The Home Buyer's Korner

Information presented should be used for educational purposes only.

January 15th, 2012

Guy looking up in color

Rebuild the Dream

African-American Middle Class Eroding

The unemployment situation across America is bad, no doubt. But for African-Americans in some cities this is not the great recession, it’s the Great Depression.  Charleston, N.C., for example is a jewel of the “New South”, the largest financial center outside of New York City and was a land of hope and opportunity for many African Americans.

According to analysis at the Economic Policy Institute, in Charlotte, N.C., the unemployment rate for African-Americans has reach to crisis levels.

The recession – or depression — in the African-American community is rapidly eroding the middle class. And a report from the Pew Research Center drives home just how bad things are out there.

It found that in 2005, the average net worth for white households was $134,992. For African American households, it was $12,124. (That’s not a typo.)

In 2009, the number dropped to $113,149 for whites and a paltry $5,700 for blacks.  Digging through these numbers, I think it would be safe to say that a substantial difference between these two groups has a lot to do with homeownership and timing.  As the old rule goes, the last one hired is the first one fired and this similarly applied to home buyers who purchased homes at the end of our nations last housing bubble.

Patrick Graham of The Urban League believes small business should be the major driver to employ African-Americans that will help rebuild net worth in America. Graham further said “It’s going to take more than just hard work, but some creative thinking in terms of entrepreneurship and other things to get out of this.

Study: Housing Bust Hit U.S. Minority Households Especially Hard

 Uploaded by PBS News Hour on Jul 26, 2011 

So ~ what to do?

Recently we posted “Building Wealth Through Real Estate. In it we offered real time exhibit of a young couple who purchased a distressed home and the path they took using the FHA 203K Renovation Loan.

Many of you might not be aware that foreclosures in America have reached record highs and with the collapse of FNMA and FHLMC the U. S. Government has become the largest homeowner in the nation.  Not wanting to maintain this role the Federal Government is selling homes at deep discount and looking for other options to stabilized the housing market.

FHA offers financing up to 96.5% of a home’s purchase price not to exceed $287,500 for a single family dwelling in Louisiana and HUD has recently re-established the HUD $100 Down Payment Program for one year, ending July 18, 2012.  Currently HUD and Bank Owned Properties are selling on average about 20 to 25% less that comparable homes in most neighborhoods.  Foreclosed homes in need of repairs can be purchased at this percentage with additional discounts equal to or greater than estimated needed repairs.

FHA has a renovation loan program call FHA 203K that finances 100% of the renovation cost to purchase distressed homes. It also has an industry professional called an FHA203K Consultants to assist home buyer’s working with state licensed general contractors.  So, even if you know nothing about financing and rehabilitating a home you can engage in the opportunity (many property investors building wealth and savvy home buyers are) and create substantial equity by participating in this opportunity.

Historically building wealth in America for most families comes from simple real estate investments and a silver linings that has appeared in this Great Recession/Depression is a unique opportunity for all families, black, red, yellow or white to benefit by purchased homes at below home valued prices and building net worth through a government insured renovation program offered by the Federal Housing Authority (FHA).

Considered wisely and discuss this strategy with your family and console about home ownership.  After you have done your  research contact knowledgeable Realtor who can assist you in locating the right property for you.

Until them if you’d like to simply do some window shopping here’s some websites I’ve preselected of foreclosures from HUD, USDA, FNMA and Zillow for you to list cities of interest and locate properties right for you.

Take A Moment To Learn How To Buy Smart  

HOME OWNERSHIP TOOLS

FHA 203K

Your Home Purchasing or Refinancing & Renovation Tool

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

FANNIE MAE HOMESTYLE

The Conventional Alternative to FHA 203K

Great for Real Estate Investors and Second Home Renovations

You Mortgage Loan Officer, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

USDA RURAL DEVELOPMENT

Up to $10K for Home Improvements, Renovations or a Simple Remodel

Your Mortgage Loan Officer, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

A SIMPLE HOME SHOPPING INSPECTION TOOL

Organizing your home shopping experience affords a wise decision making process.

This simple home inspection tool makes your ultimate buying decision a smart one.

To print this document click on “Open in New Window” located at the lower right corner; click on “File”; then click on “Print”. In the center of the screen you will have the option to “Create A Printable PDF of the Presentation”.

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