What does steering in real estate mean?
“Steering” is the practice of influencing a buyer’s choice of communities based upon one of the protected characteristics under the Fair Housing Act, which are race, color, religion, gender, disability, familial status, or national origin.
Which is an example of steering?
Steering is when a real estate agent influences a homebuyer to purchase in certain communities based on their race, therefore limiting the buyer’s choices. Let’s look at a hypothetical example of steering: a white buyer and a Black buyer approach the same real estate agent looking to buy homes.
What type of discrimination is steering?
Steering is a more subtle, yet still illegal, form of housing discrimination. Be aware of comments that indicate a landlord is trying to direct you towards or away from certain units. Steering is a common form of housing discrimination that can be harder to spot than when a landlord outright refuses to rent to someone.
What is steering and blockbusting?
Steering is guiding, encouraging, or inducing people in some way to move to or stay away from a certain area or neighborhood, and it’s illegal. Overt steering is easy to understand and avoid. For example, if a couple asks to be shown houses “only in White neighborhoods” you can’t accommodate them.
Is steering legal?
Steering is an unlawful practice and includes any words or actions by a real estate sales representative or Broker that are intended to influence the choice of a prospective buyer or tenant. Steering violates federal fair housing provisions that proscribe discrimination in the sale or rental of housing.
What does Steering mean in law?
Legal Definition of steering : the act of directing another to pursue a course of action: as. a : the practice of pushing or deceiving loan applicants into applying for more costly loans.
What is the steering law useful for?
The steering law predicts the movement time through a particular space with constraints, such as a straight or a narrowing tunnel. Figure 1 shows a tunnel with side constraints, and a path that the cursor might follow in getting from one side to the other.
What is reverse redlining in real estate?
Reverse redlining is the practice of targeting neighborhoods (mostly non-White) for higher prices or lending on unfair terms such as predatory lending of subprime mortgages.
Who enforces fair housing?
HUD’s Office
What is blockbusting in real estate terms?
In real estate, blockbusting occurs when a real estate broker convinces a homeowner to sell their home for a lower price based on the assumption that the neighborhood’s socio-economic makeup is about to change and that property values will soon decrease.
What is the downside of a FHA loan?
Higher total mortgage insurance costs. Borrowers pay a monthly FHA mortgage insurance premium (MIP) and upfront mortgage insurance premium (UFMIP) of 1.75% on every FHA loan, regardless of down payment. A 20% down payment eliminates the need for PMI on a conventional purchase loan.
Who owns FHA mortgage?
A Federal Housing Administration (FHA) loan is a mortgage that is insured by the Federal Housing Administration (FHA) and issued by an FHA-approved lender. FHA loans are designed for low-to-moderate-income borrowers; they require a lower minimum down payment and lower credit scores than many conventional loans.
Are FHA loans backed by the government?
An FHA loan is a government-backed mortgage insured by the Federal Housing Administration, or FHA for short. Popular with first-time homebuyers, FHA home loans require lower minimum credit scores and down payments than many conventional loans.
Is FHA and HUD the same thing?
The Federal Housing Administration (FHA) is part of the U.S. Department of Housing and Urban Development (HUD). HUD itself doesn’t do loan guarantees for individual homes unless you’re a Native American. It is solely the FHA that insures mortgages for single-family-homebuyers.
Is FHA only for first-time buyers?
FHA loans are not for first-time buyers only. First-time and repeat buyers can all finances houses with FHA mortgages. The FHA loan is often marketed as a product for “first-time buyers” because of its low down payment requirements. The FHA will insure mortgages for any primary residence.
Is it a good idea to get a FHA loan?
An FHA loan is designed to help people in less-than-perfect financial situations buy homes. This type of mortgage is especially useful for first-time homebuyers who may not have had time to save a ton for a down payment or pay down all their debts yet.
How many times can you get a FHA loan?
There is no limit to how many times a borrower can get an FHA loan.