Why Homeownership? FAQ’s

Why Homeownership?

Homeownership is an important vehicle in creating economic stability and opportunity for American households. It is a way to accumulate wealth through what is most families’ greatest asset. Consistent payments lead to improved credit scores, greater financial stability and increased resources for retirement.

In addition, owning a house offers a safe, grounded, healthy place to grow a family often with a mortgage payment that is less than the rent payments most families are making. A house can fulfill the greatest hope you have for yourself and your family offering a place to call home for the rest of your lives.

We encourage all families and individuals to consider the possibility of becoming a homeowner. With a solid credit score and a stable income becoming a homeowner is entirely attainable.

FREQUENTLY ASKED QUESTIONS:

Why Own a Jericho Road Home?

  • The opportunity to invest in a community where property values are continuously increasing.
  • New construction, meaning less maintenance over time than older structures.
  • Increased square footage with more bedrooms, bathrooms, and space to spread out.
  • A healthier and a more energy-efficient environment.
  • The freedom to adjust and style your home to uniquely fit yourself and your family.
  • A community and safe haven—to raise children in, to create memories, and to be a permanent part of your family.
  • Be a part of a community revitalization movement.

Jericho Road Homeowners Are:

  • Diverse: individuals and families, single fathers and mothers, young and old, professional and retired, local and new residents
  • Earning at or below 120% of Area Median Income: considered low-to-middle income (see chart below to learn more)
  • Dynamic community leaders
  • First-time homebuyers
  • An essential component to the neighborhood goal of revitalization
  • Role models and leaders for other community members

What Is Required to Qualify for a Jericho Road Home?

Jericho Road homeowners must meet the following requirements before purchasing a home:

Income

  • Jericho Road determines our income requirements from a yearly index published by the U.S. Department of Housing and Urban Development (HUD). This data uses the average income of variously sized households to calculate the income limits both above and below this amount.
  • Chart: 2016 Area Median Income (AMI) for New Orleans
Number of People in Household    (Adults and Children) 80% Limit of AMI 120% Limit of AMI*
1 $35,500 $53,280
2 $40,50 $60,840
3 $45,60 $64,800
4 $50,650 $75,960
5 $54,750 $82,080
6 $58,800 $88,200
7 $62,850 $94,200
8 $66900 $99,168

*As a minimum requirement, Jericho Road homeowners must make less than 120% of the AMI.

Homebuyer Training

Bank Approval

  • A potential homeowner must be pre-approved by a lender for a traditional mortgage before submitting an offer to purchase. However, if you are concerned about this, Jericho Road has experts on staff who are here to help you find out what is possible.

Initial Investment

  • Homebuyers must invest a minimum of $1,500 as a down payment towards the purchase of a new home.

 

How Do I Get Started Financing My New Home?

  • Call now and make an appointment with our Housing Sustainability Coordinator. There is no need to wait!
  • Don’t be intimidated by the required qualifications or the price of a Jericho Road home.
  • Don’t be intimidated by the homebuying process – we are here to help you through it.
  • Those who have rented for years often don’t realize that homeownership is a possibility. With a good credit score and reliable income, many renters can buy a house and set up a mortgage that is similar or sometimes less expensive than what they were previously paying in rent.
  • A mortgage is a particular type of loan one receives to purchase a house. Like rental payments, it is usually a monthly expense. However, each payment on a mortgage works towards paying off the total price of the loan. In our experience, monthly mortgage payments for a Jericho Road home are often between $700 and $900 per month.
  • Jericho Road recognizes that most homebuyers may need special assistance. We offer assistance to homebuyers finding specific funds, grants and down-payment assistance programs that give assistance to first-time homebuyers.
  • The best way to prepare for financing your home is to START TODAY! There are matching savings programs offered through organizations like United Way of SELA to assist interested homebuyers in saving for down payment and closing costs. Additionally, building credit can take time, dedication and patience so the best thing to do is start now!
  • Families may qualify through the Housing Authority of New Orleans (HANO) Homeownership Program which assists public housing and Housing Choice Voucher Program (HCVP) Section 8 tenants to become first-time homebuyers.

 

I Am Interested in Owning a Jericho Road Home. What Do I Do Now?

If you would like to move forward and learn more about buying a home, please contact Jericho Road at 504-895-6763 and talk to our Housing Sustainability Coordinator. You’ll be asked to complete a Homebuyer Intake Form. We will set up a meeting with you to discuss next steps, take a closer look at a Jericho Road homes, and begin the qualifying process.

Contact Jericho Road Housing Initiative Today!