Turning a dream into reality

For Jackey Smith, who grew up in a San Francisco housing project, being the first person in his family to own a home has been a personal triumph.

“My grandparents wanted to be homeowners, but that was never possible for them,” he said. “So being able to say I own a piece of property ... is humbling.”

In fact, it was after the death of his grandfather last year that Smith, 26, began his house hunt.

“My wife and I decided to look at homes just to see what we’d want. We went up to Lancaster and drove to about four or five homes, and at about the fifth, something inside of me said, ‘This is your house,’ ” said Smith, who was renting an apartment in Inglewood at the time. The model they liked was priced at $325,000 before add-ons, and the couple started the home-buying process that night.

Although Smith believes his grandfather’s spirit may have been watching over him that day, he and his wife, Shabren, who both recently earned master’s degrees in social work from USC, also credit DHI Mortgage, an affiliate of D.R. Horton Homes, for guiding them in the purchase of their 2,037-square-foot, four-bedroom home.

“They gave us a clear understanding of what was expected from us and what the process entailed,” said Smith, who added that he found having their finances scrutinized a bit intimidating.

The builder, as well as Western Pacific Housing, a division of Horton, and KB Home, are among Southern California residential developers that have started programs and classes to help first-time and credit-challenged buyers make the leap to homeownership. Although mortgage companies, real estate agents and nonprofits have long offered buyer workshops, builders’ interest in such programs is not just a result of altruism. Such classes are a natural marketing tool for builders who want to establish relationships with buyers and direct them toward lenders.

The D.R. Horton-affiliated DHI Mortgage Home Buyers Club, for example, which also helps owners who are refinancing their homes, is an intensive program designed to target every area of a client’s credit file.

When enrolling in the club, consumers are assigned a loan officer who is responsible for evaluating their eligibility for a mortgage, as well as an advocate who will educate them throughout the credit-checking process.

“These home buyers clubs fill a valid and needed purpose,” said Dianne Wilkman, president of Springboard Non-Profit Consumer Credit Management in Riverside. “We see a lot of abusive practices that unfairly damage people’s credit scores, and they need these credit advocates.”

Such clubs and programs are effective ways to even the playing field, Wilkman said. “You need a lot of knowledge of how the system works. A damaged credit score will create a higher-cost loan, so it’s an important starting point to make sure your credit report isn’t being abused.”

Homemaker Sandy Wicken, 37, and her husband, Darrin, 34, a postal worker, are among the nearly 1,000 people who have participated in the DHI Mortgage Home Buyers Club. The Chatsworth renters wanted to get a clearer idea of what ownership would entail.

Wicken said she and her husband participated in the program “so I wouldn’t be so scared about buying a home.”

“I didn’t know what to expect, but now I’m not as nervous about it,” she added. “I had no idea what would be involved financially, about things like points, taxes and credit score.”

Since 2004, according to Mike Seeley, an affordable lending loan manager and a below market rate home specialist at DHI Mortgage, the program has assisted 340 families in purchasing homes.

Even with their newfound understanding of the process, Sandy Wicken said L.A.-area home prices are making it difficult for the couple to join those ranks. But at least they now have an idea about what’s available in their price range, she said, and the steps to buying a home.

Although D.R. Horton walked the Smiths through the loan process, they declined to join a buyers club. Instead, Shabren, 25, got a real estate license -- not to sell homes, but to educate herself further about the process.

Jackey is still taken aback by their status as homeowners. “Some people who come from substantial means,” he said, “still aren’t able to purchase a home.”