Report Finds Healthy Pace of Price Appreciation in Existing-Home Sales

Median prices for existing homes in metropolitan areas continued to climb in the third quarter of 2015, but at a healthier pace that could entice more home buyers into the market, according to a report on Thursday by the National Association of Realtors®.
The report suggests an “encouraging lift-off” in existing-home sales, despite the low supply of available dwellings. Slower overall price appreciation is contributing to the rosier outlook.
The median price for an existing single-family home in the third quarter rose in 87% of the metropolitan statistical areas surveyed by NAR, compared with the same period last year. That’s a dip from the second quarter’s more robust 93% gain.
In all, 154 out of 178 metro areas saw year-over-year price gains in the third quarter; 24 areas posted lower median prices. The national median price for an existing single-family home was $229,000 in the third quarter, up 5.5% from the same quarter last year. (The second quarter saw an 8.2% year-over-year increase.)
According to NAR’s chief economist, Lawrence Yun, this translates to a housing market that had its best quarter in nearly a decade.
“The demand for buying picked up speed in many metro areas during the summer as more households entered the market, encouraged by favorable mortgage rates and improving local economies,” he said. “While price growth still teetered near or above unhealthy levels in some markets, the good news is that there was some moderation despite the stronger pace of sales.”
Jonathan Smoke, chief economist of realtor.com®, echoed the sentiment. And he sees even better days ahead.
“The fourth quarter will be stronger than the third,” Smoke said, “because overall metrics for this quarter point to more robust growth than in the second quarter. And [mortgage] rates are rising again, which should encourage any fence-sitters to act before they go up much more.”
This summer’s buying was fueled by pent-up demand by homeowners tired of their current digs, favorable rates, good prices, and better incomes, Smoke said.
Sales of existing homes, including condos and single-family dwellings, jumped 3.4% to a seasonally adjusted annual rate of 5.48 million in the third quarter compared with the second quarter—but up 8.3% from the third quarter of 2014.
In fact, the third quarter could have been even stronger, Yun suggested, because of declining mortgage rates and better economic conditions. But a lack of homes for sale remained a problem.
“Unfortunately, the lack of any meaningful gains in housing supply pushed prices in some areas above what some potential buyers—especially first–time buyers—are able to afford,” Yun said.
At the end of the third quarter of 2015, there were 2.21 million existing homes available for sale, down from the 2.28 million in the third quarter of 2014.
The hottest housing markets can be found in the South and the West, where population and job prospects are growing fastest, Smoke said. He noted that economic and population growth is igniting substantial demand in emerging hot markets in Raleigh, NC, and Nashville, TN.

Please, Mr. Postman

Florida, in particular, had some of the strongest price appreciation, Yun said: “A combination of solid job gains, above average shares of vacation and foreign buyers, and little new construction being added was behind these areas’ faster price growth.”
Meanwhile, the five most expensive markets were again out West. The San Jose, CA, area posted the highest median price for an existing home: a throat-lumping $965,000. San Francisco’s median price was $809,400, followed by the Anaheim-Santa Ana metro area in Southern California, which posted a median price of $715,300. In Honolulu, HI, the median price was $714,000, and in San Diego, CA, it was $554,400.
Head to Cumberland, MD, if you’re looking for the lowest median price: $82,400.
Here’s a regional breakdown of the year-over-year gains for the third quarter of 2015:
Sales of existing homes rose 6.4% in the Northeast, with the median price at $269,400, up 3.5%.
In the Midwest, sales rose 2.1%, with the median price increasing 4.8% to $181,100.
The South posted a 3.0% rise, with the median price at $200,700.
In the West, existing-home sales jumped by 3.9%, with the median price at $324,300— a 7.3% rise.

Why First Time Buyers Are Crazy Not To Buy A Home Now

With some of life's milestones, there may not be a picture-perfect time to take the plunge. But when it comes to buying your first home, the combination of good market conditions and your own financial situation can dictate timing. If you've got the credit and down payment, you'd be crazy not to buy now. Want to know why?

