More than 75 million Americans call themselves homeowners. In 2005, more homes were purchased than in any year before, and prices for existing homes increased an average of 12%.

This kind of growth has led to historic levels of wealth creation. As men and women saw the value of their homes go up, they tapped into their equity to make home improvements, send their children to college, start a business, or make other big-ticket purchases.

It is hard to overstate the impact owning a home has on the economy. Home equity accounts for about one-third of overall household wealth in this country. Last year, Americans took a record $244 billion out of the equity they had in their homes– an astonishing 72% increase over the previous year.

Owning a home is about more than just wealth, though. Throughout our nation’s history, homeownership has been creating community stakeholders who are active in charities and churches. Homeownership inspires civic responsibility–owners tend to vote and get involved in local issues. Homeownership also offers children a stable living environment that influences their development in measurable ways. According to a University of Illinois study, children of homeowners score 9% higher in math and 7% higher in reading. They are also 13% more likely to graduate from high school and have a 5% lower teen-pregnancy rate.     

Those who want to say good-bye to renting should think about taking concrete steps toward making the dream of homeownership a reality.

“Education is the single most vital tool in understanding if homeownership is right for you,” says Julie Fagan, the field office director for the US Department of Housing and Urban Development (HUD). “Through our housing counseling programs, we educate potential homebuyers so they better understand the process of buying a home and better understand their rights.”

This year, preservation of homeownership is a key priority for HUD. “Attaining homeownership is not enough; protecting it is equally important. Getting a loan that you can afford is key,” says Fagan.

Too many homeowners have gotten loans that have seen increases in payments, and homebuyers are now unable to make the monthly payments. Homeowners can refinance into better and less risky loans through HUD’s Federal Housing Administration. Refinance products are available to finance up to 95% of the property value with cash out, and up to 97% of loan value with no cash out.

Households considering the original purchase of a home or refinancing of an existing mortgage should contact a housing counseling agency and an approved FHA lender.

For more information on housing counselors and FHA lenders in the local area, visit the HUD Web site at www.hud.gov.