October 2023 – Newsletter
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Author: HomeSight
What’s a Moon Fest?
Family, Prosperity and Dancing in the Moonlight: at its first Moon Fest, HomeSight lights up Othello Park with southeast Asian cultural traditions.
While the lunar new year is a familiar celebration in cities with large east Asian communities such as Seattle, fewer people are familiar with the culturally significant autumn festival traditions celebrated in China, Vietnam, Japan, Korea and other east Asian cultures.
“The Moon Fest marks the end of the harvest season,” said event organizer Spring Gin, HomeSight’s community development manager. “It’s a day to celebrate family, and especially children, at the end of the agricultural work year. It’s a time for family reunions. The full moon represents fullness, prosperity, peace and a plentiful harvest.”
Fireworks, lion dancing, food, music, fun and lanterns will light up Othello Park on Saturday, September 30 from 6-10 p.m. at HomeSight’s first-ever Moon Fest. Free and open to the community, the festival will bring the traditions of southeast Asian harvest celebrations to its southeast Seattle neighbors.
The festival will also feature martial arts demonstrations and a fashion show of traditional dress from several southeast Asian cultures. A special moon dance will be performed by senior members of the community, and fireworks will top off the celebration.
With the festival’s special focus on children and families, young attendees will be given treats and lanterns. “In Vietnamese culture, the lanterns light the path for prosperity and good fortune,” said Gin.
Moon Fest is sponsored by HomeSight, a catalyst for community and economic development in southeast Seattle for over 30 years, and Seattle’s Office of Economic Development.
“There’s a lot more to Asian culture than dim sum and pho,” said Gin. “Moon Fest is an opportunity for our large east Asian community to reconnect with their cultural traditions, and for all our community members and neighbors to learn, join in and celebrate with us.”
September 2023 – Newsletter
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Don’t Let Them Take Our Neighborhoods
HUD Secretary Marcia Fudge:
“Don’t Let Them Take Our Neighborhoods”
Key member of the Biden-Harris administration met HomeSight stakeholders and Black Homeownership Initiative Network members this week to give support to Black homeownership efforts.
HomeSight Executive Director Darryl Smith moderated a roundtable discussion with Housing and Urban Development (HUD) Secretary Marcia Fudge, Seattle Mayor Bruce Harrell, Representative Adam Smith and members of the Black Home Initiative Network (BHIN) to discuss hurdles to homeownership in the Black community.
Several representatives from the BHIN—a coalition of 72 housing leaders dedicated to improving homeownership access in the Black community—attended the event, including Darryl Smith and Nicole Bascomb-Green, a HomeSight board member and the new chair of the Washington State Housing Finance Commission.
Secretary Fudge acknowledged the racial gap in homeownership is a pressing and longstanding issue. “It’s been 55 years since the Fair Housing Act was passed,” she said. “We know we have to do better.”
Noting the Biden-Harris administration had increased tax credits available for housing construction, Secretary Fudge said the problem only began with the affordable housing shortage. “We know we need to build houses. We are woefully short. But we can’t just build our way out of the problem,” she said. “We have to preserve the housing we have, and we have to preserve our communities.”
To do that, Mayor Harrell said more robust assistance was needed for down payments in this region that generally ranged from $100k-$150k. “We live in a very wealthy city,” Mayor Harrell said. “This creates a sub-class. You don’t become worth more than $180 billion and don’t recognize the wake you just left.” Mayor Harrell praised HomeSight for its “amazing” work directly tackling the challenges posed by increasingly unreachable starter home prices, saying: “That’s the kind of work we have to do.”
Darryl Smith said HomeSight’s programs addressed a critical gap in Seattle’s housing market. “The reality is that down payment assistance for low-income people is capped at 80 percent of the area median income. House prices have risen so far, and so rapidly, that even people making up to 120 percent of the area median income can’t bridge the gap, and don’t qualify for any assistance.”
At the roundtable, local teacher James Dixon shared his experience purchasing a home with the assistance of HomeSight’s Sam Smith “Hi Neighbor” Homeownership Fund, a loan product created in partnership with Windermere Real Estate designed to increase purchasing power of Black homebuyers earning between 80-120 percent of Washington state’s median income. After years of struggling with rising rent in Seattle, his hometown, Dixon was able to bridge the affordability gap to purchase his home last year with this program.
Bascomb-Green said: “That’s what we see every day as brokers. We have clients who are income rich, but asset poor. They can afford a mortgage, but don’t have the down payment, because they make too much money.”
Darryl Smith said the work must continue on every front. “When we talk about the issues surrounding creating generational wealth, the answer is ‘yes, and …’ It’s supply. It’s homebuyer education. It’s down payment assistance. It’s all of these.”
Secretary Fudge’s message was clear in response: “We want to work with you.”
August 2023 – Newsletter
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Events
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Are you ready to buy a home?
Quiz: Are you ready to buy a home?
The benefits of homeownership are great, but getting there takes preparation. There are many factors to consider before you buy a home, such as your income, savings, credit score, debt, budget, lifestyle, and goals. How do you know if you’re ready to take this step? Take our quiz!
