From Eviction to Homeownership
June is National Homeownership Month, and at EvictionFreeMKE, we believe that everyone deserves a chance to own a home and build wealth for themselves and their families. Unfortunately, for many individuals with previous eviction(s) on their record, the road to homeownership can be difficult.
However, with the right resources and support, it is possible to overcome these challenges and achieve the dream of homeownership. If you have a previous eviction on your record and are looking to become a homeowner in Wisconsin, here are some tips and resources to help you navigate the process:
Know your rights
As a renter with a previous eviction on your record, it is important to know your rights under Wisconsin law. Landlords are not allowed to discriminate against tenants based on their race, color, national origin, sex, religion, familial status, or disability, and this includes tenants with previous evictions on their record. If you believe that you have been the victim of housing discrimination, you can file a complaint with the Wisconsin Department of Safety and Professional Services.
Work to improve your credit score
Your credit score is one of the most important factors in determining your ability to become a homeowner. If you have a previous eviction on your record, it can be difficult to obtain credit and improve your credit score. However, there are resources available to help you rebuild your credit, such as credit counseling services and credit repair companies. You can also obtain a free copy of your credit report from each of the three major credit reporting agencies every year to check for errors and monitor your progress.
Save for a down payment
Saving for a down payment is one of the biggest obstacles facing many renters who want to become homeowners. However, there are down payment assistance programs available in Wisconsin that can help you overcome this hurdle. The Wisconsin Housing and Economic Development Authority (WHEDA) offers a variety of down payment assistance programs, including the WHEDA Easy Close Advantage program, which provides a second mortgage loan to cover the down payment and closing costs.
In addition to saving for a down payment, it is also important to have a healthy savings account to cover unexpected expenses that may come up during the homeownership process. Aim to have at least three to six months’ worth of living expenses saved up in an emergency fund.
Seek out resources and support
There are many resources available to renters with previous evictions on their record who want to become homeowners. Non-profit organizations like Community Advocates offer housing counseling services and financial education programs that can help you navigate the homeownership process. You can also connect with a HUD-approved housing counseling agency in your area for additional support and resources.
Consider a lease-to-own option
If you’re not quite ready to buy a home outright, a lease-to-own option could be a good choice for you. In a lease-to-own agreement, you rent the property for a certain period of time, with the option to buy it at the end of the lease term. This can give you time to build up your credit and savings while still working towards homeownership.
Be patient
Becoming a homeowner is a process that takes time and patience. Don’t get discouraged if it takes longer than you hoped to achieve your goal. Focus on taking small steps towards your goal each day and celebrate your progress along the way.
