Home Center to help educate potential owners on buying process

The Economic Opportunity Board of Clark County is opening a one-stop educational center to help low- to medium-income residents understand the complexities of home buying.

This comes almost a year after it celebrated its 100th closing in its first-time home buyers program. It's hoping the new program, opening this month, will encourage more potential home owners to take the plunge.

The Home Center at 330 W. Washington Ave. opens its doors Feb. 14. Representatives anticipate about 150 people will use the center each month.

Judging from the number of people who didn't follow through with grant applications last year, the center is needed, Jesus Lozoya Jr., Home Center manager, said.

The first-time buyers program offers up to $5,000 in federal money to residents who meet income guidelines. The money is given as a grant but must be paid back if the home buyer sells, rents or refinances within five years, Lozoya said.

But home buyers are a fraction of those who turn out for the orientations, Lozoya said. Last year the board funded more than 100 houses, but more than 700 people came to orientations.

"And I would say the majority of those people were eligible," he said.

Part of the reason is that those who attended the 1 1/2-hour orientation were given a packet that included participating lenders, but were then on their own, Lozoya said.

A lot of them had credit problems or didn't have a down payment, he said. They didn't follow through, he added.

At the Home Center, applicants take classes and get one-on-one counseling on the process of home buying. Staff members will advise them about fixing credit problems.

Lozoya, who used to work for a lender and has a bachelor's degree in finance, will teach the classes.

Issues such as escrow, financing, fair housing, budgeting, credit counseling and home maintenance will be covered.

Some applicants will be eligible for the Fast Track program for those ready to purchase a house within three months, Lozoya said. Others will go through the Home Buyers Club, which caters to those who have credit or budget problems and don't expect to purchase a house for three to 24 months. After going through one of the two programs, applicants move on to the pre-purchase buyers class, then are provided with the list of lenders.

"By then they will have a good idea of what they can afford," Lozoya said. "For people who are low to moderate income, this is probably the largest investment in their lives, so it's important to educate them."

Potential home buyers have always received some education, Angela Quinn of the Economic Opportunity Board said. Federal rules require anyone who has received an Federal Housing Administration loan or federal home-buying grant to have 12 hours of education.

But those people went through Consumer Credit Counseling, Nevada Fair Housing or other agencies. The Home Center puts the whole process in one central location.

The board had 270 closings, allocating $500,000 in grant money. The majority of the closings were recent, according to Quinn, the housing division administrator. Although the grant program began in 1994, it wasn't until 1998 that it picked up, she said.

"We try to get the homeowner to look at the whole picture," Quinn said.

The work doesn't end there. Lozoya said the Home Center also works with lenders to find the best programs for the buyers, and educates the buyers about those programs.

"Some people have no idea how credit works. All lenders will accept alternative sources of credit. A lot of people don't know that."

The center will provide three years of education after the big purchase. It plans to someday increase that to five years.

Lozoya expects the new approach to help more people go through the whole process.

The nonprofit center will operate its first year from the $100,000 raised through community support, including Fannie Mae and the Department of Housing and Urban Development. Other supporters include Clark County, the city of Las Vegas, Bank of America, Wells Fargo, the Lied Institute of Real Estate Studies at UNLV and EOB board members.

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