Rates are still low      The Federal Reserve was expected to raise rates this summer, but so far they have stayed put. There is still talk that rates could go up before the end of 2015. So what does that mean for buyers? Well, if you're a millennial, a rise in interest rates could spell bad news.
"If mortgage rates hit 6%, a third of millennials (people younger than 35 years old) wouldn't be able to afford homes as they're currently listed, according to an analysis by HouseCanary, a housing-data analytics company," said Money magazine. "Mortgages are huge loans, so a seemingly small shift in interest rates can change a borrower's monthly payment by hundreds of dollars (though going from the current 4.08% rate to 6% is in no way a small shift)."
Investopedia's example using a $215,000 home with 20 percent down (leaving a $172,000, 30-year mortgage) figures a monthly payment of $821.15 at an interest rate of four percent and $923.33 at five percent. Is that $100 a month enough to get you moving?

Millennial Couple New low down payment loans
First-time buyers have typically gravitated toward FHA loans for their low credit score requirements and down payments of just three and one-half percent. But new loans from Fannie Mae require as little as three percent. Known as the 97% LTV (Loan To Value) loan or Conventional 97, it can be more affordable for first-time buyers because "the Conventional 97 program does not require an upfront mortgage insurance premium, and because its annual mortgage insurance rates are cheaper, too," said The Mortgage Reports.

Rising rents
In many market, home prices are up significantly from their lowest levels several years ago, but are still within range of many buyers. Rents, on the other hand, continue to go up, pushing household spending to new, uncomfortable, heights.

NMS Properties "Payments on a mortgage used to purchase a three-bedroom home were more affordable than paying rent on a similar home in 66 percent of the counties recently analyzed by RealtyTrac," said Mortgage News Daily. "Across all 285 counties analyzed, the average percentage of median household income needed to rent was 29.96 percent while the average percentage of median household income needed to buy was 29.00 percent."

Tax deductions
When you pay rent, the entirety of your payment goes to the landlord or property owner, and all you get in return is a temporary place to stay. When you own your home, the government essentially pays you money back for your investment.
"Your biggest tax break is reflected in the house payment you make each month since, for most homeowners, the bulk of that check goes toward interest," said Bankrate. "And all that interest is deductible, unless your loan is more than $1 million."
Any points you paid on your loan are also deductible the year you paid them, as are your property taxes. "These taxes will be an annual deduction as long as you own your home," said Bankrate. "But if this is your first tax year in your house, dig out the settlement sheet you got at closing to find additional tax payment data. When the property was transferred from the seller to you, the year's tax payments were divided so that each of you paid the taxes for that portion of the tax year during which you owned the home. Your share of these taxes is fully deductible."

Lower PMI
First-time homebuyers who put less than 20 percent down on an FHA loan will have to pay Private Mortgage Insurance (PMI). It's one of the drags of having limited cash. For the past several years, those payments have cost buyers an annual premium of 1.35% of the loan balance, but a recent change dropped the premium to 0.85%.
"This change is expected to save more than 2 million FHA homeowners about $900 a year and allow about 250,000 consumers to buy their first homes in the next three years," said Credit.com.
Remember also that your PMI may also be tax deductible, subject to a few restrictions (and remind yourself again what portion of your rent is deductible: none).

Fall Home Maintenance Checklist

Written by LeafFilter on Tuesday, 29 September 2015

With autumn here it is time to get your house in shape for the cooler months ahead. Fall is a great time to take care of the little things that can make a big difference for you and your home. Getting ready for colder weather means checking, repairing, and prepping your home to withstand the upcoming rain, wind, and snow.
Here are some helpful tips that every homeowner should do before hibernating this winter.

1. Stow Your Mower      With the cooler months ahead, it's time to start thinking about how you are going to stow your lawn mower. Before saying goodbye to your lawn mower for the winter season, there are a few things you should consider. First, it will be a good idea to sharpen the blade of your lawn mower to ensure that it is in tip-top shape for the spring. You'll also want to empty your gas tank before putting your lawn mower to rest. Taking simple steps like these before putting your lawn mower into storage will help increase the longevity of your equipment.

