MSU Extension MI Money Health

Homeownership education

Homebuyers make decisions that require them to determine their own financial situations and what financial products are available on the market. Research suggests individuals may not accurately estimate their own financial status, including information about debt and creditworthiness, which leads to less desirable financial decisions. The MSU Extension Homeownership Education course assists homebuyers with up to six hours of education on these topics:

• Advantages of homeownership and steps in the home-buying process
• Understanding costs of homeownership and how to maintain the investment
• Mortgage loan basics and why good credit is important
• How to determine how much house can be afforded

The homeownership education program hosts guest speakers from the housing industry including local realtors, lending professionals, and home inspectors to provide additional local context and perspective into the home buying process. Participants can earn a certificate of completion that is a requirement for Michigan State Housing Development Authority (MSHDA) down payment assistance programs.

eHome

eHome is the online version of the Homeownership Education course. The program takes six to eight hours to complete. The materials are comprehensive, unbiased and consumer-oriented, with an emphasis on looking out for the homebuyer’s best interests. Additional help and advice is available from the MSUE certified Housing Counselors. The course is available at www.eHomeAmerica.org/msue.

Homeownership education impacts

During 2018, MSU Extension reached nearly 1,466 adults. Program delivery ranged from 1 to 4 sessions and session’s averaged 180-360 minutes. Most participants (63%) were in a group class and 37% received individual sessions. Average age of participants was 36 years and 56% were women. Annual income was less than $30,000 for 24% of the participants. Number of people living in current residence ranged from 1 to 9 people. Participants averaged 2 people per residence.  Employment status showed 87% working either part- or full-time. Most (81%) rented their current residence or lived with family (13%). Of those that do not currently own, 98% plan to buy in the next three years. Four percent had previously experienced foreclosure. Participants self-reported their race/ethnicity and the program reflects 59% white, 30% black, and 3% Hispanic.

Pre- and post- program evaluations revealed participants improved knowledge and skills.

As a result of this program (n=1407): 

• 87% are making changes to improve credit report and score
• 83% save money for home ownership
• 90% will get their home inspected by a reputable firm
• 89% will shop around for the best home insurance coverage
• 82% can identify best type of mortgage for needs
• 87% can identify down payment and closing requirements of loans
• 90% select realtor to be a buyer’s agent
• 89% will review the closing disclosure to ensure fees are similar loan estimate
• 83% can calculate reasonable monthly housing costs based on a budget
• 91% pay mortgage on time every month
• 88% set aside funds for home maintenance costs
• 91% now understand predatory lending practices

In 2018, 43 counties were reached. Participant locations by county are listed below with the number of people receiving education.

• 382 - Macomb County
• 318 - Washtenaw County
• 231 - Wayne County
• 167 - Kent County
• 92 - Isabella County
• 48 - Ingham County
• 39 - Alcona County
• 31 - Ionia County
• 47 - Oakland County
• 24 - Ottawa County
• 23 - Montcalm County
• 20 - Genesee County
• 13 - Monroe County
• 9 - Clare County
• 9 - Livingston County
• 8 - Muskegon County
• 8 - Gratiot County
• 8 - Barry County
• 8 - Allegan County
• 5 - Lenawee County
• 7 - St. Clair County
• 3 - Calhoun County
• 3 - Clinton County
• 3 - Jackson County
• 2 - Berrien County
• 2 - Mecosta County
• 2 - Midland County
• 2 - Oceana County
• 2 - Ogemaw County
• 2 - Saginaw County
• 2 - St. Joseph County
• 1 - Arenac County
• 1 - Eaton County
• 1 - Charlevoix County
• 1 - Delta County
• 1 - Iosco County
• 1 - Kalamazoo County
• 1 - Lapeer County
• 1 - Marquette County
• 1 - Newaygo County
• 1 - Osceola County
• 1 - Van Buren County
• 1 - Wexford County
• 12 - Refused to Answer
• 1 - Out of State

Eight staff reporting 2018 data: Teresa Clark-Jones, Brenda Long, Teagen Lefere, Elizabeth Martinez, Scott Matteson, Jinnifer Ortquist, Beth Waitrovich, and Rob Weber.

Additional program evaluation data (below) collected to demonstrate to funders that participants are highly satisfied with MSU Extension’s educational programs.

Overall, how would you rate the quality and effectiveness of the educational program you received?

• 71% responded "Excellent"
• 24% responded "Very good"

How effective were the educational services in locating resources that you needed? 

• 69% responded "Very effective"
• 26% responded "Effective"

How helpful were the educational services in reducing the stress you felt regarding finances? 

• 64% responded "Very helpful"
• 29% responded "Helpful"

To what extent would you say the educational program you received will help you maintain your other assets, like your personal property and savings in the future?

• 59% responded "A very great extent"
• 34% responded "A great extent"

If you knew someone who was in a situation similar to yours, how likely would you be to recommend the educational program? 

• 79% responded "Definitely"
• 18% responded "Probably would"

If in the future you needed another program that MSU Extension offered, how likely would you be to utilize us? 

• 78% responded "Definitely"
• 20% responded "Probably would"