Amber Leger Shares Insights on Homeownership Counseling and Financial Literacy on Minnesota Homeownership Center Podcast

Jun 2

In honor of National Homeownership Month, the Minnesota Homeownership Center organized a podcast episode that brought together a group of homeownership advisors to explore the challenges and opportunities associated with homeownership.

Amber Leger presents on Minnesota Homeownership Center Podcast

One of the panelists featured on the podcast was Amber Leger, who serves as the Program Director at Mni Sota Fund. Amber is a financial and homeownership advisor who is dedicated to promoting equity in Indigenous homeownership. She achieves this work by providing valuable access to resources that support American Indian families across the Twin Cities Metro area and more broadly around Minnesota.

Amber possesses extensive knowledge and expertise in financial counseling, credit repair, and homeownership education, having accumulated 8 years of experience in these areas. Her passion lies in assisting individuals and families in attaining their financial objectives and establishing sustainable wealth through homeownership.

During the podcast, Amber shared valuable insights centered around the importance of generational homeownership wealth and the obstacles that Indigenous communities face in creating and maintaining that wealth. The obstacles and barriers faced by American Indian families in achieving sustainable homeownership are rooted in historical, social, and economic factors. The forced removal of Indigenous people from their ancestral lands and the subsequent loss of land ownership has had a lasting impact on Indigenous communities. Additionally, the federal government's policies of assimilation and termination have contributed to the erosion of Indigenous cultures and traditions, further complicating the issue of land ownership. While in contemporary times, the absence of intergenerational homeownership experience poses a distinctive obstacle for Indigenous families, which exacerbates the challenge of establishing a legacy of homeownership.

Culture Revitalization Initiatives –

The Role of CDFIs in Bridging the Gap

A growing movement to revitalize and preserve culture is
Economic Development

Culture revitalization initiatives are aimed at reversing the negative consequences of historical government policies while promoting cultural identity and heritage. Initiatives like these take many forms, which includes federal and non-profit programs, and they have different objectives and strategies. One critical aspect of culture revitalization is economic development, which is where Community Development Financial Institutions (CDFIs) come into play, such as Mni Sota Fund. As a CDFI, we specialize as a financial institution that works to bridge these gaps in resources while creating access for our American Indian community.

At Mni Sota Fund, we offer our resources and expertise to individuals and families to attain their financial objectives and create long-term prosperity. To discover more about our programs, and learn more about our First Time Homebuyer Support, visit mnisotafund.org/homebuyers, and begin collaborating with one of our Financial Wellness advisors by visiting mnisotafund.org/financial-wellness.

The panelists of the Minnesota Homeownership Center Podcast unanimously advised potential homebuyers to prepare themselves in advance and remain prepared to make a purchase, regardless of the industry trends prevailing in the current market. They emphasized that there is no specific income threshold that one must attain before being ready to purchase their first home because…

Your Income is Less Important than your Debt to Income Ratio (DTI)

Debt to income ratio (DTI) is a financial metric used to measure the amount of debt a person has in relation to their income. It is a simple calculation that compares a person's monthly debt payments to their monthly income. A good DTI is generally considered to be 36% or lower, while a DTI above 43% is considered high and may make it difficult to borrow money or get approved for a mortgage. Lenders may require borrowers to reduce their DTI below a certain threshold in order to qualify for a loan. This can also impact financial decisions around borrowing money, buying a home, or getting approved and may result in higher interest rates, lower loan amounts, or outright loan denials.

In the lending industry, DTI is an important financial metric that measures a person's debt in relation to their income and is used to determine a borrower's creditworthiness and ability to repay a loan. It is important for individuals to calculate and manage their DTI in order to maintain good financial health.

There are many online tools and resources available to help individuals calculate and manage their DTI.
By Taking steps to manage debt and improve credit scores, you increase your chances of qualifying for a home mortgage loan.

NerdWallet offers a Debt-to-Income Ratio Calculator that helps individuals calculate their DTI and understand how it affects their ability to qualify for loans. The calculator allows users to input their monthly debt payments and gross monthly income to determine their DTI. It also provides guidance on what DTI range is considered good, fair, or poor, and offers tips for managing debt and improving credit score.

Ramsey Solutions provides a Debt-to-Income Ratio Calculator that allows users to enter their monthly income and expenses to calculate their DTI. The calculator also provides suggestions on how to improve DTI and offers a breakdown of expenses by category to help users identify areas where they can cut back on spending.

Microsoft 365 offers a step-by-step guide on how to calculate DTI, including a list of expenses to include in the calculation and a formula for determining DTI. The guide also offers tips for managing debt and improving credit score to help individuals achieve a healthy DTI.

Bankrate provides a Debt-to-Income Ratio Calculator that allows users to input their monthly income and debt payments to calculate their DTI. The calculator also offers suggestions for improving DTI and provides a breakdown of expenses by category to help users identify areas where they can reduce spending.

Achieve Financial Stability – The Benefits of Working with an Advisor

By working with an advisor, prospective buyers are able to gain a better understanding of the homebuying process early on, which is essential while they learn to navigate the different complexities and challenges of credit repair, budgeting, and saving for a down payment. Your advisor works with you in the process towards homeownership, this includes a review of credit reports, addressing areas that need work, assessing inaccuracies of debt or lending, and the information present on credit reports, while working to build out a budget centered around adjusting expenses and increasing savings for your new home.

Get Ready, Stay Ready

To be prepared for the right opportunity, prospective homebuyers should proactively prepare in advance. Maintaining mortgage readiness is crucial for first-time homebuyers to anticipate and navigate the challenges of the home buying process. This involves establishing a savings plan, researching mortgage options, completing the pre-approval process, finding the right property, and closing the deal. It is important to emphasize the significance of maintaining mortgage readiness, and advisors can provide actionable advice for buyers to achieve their home buying goals. By working together, we can build stronger communities and help more families achieve their dreams of homeownership.

How to Be a Homeowner

Becoming a homeowner is an exciting and rewarding experience that comes with both joys and challenges. Owning a home provides a sense of stability, pride, and creative freedom, yet it also requires responsibility, financial commitment, and upkeep. As new homeowners, it's essential to understand what to expect in terms of responsibilities, costs, and maintenance. Because repairs and maintenance are ongoing tasks that require time, effort, and money.

Mni Sota Fund offers Post-Purchase classes as a tool to learn more about what it means to be a homeowner, learn homeowner expectations, and how to run a healthy home.

Learn more about our Post Purchase classes at mnisotafund.org/advising