Mortgages for Minorities: How much is too much?

he Fed has released several reports over the last few years that express, in detail, the differences between mortgages offered to minorities and mortgages offered to whites. While the industry tries to maintain that they offer fair business practices, the results don’t support this at all. Minorities are more likely to be denied a home loan, often pay higher interest rates than whites and frequently must provide a larger down payment. The gap between minority home owners and whites continues to narrow at a snail’s pace, but steps are being taken to help change the situation.

Loan Rejection

African-Americans and Latinos suffer a large percentage of rejections when applying for mortgages, research suggests. Latinos have the highest denial rate, nationwide, with African-Americans coming in 6th, behind Latinos and other minorities. Lenders say it has nothing to do with minority status and much more with credit ratings and debt loads that are not taken into account by the surveys.

Local and national programs have been instituted to help minorities achieve home ownership, including Self-Help, HUD and other programs. Wachovia and BB&T also offer several programs on local levels geared towards providing sustainable mortgages for minorities.

Higher Interest Rates for Minorities

African Americans and Latinos are much more likely than whites to have higher interest rates, according to a study by the Federal Govt. The study shows that the disparity lies across the board, in all income brackets, but is especially prevalent in the instance of minorities with higher incomes. As strange as it seems, high earning minorities are more likely to get a higher interest rate mortgage than lower earning applicants.  The study shows that discrimination certainly plays a role in lending, today.

Legislation, though slow moving, is before law makers to help correct the situation and several groups are lobbying Washington for more action and penalties for lenders practicing racial discrimination. Again, lenders say the study did not take into account credit ratings or debt load for the applicants.

Down Payments

Due to the nature of the loans they are able to attain, minorities are sometimes required to put down larger down payments than whites. This is a major reason for the lower percentage of home ownership among minority groups. The same study cited above released their findings that many minorities are able to pay the equivalent of a mortgage payment in monthly rent, but are unable to save enough money to make a large down payment.

The President’s much maligned “zero down” plan is aimed at providing homes for minorities with little or no money down through the American Dream Down Payment Fund. This program is designed encourage home ownership in minorities, helping to close the gap between minority home owners and whites.

Conclusion

While steps are being made, they are not enough to close the gap between minority home ownership and that of whites. Minorities face a myriad of discriminatory practices in the housing and lending industry and only a concerted effort by citizens and lawmakers will make a difference. Old stereotypes need to be wiped away and new practices instituted to change the face of the lending industry.

Check out our Colorado Home Loans website for the best rates on colorado loans.

Why Investing in Boulder Colorado is a Great Idea

Plus Simple Steps to Finding the Perfect Boulder Property

Who doesn’t want to live in a place where you can find solace and serenity right at your very own doorstep? Have you ever thought of living in a place where mountain ranges are just stone’s throws away?

If you are the type who loves anything and everything about nature, why not try to invest in Boulder, Colorado?

So why consider living in Boulder, Colorado? The state is generally surrounded by an open space. Lying on the foothills of the infamous Rocky Mountains, Boulder is basically deemed as the city that is nestled in between scenic mountain ranges and reality. Boulder is also considered as America’s premiere sport’s town and is popular for its diverse culture with friendly and nature-loving residents.

Aside from being the premiere in sports destinations and stunning mountain ranges and views, Boulder is also the main location of the University of Colorado, the home for the entrepreneurial and intellectual spirits. And because there are hundreds and thousands of locals already living in this place, finding the perfect spot for your home investment tend to be a bit hard to achieve. But below are some practical ways on how you can find the perfect Boulder, Colorado home for you and for your loved ones.

Choose the Location. Boulder has varied options when it comes to home locations. If you are that someone who loves the outdoors and play sport, or you have kids that go to school, you can find a lot of real estate properties right in the heart of the city. The price range varies from the smaller and more affordable types of property, down to the highly expensive and stunningly posh abodes. On the other hand, if you are the type who loves driving around and prefers to stay in a more secluded and a bit far-flung location, there are also urban locations that might suit your taste. The options are really far too many and you can never go wrong!

Check the Neighbourhood. Although this concern is mostly shrugged by some home buyers, it is practical to check around the neighbourhood and see what the environment is. Do you like to have a more peaceful and laid-back environment with less neighbours? Or do you prefer to stay in an environment with lots of friendly residents whom you can talk to anytime of the day? Your options are practically a lot. All it matters is finding the one that could meet your expectations.

