First-time homebuyers devise a plan - Two 'gappers' tell their incredible success stories.

 

HONOLULU ADVERTISER   October 22, 2006

BY LISA SCONTRAS

Custom Publishing Group

 

Sound familiar? A hardworking family makes a decent income — too much money to qualify for “affordable housing” but not enough to compete in a housing market where the median priced home sells for $630,000.

 

“This scenario is typical of the ‘gap group,’” says Kendall J. Hirai, executive director of the Hawai‘i HomeOwnership Center, who defines gap group as those whose income exceeds government guidelines to qualify for subsidized housing.

 

But there are new programs and new developments specifically targeted towards this group — helping them to become successful homebuyers.

 

Gap-priced developments such as Mokuola Vista — a fee-simple 70-unit mid-rise building featuring 2-bedroom air-conditioned units with parking and security — and the many firsttime homebuyer seminars are giving gappers the tools to qualify for a loan.

 

When talking to those who have participated in these seminars, the elements which are critical to being successful are education and determination.

 

Lehua Rosa Malott was living on welfare in 1999 when she enrolled in a first-time homebuyers course. She implemented what she’d learned and made herself a goal to buy a house in five years — but only two years later she’d purchased a singlefamily home with 3 bedrooms.

 

“I think anyone can buy a house,” says Rosa Malott, who recently rented out her house — which has now tripled in value — and bought a condo. “You just need to want it badly enough and be willing to make the sacrifices.”

 

Rosa Malott now works at the Hawai‘i HomeOwnership Center and teaches the fundamentals of repairing credit and reducing debt to others who thought owning a home was out of reach.

 

“I’m everybody’s poster child,” she says. “Sometimes it’s easier to have someone who has walked that path help you. I can tell you that home ownership and financial literacy are my greatest accomplishments. And my children benefit too, because statistically now, they will go to college and buy a home.”

 

Hirai says their programs are successful because generally, people in the gap group make good money — they just don’t manage it well.

 

“They’re often up to their eyeballs in debt paying off high-interest credit cards and don’t have any money management skills,” he says.

 

At the seminars, gappers learn to track exactly where the money goes.

 

Prospective homebuyer Edna Magnaye found that by tracking where the money went, she was able to find plenty of ways to save.

 

“I stopped shopping — stopped even going to the shopping center,” says Magnaye who works six days a week. “I brought lunch from home, and even caught the bus to work for a while to save on gas and parking. And rather than paying a dollar for a bottle of water from the vendor at work, I now buy my water at Sam’s.”

 

After implementing these new spending habits, Magnaye was able to set aside $800 per paycheck, $1,600 a month — amassing a savings to date of $8,000 to put towards her down payment.

 

Patti Takayama, Realtor and partner at Prudential Locations LLC, says it takes getting good advice and following that advice, and that’s exactly what Magnaye is doing.

 

“I’m here to encourage her, coach her and show her what resources are available to her,” says Takayama, who is preparing to send Magnaye to an upcoming seminar. “She’s done a great job and now she can really get her financial situation in order. I enjoy helping the plight of first-time homebuyers like Edna who has been trying to save, pay down her charge cards and modifying her lifestyle so she can own a home.”

 

The next step for Magnaye is to enter the lottery for Mokuola Vista, the first gapgroup targeted fee simple project on the Island. Prudential Locations is the broker for the project.

 

“Developer Gary Furuta is extremely excited to offer this type of affordable housing to the gap-group buyers,” says Takayama, who will be involved in the project sales.

 

Magnaye says she is relieved and shocked at the reality of becoming a homeowner and is grateful to Takayama for the sincere interest and dedication to helping her realize her dream.

 

“It was a dream,” says Magnaye. “And now I feel like it really is within reach.”

Takayama has all the confidence that Magnaye will be successful.

 

“Now that she has the backing of Prudential, she’s on her way,” says Takayama.

 

For more information about Mokuola Vista, call Prudential Locations at 625-3404.

PRUDENTIAL LOCATIONS LLC AND CENTRAL PACIFIC HOMELOANS PRESENT

FIRST-TIME HOMEBUYER SEMINAR

 

 

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