Matt Berna, an inside sales professional, had a strange tradition. Every year, he moved into a new apartment. After nine years of doing this, the 27-year old inside sales professional finally gave up.
“Yeah, I’ve been moving since I was 18,”Matt says “and I was getting sick of it. I’m really good at packing and moving, though. I’ve had lots of practice.”
Matt enjoyed the opportunity to get to know different parts of Milwaukee. It taught him the neighborhoods he would like to live in permanently.
“After working in the mortgage industry for three years, I became very aware of what a smart financial decision it is to buy a home,”Matt explains. He began house hunting with a roommate, paying $525 for rent each.
Matt has a motorcycle so a house that has a garage is a must. Unfortunately, the area that Matt desired was mostly made up of older homes without garages. He refused to spend more than he could afford.
Matt, a young homebuyer and student loan debtor, didn’t want too much. Matt also didn’t have enough savings to pay a 20% down payment. When he finally found the four-bedroom house he wanted with a garage, it was in his price range so he applied for a low-down payment loan. He wanted to pay five percent down and use private mortgage insurance. Private mortgage insurance is required for conventional loans that have less than 20 percent down.
Matt felt a little uncomfortable about spending all his savings on his down payment and closing expenses. Matt had the money but was unsure what to do if his new bike or home were damaged. Matt wanted to be sure that he had an emergency fund, so he searched for down payment assistance programs.
There are many programs, but Matt chose to take advantage of the Easy Close Advantage program – Down payment assistance offered by WHEDA (Wisconsin Housing and Economic Development Authority). To be eligible, buyers must own a Wisconsin homeowner and meet strict requirements regarding income, credit ratings, home-purchase price limits, and credit scores.
Matt was able to qualify for the program easily and closed his home in July 2018. His monthly mortgage payment is $1,292, which includes escrow and $59 for the down-payment-assistance loan.
But what can a smart millennial with a huge four-bedroom house and lots of ex-roommates do? Yes. Matt was able to afford the mortgage, but he invited his friends to share his home. His roommates now pay $550 per month, while Matt pays $192. This allows him to save money and build equity. As Matt confides, “I see this house as a really good investment.”
He can also finally get rid his moving boxes!
Visit www.homebuyer.org for additional resources. readynest.com. Visit to search for down payment assistance programs within your region. downpaymentresource.com/
