Kansas City, Missouri (PRWEB) May 05, 2015
FHA loans and lender-paid private mortgage insurance make it easier to obtain a home loan than Hispanic buyers might think.
On the heels of Mexican-Americans celebrating Cinco de Mayo this month, they also can celebrate the fact that the dream of home ownership is becoming a growing reality for all Hispanic Americans.
Driving that reality is the spectacular growth of the U.S. Hispanic community, which is making a big impact on the housing market.
As of July 1, 2013, there were 54 million Hispanics living in the United States, representing 17 percent of the total U.S. population, according to a release issued by the U.S. Census Bureau on Sept. 8, 2014, entitled “Facts for Features: Hispanic Heritage Month 2014: Sept. 15-Oct. 15.” http://www.census.gov/newsroom/facts-for-features/2014/cb14-ff22.html
An executive summary of the 2014 State of Hispanic Homeownership Report, released by the National Association of Hispanic Real Estate Professionals on March 25, 2015, reported that Hispanics accounted for 50 percent of the net growth of owner-occupied households in the United States from 2000 to 2014. http://nahrep.org/report
But at the same time, the State of Hispanic Home Ownership Report cited tighter mortgage credit as the most significant barrier to Hispanic home ownership.
James B. Nutter Jr. president and CEO of the Kansas City-based James B. Nutter Mortgage Co., said one of the barriers to Hispanic home ownership involved perception. “Obtaining a home loan is easier than many Hispanic consumers might think. We offer loan programs that can make buying a house possible for many people who would like to make the transition from renting to home ownership.”
An Oct. 17, 2013 report by Fannie Mae, “Hispanics: A Key Driver of Future Homeownership Demand,” reported that Hispanics are more likely than the general population to prefer owning a home, and to expect to buy a home in the near term, despite concerns about getting a mortgage. http://www.fanniemae.com/resources/file/research/housingsurvey/pdf/101713-topicanalysis.pdf
James B. Nutter & Co. can help Hispanics who want to buy a home realize their dream through programs such as FHA mortgages and lender-paid private mortgage insurance.
FHA Mortgages feature low down payment requirements and allow lower income ratio versus the loan value. The Federal Housing Administration (FHA) which is part of HUD insures the loan, which enables James B. Nutter & Co. to offer a better deal.
So-called “conventional” mortgages, or mortgages not insured by any government program, typically require private mortgage insurance (PMI) if the borrower is not able to put down 20 percent of the cost of a home. The fee for this insurance usually ranges between $ 100 to $ 200 a month.