The Size. The size and the floor plan of your home should fall according to what you perceive it to be. Yes, everybody has his dream home; with numerous bedrooms or spacious backyards, and the likes. But do you really think that is practical? Not unless you can afford it, go for a house that is fair enough on your budget and your taste. Especially in a more crowded neighbourhood in Boulder, the size of your house matters a lot. Be sure to discuss this area of concern to your local real estate agent and carefully share your expectations.

Boulder is indeed one great place for a more laid-back and relaxing environment. Have your own home at Boulder now!

Colorado Home Loans: Simple but Practical Guides for Home Investments

Colorado is one place that has tons of real estate properties. Since the options are far too many, finding the most suitable one may seem to get too confusing. Below are some simple but practical guides to consider before considering a home loan in Colorado.

Investigate. If you have a real estate property that you think serves you right, take time to investigate it and check from all the angles, making sure that it falls according to your preferences. There may be some properties that you might think promising enough so be sure to investigate the property.

Be Responsible. Next to your friends and your family, no one really seems to care at all about your considering a home loan or a real estate property. Take ample time to understand the laws. Avoid getting too dependent to the sellers because chances are, they might have no strong background on the legal system, or worse, they might not tell you about it. Although records show that property investments are notable minus the hitches, it’s still safe to be sure.

Read the Contract. Make sure to properly read the home loan contract. Be aware that contracts should give you enough time, say a week or more, to give you enough time to fully understand the deal. There are a lot of issues and concerns discussed on the contract and if you think you have no time to grasp the whole idea, a real estate professional is a great help. You can also contact a lawyer with enough experience in commercial real estate. If you notice the seller getting too pushy to the point of shortening the whole of your time-frame, keep in mind that this might be a warning of a not-so-good deal.

Inspect. Before considering any Colorado home loan, or any real estate investment, see to it that you hire a certified real estate inspector. Also, it is imperative to obtain an environmental inspection so that all concerns of the important areas on a property are properly dealt with. Find an inspector whom you can trust. Although he might not know everything there is to know about a particular property, he can still give you ideas that might help.

There are really a lot of things to consider especially when buying a real estate property or considering a home loan. Take time to know more about particular concerns before you finally decide on which property to consider. That way, your hard-earned money will not end up losing in the long run.

Boulder Real Estate: Tips and Advice when Buying a Home in Boulder

Finding the right real estate property can be quite tricky because of the numerous options available for you. Because Boulder is a place excellent to work and to live, or even to retire, it is normal to hear people talking about investing on a real estate at Boulder.

Hunting for that perfect house in Boulder takes a lot of time. The competition among sellers is surprisingly as fierce as those among buyers. That’s simply because thousand of people can afford to invest in Boulder. So how do you find the perfect one that is just for you? Here are some practical steps.

Search thru the Real Estate Market in Boulder. Make use of the information superhighway! Identify the size of your preferred home. It is useful as well to know where particularly in Boulder do you wish to live in. When you search online, you can possibly take virtual tours on most real estate properties. You can also check out photos and read about the features of a home. Additionally, checking the neighbourhood on your preferred property is also possible. Price ranges are available also when you check thru the Internet.

Check out Hospitals and other Facilities. Not unless you do not have kids, it is important to check out locations in Boulder where reputable schools, hospitals, as well as other important facilities are available nearby. Discuss this with your real estate agent for better options.

Consider your Budget. Real estate properties in Boulder have varied price ranges, depending on the location and the size. You have to determine the overall costs and the monthly payments along with other fees, upon considering a Boulder real estate property. This can easily be done because today, most websites of real estate agents provides mortgage calculators to determine particular charges. Be sure to check out all the necessary information like the closing costs, the tax deductions, the interest rates, and a whole lot more. However, if you have a hard time understanding the number and figures, your real estate agent is just a phone call away. Ask your agent to clarify those things that tend to get too confusing.

Those are but some of the important things you need to consider upon deciding to purchase a Boulder real estate property. When you are about to move to your new home in Boulder, there are U-haul trailers available for rent that gives you the luxury to do the moving yourself.

