Estimated read time: 2-3 minutes
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
Shelley Osterloh ReportingSoaring real estate prices, bad credit, low wages -- all of those things can keep people from achieving the dream of owning a home. But there is a place where people can go for help.
You see a house for sale, check the price and wonder, 'Can I afford it? Should I look for something smaller? How much of down payment do I need to have? Is my credit rating good enough?' There is one place that can help you with all of those answers.
The Community Development Corporation of Utah is a non-profit dedicated to helping low income and first time buyers purchase their own homes.
Elham Neilson, an immigrant from Ghana, is learning how to improve her debt, credit and savings so she can be a home owner.
Elham Neilson: "A good, stable home for my grandkids; I'm tired of paying rent."
LeRoy Jaramillo signed up for a home buyer class.
LeRoy Jaramillo: "My credit was in a bad situation and I contacted CDC a little over a year ago and spent the last year trying to get my credit back to where it should be, to where I can actually purchase a home."
Counselor Elizabeth Tanner says the most common mistake is buying a home that costs more than you can manage.
Elizabeth Tanner, Counselor: "They find the house first, before they figure out what they can afford. They get the order mixed up. They get too focused on the goal and not the steps to get there."
The Community Development Center offers counseling and classes that can help people prepare to buy and home determine how much house you can afford. For example, they recommend that you do not spend more than 30% of your income on your housing. More than that puts you at greater risk of financial problems. And your entire monthly debt, including your mortgage payment, should not exceed 40% of your gross monthly income.
Armed with the right information and spending discipline, that dream home could be reality.
The Community Development Corporation of Utah has some special programs only for those with low incomes but their home buyers education classes are open to all, and free except for a ten dollar materials cost.