2. Perform an energy audit
Performing an energy audit is really important because it will tell you where heat is escaping, so you can correct the problem and save money on utilities. If you are doing an energy audit yourself, first make a list of all air leaks in your home by seeing where there are drafts. You can learn how to detect air leaks by following these simple steps. Seal the air leaks that you have identified by applying caulk or weather-stripping. Potential energy savings by detecting and fixing drafts can range from 5% to 30% and will make your home much more comfortable.

3. Replace Your Storm Windows
Before it gets too cold, replace your screen windows and doors with energy-efficient storm windows. Consider a proper storage space for your screen windows so they do not get damaged over the winter months. You'll want to give them a good cleaning, along with your storm windows, so that they are ready for the upcoming colder months!

4. Check your Furnace
Home heating systems that aren't properly maintained may be less than 50 percent efficient. A dirty filter will increase your heating costs and reduce the life of your equipment. For these reasons, it is important to check your filter once a month and replace or clean if necessary. Have a professional take a look and perform any adjustments to your furnace during this time if needed.

5. Install Gutter Guards
Homeowners often overlook the importance of gutters, but they protect your home by diverting rain water safely away from your home. Gutter cleaning is a temporary solution to a permanent problem, but it is important to keep your gutters clear and clean in order to prevent home issues like foundation and structural issues.
If neglected long enough, these types of concerns can be serious and costly. One way to combat clogged gutters and eliminate gutter cleaning is to have gutter guards professionally installed to your home. Installing a micromesh gutter protection system, will help save you the time and hassle of cleaning your gutters when the leaves begin to fall.

6. Maintain your Home's Exterior
Trim back trees and branches that are hanging too close to your home. Fall and winter are known for unexpected weather conditions, so it is important to prevent any type of debris from falling on your home and producing serious damage. Seal driveways, brick patios, and wood decks. For long term care of your home exterior, it is important to apply a layer of sealant to prevent weed growth, repel stains, and increase the longevity of these areas.

7. Chimney and Fireplace
You'll want to call in a professional to inspect and clean your chimney. Annual cleaning of your chimney is important to prevent dangerous chimney fires. Test your fireplace flue to ensure that it is tightly sealed when closed.

8. Test smoke/carbon dioxide detectors
This is a simple task for homeowners, but it is often forgotten about. Detectors should have a "test" button. If the alarm sounds -- you're good to go! If not, try replacing the batteries and test again. If the alarm still doesn't fire, you may need a new detector. Testing these systems is a quick, but very important quarterly test to perform.
Taking these steps will not only lower your utility costs, but they will protect your largest investment, your home, from the unexpected weather conditions ahead.

Clever Home Staging Tricks You Can Steal

 Written by Jaymi Naciri on Sunday, 30 August 2015

Getting ready to sell your home? It would be awesome to hire a home stager.
Home stagers are paid to furnish a home and help it look its best. What they create isn't so much the ideal living environment but rather the idealized one—one in which there are no awkward furniture arrangements, toys on the floor, crumbs on the countertops, or surprises in the toilet. It's not maintainable for most people everyday, but boy, does it work when selling your home!

Stagers typically have furniture and accessories at their disposal—not to mention interior design degrees. But they can cost hundreds—even thousands—of dollars. Fortunately, you can achieve great results by using some of their tricks.
Clear it out and clean it up
The first step in preparing any home for sale is to clear it out and clean it up, getting rid of clutter and personal items and scrubbing it down.
"De-cluttering -- and having a pristine home from top to bottom -- are the no-brainers that can make your real estate look better than the house down the block," said Better Homes and Gardens. "Your home must be cleaner and less cluttered than it's ever been. You need to banish not just the day-to-day buildup (the mail, the shoes, last season's clothes, the dog hair), but also several years' accumulation."
Removing kids' toys, outdated furnishings, and excessive knickknacks can help. Whatever you can't sell or donate, box up and store at a friend or relative's house, or rent a storage unit for a couple of months. Or, if you can do so neatly and without compromising your garage space, stack them along a wall.

