By A.M. Kelley
Catholic Herald

Programs help make homeownership a reality

SUPERIOR -- Jami Engebretson is a 24-year-old single mom. She works at the Holiday Inn in Duluth and has recently accomplished something remarkable. She moved into a newly built $120,000 home in Superior. After a down payment of only $1,000 of her own money, she tapped into several community home buying programs which reduced her mortgage down to an affordable $69,000.

This deal of a lifetime for Engebretson began to come together with the help of a homebuyer education course at Catholic Community Services, Inc., and Mary Sundet, Superior Savings Bank's vice president of residential lending.

Because Engebretson met the low and moderate income guidelines of the Department of Housing and Urban Development, many doors into a large network of local agencies opened netting her an incredible $50,000 in down payment assistance, most of which must be repaid only if she sells or moves out of the home.

It's almost too good to be true, and while Sundet concedes that the amount of assistance given in Engebretson's case was more than most receive, she said hers is still a good example of how financing for affordable housing works.

"It's always a case by case situation," Sundet said. "And this isn't a normal situation."

Engebretson just happened to show up at the right place at the right time with a good track record.

"(Engebretson) had good credit, a good job and had some things going," Sundet said. "(Because of this) we found more resources to get the loan down and affordable."

For example, the down payment and closing costs of $10,500 came from the Housing Development Corporation of Superior and from an interest-free loan from the Superior Down Payment Assistance Program, part of CCS.

After five years the entire CCS loan will be forgiven, or if Engebretson elects to sell or move out of her house in less time, loan repayment will be prorated at 20 percent per year.

Another key agency that made the purchase possible is the city of Superior's Home Ownership Opportunity Program. Sue Mattson, who writes its grants and designs the programs, said the success of local housing programs depends on cooperation.

"Our various agencies know each other and know what the others can do to coordinate all of these resources," she said. "We've worked with each other for years."

HOOP down payment loans are generally in the ballpark of $25,000. Engebretson's was approved for $35,000 for a combination of reasons. The city's difficulty in selling the home in the Itasca neighborhood was the primary reason.

But all the help in the world won't spell success for homebuyers if, in the end, monthly mortgage payments blast them out of their league.

There are many local agencies in the business of helping people of modest means become homeowners. In addition to the bank, HDC, HOOP and CCS, which is funded by the Federal Home Loan Bank of Chicago, others include: Home Investment Partnership, Wisconsin Housing and Economic Development Authority, Douglas County Habitat for Humanity, Northwest Wisconsin Community Services and University of Wisconsin Extension Service.

Since 2001, in addition to traditional mortgage loans, Sundet's bank has financed 247 affordable homes to buyers who would probably not be able to purchase a home without the assistance.

These are people with handicaps or not, young or old, working families with children or childless singles, all with reliable, although low or moderate incomes, but often limited credit references and lacking what regular loans often require: a minimum of a 5 percent down payment of one's own money.

"It shows when organizations come together what can be done," said Gary Valley, CCS project director.

"The real key is making sure that the borrower is purchasing affordable housing," Sundet said. "We don't want to get them into homes if they really can't afford them. If they have good jobs and have handled (bills), they're deserving of their own home."

Valley put it another way.

"It's investing in people," he said. "The (current national) trend has been away from this. Now there is more investment in businesses and the military. It runs contrary to what I think we should be doing."

Sundet believes that helping people into a home of their own is good for families and good for the community.

"It's the pride of ownership," Sundet said. "It's an investment. Homes are one of the better investments that people can put their money into. Property values appreciate. They're going to be building equity."

While not every closing has all the bells and whistles of Engebretson's, according to the experts there are lots of financing options out there.

Engebretson couldn't agree more. She's surprised and pleased with all the support she found to buy a home and is now eager for spring because another team of experts is expected -- the landscapers, aka grandma and grandpa, are coming from Florida to help plant a lawn and flowers.

A housing expo open to the public will take place from 10 a.m. to 3 p.m., March 11, at the Mariner Mall in Superior.

The Housing Counseling Program of Catholic Community Services, Inc., a division of Catholic Charities, Inc. of the Diocese of Superior, will bring together local lenders, realtors and government housing organizations for the event.

It's an especially smart stop for prospective homebuyers overwhelmed by the maze of funding options or for folks just dreaming about buying an affordable home.

All manner of professionals will be on hand to answer housing questions, hand out information on budgeting classes, credit reports, financing home improvements and many lending programs aimed at low- and moderate-income households.

Four free workshops will be offered throughout the day: 10:30 a.m. Retirement planning -- the reverse mortgage option for seniors; 11:30 a.m., The advantages of working with a realtor; 1 p.m., Down payment assistance programs -- free money; 2 p.m., Credit Q&A and using your credit wisely.

Maps for a self-guided Superior Affordable Housing Tour on March 12 will also be available.

For more information call Sandra Al-Qudah or Karen Arthur at Catholic Community Services, 715-394-6617, or toll free at 888-831-8446.

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© Superior Catholic Herald, 2006