE INC. is excited to announce the launch of its NOIRBCC EHOME AMERICA HUD CERTIFIED HOMEBUYER PROGRAM AND CERTIFICATE COURSE! This new online platform makes it easier for black and brown families to become homeowners, and it allows the chamber to continue its mission to move black and brown families from renting and redlining to homeownership.

The Chamber’s homebuyer education program is unique in that it a FREE program that “walks with” each client through the entire process towards homeownership. The program begins with identifying which type of homebuyer the client is, followed by connecting them to a credit restoration and repair organization, NOIRBCC eHome America online course, a bank, city’s down payment assistance program, a realtor, an insurance broker, then a financial planner to assist the family plan for its future.

THE NOIRBCC EHOME AMERICA HUD CERTIFICATE ONINE COURSE - $99

WHY

As the country grapples with an affordable housing crisis, there’s an even larger issue of closing the gap in homeownership rates among Black Americans due to redlining and deed-restricted covenants, which made it impossible for Black families to own homes. Since the 2008 financial crisis, the Black homeownership rate has fallen behind; and the gap between Black and white homeownership is now wider than it was more than 50 years ago, right before the 1968 Fair Housing Act was enacted to create equal housing opportunities for minorities, according to a report by the Urban Institute.

In an effort to assist black individuals and families move toward homeownership, Noir Black Chamber of Commerce Inc. created a free eleven step homebuyer education program that supports and guides clients through each of the eleven steps towards homeownership.

HOW

11 STEP PROCESS

STEP 1

Contact: Noir Black Chamber of Commerce Inc. 1-844-NOIRBCC(664-7222)

STEP 2

Determine: First-time Homebuyer, Section 8 Homebuyer, or Traditional Homebuyer? (If Section 8 Homebuyer, client connected to a Section 8 Homeownership Program Representative)

STEP 3

Connect: Credit Restoration or Credit Repair Agent (confirm 585-640+ credit score)

STEP 4

Enroll: Online Noirbcc eHome America HUD Certified Homebuyer Course (receive HUD Certificate to use for additional down payment assistance programs)

STEP 5

Choose: Mortgage Lender (begin pre-approval loan process)

STEP 6

Down Payment: Pre-approval Loan is forwarded to city’s down payment assistance program for additional down payment $$ approval

STEP 7

Connect: Noir Realty Agent

STEP 8

Select: Home

STEP 9

Connect: Noir Insurance Brokers

STEP 10

Close: Title Company Paperwork Signed and Keys Received

STEP 11

Moved-In: Family Financial Planning Meeting Scheduled

*If you currently have a confirmed 640+ credit score, you proceed with enrolling in the online Noirbcc eHome America Homebuyer Course at www.noirbcc.ehomeamerica.org. After completing course, contact Noir Black Chamber of Commerce Inc. 1-844-NOIRBCC(664-7222).

HUD CERTIFICATE

A HUD Certificate is obtained by completing a HUD Certified Homeownership Course, and the certificate can be applied towards different HUD Loans.

HUD Loans

Also called Federal Housing Administration (FHA) loans—are mortgage loans that are offered by private lenders and insured by the FHA. The FHA is an agency within the U.S. Department of Housing and Urban Development (HUD).

If you’re considering buying or refinancing a home, learn what a HUD loan is and if it’s an option for you.

What Is a HUD Loan?

HUD loans aren’t actually issued by HUD, nor the FHA. Instead, they’re originated by private lenders approved by HUD, then insured by the FHA against loss.

Alternate name: FHA loan
Acronym: HUD (U.S. Department of Housing and Urban Development), FHA (Federal Housing Administration)

How HUD Loans Work

HUD loans work because they’re insured by the FHA. This protection allows lenders to offer affordable interest rates, accept low down payments, and approve borrowers whose credit may not be perfect.

But insurance comes at a cost. HUD borrowers pay both an upfront mortgage insurance premium (UFMIP) plus a monthly insurance premium that is lumped in with their mortgage payment. The cost of these premiums varies based on the down payment and loan amount. In some cases, this insurance can be canceled after 11 years.

HUD loans can be used to buy or refinance a property, and they’re available for multifamily properties and health care facilities as well. You can also use HUD loans to purchase manufactured housing and mobile homes.

HUD vs. FHA Loans

HUD loans and FHA loans are one and the same. The FHA is part of HUD and is the agency that actually insures these types of mortgage loans.

Qualifying for a Loan

The FHA was originally created to make homeownership more affordable for everyday Americans. As such, HUD loans come with low credit-score requirements (anywhere from 500 to 580), and the minimum down payment is just 3.5%.

General Requirements

Credit Score

At least 500 for 90% loan to value (LTV) financing (a 10% down payment) At least 580 for maximum financing

Down Payment

3.5% minimum

Debt-to-Income (DTI) Ratio

43% (although exceptions may be made)

ENROLL