EDINBURG, Texas – The average renter in the U.S. has a net worth of $6,300. The average homeowner in the U.S. has a net worth of $254,000.
The Edinburgh-based Viva Home team aims to fill this gap.
“At Viva, we are a purpose-driven team committed to closing the 40x renter wealth gap. We believe everyone deserves the opportunity to build wealth and achieve financial stability, regardless of their housing status,” said Viva CEO Michael Barnes.
“We strive to empower renters by providing them with access to essential services – resources, tools and support to help them improve their wealth and well-being – to achieve lasting financial resilience. Our goal is to bridge the gap between renters and homeowners and promote a more equitable and inclusive society.”
The Rio Grande Guardian conducted an interview with Barnes to ask how Viva is handling this. In the interview, Barnes said that homebuyers in Hidalgo County are missing out on over $5 million in free grants each month, with each family potentially losing over $5,000 in grants when purchasing a home.
Barnes said this “alarming trend” means that home buyers in Hidalgo County could lose a total of $60 million in a year. “Why spend $5,000 in cash at closing when you could save that money for emergencies or necessary renovations after the purchase?”
In the interview, Barnes said Viva found that a significant majority of homebuyers in the Rio Grande Valley – more than 90 percent – were eligible for a limited-time $5,250 grant. He said that grant, which is backed by Fannie Mae, can be accessed directly through their Viva Home Team program.
Here is his statement:
“Our main focus is to help renters close what we call the 40x renter wealth gap. That means the median net worth of a renter is 40 times less than the median net worth of a homeowner. And as you know, the majority of renters are low-income people from diverse backgrounds, and in the Valley in particular, it can be difficult for people to overcome that hurdle.
“So our journey over the last few years has been to really look at this concept of benefits. There are things that can help renters overcome challenges, including owning a home.”
Barnes said the Viva Home Team program connects renters directly with experts via text chat to help them streamline the home buying process. He said the service is completely free and comes with no obligations or requirements. However, he said Viva is able to connect residents with real estate agents or mortgage lenders if needed to assist them with the home buying process.
In the interview, Barnes said that 90 percent of renters Viva speaks to say owning a home is their ultimate goal.
“That’s the definition of the American dream for most people. And so it happened that as we traveled, we discovered that there were certain grants that were specifically tailored to regions like the Rio Grande Valley and particularly the McAllen MSA (Metropolitan Statistical Area),” Barnes said.
“And then there’s this one that’s backed by Fannie Mae. They provide the subsidy directly to mortgage lenders and provide a $5,250 loan that’s not tied to income. It’s literally based on the fact that you live in this census tract for McAllen MSA.”
The McAllen-Edinburg Mission MSA covers all of Hidalgo County.
Barnes continued: “As we worked with people in the county, we found that almost none of the 1,000+ buyers per month know about this grant, and neither do their agents and brokers.
“So we’re basically using this as what we call a 100 percent education campaign. We want to reach out to brokers, real estate agents, title companies, even elected officials and say, hey, let’s make sure everyone knows (about this grant), because every month people are spending $5,000 out of pocket that they don’t need and that’s already covered by a grant specifically for them.”
Editor’s Note: Here is an audio recording of the interview with Michael Barnes, CEO of the Viva Home Team:
Editor’s Note: For more information about the Viva Home Team program and to apply for the scholarship, visit their website at www.vivahometeam.com or contact them via email at [email protected].
