A Letter from our CEO
To our current and future friends:
Home ownership is a critical component of a stable and equitable society.
CFI exists to promote responsible homeownership in the Detroit Metro Area. At present there are many economic factors are working against the middle class. Home ownership is one of the pillars of a stable community, yet many individuals and families are finding the barriers to owning their own home insurmountable.
CFI provides a path to home ownership for disenfranchised prospective purchasers locked out of the banking world, due to credit and other qualifying issues. We know our market and we know how to help home buyers be successful. When our company is involved in a transaction, we provide much more than financing. We partner with each client to provide ongoing support to enhance their opportunity for success.
Consider the following:
Families who own their own home are far more likely to see their kids graduate from high school. More likely to see their kids go to college AND graduate. Less likely to see their kids detained by the criminal justice system. They are more likely to retire in financial comfort, less likely to divorce and more likely to be an asset to their community. They are less likely to require public assistance, more likely to live long and healthy lives, and less likely to become homeless.
Homeowners are less likely to become crime victims. Homeowners are less likely to commit crimes.
Daughters of homeowners have a much lower incidence of teen pregnancy. Sons of homeowners have a lower delinquency and incarceration rate.
Homeowners learn beneficial financial skills, discipline, and strategies which are then passed onto their children. The children of homeowners earn more money as they grow up and are more likely to own a home of their own someday. Home ownership breaks the generational cycle of welfare dependence and poverty.
The young children of homeowners tend to have higher skill achievement in both reading and math. They tend to have fewer behavioral problems. The children of homeowners transfer from school to school far less often because their parents move less often contributing to better educational outcomes. Any strategy designed to improve educational outcomes for children is not complete without consideration of increasing home ownership within the community.
Homeowners typically maintain their property better than landlords contributing to increased neighborhood values and stability.
The evidence is compelling. Home ownership makes a difference.
CFI exists to help make that difference a reality for more families.
Community Financial Inc.
Community Finance LLC
1. Homeownership and stable housing go hand-in-hand. Homeowners move far less frequently than renters and hence are embedded into the same neighborhood and community for a longer period. While 4.7 percent of owner-occupied residents moved from 2010 to 2011, 26 percent of renters changed residential location.
2. We found earlier that housing stability lowers teenage pregnancy. There is a vast literature on the link between teen pregnancy and the likelihood of receiving public assistance. Therefore, to the extent that homeownership and stable housing reduce teen pregnancy, one can expect a reduction in the incidence of public assistance among those living in a stable neighborhood. (Sawhill, I., 1998. “Teen Pregnancy Prevention,” Brookings Institute’s Policy Brief #38)
3. Well-established literature provides evidence that residential stability is good for children (e.g., Adam 2004). In the U.S. context, ownership is the method by which parents can assure their children stability. Unless we change how real estate institutions in the United States work, homeownership will continue to play an important role in producing positive outcomes for children.
4. We find that owning a home compared with renting leads to a 13 to 23% higher quality home environment, greater cognitive ability and fewer child behavior problems. For children living in owned homes, math achievement is up to 9% higher, reading achievement is up to 7% higher, and children’s behavioral problems are 1 to 3% lower.
5. Research on crime and homeownership shows that homeowners are far less likely to become crime victims. A study of both property and violent crime in New York City suburbs found that homeowners encountered significantly lower crime rates even after controlling for other socioeconomic variables. Glaeser and Sacerdote also found a lower incidence of crimevictim among homeowners.
6. In a study by Henderson and Ioannides, the authors argue that landlords cannot distinguish between households that will maintain a rental unit from those that will cause damage. Consequently, landlords charge rents based on the expected level of care that will be taken by renters and households that plan to take care of their dwelling are motivated to become homeowners. Further, homeowners have a financial interest in ensuring that their unit is well maintained and repaired while mobile households may ignore damage. (G.C. Galster, 1983. Empirical evidence on cross-tenure differences in home maintenance and conditions. Land Economics 59, 107–113)