Apprehension has been replaced by excitement.
Anticipation about finding a home now seems realistic rather than simply a pipe dream.
"I'm a single parent and have been wanting to buy for a while," southwest Phoenix resident Pauline Paleo said. "I've gone through a bankruptcy and didn't think it could ever happen. Because of this program, it's going to be a reality."
With the help of Avondale's Homebuyer's Assistance Program, opportunity is knocking for a broader scope of people who would like to have their very own front door to knock on.
Avondale's program is part of the national Neighborhood Stabilization Program, which was established for the purpose of stabilizing communities that have suffered from foreclosures and abandonment. In 2008, NSP appropriated more than $2.4 million to Avondale.
On Thursday, the Care 1st Avondale Resource and Housing Center, at 328 W. Western Ave. in Avondale, was the site of a pair of training classes.
Early in the day, approximately 80 real estate agents learned the specifications of working with a buyer using the program.
Under the program, bank owned homes in neighborhoods hit hardest by foreclosures are available for purchase at a 1 percent reduction in the purchase price, based upon the client's appraisal.
In the evening, a group of potential homeowners was scheduled to sit through the first of two four-hour classes on what becoming a homeowner entails, a requirement for those interested in taking advantage of the program.
"I think it's an invaluable experience for first-time homebuyers," said Michelle Jernigan, the real estate agent working with Paleo. "If buying a home is going to be the biggest investment of your lifetime, which is the case for the majority of people, it makes sense to spend a day learning as much as you can about what purchasing a home entails."
Paleo agreed.
"I didn't know anything about buying a house," she said. "But they've taken me step by step through the process. It has been a big help. I would have probably just signed everything without understanding it all. Now I'm much more comfortable."
Who the program helps
To be eligible for the program, homebuyers must have low-middle income, below 120 percent of the area median income.
For a family of four, that number, set by the U.S. Department of Housing and Urban Development, is $79,100 a year.
Depending on the financial situation of the buyer, he may be eligible for $10,000 to $40,000 worth of assistance for a down payment.
In addition, the program, which is open only to owner occupants, includes $5,000 to aid in covering closing costs and has additional funds available for needed repairs. Monetary assistance is provided in the form of no-interest "due-on-sale" loans, which must be repaid when the home is sold.
After sitting through eight hours of classes on the ins and outs of home buying, potential homebuyers talk to a certified housing counselor to go over their financial situation.
Stacy Neal, Vice President of Housing Our Communities, a nonprofit that provides counseling to potential homebuyers, said the counseling covers a number of areas.
"We go through a budget with them, we go through their income, we go over their credit report. A lot of them have never seen their credit report," she said. "There are a lot of things to go over. We look at the amount of debt they have, figure out how much house they can afford and then send them to a lender."
The process isn't done there.
"No one ever teaches you how to buy a home," she said. "You're going to have a mortgage for 30 years. So we go over all the documents through closing to make it as smooth of a process as possible for buyers."
Avondale Community Development Block Grant Program Manager Andrew Rael said interest in the program has been high.
"We've had 350 families attend our homebuyer training classes in the last two months," he said. "We're seeing a lot of homebuyers that are not investors looking to get back in the market, which is great. We simply need to get the word out that it's an excellent time to buy. Home prices are the lowest they've been in 10 years."
Rael also said that the vast majority of Avondale foreclosures are in good shape.
"Most are five years old or less," he said. "You might need to do some minor cosmetic work, but they're move-in ready. The ones that have been vandalized or stripped are the exception rather than the rule. I'd say eight out of 10 are in very good shape."
For information, prospective homebuyers can call Housing Our Communities at 480-649-1335, or Avondale's Department of Neighborhood Family Services at 623-333-2700.
Marc Buckhout can be reached by e-mail at mbuckhout@westvalleyview.com.
