Monday, Jun 10 2013 2:52PM
Homeownership counseling and education may help consumers obtain affordable loans.
June is National Homeownership Month, and the financial education of consumers may play a key role in helping them obtain affordable housing and help build sustainable communities, according to nonprofit organization Money Management International (MMI).
Citing data from a NeighborWorks America study, MMI reports that pre-purchase housing counseling and educational tools are crucial in helping Americans secure affordable loans that won't overburden their finances or result in mortgage debt or foreclosure.
The study found that those who enroll in these counseling and educational sessions are one-third less likely to become seriously delinquent on their mortgages within the first two years of owning their home when compared to homeowners who don't receive housing counseling and education.
"Education and housing counseling prior to purchasing a home or falling behind on mortgage payments can make the difference of experiencing the true American Dream or an American nightmare," said Jo Kerstetter, vice president of financial education and community relations for MMI.
Many Americans may be unaware of affordable housing assistance programs offered by government agencies or managed through nonprofit organizations. As a result, home buyers may take on excessive mortgage loans or lose out on opportunities to achieve financial assistance when purchasing a home.
Focusing on programs provided by the U.S. Department of Housing and Urban Development, Department of Veterans Affairs and the Federal Housing Administration may help educate consumers on the affordable lending and housing options available to them.
For more information, check out this resource: Money Management International