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Special Reports
Downpayment Assistance
New Group Offering Homebuyers A 'FreshStart'
By Amilda Dymi
GAITHERSBURG, MD -- The Association of Homeowners Across America, established
earlier this year by AmeriDream Inc. here as a one-stop resource for homeownership-related education and other
services, recently launched its new downpayment assistance program, FreshStart, in New York.
FreshStart is designed to make homeownership possible especially for qualified
borrowers "who have had to overcome significant challenges in their lives," AHAA said.
Star Jones Reynolds, a lawyer, former prosecutor, television personality and founder
of "The Starlet Fund," a financial aid organization dedicated to the advancement of women and girls,
has partnered with AHAA in its efforts to attract more sponsors and financing.
"I wanted to participate by being a host of this event to show how important
homeownership is. What we're hoping to do is develop a long-term relationship with myself, my foundation and some
of my corporate friends," she said.
As of now, however, she does not have any specific goals. "I do not want
to make promises I cannot deliver. The goal is for FreshStart to be able to deliver one of those downpayment assistance
checks every month. That's a very good goal and I'm honored to be part of it."
However, securing downpayment and affordable housing financing is a challenging
task.
"Unless there is the support of participation in AHAA, we cannot continue
this program, so we need people to join, become members, so FreshStart grants can continue," said Ann Ashburn,
president and chief executive officer of AHAA. "One of the benefits for homeowners is that it is a one-stop
resource that includes three levels - to foster, protect and enhance homeownership.
"If you're a homebuyer looking to become a homeowner, we'll help you get
there. If you're a homeowner already in your house, we're going to have to protect your investment through education.
If you run into financial difficulty, we do a home retention program. If it's legislation, federal, state or local,
we'll let you know whether it is good or bad legislation for homeowners, and also they can get their voices heard."
AHAA will present FreshStart grants to recipients across the nation who have already
been recommended by a mortgage lender. The nonprofit said that as membership in AHAA grows over time, the long-term
goal is to increase the number of monthly recipients and extend FreshStart beyond the initial one-year commitment.
"We have been providing downpayment assistance through our AmeriDream program
for many years, but the realities of today's market make it essential that we go a step further," said Ms.
Ashburn. "FreshStart represents that vital additional step, and AHAA provides ongoing support for both homebuyers
and homeowners."
Different from traditional DPA programs that require the participation of both
the buyer and the seller, FreshStart eliminates the need for seller participation. Buyers receive gift funds equivalent
to 3% of the price of the home being purchased. They can apply those funds either to downpayments or closing costs.
In addition to the FreshStart program, AHAA receives support from AmeriDream,
one of the country's largest downpayment and affordable housing assistance providers. (Since 1999, AmeriDream has
provided over $500 million in downpayment assistance to over 150,000 homebuyers nationwide.)
The AHAA charter membership fee at the entry level is $24 annually.
"It costs only $2 a month to protect one's greatest single financial investment.
Plus members get a quarterly e-mail newsletter that includes information about home finances, home maintenance,
coupons, other sponsorships, how to get active in your community and homebuying education in communities,"
Ms. Ashburn said.
AHAA also aims to serve as a trusted partner to mortgage lenders operating in
the affordable housing marketplace through a referral system for both perspective homebuyers looking for a lender
and affordable housing lenders.
AHAA has so far secured the seed fund for FreshStart and expects a combination
of growing membership, more co-sponsors and new partners will help AHAA and the program to be successful in increasing
its resources, executives said, so AHAA can continue to give grants to customers in need.
The biggest challenge is to educate sponsors and lenders that there is a need
for affordable housing as much as to put pressure on sponsors, Ms. Ashburn said. "What I would like to say
to them is it's time to put up. Because here is an association that is structured, financed and has the FreshStart
vehicle. It is your vehicle to contribute to homeownership, so let's take action. All it requires is goodwill."
Executives agree that to secure funds for future customers in need, they need
to engage in and sponsor education efforts and information about affordable housing. After all, statistics showing
that the national homeownership rate has reached 69% indicate that millions of people are still aspiring for homeownership.
So AmeriDream initiated the creation of AHAA, responding to a market need.
"Right now all the corporations get heard, all the business entities get
heard, while individual homeowners just get left out and pushed around," Ms. Ashburn said. "The time
is now to come together, become a powerful force and be heard about what you want. If you need maintenance around
the house, or credit counseling, again it is a one-stop shop resource. There's tons and tons of wonderful information
on the Internet, also tons of sites to go through. We're consolidating all of that into one website, so there's
one source to go to."
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