As December’s holidays quickly approached last year, Sharon Lundy and her 16-year-old daughter weren’t wrapping gift boxes in their one-bedroom apartment in Northeast Philadelphia. They were packing moving boxes, getting ready for the biggest gift Sharon had ever dreamed of providing them both: A brand new, two-story, three-bedroom home with a fenced yard.
Looking back over her home mortgage journey that started in June 2022, Sharon recalled: “I never thought I could own a home. Even when I got TD Bank’s letter approving me for my mortgage, I was so scared, I wanted to back out. So, I called Irv, my TD contact, who calmed me down, eased my fears, and encouraged me to keep going.”
“Irv” is Irvin Brockington, a TD Bank Community Mortgage Loan Officer and one of the bank’s many such mortgage professionals who focus on first-time homebuyers, including communities of color and people with low- and moderate-incomes across the footprint where TD Bank operates. His job is to demystify the mortgage loan process for first-time homebuyers like Sharon with counseling akin to coaching. He helps them get “mortgage-ready” so they can qualify for special loan programs, such as Philadelphia Housing Development Corporation’s (PHDC) Turn The Key program as well as TD Bank's affordable mortgage options.
Take advantage of homebuyer affordability programs
“Most big cities have homebuyer affordability programs like PHDC that we can combine with TD Bank offerings and other available programs to dramatically reduce barriers to home ownership,” Irv said. “But because banks and other financial institutions are sometimes perceived as intimidating for prospective homebuyers, it can be hard for them to connect the dots about how home ownership is possible. That’s why I’m here to offer them a soft place to land where they can start their journeys toward owning their own homes — and support them every step of the way.”
With more than a decade of community lending experience, Irv takes pride in having guided many hundreds of families and individuals through the mortgage process. He specializes in affordability programs, that leverage closing costs and assist with down payments. “It all starts with education about personal finance, improving credit scores, how mortgages work and the qualification process, then getting approved for one, and ultimately closing on a home and moving in,” he said.
In addition to first-time homebuyers, Irv notes that affordability programs are also available for current homeowners with low- and moderate-incomes who want to move from where they live now or refinance their existing mortgages. “We’re here to assist anyone in taking advantage of the wealth-building possibilities of home ownership,” he said. “In fact, owning a home can offer fixed monthly payments that often cost not much more than renting. And it's important to keep in mind that rent payments will likely rise over time.”
From renter to homeowner in 18 months
For example, after working 20 years in retail, Sharon went back to school to become a dental assistant who’s now certified to perform advanced procedures. “As a single mom, my income allowed me and my daughter to afford a modest apartment, but the rent kept going up each year,” she said. “Now, even though I’m paying about $300 more a month than my rent was, we have a beautiful new home with our own bedrooms, and our loan payments are fixed for 30 years.”
Sharon started her homeownership journey about 18 months before by attending a city-sponsored seminar for first-time homebuyers hoping to purchase one of the 1,000 new homes being built on vacant city lots as part of a neighborhood revitalization effort. After signing up, she had three counseling sessions to assess her financial readiness and took it upon herself to learn how to budget her income across her expenses.
For more than a year, the city program stayed in touch with Sharon through email to keep her informed of the homes under construction and ensuring she was still interested. In August 2023, the city notified her that a home was ready for her consideration and provided a list of lenders to contact.
“TD Bank was on that list, so I called and connected with Irv,” she said. “He explained the whole process in simple terms, gave me tips on improving my credit score, and so on. Every step of the way, he was there for me. I could call or email him anytime, and he’d get right back to me. With his help, TD pre-qualified me for a mortgage shortly after I applied.”
New home, new possibilities
About four months passed between the pre-qualification and Sharon’s December closing and move-in dates. Now that she and her daughter are settled into their new South Philadelphia home, both have a better understanding of the financial possibilities now open to them. “I’m thinking about getting an investment property, possibly starting a business, and even getting a new car that I want and not settling for a less reliable used one,” she said. “And, with all our budgeting and planning, my daughter knows more about our household finances and why I sometimes say ‘no’ to purchases, postponing them until we can afford them.”
For other aspiring homebuyers who may think home ownership is out of their reach, Sharon advises them to do the research and determine what they need to do to make it happen. “In my first homebuying seminar, I learned about so many resources available to help you,” she said. “And when I closed, I had taken advantage of so many down payment assistance programs that I only had to bring the borrower minimum of $500 to settlement. If you’re passionate about buying a home, find out where those resources are, contact them, and ask their advice on what you need to do to achieve your goal. Above all, you have to believe in yourself.”
Want to find out more about available mortgage lending assistance? Check out these resources:
- Visit the “Buying a Home” web page of the U.S. Department of Housing and Urban Development (HUD).
- Connect with a HUD-certified housing counselor who can aid you in assessing your financial situation and evaluating your options.
- Download a first-time homebuyer kit and explore the steps to buying a home to understand what you need to know before starting the mortgage process.
- Visit the TD Bank Learning Center and select the “Home Lending” tab to see the many educational modules dedicated to this topic.
"We hope you found this helpful. This article is based on information available in June/July 2024 and is subject to change. It is provided as a convenience and for general information purposes only. Our content is not intended to provide legal, tax, investment, or financial advice or to indicate that a particular TD Bank or third-party product or service is available or right for you. TD Bank, N.A. is not affiliated with Philadelphia Housing Development Corporation.
For specific advice about your unique circumstances, consider speaking with a qualified professional."