To have the best and most relaxing home, consider a property at Boulder, Colorado.

Why terminology is important for mortgage industry

Experts believe that the best way to know any industry is to know it from the very basics. Knowledge of terminology can help a lot in this respect. What terminology signifies is a collection of related terms and concepts that gives an idea of the fundamentals of the industry. Without a fair knowledge of the basics of the industry, you will hardly know how the industry is going to serve your purpose.

The mortgage industry covers up a wide arena as far as its service is concerned. So you are likely to come upon loan frauds and scams. Many a times, lenders in this industry deceive common people who are often not aware of mortgage concepts. That is why borrowers in this industry often complain of being let down by their lenders. But a little knowledge of mortgage and related issues can help you prevent such frauds. The best way to keep yourself away from such illegal activities is to acquire some knowledge on this industry. Here is where mortgage terminology can help you the most.

Mortgage terminology includes the basic terms and concepts used by professionals in the mortgage industry. Knowledge of the terminologies can help you to have a better understanding of how the industry functions and how you can benefit from it. Then there is also the legal aspect of this process, which you should know in order to prevent yourself from falling into any trap set up by the lender any other mortgage professional.

Native Americans and Mortgages

American Indians, while still falling below many minorities, have several avenues open to them to facilitate acceptance of mortgage applications. The Federal Govt. has established these agencies in response to problems American Indians may face when applying for a traditional mortgage. American Indians can face extraordinary difficulties in obtaining a traditional mortgage due to economic depression in tribal lands and unfair lending practices.

 

 

HUD provides Native American’s with recourse to mortgages through the establishment of its Office of Native American Programs, or ONAP. ONAP offers American Indians several options in mortgage types, loan duration, interest rates and amount of down payment. HUD’s ONAP can be accessed through mail, in person or through Web access; in addition, many websites offer a rundown of the benefits of ONAP’s loans providing valuable information to American Indians interested in HUD’s mortgage loans. Some of the benefits from using HUD’s One Stop Mortgage Center are zero down payment, potential refinancing, mobile home financing and veterans programs.

 

 

A partnership between the Native American Bank, LenderLive and Greenpoint Mortgage has resulted in turnkey home mortgages for American Indians for a number of purposes like rehabilitation, refinancing and home buying. This partnership provides American Indians with great resources to help in getting a home loan. The Native American Bank is now in position to be the number one lender to American Indians and to reap the rewards of serving this growing sector of the industry.

 

 

The Fannie Mae Organization has also created mortgage programs for Native Americans. These do not have as broad a spectrum as the HUD loans and some of the terms may be somewhat less attractive but they are quality mortgage loans offered at good rates. The Fannie Mae organization is a well respected entity in the nation, providing loans and mortgage information to people nationwide.

 

 

Freddie Mac also has a specialty division to assist American Indians with attaining a home mortgage.

 

They provide access to HUD loans and several other programs designed to help Native Americans. This institution provides information to help Native Americans understand the options available to them and the difference between what once was and what the industry has become today.

 

Home loans to Native Americans consistently fall behind mortgages to whites and several other minorities. The programs listed above were designed with this in mind, to bolster the numbers of American Indian’s successful loan applications. Traditionally, American Indians have been poorly received by many institutions due to tribal autonomy, poor economy in tribal lands and other issues of concern.

 

 

One of the factors behind Native Americans’ difficulty in obtaining mortgage loans is the situation on tribal lands. Many times, the economy of these lands is depressed, leading to low paying jobs and high unemployment rates. The American Indians have begun a promising change, however. Jobless rates, though still worse than national levels, are plunging. Social reforms, land acquisition and internal tribal change are revitalizing tribal lands and thus the economy and feasibility of acquiring home loans. Many groups are beginning to recognize the potential of the Native American peoples and are actively courting their interest.

