According to the Joint Center for Housing Studies of Harvard University, State of the Nation’s Housing 2017 Report Asian American homebuyers are expected to account for 2.2M of the nation’s 13.6M new households between 2015 and 2025. It’s important that these future borrowers have the information and tools that will help them achieve their financial goals and dreams, including that of homeownership.
Too often today, that dream is being tested. Affordability presents a growing crisis across the country. For many potential homebuyers, – particularly when it comes to starter homes – rising home prices and wages that haven’t kept pace with housing costs, pose serious challenges. In addition to these economic forces, a constant barrier persists: saving for a down payment.
In fact, today’s renters say that affording a down payment is the biggest roadblock to homeownership, according to a recent report by the Urban Institute. The report finds that more than two-thirds of consumers believe that having enough money for a down payment will be difficult, further dissuading them from pursuing homeownership. Making matters worse, many of these potential borrowers have a misperception of how much they are required to put down.
Given the prevalence of misconceptions about down payments, it’s critical that all members of the homebuying ecosystem work together to educate the next generation of homebuyers and help them understand that making the leap to owning a home is within their reach. This is especially important for low-to-moderate-income families, who often face additional barriers, including access to information, trusted advisors, and credit and financing solutions to help meet their unique needs. It will take an innovated and focused effort from across the industry to enact real change and offer impactful solutions that make homeownership more attainable.
Freddie Mac believes that borrowers need and deserve education, guidance and solutions to help prepare them for the opportunity to become a homeowner. Whether teaching about the importance of credit, homebuyer responsibility, or providing resources to help borrowers stay in their current homes in the face of financial adversity, Freddie Mac is a trusted partner. Just last year, nearly 200,000 people received homebuyer education while more than 320,000 consumers participated in financial literacy training through our on-the-ground Borrower Help Centers and Borrower Help Center Network. In addition, Freddie Mac trained over 30,000 housing professionals and participated in over 350 outreach events to connect with the housing ecosystem, share insights, train clients, partners, and communities, and offer information on mortgage and resource options.
Freddie Mac recently announced a new approach to affordable lending – All For HomeSM – because we believe that we must all work together to help families realize their dream of homeownership. This effort will change the face of the affordable landscape by expanding opportunities and leveraging new tools and resources to make home possible. Freddie Mac hopes to grow business while strengthening communities with rich insights, education and innovative solutions. And we know that with the collaboration, creativity and focus of the entire ecosystem, we can be successful in building the future of home.
Together. All of Us. All For Home.