Prudential CA/NV/TX Realty has announced a new 103% Loan-To-Value (LTV) loan product designed specifically to meet the needs of Hispanic homebuyers in Northern California. This flexible, affordable loan was developed by The Home Loan Group, a joint venture with Chase Home Finance, and is now being offered exclusively in Northern California.
“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.”
“The 103% 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% conventional loan,” said Tom Borrelli, senior vice president, Chase Home Finance. “This is especially important in the expensive Northern California market.”
California’s Hispanic homebuyer spends an average of 28% 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% of their monthly gross to PITI payments.