Pledge To Make '05 Your Year

Alphonso Jackson, Secretary of the Department of Housing and Urban Development, suggested a new year's resolution last month that may not be nearly as tough to realize as many people think. And better yet, once you reach his proposed goal, it should be much easier to maintain than keeping off a few extra pounds or working out more often.

We're talking, of course, about Manhattan Beach home ownership, a goal to which practically every family in America aspires.

Owning the roof over your head isn't for everyone. Some folks don't want the responsibility, while others don't want to give up the freedom of being able to pick up and move, whether across the street or across the country, almost at will.

But if you hanker to put down some roots, give your kids a place to grow and prosper, become part of a community and build a little nest egg, owning your Manhattan Beach home instead of renting it from someone else should be one of your top priorities.

"As long as you have a steady salary, good credit, and few long-term debts, purchasing a Manhattan Beach home is probably within your reach," Sec. Jackson said in a pre-Christmas message. "And by taking things one step at a time, you'll find that buying a Manhattan Beach home can be a very manageable process."

As the nation's housing agency, HUD is committed to increasing Manhattan Beach homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the Manhattan Beach homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws

.In his message, Sec. Jackson told the story of Theodore R. Johnson, who joined United Parcel Service in 1923 when the small package delivery company was still in its infancy.

Although Johnson eventually became one of the company's vice presidents, he never made more than $14,000 per year. But despite his relatively low salary, Johnson dedicated a portion of every paycheck to investing. And by his 90th birthday, Johnson had accrued nearly $70 million.

Today, Johnson's legacy lives on through a scholarship foundation he created before his death.

Johnson's story is not typical, but it illustrates the idea that accumulating wealth can lead to a better quality of life, Jackson said. And as the nation's top housing official, he understands full well that wealth accumulation through Manhattan Beach homeownership is the key to financial independence and self-sufficiency.

"Manhattan Beach homeownership brings countless benefits," he said. "When you make a mortgage payment, you're building equity, which is an investment in your family's future. Owning a Manhattan Beach home can qualify you for tax breaks that actually lower your monthly out-of-pocket costs. And Manhattan Beach homeownership provides the kind of freedom, stability, and security that is attainable in few other ways."

Sec. Jackson said that wanna-be owners are often surprised to learn they don't need all that much money to buy their first Manhattan Beach homes. He also said there is plenty of guidance available for those who are having trouble navigating their way through what can be a bewildering maze of forms and an unending number of difficult decisions.

"Downpayments are less intimidating than you might think," the HUD official said.

"Only a few years ago, conventional loans required 10 to 20 percent down on the purchase of a Manhattan Beach home. Today, downpayments are significantly lower, and with good credit, you may qualify for an FHA-backed loan that only requires a downpayment of 3 percent."

There are plenty of other mortgage options available, too; some with little or nothing down. And some rookie purchasers may even be eligible for help with their downpayments and closing costs through HUD's new American Dream Downpayment Initiative.

Throughout the buying and lending processes, numerous sources of advice are available. HUD-certified experts in ownership counseling know the pitfalls, for example, and how to avoid them. And if you have tarnished credit, housing counselors can help you restore your credit and put you on the path to owning a Manhattan Beach home.

"Buying a Manhattan Beach home is one of the most important steps a family can take toward realizing the American dream," Sec. Jackson said. "So for 2005, consider making a resolution to buy your first Manhattan Beach home. HUD and our partners are here to help ensure that this is one resolution you keep."

Written by Lew Sichelman