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Welcoming Hispanic homebuyers
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Posted by icastillo Wed Dec 12, 2007 16:45:27 PST
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0 responses 0 comments By Luz Peña
MÁS staff

ARVIN —   Farmworker Marcelino Madrigal, 45, always dreamed of owning a home.
     This year, his dream became reality when he was able to buy his first home by taking advantage of the loan plans available to him.
“It was always something my wife and I wanted to do,” said Madrigal. “I’m so happy four of my five children have a home to call our own now.”
Madrigal was able to purchase his casa with the help of the FHA (Federal Housing Administration) loan and Kern County Assistance loan. His eldest son, Eduardo, 24, cosigned for him.
FHA loans, which are insured by the federal government, are geared toward loans for first-time homebuyers created in the 1930s to give everyone an opportunity to buy a home.
Kern County’s First-Time Homebuyer program “is intended to increase home ownership opportunities for low and moderate income households in Kern County, and applies to all areas of the County Entitlement Jurisdiction (not properties within city limits). Primary real estate financing (first deed of trust) must be pre-screened by an outside lender for approval prior to requesting an inspection of the property by the County,” according to a county Housing Division brochure.
“This is a no interest no payment required loan as long as you maintain residence in the property for the period of affordability, then your loan becomes a grant.  The period of affordability is based on the amount of down payment assistance you receive.
Purchase price for the property must be no more than $280,250,” the brochure states.
The different loan parameters made sense to Madrigal and opened the door to home ownership for him.
Madrigal isn’t alone. Despite the standstill in the real estate market, Hispanic homebuyers continue to purchase homes.
Victor Vazquez, with Miramar Real Estate Group, said six out of 10 of his clients are Hispanic.
Miramar recently joined the Latino-owned realty group Casa Latino, which was founded in 2005. On Dec. 12, they held their grand opening at Miramar.
“The customers we do business with are all Latino,” said Vazquez. “It made perfect sense to join Casa Latino, which works heavily with Latino homebuyers.”
The current real estate market proves that not all loans are created equal. The subprime boom of the last two or three years is now showing its ugly truth — foreclosure.
Hispanics, too, have suffered the wrath of foreclosure.
According to the Center for Responsible Lending, Hispanics made up about 40 percent of mortgages in the subprime loan rage a few years ago.
That said, local lenders and realtors agree that there are mucho opportunities for would-be homebuyers.
“If you go back a few years ago, people weren’t doing any FHA loans. They didn’t know how to do them or they thought they were too much work,” said Arturo Esparza from Mortage Connection. “They relied heavily on the subprime loans, and that’s when people started getting into trouble.”
El problema with the subprime loans is they are high-interest loans. Each year, the buyer’s monthly payment increases substantially, making it difficult for those who don’t have enough funds in their budget to make their payments.
Mary Cruz, owner of Mary Cruz Realty, said the majority of her clients who are Hispanic and bought their house in the past two or three years are doing fine. She also said Latinos continue to seek homeownership despite the sluggish real estate market.
“My business has always been with the first-time homebuyer. They’re doing well. The ones who bought their house for shelter are doing fine,” said Cruz. “The ones who were using their house as a credit card — mortgaging it off to buy fancy things or for cash — got burned. Those who lost their homes will be able to  buy one after about three years, but they’ll be wiser and more prepared.”
 Cruz said most of her clients are either first-generation or second/third-generation Hispanics. Both have unique buying styles.
“The first generation has a lot of their money saved, but they don’t have the income the second and third generations do,” she said. “The second and third generations have all the credit and income, but don’t have the money. I help them both.”
Betsy Chavez, a realtor with Miramar, said buyers often purchase a home not just for immediate family, but oftentimes for their extended family, as well.
Others who traditionally didn’t work with the Hispanic market have gotten in tune with the Hispanic homebuying boom, too.
Bakersfield Premier Realty has taken steps to reach the Hispanic market as well.
“At Premier, we’ve seen the difference and added more loan specialists and Realtors for our Hispanic clients,” said Judy Vega, a Realtor for Premier.

So you want to buy a house?
Mary Cruz at Mary Cruz Reality gave some tips on keeping your credit in good standing
•  Don’t buy a car before you buy a house.
•  Pay your bills on time. Creditors look to see if you’re able to pay your bills.
•  If you owe money, whether it’s your bill or one left by a spouse or someone you cosigned for, it’s your bill.
•  Don’t cosign for just anyone, because if they’re unable to pay for it you’re responsible.

Tips from Arturo Esparza on searching for a loan officer, realtor and home:
“When we buy a computer or a TV we shop around. Why should it be any different when we are purchasing a home?” he said. “Don’t just settle  for the first home you see or person you talk to. Get the right home or lender that’s the perfect fit. The lender should work for you.”

Esparza says be wary of out-of-town lenders and real estate agencies.
 “It’s better to use a local lender or real estate agency, because once you sign they’re going back to their offices out of town. If you have a problem, you’re going have to call them long distance or drive out of town to see them.”

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