Carper promotes minority home ownership

Two years ago, the average home in Sussex County cost $90,000. Today, however, it is twice that amount, said Carol Campbell-Hansen, a broker with Century 21 of Georgetown. Since Delaware has one of the highest home-ownership rates in America, according to U.S. Sen. Thomas Carper, he wants to make sure owning a home is within everyone’s grasp and not just the affluent.

Owning homes for racial minorities, women, the elderly and young is not just wishful thinking, he assured. In a state with escalating property and home values, Carper’s faith-based initiative, in conjunction with the Delaware Federation for Housing Counselors, seeks those who may not see themselves as homeowners.

Gail Jones, a 39-year-old computer programmer from Millsboro, was misled when, she said, she was told she would have to sell her mobile home before even considering buying a new home. By the end of the summer, however, Jones will move into her new six-figure home in Georgetown, thanks to Carper’s drive. “Whether you are 4, 9, or 15, kids who live in a home owned by the family do better in school,” said Carper. That is why he and a staff of brokers, lenders, attorneys and counselors, with assistance from Fannie Mae, are reaching out to Delaware’s churchgoers. The faith-based ownership fair was begun this year, by targeting those in New Castle, Kent and Sussex counties. “The senator has had the idea for a couple of years and launched it in January,” said Emily Fowlie, a press person for the state.

With three fairs in the spring and three in the fall, its most recent outreach was held at the Pilgrim’s Ministry of Deliverance in Georgetown on May 7, with roughly 50 attendees. In New Castle County, at Shiloh Baptist Church in Wilmington, about 100 interested homebuyers attended, with about 50 participants from Kent County. “There are a lot of people who don’t believe they can own a home. We’re here to help,” said Fowlie.

Becoming emotionally attached to a home, repairing your credit and performing title searches are just three of the topics that counselors reviewed. These pitfalls for first-time homebuyers were examined in detail during the free public forum.

Anita Woods, director of First State Community Action Agency, introduced the counselors and helped raffle door prizes such as Home Depot home improvement books, a Craftsmen drill and a Farberware knife set.

Fixing one’s credit, for some, may be the first step on the long road to home ownership, but Gerry Kelly, with Delaware’s state bank commissioner’s office, explained how to obtain and analyze credit reports. Incidentally, starting Sept. 1, 2005, information on credit reports for Delaware residents will be free, he said. He also gave tips on protecting against identity fraud.

Kathaleen McCormick, an attorney with the Community Legal Aid Society, Inc., cited the Fair Housing Act, a federal law passed in 1968, to safeguard against discrimination. In Delaware, since then, other laws further protect residents based on race, age familial status or religion, for instance. Other ways to discriminate do persist, she cautioned. If realtors try to “steer” a client with children, for example, from viewing homes in certain neighborhoods, she conceded that this was, in fact, a more subtle form of discrimination.

“It produces negative stereotypes about children,” said McCormick, “that they’re messy, loud or reckless.” She urged those suspecting bigotry to call the state’s Division of Human Relations, an office of investigators with three statewide offices.

“Statistically, it shows that foreclosure rates diminish if you go through counseling and education,” said GMAC Mortgage Consultant Mark Randolph. Using an array of magic tricks including audience participation, he demonstrated ways to improve credit scores, secure competitive rates and remove one’s self from the business-side of the buying equation. “Don’t put yourself emotionally into the sale,” he said.

Next on deck was Dan Eichenberger, who presented tools for determining if a home is physically sound. He, too, impressed that homebuyers should not succumb to initial attraction to a home, with, what he called “tunnel vision.” “I will show defects and help you make an informed decision,” said Eichenberger. With used homes and pre-owned housing, he said, there is a lot of wear-and-tear. Plumbing leaks which can be gleaned from scouting crawlspaces and termite burrowing viewed from underneath, are just two examples that an inexperienced buyer may not look for. “Most will spend $100,000 to $400,000 for a house,” he added. With the cost of a home inspection running from $300 - $600, the relatively nominal fee is well worth it, he said. In Delaware, there is no licensing tool for home inspectors. He told audience members to make sure their home inspector is affiliated with the American Society of Home Inspectors.

In choosing a home, said attorney Bonnie Benson, zoning needs to be addressed, especially if a homebuyer has commercial interests. “Make sure that if you are planning on using your home for a day-care, for instance, the zoning and restrictions don’t prohibit you from using your dream house.” From title searches to insurance and warranties, she examined a homebuyer’s legal needs. Currently there is no warranty for pre-existing homes in Delaware, she said. With over 120 closings or more a month and a staff of 12, Benson encouraged the audience to call her Camden or Lewes office before signing anything. Finally, she said, her office will dole out all payments to contractors and service providers during the settlement process.

The senator then entered the pulpit-turned-staging area for those seeking home-purchasing knowledge. “It takes part of a village to help us become homeowners,” said the senator. After presenting an award to Gail Jones, one of the organization’s first homeowners, he told the Cape Gazette that “there are a lot of people in church who own homes, but more that don’t.” Carper said, at first, his mother wished him to become a minister, but that was only part of the reason he encourages Christian followers to own property. More importantly than one’s religious affiliation, said Carper, a Protestant, was the common bond unifying potential homeowners. “Whether you’re Protestant, Jewish, Hindu or Muslim,” said the senator, “we all have a common bond: to help people less fortunate than ourselves.”

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.