Since the goal of The Black Houses is to create young Black multifamily home owners as quickly as possible, and the #1 obstacle for any renter seeking to buy is the downpayment, all Black Houses residents participate in our UpPayment Savings Plan Program.
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Downpayments can range from as high as 20% for a conventional loan to 3.5% for FHA to 0% for special program depending on the financing route the buyer chooses. Whichever route they choose, we want to make sure the money is there and not an obstacle by the 24 month mark.
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The UpPayment Plan is an automatic savings plan where the $718 difference between market rate rent of $1,118 (in New Orleans) and The Black Houses rent of $400 (at The Harriet House) is paid with rent monthly and held by The Black Houses to go towards your downpayment when you are ready to buy your first multifamily home.
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We have studied human behavior and having money in a visible accessible bank account is like having food in the refrigerator. Even when you're not hungry, you eat anyway. We believe in out of sight, out of mind.
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Also, by paying a market rate rent check to The Black Houses instead of just $400, it will show the mortgage company that you are able to consistently pay the equivalent of a mortgage when your bank statements are being examined.
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Before closing on your new multifamily home, the resident will get all of their money back plus any interest accrued. We do not make money on your money like banks do. We simply hold it in a separate account until you're ready to invest it in real estate. During the 2 years, you will receive monthly bank statements from the account for transparency purposes.