The Path to Homeownership

Alysia Wilson and Yolanda Gilyard are greeted by homeowner John Glenn during an open house Wednesday morning.

"I love it when I come home every day. I know it's mine." Glenn used to be a renter. "That house was tore up. I didn't want my boys over there."

That was all the incentive Glenn needed to find a home of his own. With the help of a Southern University homeownership and asset building program, he did.

Glenn has much to be proud of. He was the first man to complete a first-time homebuyers program at Southern University in Shreveport. The program is funded through the Louisiana Asset Building Initiative, which establishes Individual Development Accounts - IDA's. Dedicated savings accounts allow low-income workers to save earnings and acquire assets as a way out of poverty.

Savings accounts can be used for education, small business start-up or homeownership. Glenn applied to Southern's program in November 2007. He attended homebuyer education classes where he learned how to save money and improve his credit score. He worked to save $1,000, which was matched four-to-one by the IDA program for a $5,000 down payment.

Funded through a state initiative utilizing federal funds, the program is also supported by homebuyer education classes provided through a HUD Historically Black Colleges and Universities grant of $322,211 to support community development in northwest Shreveport.

Grant funds are used to expand the existing micro-business enterprise incubator program; enhance neighborhood economic development through vocational job training; provide homeownership training and counseling to low-income residents; and enhance neighborhood economic development, human service improvement, and civic responsibilities through a partnership alliance with community-based organizations.

"All our applicants go through financial education classes," said Judy Madison, case manager for the Individual Development Account program. After completing a HUD funded homebuyer education classes, they go to a lender to purchase a home.

The program assists people to become self-sufficient. "It helps them to be proud of their community. It gets them out of poverty and makes them realize they can own a home and not just rent," says Madison.

It's working. Since October 2006, 14 applicants have purchased homes. None have defaulted on their mortgage. Glenn said the program was extremely helpful in teaching him money management skills. "The classes taught me how I could save money without splurging. They helped me out a lot."