So many people want to buy a home (house, condo, townhouse, whatever they can afford) and feel that they are priced out of the market. Many people are unsure of what to do to prepare to buy a home and do not have the confidence to make the decision to buy a home. I have seen people leave Hawaii and move to Las Vegas or other parts of the mainland so that they can buy a home. That is so sad to see our loved ones leave because they are priced out of the market. There are several options for who that want to stay in Hawaii.
Research has shown that employees who are homeowners are stable and do not have to worry about moving every time their landlord decides to sell the house or decides to not renew the lease. Children of homeowners are happy knowing that they have a place to call home and they can focus on their studies rather than worry about what school they will be attending next year and if they have to go to a new school every few months or years.
Homeowners have much more net assets than renters and most their asset is tied to the value of the home that goes up in value over the years whereas the renter has no appreciation and helps their landlord make the mortgage payments.
The National Association of Realtors has launched a program called Home From Work to help employers to help their employees to buy a home. The program that teach employers and employees is called Employer Assisted Housing. Go to www.realtor.org and type in EAH in the search box and you will see detailed explanation of how the program can help employees to buy houses.
Employers can sponsor the seminars and encourage their employees to participate in this free program. The employee is encouraged to attend 8 hours of classes taught by a nonprofit company that will teach the prospective homebuyer how to budget, how to clean up their credit, how to choose a Realtor, how to choose a loan officer, how to prepare to be a homeowner. The program participant is also assigned to a counselor who will work with the participant to help them accomplish their goal of homeownership. The cost is $100 to be a lifetime member. The employer can pay for the $100 or the employee can pay for it or I will be willing to pay for it if the participant agrees to let me represent them when they buy or sell real estate. Once you complete the program, you will receive a certificate of completion which entitles you to matching grants for down payments, special discounts for services from lenders, Realtors, escrow and any other participating vendors.
Click on the following link and you will see a list of all certified instructors throughout the country and for Hawaii that are authorized to teach this course.
www.realtor.org/government_affairs/housing_opportunity/programs/home_from_work/home_from_work_instructors.htmlEmployers are encouraged to set up a home ownership program for their employees. It takes very little time and effort for the employer to sponsor the program. The employee has to be committed to making homeownership a goal and be determined to prepare to buy a home. The employers that participate in the program can do one or all of the following:
- Employer agrees to endorse the Employer Assisted Housing Program and let the employees know about the program.
- Employee agrees to participate in the program and can choose to attend the 8 hours of classes and the one on one counseling.
- Employers have the option of loaning or granting the employees the down payment, closing costs or whatever they feel that they can afford to keep a valuable employee.
One of our clients has agreed to grant $12,000 per employee (6 to 8 employees) to help them with their down payment. The $12,000 is forgiven if the employee stays with the employer for a period of specified years. If the employee leaves the company early, the $12,000 must be repaid. A developer that we approached has agreed to give up to $7,500 in credits to the buyers in this program and employees have almost $20,000 in cash or credit to purchase their first condominium home. Anyone can participate in the program, with or without an employer.
Participants need to be realistic in what kind of home they can afford. Many are below the median income level and their choices of homes may be limited. Their first home may be a condominium that is out of town and as their income and equity increases, they may be able to move up in due time. They need to start somehow and this program gives the participant the knowledge and confidence to make the first big move in being a homeowner.
All of us need to help our valuable employees to get the training and education to have the confidence to buy a home in Hawaii. One of the participants in this program was on ice and had 3 children and was divorced and with $1800 a month in income, applied for all sorts of grants and was able to buy her first home. She now has 3 properties and is living proof that where there is a will, there is a way.
If you want more information on this wonderful program, please call me at 216 4999 or email me at
abelee@hawaii.rr.com and I would be glad to talk to employers and employees or anyone who wants to participate in this program.
Unions, large or small companies, associations, self employed workers and anyone interested are welcome to participate in this program.
