How Can Businesses Help Employees Own a Home
When employers help their employees buy a home, it will be a win-win situation. Major companies are helping their employees buy a home near their headquarter or branches. It’s easy to see why. When employees live near the office or store, it is less likely that they will uproot their families to transfer to another company or job. They will be more loyal to the company that helped them get approved for the home mortgage.
Realizing that they have a mortgage to pay will also make them work harder. Your staff will most likely exert more effort into their jobs because they want to repay the loan, improve their homes, and move toward financial security. As they are laying down roots, businesses reap the rewards of helping them.
On top of that, homeownership contributes to the employees’ financial, physical, emotional, and psychological well-being. Owning a home empowers them. It also builds strong communities, which are always good for business.
With the rising cost of real estate properties, employees find it hard to afford a home without help from their employers. Getting approved for a mortgage isn’t just about complying with the requirements for the housing loan. It’s also about being qualified to get that stamp of approval from the bank. In this article, you’ll learn how your business can help your employees get a home they can call their own.
Offer an In-house Loan
In-house loans aren’t always a practical offer, especially if the employee hasn’t been with you for a long time. This should be a privilege offered only to a select few. Plus, if you do not have the money, don’t force it upon your business. Although helping employees with their down payment is surely a big help, this isn’t the only way you can help them get their dream homes.
You can also process the documentary requirements a little faster. You can offer to write a recommendation letter, noting that your hardworking employees will be due for a salary increase in the next few months or years. This will assure the banks that the borrower’s employment is for the long term. Best of all, you should compensate your employees well according to their contributions to the company. Empowering them financially will give them the tools to eventually own a home.
Invite Real Estate and Mortgage Agents
Agents are always on-the-go and ready to bring their show to the road. Companies can invite real estate and mortgage agents to present before their employees. They can conduct workshops on homeownership, mortgage financing, grant assistance, low down payment options, and even home maintenance tips. Educating employees is the first step toward the fulfillment of their goals.
Hold Financial and Credit Counseling
To help your employees own a home, you need to also help them handle their finances better. Credit and financial counseling educate people on how to save for a down payment, qualify for a loan, check and improve their credit scores, and choose the right type of mortgage and interest rates. Informed employees can help avoid the financial pitfalls of buying a home that’s more than they can afford.
Create Down Payment Assistance Programs
Home prices are skyrocketing all over the country. It is hard for employees to afford the 20 percent down payment usually required. Employers can help in three ways:
- They can open a separate account for their employees and save money for them.
- They can offer employees direct financial assistance by paying the down payment in cash with interest.
- They can help them get financing from government-sponsored programs usually only known to employers.
Help Find Local Realtors
Once your employees are ready to buy their homes, you can assist by helping them find good and reputable realtors. Some companies even partner with local real estate companies to offer discounts to their employees. Many homeowners have managed to snag a good deal on their homes because of their companies.
When employees get duped, they will suffer from huge financial setbacks that can put even their productivity in jeopardy. Stressed employees usually have a harder time keeping up with their work. They will be consumed by the financial problems owning to getting fooled by a real estate agent that their work, and your company, will be at risk.
Employers can’t simply be people who pay employees to do their jobs. You should also help them improve their lives and well-being by empowering them financially. When employees are empowered, they can do their jobs better. They are also inspired to work harder and stay with the same company for a long time.