After closing on her home recently, LaChelle Morehead entered the front door excitedly, eager to begin this new chapter in her life for her and her two young children.
“Homeownership is definitely something I’ve wanted to do, but I wasn’t sure how until this program came along,” said LaChelle, 31. “Now I can build equity and leave something of value for my kids.”
LaChelle is the latest and 42nd new homeowner created through Southwest Solutions’ Newberry affordable homeownership program. Newberry is an 8-block area in the Chadsey Condon neighborhood in southwest Detroit. Here, Southwest Solutions acquired 60 single-family homes that were rental properties and is transitioning them to homeownership for low-to-moderate income families.
LaChelle purchased her renovated home for $62,000. Like all Newberry homeowners, she received down payment assistance thanks to a generous donation from the Sam L. and Judith G. Yaker Fund to support the Newberry program.
LaChelle’s monthly payments are $552, including taxes and insurance. After she moved in, LaChelle started a new full-time job for a telecommunications company that allows her to work from home with flexible hours.
“It’s a customer service job and I’m very good at customer service,” LaChelle said.
Just before LaChelle closed on her Newberry home. Lexus Jackson closed on hers. Lexus had been renting the home for two years and capitalized on the opportunity to make it her own. Like LaChelle, she has two young children. Lexus’ mortgage payments, including taxes and insurance, are about $90 less than what she had been paying in rent.
“The opportunity was too good to pass up, and I am very happy with this home,” said Lexus, 26. “Where else could you get a 4-bedroom home in nice condition with an attached garage for this affordable price?”
Like all Newberry homeowners, Lexus completed the Homebuyer Education Class at Southwest Solutions as part of qualifying for the program. She also worked with one of our financial coaches to help her improve her credit and manage her budget. Lexus works full-time at a major grocery store in the city. She has been getting a lot of extra hours because of the staffing shortage that many stores are experiencing.
“Because I’m making more while paying less for our housing and also building equity, our economic situation is looking brighter,” Lexus said.