Programs

Housing Counseling Programs

Housing Counseling programs are now offered through Mon Valley Initiative (MVI).

MVI Housing Counseling Mission Statement

To serve and educate clients in a confidential, non-judgmental fashion, empowering them to identify and attain personal financial goals, while providing a positive, supportive counseling experience designed to secure financial futures.


“TOP TEN” MVI Housing Counseling Benefits

• Improved confidence and control over finances

• Reduction of frequency and severity of financial problems

• Ways to initiate a savings plan

• Ability to meet monthly expenses and plan for those once-in-awhile bills

• Improved problem-solving and decision-making skills

• Reduction of stress, anxiety and loss of sleep over financial matters

• Empowerment to make productive behavioral changes

• Professional guidance and support

• Attainment of short- and long-term financial goals

• Resources for information about other MVI services
  

Pre-purchase Counseling
Mon Valley Initiative’s housing counselor completes a thorough credit and income analysis to determine the best course of action in order to help families achieve homeownership. The process is similar to applying for a home mortgage. Our counselees typically receive comprehensive housing counseling from 6 to 24 months, depending on their individual need. With our programs, they learn to manage monthly expenses, retire debt and resolve credit issues. Our counselor spends an unlimited amount of time on life-changing skills designed to achieve self-sufficiency and economic independence. Once program participants have retired debt, started a savings program and reestablished their credit, they are encouraged to apply for a pre-approved mortgage from a reputable lender and start shopping for a home.

Homebuyer Education Classes
The sessions are taught by MVI’s Real Estate/Housing Development staff, all of whom have been certified by HUD. MVI’s Housing Counselor attends the first session in order to talk about the importance of good credit, and how to read a credit report. Participants must attend all five sessions in order to graduate and receive a certificate of completion. For convenience, the class may also be offered over the course of a single day. The sessions are intended to give potential homeowners information to use whether they are ready to purchase a home immediately, or if they have additional work to do before they are mortgage ready. Examples of materials provided are basic household budget worksheets, a sample credit report, sample Seller’s Disclosure, links to Allegheny County Real Estate Database and Realtor.com website, predatory lending information, sample settlement sheet and closing documents and a packet of home repair checklist and how-to's

Money Management
The Housing Counselor reviews income, debts, credit history and credit challenges with the individual. For those with credit challenges, counselors can spend up to 24 months of credit counseling, money management, budgeting and homebuyer education. Every client must do an income/debt analysis. The counselor examines their history of saving and their spending habits. The client is assisted in developing a reasonable household budget, factoring in all areas of spending. These items are then reviewed for areas where the client is overspending.

For those clients with poor credit, a credit restoration plan is put into place. Clients must commit to following the course of action necessary to make them credit worthy. The counselor reviews the cost of credit, how to use it wisely and how to negotiate settlement of past due and delinquent accounts. Based on income and debts, the counselor and client develop a house budget suitable to what they can afford. The process continues until the client’s credit worthiness is improved and they empower themselves to become wiser financial consumers.

Reverse Mortgage Counseling
Mon Valley Initiative’s counselor provides referral services for reverse mortgage counseling to seniors age 62 and older who desire to convert the equity in their homes into cash. Program participants are also informed of other alternative options available based on individual needs, and are assisted in determining which particular product best fits their needs.

Post Purchase
Managing maintenance costs is emphasized strongly in MVI’s post purchase counseling since many older Mon Valley homes have dated, less heat-efficient windows and insulation. Participants come away from the counseling knowing how to reduce utility bills – and stretch their household budgets. In addition, MVI’s Construction Manager is available to visit the client’s home to review the new systems and educate them on regular maintenance. Topics range from how to operate the breaker system, how the furnace and hot water heater work to why the GFIs are tripped and how to reset them, how often to clean the gutters and when to change the furnace filters, common causes of toilet and drain back-ups. The service also offers assistance with escrow problems and getting the mortgage holder to respond to their concerns. Finally, clients are given home improvement and rehabilitation referrals for HUD-approved loan programs, such as FHA 203(k) renovation loans.

Financial Education
The housing counselor at the Mon Valley Initiative is readily available to participate as a presenter at various functions that promote financial literacy. Additionally, the housing counselor augments the training provided by the MVI Housing staff for the Homebuyer Education Learning Program and independently sets up credit seminars with other non-profits agencies.

Other referral services offered by MVI’s Housing Counselor:

• Mortgage Delinquency /Default Counseling
• Anti- Predatory Lending
  

Financial Lending Division

HOI is a licensed Secondary Mortgage Lender by the Commonwealth of Pennsylvania’s Department of Banking. HOI’s Revolving Loan Fund, which is capitalized by grant funding, enables us to offer secondary mortgage loans to assist families with down-payment assistance and closing costs. These loans have an average interest rate of 3% and a repayment term of up to ten (10) years to ensure affordability for our target population. As the loan is repaid, the principal payments are returned to the Revolving Loan Fund for future use by another successful homebuyer. The first mortgage loans are sold to our local lending partners who have agreed to finance the home purchase at discounted interest rates because of the minimum risk associated with our families who have successfully gained solid financial and money management skills.