Overview
Pathway to Homeownership (P2H) is an exciting program to help our Residents improve their credit and build savings for a down payment so that they can buy the home that they are currently renting from Center Creek. The goal of P2H is to help every one of our Residents who is interested and capable to make the transition to owning their own home.
Pathway 2 Homeownership consists of three main parts: a matched savings program, credit repair, and homeowner training. Residents will need to make progress on all three fronts in order to successfully make the transition to homeownership.
Here’s How It Works:
1. Matched Savings and Closing Costs Assistance
Center Creek’s P2H program offers up to a 2:1 match for money Residents put in a designated account to save for a down payment for a maximum of $2,500 in matched savings — all at no cost to Residents. The matching funds will belong to the Residents once they have made 12 regular deposits into the designated savings account. If Residents ever leave the program, they can always withdraw the money that they themselves have contributed into their savings account.
In addition, residents who make on-time rental payments in the months prior to buying their house, will get up to 3% of closing cost assistance.
2. Credit Improvement
In order to qualify for a mortgage, Residents may have to improve their credit score. Center Creek will work with Residents to improve their credit by paying for Residents to undergo credit counseling from a HUD-approved non-profit organization, D&E Housing, at no cost to the Resident. D&E counsellors will review Residents’ credit file and work with Residents to address some of the factors that affect their credit score – and provide personalized financial training. By working with the counselors, Residents will be equipped with the tools to rebuild and maintain a positive credit profile.
3. Homeowner Training
Center Creek’s P2H program provides Residents with homeowners’ workshops through D&E Housing. The workshops will cover topics like how to get a mortgage, basic home maintenance, and budgeting. Once a Resident completes the workshops, D&E will help connect Residents with a set of Preferred Lenders who are familiar with the P2H program and may offer certain flexibility in their loan programs for residents who have successfully completed the P2H program.
All together … the matched savings program, the credit repair, and homeowners training … the Pathway 2 Homeownership will help prepare our Residents to make the transition to being successful homeowners!
With Pathway 2 Homeownership (P2H) – Residents Could End Up Saving Money Each Month!
An example of how owning a home could save you residents every month.
| Monthly Rent | Home Purchase Price | Monthly Mortgage Cost | Monthly Cost Savings From Owning Your Home | Annual Cost Savings from Owning Your Home |
|---|---|---|---|---|
| $1,200 | $150,000 | $1,076 | $124 | $1,486 |
| Monthly Rent |
|---|
| $1,200 |
| Home Purchase Price |
| $150,000 |
| Monthly Mortgage Cost |
| $1,076 |
| Monthly Cost Savings from Owning Your Home |
| $124 |
| Annual Cost Savings From Owning Your Home |
| $1,486 |
Note: Assumes a 30-year Freddie Mac Home Possible loan with 3% downpayment at a 5% interest rate and 0% LLPA, with $1,800 in annual real estate taxes and $1,200 in homeowners insurance.