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Lets Make Home Happen! Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market.

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Presentation on theme: "Lets Make Home Happen! Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market."— Presentation transcript:

1 Lets Make Home Happen! Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

2 To create affordable housing opportunities for North Carolinians whose needs are not met by the market. NCHFA Mission Statement www.nchfa.com Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

3 More than 191,000 households www.nchfa.com The N.C. Housing Finance Agency has helped Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

4 $11.7 billion in affordable homes and apartments www.nchfa.com The N.C. Housing Finance Agency has financed Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

5 79,600 families buy their first home www.nchfa.com The N.C. Housing Finance Agency has helped Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

6 More than $150 million of supportive housing for North Carolinians: www.nchfa.com The N.C. Housing Finance Agency has financed mental illness & developmental disabilities survivors of domestic violence homeless Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

7 $693 million in real estate activity 7,226 construction jobs $66 million in state and local tax revenues www.nchfa.com The N.C. Housing Finance Agencys 2008 investments created: Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

8 Todays Session Topic Tools for Turning Minority Buyers Into Homeowners in a Tight Credit Market Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

9 Our Speakers Ms. April Young, VP of BB&T - Specialist in all facets of mortgage financing Mr. Jose Serrano, Realtor RE/MAX United - 25 years of experience in real estate, specializing in all areas of real estate purchases Mr. Lewis Dancy, Assistant Director of Mortgage Lending, Self-Help Credit Union Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

10 Credit is Tight Fewer mortgage applications being approved Nearly seven of 10 mortgage applications were approved and financed during the housing boom five years ago. At the end of 2008, the number was down to five. –Source: CNN, 9/17/2009 Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

11 Credit Scores Two Measures of Credit –Credit Report – like a school transcript –Credit score – like an SAT score Access Your Credit Report for Free –www.annualcreditreport.com –Call 877-322-8228 –Free / one every 12 months from each bureau –Opt out of credit inquiries = (888) 567-8688 Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

12 True or False About Credit Fallacy: A poor score will haunt me forever. Fact: Just the opposite is true. A score is a snapshot of your risk at a particular point in time. It changes as new information is added to your bank and credit bureau files. Scores change gradually as you change the way you handle credit. Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

13 True or False About Credit Fallacy: Credit scoring is unfair. Fact: Scoring considers only credit- related information. Factors like gender, race, nationality and marital status are not included. In fact, the Equal Credit Opportunity Act (ECOA) prohibits lenders from considering this type of information when issuing credit. Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

14 What's Not in Your Credit Score Any items reported as child/family support obligations or rental agreements. Certain types of inquiries (requests for your credit report). The score does not count consumer-initiated inquiries. Whether or not you are participating in a credit counseling of any kind. Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

15 What's Not in Your Credit Score Your race, color, religion, national origin, sex and marital status. Your age. Your salary, occupation, title, employer, date employed or employment history. Where you live. Any interest rate being charged on a particular credit card or other account. Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

16 Credit Scores Credit scores range from 350 to 850 in most credit scoring models 3 main bureaus are depositories of your credit histories –Equifax –Experian –TransUnion Not all 3 bureaus will have identical information Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

17 Know What Makes Up Your Credit Score 35% is based on payment history 30% is amount owed as a percentage of total credit available 15% is based on length of credit history 10% is based on types of credit utilized –Revolving credit vs. installment debt 10% is new credit inquires or applications for credit Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

18 Credit Scores Vary by Type of Credit Did you know…. -Your credit score can change daily -Your credit score number is different when applying for a mortgage vs. a car Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

19 Improving Your Credit Score Pay your bills on time. If you have missed payments, get current and stay current. Be aware that paying off a collection account will not remove it from your credit report. It will stay on your report for seven years. Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

20 Improving Your Credit Score Keep balances low on credit cards and other types of revolving credit. Pay off debt rather than moving it around to other credit cards. Don't close unused credit cards as a short-term strategy to raise your score. Don't open new credit cards that you don't need, just to increase your available credit.. Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

21 Ways to Improve Credit Pay your bills on time Dont hide from credit problems Seek help from a established housing counselor if you feel overwhelmed or are getting behind on payments –Housing counselors are trained to solve these problems –Help is confidential and can change your life for the better Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

22 Mortgage Market in Flux According to federal HMDA data just released in September 2009, the total number of originated loans of all types reported fell by 3.3 million, or 31 percent, from 2007. FHA backed mortgages have increased dramatically. The number of such loans in 2008 rose by 169 percent over 2007 levels. Source: FFIEC.gov Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

23 Mortgage Market in Flux FHAs market share expanded from 5.5 percent in 2007 to 19.6 percent in 2008 The number of VA-guaranteed loans in 2008 increased by 48 percent over the number in 2007. Source: FFIEC.gov Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

24 Lending Discrepancies Still Exist According to FFIEC data released in September 2009… for conventional home purchase lending in 2008, the incidence of higher-priced lending (not adjusted for lender or borrower-related factors) was 17.1 percent for blacks, 15.4 percent for Hispanic whites, 6.5 percent for non-Hispanic whites, and 3.3 percent for Asians. Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market

25 If You Need Help Contact a HUD-approved credit counselor Seek help from a non-profit agency Establish a budget and stick to it Seek advice from an established financial institution or counselor Tools for Turning Minority Buyers into Homeowners in a Tight Credit Market


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