COLORADO INVESTMENTS

Property Information

1515 11th St, Boulder, 80302
6 bedrooms and 3 baths
Purchase price 749,000
Appraised for $800,000!!!! Buyer makes $51,000 by buying property.
Rents total $4500.00
Seller pays all real estate commissions
Remarks
Dynamite rental on Uni-Hill. Never a vacancy. Upstairs leased to great tenants until August 2008 for $3500/month. Some deferred maintenance but recent expenditures on exterior and interior. Also, 950 sq.ft. basement has two separate entrances and has been fully remodeled as 2 bed/1 bath apt. with potential for up to $1000/month additional income. NOT A LEGAL DUPLEX but could use basement as a laundry room or extra bedrooms – not legal to use as a separate rental.
Needs about $30,000 worth of improvements which would result in an immediate finished value of $875,000. Seller would provide seller contribution so the costs of improvements are rolled into the loan. Optional purchase price increase to buy down rate.
For investor
….95% CLTV with 5% down at 7%..one loan interest only and advice getting a 30 year/10 year interest only loan. Ask for 6% seller contributions which would allow buyer to show up with only 3.5% of the purchase price which includes closing costs and when security deposits and other funds from current renters are applied. Taxes and insurance included allow for a break even scenerio.
This property would be for a long-term hold which would breakeven for the first one to two years and cash flow with increase of rents and appreciation of 5% to 10% per year based upon overall appraised value in the property yearly.
Buyer invests approximately $35,000 and makes $126,000 with suggested improvements.
Telecommunications
Buyer has the option to rewire property to accommodate for all telecommunications services and work with Boulder Financial Telecom to resell services to renters and split revenues. This option increases value and additional income monthly in turn increasing the value of the property and maximizing gains.

Realtor and Mortgage Agent Relations

It’s important that your realtor and your mortgage agent get along well. If your realtor and mortgage agent are on good terms it makes the whole process of home buying move much more smoothly. Imagine a situation where the realtor and mortgage agent don’t get along; in a best case scenario they don’t speak to each other more than necessary, leading to you, the buyer, possibly not receiving the maximum benefits from such an arrangement. In a worst case scenario the two individuals could actually cause the process to drag on while they bicker over particulars that should have been ironed out before the project truly got under way or even harm the situation by ignoring duties they are supposed to perform.

 

In an industry fraught with complexity and complication, a good working relationship between the realtor and mortgage agent can save you time, money and hassle. Individuals that work well together form teams that make the home buying process feel seamless to the buyer. This relationship provides benefits to the buyer and to the realtor and mortgage agent; if they work together well, the process moves faster for all parties involved, letting the realtor/mortgage agent team finish projects quickly, at great benefit to the buyer and move on to new home buyers.

 

Realtors are often good individuals for mortgage agents to cultivate relationships with. Many times, people will contact their realtor concerning all aspects of home ownership, like refinancing and home equity lines of credit. For this reason, many mortgage agents will go to great lengths to locate knowledgeable realtors and form lasting relationships with them. These relationships are excellent ways for the mortgage agent to find potential customers and the realtor will be able to provide background on all applicants that are channeled through them.

 

Mortgage agents can team up with realtors by offering relevant services that are essential to the realtor. These services are ones that allow the realtor to pass the value along to the buyer, boosting the realtor’s and the mortgage agent’s reputation. Realtors are always in need of new information about the loan industry and providing them with training on the loan industry will allow mortgage agent to showcase new loan packages, different formats and more. This goes a long way towards growing a trusting relationship with realtors and real estate agencies on a business entity level.

 

A close relationship between realtors and mortgage agents has benefits that go far beyond the two professionals actually interacting. It impacts the mortgage agency and the real estate office as well, generating more business for both sides and benefiting all involved.

 

For buyers actively looking for a home to buy, finding a realtor with close ties to a mortgage agent can have vast benefits. Relationships like this will provide you, the buyer, with detailed information about the entire home buying process through a single source. Relationships like this allow the realtor the comfort of knowing that the information he or she has is correct, the realtor is able to inform you better and provide many other options than otherwise. Finding a realtor with a good relationship to a particular mortgage agent will help you avoid time consuming hassle and save money.

 

What is an All-in-One Mortgage?

For various reasons, many homeowners find they need to take out a home equity line of credit or refinance their current mortgage. This usually means more fees, more documents to sign and store and general hassle for the homeowner. If you’re looking for a new home loan, an all-in-one mortgage just might be the way to go. These loans incorporate a home equity line of credit and very flexible options during the life of the loan to help homeowners avoid the hassle of refinancing. What does an all-in-one mortgage include and what benefits do homeowners get from applying for one? Read on.

