 An innovative new partnership is helping more Texans experience the dream of first-time homeownership.
The Texas Association of REALTORS®, the Texas Department of Housing & Community Affairs, and Fannie Mae have joined forces for United Texas: Housing Initiatives That Work. The program officially kicked off at a Dec. 7, 2004 news conference in Austin to help boost homeownership in Texas.
According to the U.S. Census Bureau, only 64.5% of Texas households owned their homes in 2003, compared to 68.3% nationally. United Texas aims to start changing those statistics, bringing the Lone Star state more into line with the rest of the country.
“Mortgage interest rates in the United States have remained at or near record lows during the past several years,” said Dave Dalzell, Texas Association of REALTORS® chairman of the board in 2004. “The problem is that some Texans, though they would like to participate in the American Dream of homeownership, have not benefited from these favorable conditions.”
Housing affordability in Texas continues to be a pressing issue. The Real Estate Center at Texas A&M University’s Texas Housing Affordability Index measures the ratio of median household income to the income required to buy the median-priced home using currently available mortgage financing. Standard financing is a 30-year loan covering 80% of the cost of the home. A THAI of 1.00 means that the median household income is just enough to qualify for a loan big enough to purchase the median-priced home.
The most recent index shows that affordability has gone up (making housing less affordable) in almost all Texas cities over the last quarter – from .98 to 1.01 in Amarillo and .74 to .82 in Baytown to .82 to .91 in Beaumont and 1.18 to 1.23 in Collin County. These are big increases that clearly show a need for a program like United Texas.
Information and education
The United Texas program is focusing on information and education. A new Web portal at www.TexasRealtors.com connects Texas REALTORS® to information about the Texas Cares down payment assistance program, low-interest financing programs such as TDHCA’s Texas First Time Homebuyer Program, and Fannie Mae resources for REALTORS® and consumers.
In early 2005, a new continuing education course for real estate professionals will be offered throughout Texas.
Both the Web portal and education course will be continually updated to provide the latest information on affordable housing opportunities, so Texas REALTORS® will be informed and ready to help clients, especially those who want to buy their first home. Both Fannie Mae and TDHCA are developing education materials for Texas REALTORS®.
“United Texas takes a common-sense approach to affordable housing – not attempting to reinvent the wheel, but taking better advantage of existing programs,” said Joe Stewart, chairman of the Texas Association of REALTORS® Housing Initiatives Committee.
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Texas REALTORS® and homeownership go hand in hand
Texas REALTORS® have long been committed to making the American Dream of buying a home a reality. For example, the Texas Association of REALTORS® first partnered with Fannie Mae on what since has become one of its most popular programs – Borrow with Confidence – back in January 2003.
As part of this program, the Texas Association of REALTORS® and Fannie Mae offered REALTORS® training on flexible mortgage products that address common barriers many borrowers face, such as a lack of downpayment funds, tarnished credit, and debt.
Borrow with Confidence included lists of lenders that offer mortgage products at low costs to first-time buyers, as well as resources for local counseling agencies that help borrowers who might need additional assistance preparing themselves for the home-buying process. Finally, Texas REALTORS® also worked with local officials around the state to create awareness about the home-buying process and promote responsible lending.
The program has been a clear success. More than 30,000 Texans have been able to get loans and become first-time homeowners since Borrow with Confidence started just two years ago. It’s a great beginning, and Texas REALTORS®, Fannie Mae, and TDHCA are looking forward to creating even more success stories as a result of United Texas.
The bottom line is increasing Texas’ homeownership rates through better education for REALTORS® and consumers – and that’s good for everyone.
“Homeownership engenders a sense of pride, promotes stable families and communities, and has a positive, multiplying effect on local, state, and national economies,” said Stewart. “Owning your own home is what the American Dream is all about.”
For more information about TDHCA’s Texas First Time Homebuyer Program, call 800/792-1119 or visit the TDHCA Web site at www.TDHCA.state.tx.us.
For more information on Fannie Mae’s affordable mortgage products or a list of local lenders, consumers may call Fannie Mae’s Consumer Resource Center at 800/7FANNIE (1-800-732-6643) Monday through Friday, 8 a.m. to 4 p.m. central.
And, for more information about the Texas Association of REALTORS® and how the organization is helping consumers, visit www.TexasRealEstate.com.
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