Financial Empowerment Vanessa McCall, MBA Director of Housing Finance Delaware State Housing Authority 18 The Green Dover, DE 19901 (302) 739-4263 ■ (888) 363-8808 VanessaM@destatehousing.com Visit us at www.destatehousing.com
The American Dream Homeownership Delaware 73% homeownership rating 3rd highest in the US
Successful Campaign Started June 2013 NCSHA Award winner Motivate renters Motivate millennials Support the dream of homeownership Financial impact rent vs buy Encourage those that never left or left and came back after college
Identifying An Important Need 70% to 80% of home buying workshop attendees are not ready to purchase a home.
Vanishing Dream
An Innovative Initiative 2016 DSHA partnership Coalition led by State of Delaware & United Way of Delaware Established 2011 Free 1 on 1 Coaching Financial Empowerment College funding, Retirement Planning, Adults with Disabilities, Aging out of foster Care, Re-entering society from prison Differs from Housing Counseling focus on getting a house but also managing finances to maintain a house Can work with those with have low or no credit score and debt problems
How It Works Referrals from / to Lenders, Housing Counselors and Realtors Direct advertisement Social Media Meet with clients anywhere Bilingual staff Financial coaching Develop a budget Refer back to initial contact Print ads, billboards, carvertise Twitter, Facebook Client has to do the work Meet regularly
How It Works Clients are ranked on a Mortgage Readiness Scale Takes about two years to complete Some will be transferred to other programs Not everyone can purchase a house
Effective Use of Resources Initial funding $200,000 Current funding $175,000 Identify other partners Costs about $267 per client overall Costs about $530 per client if only those referred out for mortgages Outside banking partner CRA money – Community Reinvestment Act 1977
Achieving Strategic Objectives Quality, affordable housing opportunities Expanding homeownership programs Program leverages existing "Kiss Your Landlord Goodbye" brand
Success! Majority of clients still in the pipeline 30% now DSHA mortgage ready 640 FICO 45% DTI >$2,000 in savings 20% improved scores significantly 50% up from lowest score 15% purchased a home
Client Testimony