Buying a home in La Plata County is a hardship for many working people. So far in 2014, the median price of a home in the county is $336,200, and, in Durango, it’s even higher at $390,000.
Do those prices sound out of reach? If they do, the Regional Housing Alliance of La Plata County may be able to help.
The RHA serves the region’s need for workforce housing, which has grown as increases in housing costs have steadily outpaced increases in wages. Individuals and families who spend more than 30 percent of their total monthly income on housing qualify for workforce housing.
The median income for a family of four in La Plata County is $72,900. At this level or below, it can be difficult – if not impossible – to afford a median-priced home in our area. For example, an income of about $77,300 would be required to afford the median-priced home of $336,200 in the county.
But don’t despair.
The housing alliance, which serves people who earn between 80 percent and 125 percent of the median income, offers free counseling, education and mortgage assistance – from $10,000 to $25,000 – to help you become a homeowner.
Counseling
The RHA can pull your credit report (without any impact to your credit score), guide you in repairing or establishing credit and help with budgeting and planning for homeownership.
Education
The Home Buyer Education class (call it Home Buying 101) is a free, comprehensive class that covers: budgeting and debt, credit, insurance, mortgage and lending, RHA programs, housing rights and financial management post purchase, the buying process and home maintenance and energy savings.
Best of all, first-time home buyers who complete the class are eligible for a mortgage credit certificate that provides a dollar-for-dollar federal tax credit on 20 percent of the mortgage interest paid on a mortgage.
Mortgage assistance
The RHA helps clients overcome the burden of accumulating a 20 percent down payment, which is about $67,000 on a $336,000 home. The alliance can assist with using a U.S. Department of Agriculture loan that requires just a 1 percent down payment. It also can offer down-payment assistance through a deferred-payment or low-interest second mortgage that allows the buyer to supply a 3 percent down payment.
The RHA is a valuable resource for our community. We are fortunate La Plata County, the city of Durango, the towns of Bayfield and Ignacio along with private industry – such as BP America, which contributed $1.25 million – support creating affordable housing.
matt.kelly.durango@gmail.com. Durango resident and personal finance coach Matt Kelly owns Momentum: Personal Finance. www.personalfinancecoaching.com.
If you go
Home Buyer Education Class: 5:30-8:30 p.m. Dec. 3 and 8:30 a.m. to 1:30 p.m. Dec. 6 at Fort Lewis College. To register and for information, call Pam Moore of the Regional Housing Alliance of La Plata County at 259-1418.
