OREM, Utah, Oct. 16 /PRNewswire/ -- A new report entitled 'Economic
Benefits of Increasing Minority Homeownership' released yesterday by the U.S.
Department of Housing and Urban Development (HUD) states that meeting
President Bush's goal of expanding minority homeownership by 5.5 million
families will generate an additional $256 billion for the housing sector of
the U.S. economy, as well as create jobs and spur growth in other economic
sectors. HUD has cited the down payment as the greatest barrier to owning a
home. Nonprofit down payment assistance programs eliminate the down payment
barrier and allow minority homeownership to progress toward the President's
"Down payment assistance programs, such as Neighborhood Gold, were created
to help minorities, single parent families and low and moderate income
families achieve homeownership by providing a grant to use toward the down
payment," says Neighborhood Gold president Rich Ferguson.
HUD estimated that last year 34 million people were renting in the U.S.
An estimated 30 percent of those renters, or 10.2 million people, could afford
a mortgage but did not have enough money saved to afford the several thousand
dollar down payment. The success and increase in use of down payment
assistance programs that has occurred in the last few years is directly
related to the need for their service.
In the report, increasing homeownership is cited as a national priority
for many reasons:
1) Despite increases in minority homeownership over the last decade, a
significant "homeownership gap" still exists.
2) Increasing homeownership spurs job growth. For example, according to
the HUD report, building 1,000 single-family homes creates 2,448
full-time jobs in fields such as construction, transportation, trade
and other locally based services.
3) Increasing homeownership also increases the demand for household
goods such as furniture, appliances and lawn care supplies.
According to the report, increasing minority homeownership by
5.5 million families will increase spending on home improvements and
household products by almost $36 billion.
4) Homeownership is a source of stability and financial security for
America's families and communities.
Neighborhood Gold has already gifted more than $100 million to more than
20,000 homebuyers around the country to use toward the down payment on a home.
As one of the top national down payment programs, Neighborhood Gold has
established a reputation among real estate professionals as having the fastest
and most streamlined grant application process as well as the best customer
service. Neighborhood Gold was also the first to introduce the Mortgage
Payment Protection Plan to keep down payment assistance homebuyers in their
homes by automatically enrolling homebuyers into an insurance plan that covers
up to six months of mortgage payments should the borrower unexpectedly lose
About Neighborhood Gold
Neighborhood Gold was established in February 2000 to market the down
payment assistance offered by The Buyer's Fund, a 501(C)(3) nonprofit
organization formed to increase homeownership opportunity. Recently,
Neighborhood Gold, in conjunction with several other down payment assistance
programs, formed the Homeownership Alliance of Nonprofit Downpayment providers
(HAND), to establish ethical business practices and ensure that down payment
assistance programs are up-to-date on current housing rules and regulations.
For more information about receiving a down payment grant from Neighborhood
Gold, homebuyers should call 1-888-627-3023, or visit the website at
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SOURCE Neighborhood Gold