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Vermont Legal Aid
Vermont Fair Housing Council
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Dear Friends and Colleagues:
Vermont Legal Aid is happy to announce that we will be continuing our Fair Housing work in 2010. Please call us if you or your clients have questions or problems with housing discrimination. This brochure is for your information and use, and to print for clients. We look forward to working with you all in 2010. |
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Information for First Time Home Buyers
So you're planning to buy your first home. Congratulations!
We're glad for you. So we want to help you avoid some common pitfalls and hazards of house purchasing. This brochure is an overview of housing discrimination and predatory lending-two areas that have cost homebuyers far too much financial and emotional pain. We hope after reading this that you will be armed with the information you need to spot a bad deal or discriminatory treatment when you see it. And that you'll call us when you do.
What is Housing Discrimination?
Housing discrimination is when a housing provider, such as a bank, realtor, seller, or other person treats you differently in housing because of your race or color, national origin, religion or creed, sex, sexual orientation, gender identity, marital status, age, disability, because you have minor children, or because you receive public assistance.
What is a Predatory Loan?
A predatory loan is any loan that is not in the borrower's best interest. Some predatory loans are unlawful. If you have an unlawful predatory mortgage loan, you may able to refinance or change the terms of your mortgage.
We provide free interpreters.
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Tenemos a su disposicion servicios de interpretes gratuitos.
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How Can I Spot Housing Discrimination?
It's a good question. Discrimination is difficult to discover and difficult to prove.
just read the information here.
Do you think you might have a predatory loan?
Do you also believe you may have been given a bad loan because you are in a group that is
protected blaw from discrimination?
Call us to find out your legal rights and what you can do.
It is unlawful to discriminate against a person in housing, including mortgage lending,because of that person's:
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Race
- Color
- Sex or Gender
- Sexual Orientation
- Religion or Creed
- Disability
- National Origin
- Minor Children
- Marital Status
- Age
- Public Assistance
Steering
It is also unlawful to be steered toward a predatory loan or different neighborhoods because you are in a protected class. Before you apply for a mortgage, ask what the standards are for qualifying for the loan. For example is there a certain credit score, amount of down payment, years of employment, or other term that you need to qualify for a loan. If you qualify on those terms but are encouraged or directed to apply for a subprime loan, the lender may be discriminating against you on a discriminatory basis.
Do you think your mortgage lender,a realtor, or another housing provider may have discriminated against you?
Call us.
Vermont Legal Aid
(800) 889-2047 voice and TTY
or call the
Vermont Human Rights Commission
or the
U.S. Dept. of Housing and Urban Development (HUD)
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How Can I Tell If I Have a Predatory Loan?
Have any of the warning signs below happened to you? If you answer yes to anything below, you may have a predatory mortgage loan.
Aggressive solicitation: A lender contacts you frequently by phone, by mail, by email, or at your home to get you to refinance your home.
Loan payments you can't afford: You were given a loan with payments that you can't afford, but you were promised a refinance later on.
Increased monthly payments: Your monthly payments increased even though you thought you had a fixed-rate mortgage.
Loan documents false. Your lender reported your income higher than it really is on the loan application; your signature is forged; or documents are back dated.
Unsecured debt added to your mortgage loan. Your new mortgage "paid off" your credit card or personal loans by adding it to your mortgage.
High loan to value ratio. Your lender's appraisal shows your home is worth much more than you thought. Or the amount you owe on your mortgage is more than your home is worth.
Changes in loan terms or costs. You notice changes in the amount of your monthly payments or interest rate from what you agreed to.
High interest rate. Your interest rate is high even though you have good credit.
Balloon payments. Your loan requires you to make a large payment at the end of the loan term.
Negative amortization. Your mortgage loan payments get bigger over time.
Pre-payment penalty. There is a penalty if you pay early, refinance, or sell your home.
Steering to High-Rate Lenders. Your real estate agent suggests that you see a specific mortgage broker and that broker offers you a high interest rate.
Flipping. You have refinanced your loan more than one time in a five year period.
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Know Your Rights
Housing discrimination is against the law. Do you believe someone discriminated against you in housing-either buying or renting? Call Vermont Legal Aid, the Vermont Human Rights Commission, or HUD. At Vermont Legal Aid, we can explain the law, investigate what happened, and give you legal advice about your options. It's up to you what you do next.
Protect Yourself
Don't sign a predatory mortgage agreement. Attend a homeownership education course offered by government approved non-profit counseling agency before you take out a mortgage. Homeownership classes are offered all around Vermont.
Shop around for a mortgage lender and compare costs, fees, and interest rates. Don't let anyone talk you into borrowing more than you can repay.
Don't let anyone talk you into making a false statement on your loan application, by overstating your income, the source of your down payment, or your assets. Lying on a mortgage application is fraud and may result in criminal penalties.
Never sign a blank document or a document containing blanks. Read everything carefully before you sign. If you don't understand the loan papers, ask for help from a housing counseling agency or call us.
For a homeownership center near you, go to www.vthomeownership.org
Shopping for your home? Look for the Energy Star logo. Energy star is a federal program that helps people make energy-efficient choices and save money on utility bills. Energy Star certifies that products meet high standards for energy efficiency. Energy Star is a program operated by the US Environmental Protection Agency and the US Department of Energy. For more details, visit www.energystar.gov.
CALL US
Vermont Legal Aid
(800) 889-2047 voice and TTY
www.vtlegalaid.org
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