Houzz Depersonalize
A house that reflects your personal style from floor to ceiling and all over the walls (and every other surface) will have a hard time appealing to buyers.
"Prospective buyers won't be able to picture themselves in the house if they're surrounded by dozens of photos of your children and grandparents," said Bankrate.
Update the bathroom
Not everyone has the funds for a big bathroom renovation prior to selling. Smart changes can make a big difference.
"Avoid dated tile by painting. Bathrooms sell houses, but dated tile in a bathroom doesn't. A low-cost alternative to replacing the tile is to use paint," said HGTV. "First coat the tiles with a high-adhesion primer.
Next, brush on a special ceramic epoxy covering. For a fraction of the cost of new tile, you will have an up-to-date bathroom that brings in big bucks."
Pay attention to design details
After you've cleared away the clutter, you want to focus on creating simple, elegant designs. It's easier than it seems.
"For a visual impact on a table without a lot of fuss, remember a design basic: Groupings of odd numbers always do the trick! Three of a kind, like…hurricane jars, filled with something as simple as pinecones, makes a ridiculously easy and dynamic table scape," said Katie Jane Interiors.

Katie Jane Interiors Up your curb appeal
Make sure you make a great first impression, or you might not have an opportunity to make a second impression.
"You may have spent hours making sure the kitchen is clean, and doing so is worth the effort," sad Bob Vila. "But remember, the facade is the first part of your house a potential buyer will see. A little landscaping can go a long way. Strapped for time? Potted plants placed around the front door will add welcome charm to your entryway."
Pay attention to odors
We get used to our environment, so we might notice that musty smell or cat box aroma. Have your realtor or a trusted friend do a walk through and give you an honest assessment—not just of the way the house looks, but how it smells. Then take action to improve it. Start by steam cleaning the carpets and any upholstered pieces that need it.
Don't ignore the windows
Windows that are cloaked by outdated or heavy window coverings can negatively impact the image your home projects. Open the blinds and replace drapes with inexpensive versions that will let the light in and frame the views.

Pinterest "Need to dress up a window but don't want to shell out big bucks for window treatments? Here's a trick: Use place mats," said HGTV. "First, apply a hook-and-loop fastener to the place mats and attach them in a row to a basic curtain rod. Now that the place mats are attached to the curtain rods, pin them together at the bottom, and you'll have a stylish valance that costs about $12."
Upgrade the Furniture
Giving your home a fresh, clean look with new furniture can make it feel more modern and appeal to more buyers. Don't have money for new stuff? "Try giving worn-out pieces a pick-me-up with new pillows or a slipcover," said Bob Vila.
While you're at it, take a look at your furniture layout too. "Your preferred setup may not be the most appealing one to would-be buyers. Where logical, opt for a social layout that makes it easy to envision the space being enjoyed among family and friends."
Give rooms a single purpose
That home office that doubles as a guest room is useful, but when it comes time to sell your home, pick one and run with it. "Potential buyers are confused by extra rooms that have a mishmash of uses," said HGTV.

10 Ways To Get That Down Payment

 Realtytimes.com Written by Jaymi Naciri


Buying a house has always been a dream. And with rising rents across the country, you know you might even save a few bucks every month as a homeowner. Not to mention the tax write off and the long-term equity. If it weren't for that whole down payment thing, you'd be having a housewarming party right now.
If you're a first-time homebuyer or have not purchased a home in the last two years, an FHA loan may be your best bet because you only need to come up with 3.5 percent down. On a $250,000 house, that's $8,750. Seem impossible? Here are 10 ways to come up with the cash.

1. Side work
Now don't give the idea of side work the side eye. We don't mean anything untoward here. The reality is you can take on some extra work in your field or make money by monetizing a hobby.
"No matter how mundane or insignificant your talents seem, there are other people out there who don't have those talents — and they might be willing to pay you for your skills," said Forbes. "If you're good at making things, look into selling your wares on Etsy. Woodworking, knitting, sewing, and graphic design are all in demand. Check out Taskrabbit, a site that hires you out to do household chores and errands for people in your community. Things like assembling IKEA furniture, shopping, pet sitting, and more can yield a surprising amount of money to add to your down payment fund."

