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FREQUENTLY ASKED QUESTIONS
Questions:
- What is affordable housing?
- Why is affordable housing important?
- Why should I buy a home?
- Can I afford it?
- What's a mortgage?
- Are the tax advantages of home ownership as great as I hear?
- Will affordable housing "cheapen" my neighborhood?
- Will affordable housing lower the property values in our community?
- If you don't cut corners on design and construction, how do you make the housing affordable?
- How can we be sure that the people who live in affordable housing will fit into our neighborhood?
- What is the Area Median Income (AMI) and how do I find out what it is in my area?
- How do I sign up for homeownership education workshops?
What is affordable housing?
Affordable housing is safe, secure affordable accommodation to households with low to moderate incomes. Housing is defined as affordable if you do not pay more than 30% of your monthly gross household income for rent and utilities.
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Why is affordable housing important?
Affordable housing is the foundation of healthy vibrant communities. Retail, service, industrial concerns, schools and hospitals are impacted by the existence of affordable housing in a community. Affordable housing is crucial to maintaining an adequate labor force and also creates opportunities for people to pursue education and contribute to their community.
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Why should I buy a home?
Owning a home is like having a scheduled savings plan because you are paying monthly mortgage payments. Owning a home allows you to build equity (that's a good thing), like an investment, versus throwing your money away to a landlord or management company. You can also borrow against the equity in your home or convert it into cash later. Owning a home may provide you significant tax benefits. (The interest you pay for your home mortgage is often tax deductible and may save you a substantial amount in federal income taxes.) Consult your tax advisor.
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Can I afford it?
You may think that because you haven't saved for a down payment, you couldn't possibly afford a home of your own. Actually, many first-time homebuyers assume they won't be able to afford a home, when in reality there's a mortgage and a home for just about everyone who's willing to save and do a little homework.
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What's a mortgage?
A mortgage is the legal document by which you pledge your home as collateral for a loan. In some states it is referred to as a deed of trust.
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Are the tax advantages of home ownership as great as I hear?
Perhaps in the past you have always taken the standard deduction rather than itemizing your deductions on your federal income tax returns. But now that you are a homeowner, you can deduct the interest you pay on your mortgage and certain other expenses, such as taxes on your real estate (property taxes). These deductions may save you thousands of dollars in federal income taxes. In the early years of your mortgage, the bulk of your monthly mortgage payment is interest. Consult your tax advisor.
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Will affordable housing "cheapen" my neighborhood?
Affordable housing is not cheap housing. It is quite expensive. The maximum sale price including land is $145,000. NHR reviews all housing designs and approves those that are attractive, energy efficient and reflect the character of the surrounding neighborhood.
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Will affordable housing lower the property values in our community?
Affordable housing has no negative impact on nearby property values, and in some cases actually contributes to increases in property values. The reason this is so is that affordable housing combines attractive energy efficient design with homebuyers that have the necessary homeownership training (provided by Neighborhoods Inc.).
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If you don't cut corners on design and construction, how do you make the housing affordable?
By using federal (HOME Funds) and state subsidies (Affordable Housing Trust Funds) and NIFA's first-time homebuyer loan rates, NHR homebuyers are able to obtain a financial structure that is affordable.
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How can we be sure that the people who live in affordable housing will fit into our neighborhood?
In most cities and towns the people who need affordable housing already live and work in the communities where affordable housing is proposed. Not long ago, the image of "affordable housing" was associated with welfare families, poverty, crime, or badly designed or poorly managed public housing. Over the past decade, teachers, child care workers, fire fighters, nurses, social workers, retail clerks, bus drivers, data entry operators and employees in dozens of other job classifications have been expressing a critical need for "affordable housing" for themselves and their families.
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What is the Area Median Income (AMI) and how do I find out what it is in my area?
The Area Median Income (AMI), or Median Family Income (MFI), is an estimate of how much money people make in your area. If you were able to see a list of all the incomes in your area, the median income would be the number in the middle of that list. A person's income status ("low-income," "very low-income," etc.) is based on that number and is used to determine eligibility for housing assistance. To see the AMI in your area, please click here.
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How do I sign up for homeownership education workshops?
Please click here to sign up.
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