Prudential CA/NV/TX Realty is promoting homebuying to Hispanic homebuyers in California, New Mexico, and Texas with products and services designed specificially for this underserved market.

The company is beginning in its home base -- California -- to roll out new products and services before extending them to other states.

First, the company announced a new 103 percent Loan-To-Value (LTV) loan product "designed specifically to meet the needs of Hispanic homebuyers in Northern California." The loan was developed by The Home Loan Group, a joint venture with Chase Home Finance.

"After conducting an internal study of the Hispanic market, we saw significant gaps between the type of loan products currently available and what is an underserved market," said Ed Krafchow, president of Prudential CA/NV/TX Realty. "We shared our information with The Home Loan Group and together developed a flexible, affordable loan geared to Hispanic home buying trends."

Explains Tom Borrelli, senior vice president of Chase Home Finance, "The 103 percent LTV Loan was designed to help Hispanic homebuyers, one of the youngest segments of California's population, move beyond their perceived hurdle of an 80 percent conventional loan. This is especially important in the expensive Northern California market."

California has recently announced a record homebuying affordability crisis with fewer than 19 percent of homebuyers able to buy the median-priced home, revised in February by the California Association of Realtors at $471,620.

According to the company's research, California's Hispanic homebuyer spends an average of 28 percent of their monthly gross income toward qualifying income ratio -- which includes principle mortgage, property tax and insurance (PITI) -- payments, according to California Association of Realtors' 2004-2005 State of the Housing Market report. By contrast, non-Hispanic households only devote 24 percent of their monthly gross to PITI payments.

What makes the loan unique is that it includes:

• Interest-only payments for the initial fixed 5-, 7-, or 10-year period

• Financing of 100 percent of the purchase price (plus 3 percent of closing costs) for a total first-lien LTV of 103 percent

• $650,000 total first-lien loan size at 680 FICO with 38 percent DTI (unless 700 min FICO with 41 DTI - then $500k)

• 680 and 700 minimum FICOs (DTI of 38 and 41 percent respectively)

In a related announcement, the nation's tenth largest brokerage announced the opening of the company's first Hispanic office in Redwood City, California, where every staff member, agent and the entire management team will be bilingual.

Redwood was chosen because the city has one of the fastest-growing Hispanic demographics in California's Bay Area, growing 48 percent since 1990 to comprise 32 percent of the city's population. The new office is located downtown, to coincide with other area renovations and improvement projects.

Published: April 8, 2005

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.