2. State down payment assistance programs
States like Colorado and California offer programs for down payment assistance that are typically tied to income limits. California's CalHFA agency offers CHDAP, "a deferred-payment junior loan -- up to 3% of the purchase price, or appraised value, whichever is less" for down payment and/or closing costs.
Colorado's CHFA program is a grant of up to three percent of "up to 3 percent of your first mortgage loan to help cover some of your down payment and/or closing costs."
The U.S. Department of Housing and Urban Development's (HUD) website has a state-by-state list of programs.

3. County and city down payment assistance programs
"At least one down payment program is available in all 3,143 U.S. counties, and more than 2,000 counties have more than 10 down payment programs available to prospective homebuyers," said HousingWire. For the report, RealtyTrac looked at 2,290 down payment programs from Down Payment Resource's Homeownership Program Index and found out of more than 78 million U.S. single family homes and condos, more than 68 million would qualify for a program. That equates to an average of $11,565.
You can get more information and check eligibility here.
Individual cities may also have programs. For example, the city of Austin, TX offers down payment assistance for qualified applicants in the form of a 0 percent deferred loan.

4. Family Hope you're in good graces with your family, because they might just give you the funds you need to buy your home. "Parents can give up to $13,000 annually to their children without having to pay gift taxes," said Money Crashers. A family member or friend can also give you a loan, but you'll have to "draw up specific repayment terms" to avoid tax issues. And, there are documentation requirements and lender specifics with either option.
Slate "If a parent, grandma or whoever gives you the money, you need to fill out a gift letter, validate it with a copy of the check and your deposit receipt into your bank account," said My Mortgage Insider.
5. USDA Mortgages
Getting down payment assistance from an agency that exists to support and promote rural areas might not sound relevant if you're looking to buy in the ‘burbs, but the USDA offers a zero-down loan known as a Section 502 mortgage that is "not just a ‘rural loan' — it's available to buyers in suburban neighborhoods, too," said The Mortgage Reports. "The USDA's goal is to reach ‘low-to-moderate income homebuyers,' wherever they may be. College towns including Christiansburg, Virginia; State College, Pennsylvania; and even suburbs of Columbus, Ohio meet USDA eligibility standards. So do the less-populated suburbs of some major U.S. cities."
6. Friends and loved ones
If you have a birthday, anniversary, or other special occasion coming up, forgo the expensive dinner out, the birthday cake, and the new socks you don't need. Register instead on Down Payment Dreams, and create a place where people can help you get the funds together.
7. Your IRA
Money you've already put away could be the answer to your down payment conundrum. "Tax laws allow you to use up to $10,000 in IRA funds as a down payment if you've never owned a house," said Bankrate. "If you're married and you both are first-time buyers, you each can pull from your retirement accounts, meaning a potential $20,000 down payment."
There is no penalty for early withdrawal, they added, "but you may owe tax on the money depending on the type of IRA," so ask your tax advisor before pulling the trigger.
8. Your 401(k)
If you have a 401(k), you can tap it to pull out funds for a down payment. But, you'll need to pay them back. The 401(k) loan "typically allows a person to borrow up to 50 percent of his or her account balance up to a maximum of $50,000 but requires it be repaid within five years—though the repayment schedule may be extended if you're using the money for a down payment on a home," said Forbes. "The loan doesn't have to be approved by a bank, which means you can usually get your hands on the money quickly and without a credit check. Plus, interest rates may be lower than on standard bank loans."
9. VA loans
Are you a veteran or currently serving the country? If so, you may be able to get a zero down payment loan from the U.S. Department of Veteran Affairs (VA). The VA offers a "basic entitlement" to "each eligible veteran" of $36,000. "Lenders will generally loan up to 4 times a Veteran's available entitlement without a down payment, provided the Veteran is income and credit qualified and the property appraises for the asking price," said the VA.
10. Good ‘ole savings
You may have been trying to save enough money to buy a house for years. But some smart strategies and strict cutbacks can make a real difference. Trade your cable for Netflix. Take your lunch instead of buying. Trade your gas-guzzler for a hybrid. You'll be surprised how much money you can save. Click here to see how more about how two different people saved $30,000 in a matter of months.
Still not where you need to be? Check out Movoto for some more creative ideas for saving money toward your down payment. 

