Opening the Door to Home Ownership

by Doreen Spagnuolo, LIBOR CEO

“I don’t think I’ll ever be able to afford my own home.”

These are some of the saddest words I hear when discussing the current real estate market.

As much as we read about the younger generation preferring to rent or not wanting to be locked into long-term financial obligations, homeownership is still something to which Americans aspire. Research by the National Association of REALTORS® (NAR) found, in its Obstacles to Home Buying study, that nearly all homebuyers across races and ethnicities agree homeownership is still the American Dream. It’s no surprise that affordability is the biggest obstacle to ownership.

As June is National Homeownership Month, I’ll use this space to discuss just some of the resources LIBOR REALTORS® can access to make sure your clients know about the many options available to first-time buyers -- of any age. These assistance resources aren’t just for very low-income families or distressed properties. For example:

• The New York State Association of REALTORS® (NYSAR) Housing Opportunities Foundation is offering eligible first-time homebuyers an opportunity to win a $2,000 grant to help cover closing costs or a down payment. Families with incomes up to ~$150K-~$175K, purchasing homes up to almost $1.2 million in Queens, Nassau, or Suffolk, can apply. These grants are only available to individuals who work with a New York State REALTOR® and are considered gifts, so they never have to be repaid. Complete details and an application can be found here.
• LIBOR’s partnership with Down Payment Resource® enables members to identify programs that may be able to assist clients with a down payment. A quick search using the criteria of: a dual income, $150K/year household, seeking a single-family home, $800K range, Suffolk County, no special classes (e.g., not Veterans, not first-responders), yielded 13 different matched programs with one potentially offering 25%, or $200K[1], in assistance.
• If all of these assistance and financing options seem like a lot to navigate, your clients can attend a free first-time homebuyer webinar offered by Long Island Housing Partnership. Those who attend the webinar are then eligible for free one-on-one mortgage counseling with a certified mortgage counselor. This counseling is even available with language assistance or a translator.

As robust and helpful as these resources can be, they do not address the underlying market forces fueling the housing crisis, e.g., high interest rates, low supply, inflated prices, older homeowners staying put, etc.

That’s why lobbying on behalf of Americans seeking homeownership is one of the critical activities in which LIBOR engages. Earlier this month, LIBOR members and staff joined thousands of REALTORS® from across the country in Washington, D.C. for the NAR Legislative Meetings. There, we met with our elected officials to discuss critical legislative priorities that impact our industry and consumers. We pressed for the enactment of the following:

• More Homes on the Market Act – to decrease the equity penalty and incentivize more long-term owners to sell their homes
• Housing Supply Framework Act – to create a national strategy for boosting housing production and affordability by reducing barriers to new housing development
• Revitalizing Downtowns and Main Streets Act – to convert underused commercial properties into residential and mixed-use housing
• Uplifting First-Time Homebuyers Act – to increase the amount that can be withdrawn penalty-free from IRAs for a down payment on a first home
• Fair and Equal Housing Act – to add sexual orientation and gender identity as protected classes under the Fair Housing Act to help ensure equal housing protections for all Americans

Our lobbying efforts aren't just about influencing legislation—they’re about safeguarding homeownership and ensuring our members have the tools you need in the current market.

LIBOR will continue to push on both fronts: to deliver more resources to empower homebuyers and bring about much-needed change in housing policy.