 

An all-in-one mortgage is a recent innovation by the lending industry. Pioneered by Washington Mutual, the nation’s largest mortgage lender, an all-in-one mortgage is an innovative approach to making life simpler for homeowners and lenders alike. After its inception and enthusiastic reception, many lenders are creating their own version of this beneficial mortgage.

 

An all-in-one mortgage is exactly what it sounds like. It allows buyers to incorporate a home equity line of credit into a first home loan, lets buyers adjust the interest rate of their mortgage during the life of the loan without the hassle of refinancing through a third party and choose between interest-only and fully amortized payment options.

 

Once buyers have paid 10% of the loan, they are able to tap into their home equity. Whether they choose to receive a check, cash advance or a credit card, the only thing they need to do is contact their loan company and the mortgage company will set up the account to make the funds available to the homeowner.

 

With this type of mortgage, homeowners no longer need to go through the complicated and time consuming hassle of refinancing. During the life of the loan, buyers are able to change from interest-only to fully amortized payments and back at no cost. Buyers can also switch between fixed interest rates and variable at no cost, depending on their payment needs at the time. With Washington Mutual, the first switch is free, after that they are at a flat fee of $250.00 and can be done twice per year. This avoids the annoying and sometimes painful process of changing lenders and keeps your account with people familiar with you.

 

All-in-one mortgages can be set up to accommodate almost any buyer’s particular needs and are widely available, either through Washington Mutual or one of their competitors. While not every buyer will benefit from an all-in-one mortgage, and not every buyer is eligible for these loans, the vast majority of home buyers should see this pioneering loan type as a boon, giving buyers more control and flexibility over their loan, while making it easier to avoid a lot of the hassle commonly associated with home loans.

 

Buyers who are not eligible for an all-in-one mortgage are those in the sub-prime market, buyers with credit problems and those with low incomes, though many lenders can offer help with these qualifiers. Bad credit and no credit can be issues that are hard to overcome as most lenders are unable to adjust requirements to meet these problems.

 

 

Lending Tree: Lender or Scam?

You’ve seen the advertising online “When banks compete…” and all that. Lending Tree’s advertising looks great. It’s got flash, pizzazz and really makes consumers feel that Lending Tree will provide them with the lowest possible rates. After all, it makes sense, right? Competition is what lowers prices, right? Isn’t that the basis of a good economy? Suppliers and manufacturers compete to gain customer’s business by offering comparable quality at a price less than their competitors. So, what’s the real deal with Lending Tree? Are they legitimate or is there something fishy in their practices?

 

A brief perusal of the Web will yield far more results than you might expect. I typed the words into my search engine’s text box, hit enter and received over 600,000 results for the words Lending Tree+scam. Now, obviously, they don’t ALL relate to scams by Lending Tree, but a surprising amount of them do. I know I was surprised. Lending Tree seems to have some questionable processes concerning customer’s sensitive information and they definitely seem to partner with some unsavory lending institutions.

 

Almost every complaint found on the Internet states that the companies sponsored by Lending Tree take between $400 and $600 up front and whether the loan goes through or not, the money is never seen again. That sounds a little suspicious, especially when the agreement on the back of the forms used by these companies states that no money is needed to get the ball rolling. Definitely raises questions on my part.

 

Thousands of posts abound on the Web about Lending Tree selling customer’s private information (phone numbers, address, etc) to third parties. One memorable poster stated he had been contacted at all hours of the day and night, months after declining to work further with any of the companies Lending Tree sponsored.

 

Many complaints center on a large sum of money being required to ‘lock in’ the rates of the quote. The lock in period is usually for 45 days, but the process drags on and on, usually to at least a day or two past the lock in period. The customer’s money is then gone, more points are added to the contract and the customers walk away angry and with lighter wallets.

 

Another memorable post states that Lending Tree asked for the applicant’s information sent in the body of an email with no encryption. This information was stuff like his social security number, address, phone number, W-2 information, like earnings statements and other high theft stuff. When he asked about security, he was informed that it was the way they did things. He found another lender.

 

Lending Tree practices very sketchy and decidedly unsafe business practices. While not all the posts bashing them are to be believed, there are far too many horror stories out there for it to be a mistake. I would never use the company and highly urge anyone else looking for a home loan, a home equity line of credit or anything else, for that matter, to avoid Lending Tree at all costs.