Housing market values are soaring higher. Interest rates are hovering around 6.5%. There is limited affordable housing available in the community. None of these issues are surprising. The question that remains on the minds of most prospective first-time home buyers is simply this – “Who can afford to buy a home in Harlem?”
This is the question that members attending my first-time home-buying workshop asked. I’m sure by now the frustration level of many prospective buyers has boiled over. The bitter reality of not being able to purchase a home in your own neighborhood is difficult to accept.
But you can change your reality. You do not need to accept this outcome. With determination, homeownership in Harlem can happen! Understand that the challenge of completing the home-buying process is difficult. For African American families, it has always been difficult. Although fair housing laws have been put in place by the government, racism and discrimination still exist in this country.
I know many prospective buyers who are ‘mortgage ready,’ meaning they have an adequate amount of money saved for the down payment and closing costs and a solid credit history, but are unable to purchase because they were declined for a mortgage. The reason is that they cannot find anything they can comfortably afford in Harlem. The bottom line is their pre-approval amounts are not high enough to purchase most properties in Harlem. They are effectively being priced out of the market.
So, what can you do to buy a home in Harlem? It will not be easy, but if you want to own property in this community, you will need to do the following: (1) save more money. To have a comfortable mortgage payment, put at least 20-25% down.
This will mean you must begin aggressively saving as much money as you can each month. Eliminate all wasteful spending. Set a goal to save at least 15% of your monthly income each month. Stay focused on completing the home buying process.
(2) Think about taking a part-time job or developing a talent/skill to create additional monthly income. Since the home values are high, much more money is needed for the purchase. So, what can you do to earn more money? Consider starting a business.
(3) Consider purchasing a home with trusted family members or friends. There is strength in numbers. You may need to include some additional buyers on the mortgage to be approved for the larger home values. I am seeing a recent trend of family members combining their incomes and resources just to purchase homes in Harlem. This strategy can work, allowing low- to moderate-income families to achieve their dream of homeownership.
If you are interested in attending the workshop or have questions regarding the home buying process, contact Rev. Dr. Charles Butler at (212) 281- 4887 ext. 231or email at cbutler@hcci.org.
Based on reporting by Harlem Community Newspapers.
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