 Fair Housing Q&A
Foreclosure Prevention
5 Steps to Homeownership
Piedmont Housing Alliance provides comprehensive homeownership counseling and peer group support for first time homebuyers. Through Homebuyers Club participation and/or individual homeownership counseling, you will learn how to manage your income, consolidate debts, save money toward your eventual down payment and closing costs, and apply for a mortgage. Homebuyers Club members are required to attend a monthly group meeting and will also receive one-on-one counseling as needed. In order to achieve your goal of homeownership, a certified housing counselor will assist you in completing the following Five Steps to Home Ownership. The program takes from 6 months to 3 years to complete.
Five Steps to Homeownership
 Step 1 - Intake
A) Initial Interview
B) Completion of Preliminary Application and Budget
C) Completion of Forms and Verification of Income
D) Credit Report Review
Step 2 - Action Planning
A) Completion of Pre-qualification Application
- Copies of 3 years IRS tax returns and corresponding W-2s
B) Development of Action Plan, Including Homeownership Test and Certificate
- Begin saving for down payment and paying off past due debts
C) Appropriate Referrals as Needed
Step 3 - Homeownership Counseling and Client Follow-up
A) Regular Homeownership Counseling and Follow-up on Action Plan/Referrals
B) Gather Documentation
- Copy of divorce decree (if applicable)
- Copy of bankruptcy documents (if applicable)
- Copy of rental verification (landlord information-Name, Phone Number, Contact Information)
Step 4 - Continued Homeownership Counseling and Qualification
A) Gather Additional Documentation
- Copies of pay stubs (1 month)
- Copies of bank statements (3 months)
- Copies of Tax Returns (3 years)
B) Update Step 1 Information
- Preliminary application and budget
- Verification of income
- Credit report review
Step 5 - Mortgage Process, House Hunting, and Graduation
A) Education About the Mortgage and Closing Processes
B) Education About Maintenance Skills (such as plumbing and landscaping) and Managing of Budget
C) Begin Looking at Homes
D) Receipt of Five Steps to Homeownership Graduation Certificate
Once you have graduated and found a home to purchase, a housing counselor will work with you to complete a mortgage package and close on your new home.
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