Korean families in the Southern California will get a leg up on the American Dream under a $20 million home ownership initiative that is said to be the first in the country aimed specifically at Korean Americans.

The program is designed to address the needs of Koreans in Los Angeles and Orange Counties by providing bilingual information about the home buying and financing process and counseling in the Korean language.

The initiative also will pair participants with real estate agents who speak their native tongue, and offer mortgages that address income, cash and credit issues.

"Home ownership is a dream for all Koreans," said Hyepin Im, president of Korean Churches for Community Development. "Now we will be able to assist those who have low incomes, no savings or credit problems."

According to the latest Census figures, nearly a quarter-million Koreans live in the Southland -- 185,500 in Los Angeles County and 55,600 in Orange County -- but their ownership rate is far below that of other minorities here.

About two-thirds of Chinese households in the Los Angeles area are owners, as are 62 percent of white households. But the Korean ownership rate is just 43 percent.

Providing educational materials in their own language is aimed at helping the estimated 35 percent of local Koreans who are not bilingual as well as English-speaking Koreans who do not understand the process, said Im, whose group links some 300 churches with the community.

About 70 percent of Korean-Americans are connected to churches in one way or another.

Last November, about 800 church members attended a home buyer's fair sponsored by KCCD, a "phenomenal" turnout for such an event, said the group's Charlotte Roh. Two subsequent fairs attracted smaller but still large crowds.

About 91 percent of those who visited the initial fair were potential first time-buyers, said Roh, proving that Korean-Americans represent a "totally untapped market."

Under the Korean Dream to Reality Initiative, Wells Fargo Home Mortgage has agreed to accept nontraditional credit references and address other challenges so that buyers can qualify without having to put up any money of their own.

In addition, mortgage giant Freddie Mac has agreed to purchase up to $20 million worth of the no-downpayment mortgages from the lender, thereby ensuring a continuous supply of funds for additional purchasers.

"We're committed to supporting the Korean community and we have dedicated resources to provide outreach to this and other ethnic populations," said Desolina Avila, a Wells Fargo regional manager.

Published: September 3, 2003

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