Cautions about ACORN Housing
I know I’ve made ACORN Housing sound pretty incredible so far. While I do believe that they are, there are some downsides to get through. Homebuying is a pretty stressful process. It is especially so for first-timers. I was always afraid that everyone around me was ripping me off. I never felt like I knew enough to actually be comfortably in charge of my own situation.
ACORN was a great help in terms of information and providing one central location for the money transactions, but I found out quickly that they are not a hand-holding organization. You’ll have your counselor’s phone and email address, but the reality is, they just won’t be able to touch base every day. They won’t be there to answer the two dozen questions that pop in your head over breakfast.
The more you, the participant, are willing to do the work and stay on track, the better the program performs. You need to be dedicated to the process because they don’t offer classes and appointments at your leisure. The first Intake session is usually scheduled for a weeknight. The rest of the time, you may need to take time off work to get it done. The boyfriend and I finished in about two months.
It is also tempting to think that your ACORN experience is all you’ll need. While they do try to educate about insurance, property taxes, etc., those things are outside of what they can do for you. Any future home owner should research these costs and figure out his/her own bottom line.
The final item that I feel I should list is a funny one. Still, it is very important. ACORN’s process approves you for too much money. I don’t remember the actual numbers, but I think I could have been approved for up to 60% of my income. They would have let me allocate 60% of my monthly paycheck to my mortgage. Any traditional loan program is going to faint at that possibility. Personally, I think that’s a very dangerous ratio as well. If 60% of a person’s income is going towards his/her home, there’s just not enough of a safe zone for when something goes wrong. It’s important to be smart and keep your head. Buy only what you can afford.
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