I was shocked to hear that a public service announcement was in use as a way of letting people know that it is illegal to discriminate against others who want to borrow money to buy a home. Really, this is 2008 and perhaps it is a bit naive to think that this is something that is finished. The fact is, the law is clear. You should not be discriminated against for any reason, especially your race, your religion, your familial status, your national original, your color or a disability.
What Is That About?

HUD announced that it was putting in place a public service announcement that would begin airing throughout the country on television as well as radio. The goal is to educate minorities of their right to own a home. According to the official press release out of the U. S. Department of Housing and Urban Development, the service announcement will feel Denis Haysbert, who you may know better as President Palmer on the television show “24.”

Here’s how the public service announcement will play out, according to the press release, “The PSA shows Haysbert, sitting in a café, drawing his dream home on a napkin and explaining that it is illegal to discriminate in lending because of someone’s race, color, national origin, religion, sex, familial status, or disability. The PSA ends with the tagline “HUD - One Call. Many Answers,” and encourages people to call HUD’s fair housing hotline, 1 (800) 669-9777, or log onto HUD’s Web site, www.hud.gov/fairhousing, if they believe they have experienced lending discrimination. “

Discrimination in Lending

If you feel that you have been discriminated against, now is the ideal time to step up. Even more so, if you feel that your lender is not doing enough to help you get into the right mortgage for you, I urge you to take action. FHA is an ideal program for those that are low income but able to make home mortgage payments. It is also an ideal way to get out of those subprime loans.

According to the press release, African Americans and Hispanics receive less information regarding the loan terms as well as often charged a higher fee. They are often told not to apply for the loan. Legally, it is unlawful to do these things. If they are happening to you, the Fair Housing Assistance Program can help you. You can contact them at 800 669-9777.

If you are struggling with a lender, give them a call. Alternatively, contact a lender that is willing to work with you. While there is discrimination out there, it does not come from all lenders.

The worry that many people have, that I have encountered, is that now is the worst time to get into a home. It is not. Now, that has not to say that it is the best time either. There are opportunities in the housing market and with the approval of FHA loans even more readily available, it makes sense that more people than ever would be interested in getting loans. Those that are leery are the people who are worried about mortgage lenders going under or not qualifying for the loan. Let us look at the advantages.

I was recently asked, “Isn’t the mortgage industry too shaky to get into? I don’t want a lender to drop out of my loan if I buy now.” They went on to tell me that they planned to hold off buying until the real estate market improved. It stepped back, looked dumbfounded for a second, and then explained a few pointers.

First, the risks in the current housing market are not necessarily in the lenders themselves. While some of the bigger companies who did a lot of lending through subprime loans are shaking, it is highly unlikely that they will pull all mortgage notes they have. More than likely, they would be sold to another lender. However, that is not the risks with these two friends of mine.

You see, they have decent credit and after getting married a year ago, have managed to get a sizable down payment together for a home. They are worried about all mortgage lenders. Most lenders are suffering from the housing crisis, but they are not going out of business. In addition, what they know and you should know is that once the housing market straightens out and house values start coming up (which most experts believe will happen towards the end of 2008 and the beginning of 2009) the long-term outlook looks good.

Since this particular couple is looking for a family home and doesn’t plan to move too much, chances are they can get a pretty low priced home now and watch the property value rise on it over the next five, ten or even thirty years. It may not be the best time for short-term loans, granted, especially in areas where house prices are dropping by 10 to 15 percent. However, it is an ideal time for many others.

If you are not sure if now is the right time for you to purchase a home, I highly recommend that you talk about FHA loans to your lenders. These are backed and secure loans, ideal for many homebuyers.