Monica Snipes-Austin

http://money.cnn.com/2009/10/01/real_estate/Minorities_denied_mortgages/index.htm?postversion=2009100117

By Tami Luhby, CNNMoney.com senior writer Last Updated: October 1, 2009: 5:26 PM ET

NEW YORK (CNNMoney.com) -- The housing collapse has made it even tougher for blacks and Hispanics to get mortgages, according to a new government report.

While credit has tightened for everyone, blacks and Hispanics are being denied loans at higher rates than whites, according to new federal data. And the gap is widening.

Lending to black and Hispanic borrowers also fell more quickly than average between 2006 and 2008, according to the 2008 Home Mortgage Disclosure Act data, released Wednesday by Federal Financial Institutions Examination Council. The council consists of the five U.S. bank regulators.

Blacks were denied mortgages 36.1% of the time in 2008, while Hispanics could not get a loan 31.1%, according to the data. Whites had denial rates of 13.6%.

Meanwhile, blacks' share of the loan market tumbled to 6.3% in 2008, down from 8.7% two years earlier. Hispanics' share dropped to 8.5% from 12.1%, while whites' rate jumped to 69.1%, from 62.7%.

These trends reflect the collapse of the subprime lending market. Black and Hispanic borrowers relied more heavily on these high-priced loans for their home purchases during the boom.

Some 43.4% of blacks received high-priced loans, defined as at least 1.75 percentage points above Freddie Mac's prevailing rate, in 2006. Two years later, that rate fell to 5.7%. Hispanics' share of costlier loans dropped from 37.8% to 5.8%. The rate for whites fell from 13.7% to 3%.

The disappearance of subprime lending has led to an explosion in government-backed mortgages. The number of loans backed by the Federal Housing Administration tripled between 2007 and 2008, with 51.4% of black borrowers and 44.7% of Hispanic borrowers receiving FHA mortgages last year.

The trends are not surprising, experts say. The data, however, provides statistical back-up with information on 14.2 million mortgage applicants at 8,388 financial institutions. Banks also reported information on 2.9 million loans purchased from other institutions.

The housing collapse threatens the strides blacks and Hispanics have made in increasing their homeownership rates and building wealth, said Lot Diaz, vice president for housing and community development for the National Council of La Raza, a Hispanic advocacy group. While many people received unsustainable mortgages during the boom, many others were able to secure loans they could afford, he said.

"We fought very hard to open up access to credit to low- and moderate-income families and we're in danger of losing that," said Diaz, who is particularly concerned about jump starting lending.

The collapse of the subprime market isn't necessarily a bad thing, some experts say. Fueling homeownership through unaffordable mortgages isn't good for anyone.

"It's better that they get half the loans they got two years ago if the loans they were getting were toxic products," said Gregory Squires, sociology professor at George Washington University. First Published: October 1, 2009: 5:18 PM ET

http://www.thingstododc.com/?gclid=CP-uoP-5jZ0CFVlM5Qod33G07Q

By Walter Updegrave, Money Magazine senior editor September 24, 2009: 5:25 AM ET

http://money.cnn.com/2009/09/24/pf/expert/home_buyer_credit.moneymag/index.htm?postversion=2009092405

NEW YORK (Money) -- Question: I bought a home and qualified for the $8,000 first-time homebuyer tax credit. I'm still a bit confused, though, about the payback rules. Can you explain them? --Jessica G., Houston, Texas

Answer: Sure. But first I'd like to remind anyone who's considering taking advantage of the first-time homebuyer tax credit of up to $8,000 that was part of this year's stimulus package that time is running out.

Specifically, unless Congress extends the deadline -- which I certainly wouldn't count on -- you must complete the purchase of the home by November 30th. That may sound like a good ways off. But when you consider that it can easily take two months to get through the entire home-buying process -- find a house, make an accepted offer, pull together the money and documentation you'll need for a mortgage, appraisal, title insurance and closing -- anyone who hasn't already begun will have to move quickly to squeeze under the November 30th wire.

That deadline aside, there are a few other criteria you'll also have to meet before you can snag the tax credit.

To begin with, the home you're buying must be your principal residence. And while $8,000 is the figure usually thrown around when talking about the credit, it's actually equal to 10% of the purchase up to a maximum of $8,000.

You've also got to qualify as a first-time homebuyer. Clearly, you meet that hurdle if you or your spouse has never owned a home before. But you may still be eligible even if you're not buying a home for the first time. Why? Because for the purposes of this program, you're also considered a first-time buyer as long as you or your spouse hasn't owned a principal residence within three years. Notice I said principal residence. Owning a vacation home or rental property doesn't disqualify you.

Then there are the income eligibility rules. To get the full credit, your modified adjusted gross income can't exceed $75,000 if you're single or $150,000 if you're married. You can claim a partial credit, however, as long as your income doesn't exceed $95,000 if you're single or $170,000 if you're married.

Now, let's get back to your query about payback rules. If you indeed qualified for the $8,000 first-time homebuyer credit for homes bought from January 1 through November 30, 2009, then you don't have to worry about paying it back, provided you continue using the house as your principal residence for at least 36 months after buying. Sell it or stop using it as your principal residence within 36 months, however, and you'll have to repay the entire amount of the credit as additional tax when you file your next tax return (although there are a few exceptions).