5 Easy Ways To Add Character To Your Home

Written by Jaymi Naciri on Sunday, 24 May 2015

If you're buying a newer home, or one that was built in the last 50 or so years, it may be lacking the charm you're looking for. Thankfully, there are ways to add charm into your home that will give you the function - and the form - you want.
"With little time and little money, you can add lots of charm all around the house," said HGTV.
Here's how.

1. Moldings
Crown molding is among the easiest ways to bring some character and architectural interest into your home, and it's inexpensive, especially if you do it yourself. But if the idea of mitering corners is making you hyperventilate, a handyman can quickly transform your blah space into something beautiful.
Houzz doesn't stop at crown molding. They recommend transforming all the trim in your house.
"When it comes to architecture, details count. They also define," they said. "The places where floors, doors, ceilings and windows meet the walls are usually accompanied by trim. The way that trim is executed has refined and defined our houses throughout history. Trim adds character and flavor to a home, the way pearl buttons finish off a shirt or cinnamon completes a coffee cake. And it helps distinguish one style of architecture from another."

Houzz See Houzz for detailed examinations of how to add Victorian, Colonial, Georgian, Craftsman, or Contemporary trim to your home.

2. Cabinetry that looks built-in
Those charming built-ins you see in old Craftsman homes—you know, the ones that flank an old fireplace or create a great hutch in the dining room—are lovely. Although it would be hard to find a home built nearly 100 years ago with perfect—condition built-ins. You know what would be easier? Creating your own built-in-looking cabinetry. It's not as hard as it sounds, and it doesn't have to cost much either.
"It's still possible to add character, charm, and storage space into our homes without hiring a carpenter or moving into a historic home," said Infarrantly Creative. "In fact, getting a few built-ins of your own is as easy as getting creative with inexpensive shelving from a big-box store."
This library wall was created by Centsational Girl using four IKEA BILLY bookcases and some trim molding.

3. Lighting
You may be able to find charming period lighting if you scour second-hand stores, antique shops, or flea markets. Or, you can pick up a reproduction piece and instantly transform a space.

PW Vintage Lighting
4. Cozy reading nook
Is there anything more charming, really, than an inspiring space to curl up with a book?
"Give an awkward area a purpose and appeal. Transform a basic bay or boxy window into a reading nook," said Better Homes and Gardens.
This can be easily achieved by building a platform or with in-stock cabinets from Lowe's and a DIY cushion. See some great ideas here.

Newlyweds in New York   5. Think Hardware
"Reinvent your entry or interior doors with antiqued brass, crystal, porcelain, or colored-glass doorknobs," said Better Homes and Gardens. The same can be done with hardware in your kitchen and bathroom to bring in a vintage or retro touch.

How to Buy a Home When You Can't Afford It

Ian Boyd started to think about buying a home in his late 20s, as he and his friends completed graduate school, coupled up, and started to think about children.

During that time in 2009, Boyd knew that purchasing a home would pose a financial challenge. He had about $35,000 in student debt and another $5,000 on credit cards. Plus, he made only about $34,000 a year as an academic adviser at a community college in Vermont. In other words, his debts exceeded his income.

 

"I remember going to the bank to see about getting a mortgage and hoping for the best. I left deflated," he says.
The bank approved him for a mortgage of $50,000 -- a sum that does not go far enough in Burlington, the college town where Boyd lives. There, the median sale price of a home is $265,000, according to real-estate website Trulia.
Through a co-worker, Boyd learned about Champlain Housing Trust, a nonprofit that offers financial education and innovative housing programs geared toward low- and middle-income people. Now, six years later, Boyd owns a four-bedroom, two-bath fully renovated home with an apple tree and a backyard.
"I feel a connection to this city that I didn't feel when I was renting," he says. "I could see expanding my family here."


