Purchasing a home impacts a family’s economic mobility in many ways. Owning a home is a way to build family wealth. Purchasing a home builds credit and changes a family’s budget.

Ideas for Action

1. Examine and strengthen their credit score.

Credit history has a major impact on buying a home. Staff can support families in understanding their credit score and developing a plan to build their credit.

• "What obstacles are there related to your credit score?”

• Accessing and Reviewing Credit Reports and Scores (Ideas for Action)

2. Save for a down payment.

Staff can introduce tools to help families determine how much of a down payment they can and/or want to make. Staff can help families develop a savings plan.

• "What actions will you take to save money for your down payment?”

• Your Down Payment Decision when Buying a Home (video)

3. Enroll in a first-time homebuyer course.

Staff can help families find local courses or programs.

4. Calculate their homebuying budget.

Staff can help families learn about the expenses related to homebuying and homeownership.

• "What expenses will come along with purchasing your home?”
• “Where do new expenses, like your mortgage payment, change your current budget?”

• Decide How Much You Want to Spend on a Home (guide)

5. Explore first-time homebuyers benefits they may be eligible for.

Many local areas have down payment assistance grant funds available for first-time homebuyers with low and moderate incomes. Staff can help families research and understand their local options.

• "Have you heard of ways people can save when purchasing their first home?”
• “Is it OK if I share a resource on our local first-time homebuyers’ program with you?”

• Database: DownPaymentResource.com

6. Explore and compare loan offers.

Staff can share resources to understand loan options and support a family in comparing their options.

• Explore Interest Rates (interactive tool)

7. Make an offer and close.

Staff can help families navigate the closing process by sharing information and tools.

• Your Mortgage Closing Checklist (worksheet)

A Community Development Financial Institution (CDFI) can help families interested in building a business, buying or renovating a home, or receiving short-term loans. A CDFI is a special type of financial institution that focuses on making loans in economically vulnerable communities. These institutions are a potentially valuable ally for Head Start programs. Families looking for a bank account, loan, or other financial product should always compare their options. CDFIs may offer products that can be particularly helpful to families.

• Mortgages (guide)
• Buying a Home (guide)
• Help Buying a New Home (guide)

Last Updated: September 7, 2023