Homeownership Month: Loan Officer Talk

In celebration of Homeownership Month, we’d like to recognize a few of our partners around the state who are helping Hoosiers realize their dream of homeownership. 

Cindy Julian-Shott, Vincennes, IN

Cindy has been in banking for more than 20 years, but she found her passion eight years ago when she became a licensed Loan Officer. She believes in giving back to her community, and serves as a secretary for the local fire department and as a wish granter for the Make-a-Wish Foundation. When her community is in need, Cindy is quick to rally, from helping organize a fundraiser to raise money for a local policeman who was injured in the line of duty, to planning a military sendoff for the deployment of local young men and women. We asked Cindy a few questions about her experiences of being a Loan Officer.

What is one misconception that people have about mortgages? “The biggest thing I hear is that most buyers think they must put down 20% to buy a home. After I help educate the client, I can see that they’re relieved the down-payment may only be 3.5% to 5%, depending on the loan.”

What are some challenges in the housing market?  “Inventory, which is the current amount of homes that are available in the real estate market, is a big challenge. I like to take the positive approach and remind a borrower that the right house will come up. Even as inventory is low and people are competing for homes, a borrower can still end up getting under contract.”

What do you enjoy the most about helping homebuyers? “When the client gets to the closing table. It never gets old seeing them at closing, getting the keys to their new home.”

What tips can you give first-time homebuyers? “I start by educating the borrower on the whole process, step by step. I learn about what the individual borrower needs and give them the best options for their situation. I educate about their credit health, escrow, the appraisal, everything that leads to the signing the paperwork at closing.”

What are some tools you use to help potential homebuyers overcome barriers to homeownership? “IHCDA’s [down payment assistance] programs help out a lot. Many people don’t have the enough savings for the deposit, closing costs and the down payment, so finding the money for those costs is the biggest barrier. Once I know they meet requirements for IHCDA’s down payment assistance program, the borrower is excited to know they can get the help they need for buying their home.”

Habitat for Humanity of Indiana, Inc. represents 51 Habitat affiliates that have built or rehabbed over 6500 homes for low-income Hoosiers. Habitat serves families that make between 30%-80% of the area’s median income. Families are selected based on three criteria: need, ability to pay, and willingness to partner. Need is determined by assessing their current housing with a focus on moving families out of housing that is substandard, overcrowded, or a cost burden. Ability to pay is an assessment of their financial situation and their ability to repay a 0% interest mortgage. Willingness to partner is the family’s willingness to participate in our program which requires “sweat equity” investment in the construction of the home, financial education classes, and basic home repair courses.

In 2015, Habitat and IHCDA partnered to create the Habitat Indiana Home Investment Fund (HIHIF) through an award of Development Fund. The first investment, made in 2015, served approximately 100 Habitat homes. In October 2022, IHCDA’s Board of Directors approved a second investment to the HHIF, providing an additional $510,000 to further seed the loan pool. The fund will make 30 initial investments of $17,000 each to Habitat homes built statewide; $5,000 of awards will be structured as a microloan, which will revert back to the HHIF. As the funds revolve, Habitat would be able to ultimately fund 42 homes through out the state.

Through the first funding round, Habitat for Humanity of Indiana has awarded funds through the HHIF to nine affiliates. Currently, this includes units in eight counties: Elkhart, Perry, Jefferson, Tippecanoe, Vigo, St. Joseph, Marion, and Hancock.

Nine Habitat affiliates have been awarded funds, including: HFH of Elkhart County, Perry County HFH, HFH of Southeast Indiana, Wabash Valley HFH, HFH St. Joseph County, Greater Indianapolis HFH, Habitat of Clark and Floyd Counties, and HFH of Grant County. 

IHCDA has the pleasure of hosting four interns this summer.  This week let’s meet Melissa Cavaletto (pictured) who is serving as our Community Services intern as part of her graduate program experience.

Last month, she walked at Indiana University Kokomo with a Master’s degree in public management and additional graduate certificate in health management. Previously, she served 20 years as a teacher of the deaf and hard of hearing in school districts in Tennessee and Indiana. While in graduate school, she was an independent educational consultant focused on communication mediation in special education advocacy situations.

She is interested in strategic analysis, building capacity, and policy. She has been working with IHCDA’s Youth Homeless Development Program, funded through a grant from the Indiana Department of Education to create a fingertip index reference document of concerns, goals, measured successes, and next step planning of communities’ strategies to end homelessness in the youth and young adult population across the U.S. based on “100-Day Challenge” data. Her next project is to compare Consolidated Plans of the Balance of State and Entitlement Cities to identify shared strengths, opportunities for collaboration, and develop communication.

Thanks for joining the team, Melissa!

Our Board of Directors meetings are hitting the road! Throughout the summer and fall we will be visiting affordable housing developments in northern, southern, and central Indiana for these meetings.

We look forward to these opportunities to meet with developers, property managers, and community partners who share our mission to make housing more affordable, accessible, and equitable throughout our state. 

National Homeownership Month serves as a reminder that a home purchase is one of the biggest financial investments a Hoosier will make. According to the National Association of Realtors, the average homeowner has a net worth of 40 times more than that of a renter, and along with these wealth gains, homeowners also saw their debt drop by 21% over the last decade. The transition from renting to buying is a big step which requires patience and lots of planning, but taking steps like tracking your expenses, completing a homebuyer education course, and researching down-payment assistance programs can help you get started.

Connecting with a participating lender is the first step towards using IHCDA’s down-payment assistance programs, and can be your first step to buying a home here in Indiana! You can check out our full list of participating lenders HERE.

This week’s featured lenders are:
Busey Bank
Integrity Mortgage Group
Novus Home Mortgage