Boyd went from debtor to homeowner in just three years -- from 2009 to 2012-- thanks to an innovative homeownership plan called the shared-equity program. It works like this: Champlain Housing Trust offers a down payment for a home, paid for with government funds. Then CHT screens potential buyers, who are members of the trust, based on their assets and income. (To qualify, a family of four must earn $80,200 or less in gross annual income, they must not own another home, and they must not have significant assets outside of savings for retirement.)
The homeowner then gets a mortgage from a bank and pays the principal each month. Usually, the homeowner also pays for the closings costs and any upkeep and maintenance. When the homeowner decides to sell the property, he first must offer it back to the housing trust. Both the homeowner and housing trust share in the home's appreciation. (That's why it's called "shared equity" -- 25% of the appreciation goes to the homeowner and 75% to CHT.) The homeowner also recoups all of the equity he built up each month through making principal payments, as well as any money he has spent on capital improvements (a figure determined by an independent appraiser).

Housing experts like this shared-equity model, also known in housing circles as community land trusts, because "the potential is that, if it's done well, it occupies the middle rung between renting and owning," says Brett Theodos, a senior research associate at the Urban Institute, a nonpartisan think tank in Washington. "This is a market hit solution."
The shared-equity model also accomplishes two key goals for its beneficiaries and for communities. First, it helps low- and middle-income people save money by requiring mortgage payments month to month without having to worry about the down payment (often, the sticking point for first-time buyers). Second, it helps to preserve affordable housing throughout the community. Any money the housing trust earns through appreciation gets plowed back into the homes. "We use this to keep these homes permanently affordable," says Emily Higgins, director of Home Ownership for the Champlain Housing Trust.
The shared-equity model of housing came out of the civil rights movement in the South in the late 1960s, says John Emmeus Davis, a private housing consultant who works with community land trusts across the country. Activists realized that fighting for African-Americans' political and legal rights was only one step. To fully tackle racial inequality, they also needed to ensure economic independence; hence, the emphasis on homeownership among African-Americans: a policy that remains one of the best ways to encourage people to build up assets.

The first shared-equity housing program started in the rural area of Albany, Georgia, in 1967. Then, in the 1980s, activists launched the first urban iteration in Cincinnati, Ohio. Now, more than 200 nonprofits and groups work in this space.
Even the global financial recession didn't dampen housing experts' enthusiasm for the program. The rate of foreclosures among homes in shared-equity programs was 0.46% at the end of 2010, compared with 4.63% among owners of market-rate homes.
The Champlain Housing Trust currently offers about 550 homes in its portfolio. The group also places great emphasis on financial education and money management; after all, there's little benefit in buying a house if a person can't afford to hold onto it.
As for Boyd, he moved into his new home in January 2012 with the help of the Champlain Housing Trust. His house was appraised at $230,000, but he borrowed roughly $160,000 because the housing trust had already put so much money into the place. He paid $9,000 in closing costs. The monthly mortgage payment is roughly $1,150 -- just $150 more per month than he paid for a one-bedroom rental.

Should something go awry with his home, Boyd feels that the Champlain Housing Trust will support him. The group does not micromanage its homeowners, or their renovation or upkeep decisions, he is quick to say. But they will help if people run into trouble paying for a major outlay like a new furnace or roof. They also offer free programs for their homeowners, like tax workshops.
The ultimate goal of the Champlain Housing Trust is to ease low- and middle-class individuals into homeownership by helping them save money and, eventually, prepare them to buy a home on the open market. For now, though, Boyd plans to stay in his charming, two-story house on North Champlain Street. "I would be fortunate to live my life in this house," he says.
This article originally appeared on The Next Economy, a joint project of The Atlantic and National Journal.