
REV clears path for aspiring first-time homebuyers facing affordability barrier.
Housing and homeownership have long been cherished aspects of the American Dream, particularly for middle-class workers who form the backbone of the country’s labor force. However, the Charleston Metro Region is facing a shortage of available housing, worsening an already dire affordability crisis. This scarcity of inventory is driving home prices through the roof, making homeownership a distant dream for an increasing number of households.
According to a 2022 Housing Affordability Policy in the Charleston Metro Area survey commissioned by the Charleston Trident Association of REALTORS®, 76,000 households in the region faced housing cost burdens. While home sale prices in the area surged by 12.5% in 2021, the price of renting rose by a more concerning 14%. The soaring cost of renting and house prices is a troublesome issue because these expenses represent the largest financial burden for families, further aggravating the affordability crisis.
Not only does this situation strain affected families, but it also poses a threat to the local economy. With a significant portion of their income allocated towards housing expenses, families are left with little disposable income for other essential needs as the lack of economic freedom hampers their ability to contribute to the growth and resilience of the local economy.
REV, a community-minded organization, has stepped up to provide a much-needed lifeline for aspiring homeowners with StartSmart, a program that offers a path to first-time homeownership without the burden of a down payment or private mortgage insurance (PMI). Traditionally, prospective buyers are expected to have a substantial cash amount, typically around 20% of the total home value, as a down payment. For those unable to meet this requirement, PMI becomes an additional monthly expense on top of their mortgage payment.
StartSmart eliminates these financial barriers, freeing households from the shackles of down payments and private mortgage insurance premiums, allowing them to redirect their funds towards other vital aspects of their lives, including childcare, healthcare, and education. The eradication of these barriers provides homeowners with the flexibility to either save or spend in other areas, generating increased economic activity and tax revenue. Consequently, StartSmart brings broader benefits for households, the community, and the economy at large.
Beyond providing immediate economic relief for first-time homebuyers, REV’s StartSmart program is building resilient communities where individuals can have a stable and fulfilling life that goes beyond just owning a home.
When it comes to the mortgage process, there are many factors to consider, whether it’s your first or subsequent time. For first-time homebuyers, avoiding the following mistakes is crucial.