About our Program

     Education and counseling have been at the heart of Salem Housing's Homeownership Program since 1985 with a steady expansion in response to client's needs.

    Homebuyer Education / Mortgage preparation classes teaches what to expect when purchasing a home and how to prepare oneself for the new tasks.

     Each family completes the classes and works as a part of the team that repairs their home. This participation in the preparation of a house is called "sweat equity".

     The family's sweat equity and the large groups of volunteers who assist them on the Second Saturday enhance affordability.

     Partnerships with mortgage lenders provide technical guidance for each "Homeowner in Training".

     Maintenance courses teaches how to take care of a home after it has been purchased.

     Sweat equity continues the development of skills and makes a battered house into this family's home. Each family is invested in their home through both work and decision-making.

     One-on-one counseling walks families through the process of developing and protecting a positive credit history.

     Grant sources provide down payment assistance when that is necessary to assure that a house is affordable.

  Simultaneously, families prepare financially to purchase their home.

How the Program Works

     Salem Housing exists to provide safe, decent, and affordable housing for families with low and moderate incomes. Its boundaries are Saginaw Street on the East, Dupont on the West, Pasadena Street on the North, Wood and Begole Streets on the South. Salem buys vacant and deteriorated houses within these boundaries and bring the houses up to city and state code. The work involves the family that will live in the house, volunteers both local and from many parts of the state, contracted construction individuals, and the staff of Salem Housing.

Salem Housing - Who Qualifies to be Matched with a Home (Eligibility Requirements)

• Must be at least 18 years of age

• Must be willing to work hard

• Must have a working income of at least $12,500 and within HUD guidelines based on family size.

How Salem Housing Works - Application Process

• Intake Interview (application filled out and returned)

• Complete all required classes

• Complete ten hours of sweat equity (10 hours rehabbing an already matched home)

• Credit check done (credit must be O.K., payment plan made and proof that credit is being worked on. This can be done by bringing in receipts.)

Each family makes plans to prepare to buy  with the Home-Buyer Coordinator

Salem's Home Acquisition & Rehabilitation Process

1. Salem Housing obtains financing for purchase & rehab of the 
    house.
2. Salem Housing buys house with one or more families' need in
    mind.
3. Write specifications, gets bids from contractors.
4. Approves bids and supervises contractors.
5. Offers house to approved families. Family chooses home and signs
    a Sweat Equity Contract.

• Family works on the team of Salem Housing's employees, contractors & volunteers to upgrade the house;
• House is completed to state and city code;
• Family obtains mortgage and becomes homeowner.

OR

    1. Family signs lease to purchase agreement with plan to purchase;
    2. Family pays monthly lease payment;
    3. Salem Housing reserves $50 each month for down-payment & closing
    costs;
    4. Family complete ownership preparation and obtains mortgage.

Salem Housing starts paying on the loan (most are interest only)

     Once matched with a home, you must sign a Sweat Equity Agreement, which establishes that you will complete at least 10 hours to be matched with a home and a total of 50 hours all together.

Ready to sign lease option to purchase and begin to pay lease payment.

Michigan State Housing Development Authority Homeownership Counseling Certification.

     A person may have found a house already and been approved for a mortgage but their lender requires homeownership counseling in order to complete the process. In that case, Louise Johnston and Natasha Thomas, both M.S.H.D.A. Certified Homeownership Counselors, will provide the information and certificate necessary to complete the educational classes required for the mortgage application process.  The buyer will be ready for the process of "closing" on their own home. This counseling session will take about 3 hours.
               
       ***Call 785-5340 ext. 21 or ext. 25  to make an appointment***

     This program prepares households to obtain a mortgage and to successfully manage their home. The classes are open to everyone whether interested in purchasing a home through Salem Housing, purchasing a home they are renting, or adding skills for maintaining their own home. You may wish to participate or to refer others.

How to Apply to Purchase a House
from Salem Housing

     Salem Housing Intakes are by appointment only with Louise Johnston, Homebuyer Coordinator or Natasha Thomas, Education Coordinator. To learn more about the program or to obtain an application, call 810-785-5340 ext. 21 or 25.

Where?

     Salem Housing's office is located at 3216 M. L. King Ave., Flint ­
between Pasadena and McClellan. 

What to Bring?

• Last year's tax return
• This month's pay stubs
• Information about all other sources of income
• If you are pre-qualified for a mortgage, bring your "good faith estimate" or letter of qualification.

The Complete Application Process Includes:

• Written application including household information, income and budget information.
• Participation in the mortgage portion of the class series (see schedule attached).
• Credit check ­ and development of a plan to repair credit or create  
   alternative credit information.
• 10 hours of sweat equity work on a home that is being prepared for
   ownership.
• An interview in your home with all who will live in your future home present. (Salem Housing's process will impact your whole family and this is the way that they can ask questions and understand the choices that you are making)
• Participation in the maintenance portion of the class series.
• Approval to be matched with a house can be made before these classes are completed.

Just Interested in the Classes?

     Call Natasha Thomas at ext. 25, or by email at: nthomas@salemhousing.org to register for mortgage preparation and or maintenance classes. She will send you the current schedule. Please call Salem Housing at 785-5340 ext. 21 to confirm class locations.

Homebuyer Class Curriculum

Call Louise or Natasha at 810-785-5340 ext. 21 or 25 or
by email at
nthomas@salemhousing.org or ljohnston@salemhousing.org

These classes are without charge to the class participants. They are sponsored by the City of Flint, The Ruth Moth Foundation, the Flint District United Methodist Churches, and many individuals. Pastors, agencies, and landlords may choose to refer renters who are considering purchasing a home, or those who need to develop some additional skills to improve their current housing. Series runs year round.

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