- Do you have a stable and reliable source of income? (2 points)
- Have you been saving money for a down payment and closing costs? (2 points)
- Do you have a good credit history and score? (1 point)
- Do you have a realistic budget that includes all the costs of homeownership, such as mortgage, taxes, insurance, maintenance, and utilities? (1 point)
- Do you plan to stay in the same area for at least five years? (2 points)
- Do you have an emergency fund that can cover at least six months of living expenses in case of unexpected events? (1 point)
- Do you have a clear idea of what kind of home you want and need? (2 points)
- Are you willing to compromise on some features or amenities if necessary? (2 points)
- Are you prepared to deal with the responsibilities and challenges of homeownership, such as repairs and maintenance? (2 points)
Add up your score:
11-15 points: The House Hunter
You’ve prepared financially and done your homework. You’re ready to learn about your mortgage options. Call HomeSight today and learn about all the opportunities we can offer to start building equity in your new home!
6-10 points: The Web Surfer
You may be perusing homebuying websites, but you haven’t evaluated your own financial toolkit. Even if you’re just surfing on Zillow or Redfin, it’s never too early to lay the groundwork so when the time comes, you’re financially prepared. The good news is you’re not alone. HomeSight’s homebuying classes can help you budget, plan and get you financially ready to take this first step toward building equity.
0-5 points: Square One
You’ve got to start somewhere! You may think homeownership is out of reach for you, but HomeSight’s lending experts can show you how to prepare. If you’re at the beginning of your homebuying journey, we’re happy to help you create a realistic budget and timeline. Try our Homebuyer Education class to get your budget in shape.
We love showing our clients what’s possible for them in the Washington housing market.
Your Credit Score
HomeSight Mythbusts: Your Credit Score
Your credit score is the number that reflects how well you manage debt. If you’re getting ready to borrow money to buy a new home, a good credit score will open options for you. In general, the higher your credit score, the more likely you are to get approved for loans with lower interest rates and better terms.
Because HomeSight’s mission is to help low- and moderate-income families buy their primary residences, we’re able to offer mortgages at competitive rates that don’t rely on your credit score or the loan amount.
But good credit is a valuable tool in any homebuyer’s toolkit. You can build your credit if you don’t have any, or if you’ve made past mistakes, but there is conflicting advice on how to do that. Below, HomeSight separates myth from fact.
MYTH or FACT? You should check your credit reports often.
(MOSTLY) MYTH: This is only partially true. Multiple inquiries into your credit report can lower your score a few points. However, you should check your credit once a year. You can get a free copy of your credit report every year from each of the three major credit bureaus—Equifax, Experian, and TransUnion— through this website. Review your reports for any errors or inaccuracies and dispute them if you find any. You can also sign up for alerts and notifications that inform you of any changes or suspicious activity on your credit report.
MYTH or FACT? Your payment history is the most important factor in your credit report.
FACT: Your payment history accounts for 35 percent of your credit score, making it the largest factor in your credit score. Make sure you pay at least the minimum amount due on all your bills every month, preferably more if you can afford it. Pay your bills on time! Set up automatic payments or reminders to prevent missing deadlines.
MYTH or FACT? You need to apply for several credit cards to establish credit.
MYTH: Apply for new credit sparingly. Every time you apply for a new loan or credit card, the lender will perform a hard inquiry on your credit report, which can lower your score by a few points. Too many hard inquiries in a short period of time can signal that you are desperate for credit and pose a higher risk to lenders. Only apply for new credit when you really need it, and ask yourself twice: do I really need a credit card from Sunglass Hut?
MYTH or FACT? High credit use leads to a high credit score.
MYTH: Your credit use is the percentage of your available credit that you are using. For example, if you have a credit card with a $1,000 limit and a $500 balance, your credit use is 50 percent. Ideally, you want to keep your credit use below 30 percent, as this shows lenders that you are not overextended and can handle your debt responsibly.
MYTH or FACT? You need to diversify your credit mix to improve your credit score.
FACT: Your credit mix is the variety of credit accounts that you have, such as revolving (credit cards) and installment (loans). Having a diverse credit mix can boost your score, as it demonstrates you can handle different types of debt. However, this factor only accounts for 10% of your score, so don’t open new accounts just for the sake of diversifying your credit mix.
Building your credit takes time and patience, but the effort is worthwhile.
HomeSight can help you create a budget and learn how to manage your finances to ensure your credit is in the best shape possible when you’re ready to put that credit score to use.
HomeSight can help you create a budget and learn how to manage your finances to ensure your credit is in the best shape possible when you’re ready to put that credit score to use.
Join a Cultural Exchange Tour
Join a Cultural Exchange Tour and Be a Tourist in Your Own Town
Leave the Space Needle to the out-of-towners. HomeSight’s “100% Recommended” Cultural Exchange Tours give city residents and visitors an inside look into Seattle’s most diverse communities.