But the fact that you're concerned about paying it back makes me wonder whether you have actually taken a different first-time homebuyer tax credit.

Before passing the $8,000 credit in the stimulus package this year, Congress had already enacted a $7,500 first-time homebuyer credit last year as part of the Housing and Economic Recovery Act of 2008. This $7,500 credit, which was designed to apply to houses bought by qualifying first-time buyers between April 9, 2008 and July 1, 2009, is actually an interest-free loan that must be repaid.

So if that's the credit you actually got, then you must pay it back over 15 years through an additional tax starting with your 2010 tax return (although here too there are exceptions).

So the first thing you need to do is find out which tax credit you actually received. If you bought your house in 2008, then you got the $7,500 tax credit, and you will have to repay it. Sorry, but you can't get the $8,000 credit if you bought in 2008.

You could, however, be part of what is likely a small group of first timers who bought their home early in 2009 before Congress enacted the $8,000 credit and who took the $7,500 credit. Someone might have done that because he filed his 2008 taxes before the $8,000 became available in 2009 or because he just didn't know about the larger credit or perhaps just mistakenly believed that once he filed for the smaller credit he no longer could get the larger one.

But if you, or any other qualifying first-time buyer, bought a home in 2009 and received the $7,500 credit instead of the $8,000 one for whatever reason, you're not stuck with the smaller amount. You can file an amended return for 2008, claim the $8,000 credit and get the extra $500.

That's right, even though the $8,000 credit applies to a 2009 purchase, the IRS actually allows you to claim it on your 2008 taxes. Which, by the way, is also an important point for any first-timer who already bought this year or plans to buy before the Nov. 30 deadline to keep in mind. Once you complete the purchase, you don't have to wait until you file your 2009 taxes next year to get your $8,000 credit. You can get it sooner by filing an amended 2008 return.

So to sum up, whether or not you'll have to repay the credit depends on which credit you got and how long you live in the home.

As for anyone else who needs a house, has the financial wherewithal to buy one and is thinking about taking advantage of the $8,000 first-time homebuyer credit as a way to get it, you'd better get a move on.

By Walter Updegrave, Money Magazine senior editor September 24, 2009: 5:25 AM ET

http://money.cnn.com/2009/09/24/pf/expert/home_buyer_credit.moneymag/index.htm?postversion=2009092405

NEW YORK (CNNMoney.com) -- Sales of newly constructed homes leaped unexpectedly in July to hit their highest level since last September.

New homes sold at an annualized rate of 433,000 during the month, according to a joint report issued by the Census Bureau and Department of Housing and Urban Development.

That far exceeded analysts' forecasts and was up 9.6% from the revised 395,000 rate recorded in June. A consensus of industry experts surveyed by Briefing.com had predicted July sales of 390,000.

The news followed other positive housing market reports earlier this month, including a spike in exsisting home sales, home prices and affordability.

"There are many economic conditions that led to the surge," said Bob Walters, chief economist for Quicken Loans. "But certainly low mortgage rates, huge price reductions on the high inventory of new builds, and the first-time homebuyer tax credit have been instrumental in getting consumers to take the plunge into the real estate pool of opportunity."

Plus, the psychology of the market is changing, according to Peter Morici, an economics professor at the University of Maryland. "The notion that prices will drift down forever is gone," he said. "Now people are thinking the window of opportunity will not be open forever."

"Home shoppers visiting builders' model homes are more likely to purchase than earlier in the year," added Brad Hunter, chief economist for Metrostudy, a real estate research and consulting firm.

They are also canceling fewer contracts. Of the 10 markets where Hunter examines cancellation rates, most are running at substantially lower levels. In Phoenix, for example, the cancellation rate lately has been about 4% compared with 7% late last year.

It certainly is an attractive market. The median price of a new home declined again last month to $210,100, down only slightly from June but off more than 11% from July 2008.

The Housing Market Index, a measure of builder confidence calculated by the National Association of Homebuilders and Wells Fargo, inched up again this month to 18, its highest level in more than a year.

That's still low by normal standards: Anything below 50 indicates that more builders think business conditions are poor. And new sales, though rising, are still well below what they were last August, when they sold at a 520,000 annualized rate.

But the sales spike did help reduce the inventory: Available new homes dropped to 271,000 -- the lowest total in 16 years -- from 281,000 a month earlier. That's down to a healthier 7.5 month supply at the current rate of sales from 8.8 months in June.

Still, when factoring in existing homes for sale, inventory levels remain high, according to Mike Larson, real estate analyst for Weiss Research. He also pointed out that the continued influx of foreclosed properties over the next year or so will replenish supplies.

However, supply could creep back up at the end of the year. On Nov. 30, the $8,000 tax credit for first-time homebuyers is also set to expire. And experts worry that the brisk pace of sales will fall off if homebuyers are sidelined once the incentive disappears.

But for now, they are optimistimic."This [report] is clear evidence the dramatic cut back in housing starts, plus increasing consumer confidence and the targeted tax cut for first-time buyers, is restoring stability to the new home market," said Larson.

Detached Homes:

Actives: 16

Average Days on Market: 104

Average List Price: $350, 918

Non Detached Homes:

Actives: 141

Average Days on Market: 101

Average List Price: $182, 980

July Home Sales:

Solds: 20

Average Days on Market: 112

Average List Price: $178,244

Any questions about the Greenbelt Housing Market please give me a call 301-806-4604.