I-HOEP Homebuyer Education Classes
 
Problem:
Sioux County has seen a dramatic increase in the number of Hispanic families. Most of these families work for manufacturers or large ag operations, such as dairies and swine confinement operations. These individuals lack the financial management skills necessary to qualify for a home buyer loan. Since language is a barrier for most of these families, they have no where to go to gain the knowledge they need. As a result many families live in housing that is substandard by local standards. Some complain of being exploited by landlords who realize that the families have little recourse or other options.

Response:
The Sioux County Extension Council recognized the need Hispanic families have for adequate housing. Sioux County Extension applied for and received a grant from I-HOEP (Iowa Home Ownership Education Project). This money was used to provide a series of homebuyer education programs in communities where there were a large number of Hispanic families. The programs were co-sponsored by a local bank that employed Spanish-speaking staff. These staff assisted Extension staff in teaching lessons on credit reports, types of homebuyer loans and loan programs, roles of realtors and home inspectors and what to look for when selecting a home.  In each of the communities realtors were also involved and provided sites for the class participants to visit for on-site instruction.
 
Impact:
Evaluation data indicates that the most beneficial part of the program was the segment dealing with credit reports. In one case, a Hispanic woman had assisted a friend who had no social security number in getting a loan, a loan that resulted in a default. The program attendee was assisted in getting this off her credit report. Another family was in a similar situation after co-signing a mortgage note that went into default. Normally this would take 7 years to have cleared from the credit report, but help through this program enabled them to have the credit blemish removed. These two instances resulted in two families who are now eligible to purchase a home. Evaluation data from other Hispanic participants reveals much the same type of situation - inaccurate credit reports with no real knowledge of how to correct the inaccuracies. Participants indicated that before attending the classes they had no knowledge of the importance of credit reports or how to establish good credit. Upon completion of the classes, they understand what credit is, how to read a credit report and how to establish good credit.
 
The economic impact of home ownership is an even larger benefit of this program. Suitable housing is important to families, but communities also benefit when families purchase homes and keep homes in suitable condition. Sioux County manufacturers and large agricultural operations rely on Hispanic workers to keep their operations functioning each day. These businesses play a vital role in their local economies, making the Hispanic workers a vital link to community vitality. The Hispanic families also help to keep the local schools growing and thriving. Improving housing benefits the families, as well as the employers and communities they represent
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One criticism often heard in communities is that these families move in to communities and tend to live in areas that are run down or substandard, or live in crowded conditions. Enabling families to find and purchase suitable housing will help curb this criticism and make communities more welcoming and tolerant of their new neighbors. 

Contact:
Cheryl Heronemus
Sioux County Extension Education Director
Sioux County Extension
805 Highway 10 West
Orange City  IA  51041
Phone 712-737-4230; Fax 712-737-3590
Email hero@iastate.edu

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