Not all tours are just for tourists. For over a dozen years, HomeSight has been inviting curious neighbors, old and new residents and passers-through to join them for a Cultural Exchange Tour, an unforgettable deep-dive into the culturally diverse Othello and Graham neighborhoods.
These South Seattle neighborhoods aren’t the city’s typical tourist stomping grounds, but tourists and residents alike are delighted when they experience HomeSight’s showcase of the best and most diverse shopping and dining neighborhoods in town.
The tours, which are free but require registration in advance, are held four Saturdays this summer—the remaining three tours are July 15 th, August 15th and September 9th from 11 a.m.-12:30 p.m.
The tours are led by locals along a route designed to give participants an inside look into corners of the neighborhood they may not have explored. With prizes, free food and giveaways, the tour introduces the people of South Seattle as well as the places.
Said HomeSight Director of Community Development Sarah Valenta, “We don’t just want to show people where stuff is. We want to build a real community.”
The idea for the first Cultural Exchange Tour was hatched in 2008, when the city’s light rail project drove its development plans through the heart of Othello, purchasing properties, laying track and building stations. In response to the changes transforming their neighborhood, businesses organized and formed the MLK Business Association.
“We wanted to make sure the neighborhood had a voice among all these changes,” said Valenta. “We said: ‘we have something special here.’ We wanted to make sure the neighborhood’s small businesses weren’t getting displaced. One of our neighbors, Mona Lee, stood up and said: ‘I’m going to give people a tour.’ And it just took off from there.”
Now supported by a swell of community involvement, the tour has stayed true to its original purpose. “We wanted to prevent the retail leak that often comes along with neighborhood growth and gentrification,” said Valenta. “We want residents to know they can get all their necessities here: groceries, medicine and services. We even have a stop at a Buddhist temple this year. We want to keep our residents in Rainier Valley. The light rail is a great asset to the community but with it comes the real risk of displacement of our incredibly diverse demographic.”
Valenta said HomeSight has gotten “amazing feedback” from participants over the years. Surveying all participants, “we usually hear back that 100 percent of our participants would recommend the tour to someone they knew,” said Valenta. “I love hearing that, and I love hearing from people who commute through the neighborhood but have never stopped to take a look. I’ve heard from so many people: ‘I’ve never visited any of these businesses before and now I will definitely be back.”
Four Ways Buying a Home Will Change your Financial Life
Four Ways Buying a Home Will Change your Financial Life
Buying a home can improve your quality of life and build financial security for your family that can last generations. However, it’s a major financial commitment that requires careful planning and preparation.
“Buying a home can seem intimidating to the first-time buyer, but the rewards are undeniable. It’s an investment in your life, and your family,” said Scott Kim, Director of Portfolio and Lending Operations at HomeSight.
As you consider buying a home, know upfront this decision will transform your financial life, in ways that are undoubtedly beneficial—but also in ways that will be tough. And, like most things worth pursuing, you have to go through the tough parts to get to the beneficial parts. Here are the ways buying your first home will change your financial life:
1. You’ll get to know your budget on a more intimate level.
Depending on the type of mortgage for which you qualify, you may need to put down anywhere from three to 20 percent of the purchase price of the home. This means you will have to set aside money every month and reduce expenses until you reach your goal.
The down payment is just one of the new expenses you’ll be facing as a homebuyer. You’ll also need to plan for short-term expenses such as closing costs, and long-term expenses such as your mortgage, maintenance, repairs, property taxes and insurance.
To get started, you’ll need do a deep dive into your budget and find out exactly where your money is going and where you can save. It might be tough to whittle down the number of streaming services you subscribe to, but it’s good to take an honest look at your needs and habits. Have you really been watching Max since the Game of Thrones sequel ended?
2. You’ll create a new financial roadmap.
If you’ve been renting, your budget probably hasn’t contained expenses for lawn care, pest control, painting and cleaning, or unexpected repairs such as plumbing leaks, roof damage or appliance breakdowns. If you’ve never had these expenses before, they can be tough to estimate. To create line items for these – as well as for other expenses such as property taxes and insurance – you’ll need an all-new budget.
Fortunately, the homeownership team at HomeSight has expertise in advising first-time homebuyers and can help you estimate your new costs, creating a budget with you that works for your family and helps you save enough to meet your goals.
3. You’ll build equity in your home.
What’s equity? It’s the difference between what your home is worth and what you owe on your mortgage. As you pay off your mortgage over time, your equity will increase. When you’re renting, you’re paying for living expenses and you’ll never see that money again. With a mortgage, you’re paying for living expenses, and most of that money remains yours. This means …
4. You’ll have options in the future.
Ultimately, buying a home will transform your financial life and open options you wouldn’t have without home equity. You can use your equity to borrow money for home improvements, education, debt consolidation and other purposes. You can also sell your home and use the proceeds to buy another one, or to fund your retirement.
It’s true you’ll need to jump the initial financial hurdles of home ownership to reach the benefits. But if you’re considering taking the first step down the path to homeownership, remember you don’t have to take this journey alone. Consult with trusted community professionals who are committed to helping you along the way. Homebuying will create new financial realities, but you don’t have to navigate them alone.