1st Time Home Buyers Learn About Mortgages

After the U.S. housing market collapse in 2008, the problem of first-time homebuyers agreeing to mortgages that they did not fully understand came to light. As a result, community organizations and financial service providers such as banks have worked hard to provide better education for homebuyers, in particular those who have little or no experience with mortgages.

Recently, Medford Community Housing and Cambridge Savings Bank collaborated to hold the first in a series of CHAPA*-Certified First-Time Homebuyer seminars at the Medford Housing Authority. This event provided a great opportunity to educate 28 local residents on the process of obtaining a mortgage. They learned what every person should know before signing on the dotted line.

“A community bank’s contribution to the economic and social good of the communities it serves is at the core of its mission, and a strong housing market is critical for our neighborhoods,” said Cambridge Savings Bank President & CEO Robert M. Wilson. “The local and national economies have experienced the devastating effects related to unsound mortgage lending practices over the past decade. By providing our expertise as a financial institution to First Time Homebuyer groups, Cambridge Savings Bank can have a positive impact on the personal finances of local residents, as well as help improve the health of the local housing market.”

In addition to sponsoring the seminar, Cambridge Savings Bank provided two knowledgeable speakers. Evan Diamond, the bank’s financial education program manager, presented a lesson entitled, “Budgeting and Credit for Homebuyers,” while Mortgage Loan Officer Erich Karol led a session called, “Understanding the Mortgage Process.” Karol highlighted three mortgage programs that are designed to benefit first-time homebuyers: the Massachusetts Housing Partnership’s “Soft Second” program, the Mass Housing Loan fund, and the Federal Housing Administration Loan program.

Medford Community Housing organized the seminar in response to tremendous local need for first-time homebuyer education. Many first-time buyers often feel pressure to buy a home without the benefit of guidance from reliable sources. The information is provided in a stress-free environment that encourages attendees to ask questions and receive information from experts in the field without pressure.

CHAPA certification is important for first-time homebuyers as it allows participants to qualify for first-time homebuyer loan programs that provide subsidized rates, expand underwriting guidelines, and combine additional grant programs within their loan financing.

Medford Community Housing will hold three more seminars this year, in May, September, and November. Official dates are TBA.

CHAPA is the Citizens Housing and Planning Association. CHAPA’s mission is to encourage the production and preservation of housing that is affordable to low and moderate income families and individuals and to foster diverse and sustainable communities through planning and community development.

Pictured above, left to right: Patricia Kuemmerle, Jamal Sturdivant, Erich Karol, mortgage loan officer at Cambridge Savings Bank, Evan Diamond, financial education program manager at Cambridge Savings Bank, Louis Krieger, and Alyssa Muro.

– Information and photo submitted on behalf of Medford Community Housing and Cambridge Savings Bank