The virtues of financial, credit and home economics counseling for home owners is without question.

Home owners who are adequately schooled about home ownership before they purchase their home typically go on to become more financially secure home owners who are less likely to default on their mortgage and lose their home, than those who are not counseled.

There is, however, an often untold benefit of counseling -- it can make home owners out of discouraged consumers who believe the American Dream is only wistful thinking.

Freddie Mac says reliable, accurate information about home buying may not be reaching African American and Latino communities and those residents are more likely to exhibit common misconceptions about home buying.

Research has revealed about half of African Americans and Latinos believe they need a 20 percent down payment to buy a home and virtually perfect credit to join the club. More than half the people in the two ethnic groups also believe they must have the same job for at least three years to get a loan.

Nationwide, home ownership rates among African Americans and Latinos have been rising, but remain about 25 percent lower than rates for non-minority households

Misconceptions may be part of the problem.

"We believe that lack of access to accurate information is a barrier to home ownership," said Craig Nickerson, vice president of Expanding Markets for Freddie Mac.

"We can't allow misinformation to be a barrier to the families who may want to buy a home. We and our partners are determined to improve our delivery of home ownership information to individuals who want and need accurate information about home buying."

Freddie Mac, along with Chase Home Finance and ACORN Housing-Houston recently launched a new awareness and outreach campaign called "Homeownership: Let the TRUTH Move You" or "¿Tu propia casa? ¡Atrévete!" to help dispel some of the misconceptions Freddie Mac has identified.

In Houston, the home ownership rate is 47.4 percent for Latinos, 45.5 percent for African Americans and 70.6 percent for whites.

The new campaign is comprised of a series of one-hour educational sessions in English and Spanish offering the most current information about all aspects of home ownership from mortgages and home buying costs to credit and job history requirements.

The next free sessions will be held June 18 and additional information is available by calling toll-free number 1-866-7TRUTHS (787-8847), or 1-877-ATREVE1 (287-3831) in Spanish, to register for the free sessions.

"It's critically important for us to get the right information about home buying into our communities. Buying a home can be intimidating and knowing what information to trust can be challenging. ACORN Housing-Houston is glad to be a source of reliable, accurate facts about home ownership," said Glenda Kizzee, Office Director, ACORN Housing Houston.

Here's a sample of the lessons session-goers will learn.

Myth: You need almost perfect credit rating to qualify for a mortgage.

Fact: You don't need a perfect credit record. Even with past credit problems, you may still be able to buy a home. And, you can fix and improve your credit record to get better rates and loan terms.

Myth: A down payment of as much as 20 percent is required to buy a home.

Fact: Zero-down loans are common, as are 3-percent-down, and 5-percent-down loans. However, you also have to consider closing costs, property taxes and moving expenses among the costs of home buying.

Myth: People who do not have a checking or savings account cannot buy a home.

Fact: Having a savings and checking account is a good idea, but they are not mandatory prerequisites to buying a home.

Myth: You must have the same job for at least three years to qualify for a mortgage.

Fact: Lenders are more impressed when you've remained in the same line of work, but steady income is more important than how long you've been with one employer. Also income from second and third jobs can also be used when trying to get a mortgage loan.

"There is a lot of misinformation about home buying out there and that leaves people vulnerable," said Kizzee. "Today there are many more home ownership opportunities and flexibility in home buying than ever before."

Published: June 16, 2005

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Broderick Perkins parlayed a career in old-school journalism into a contemporary digital news service that really hits home. The award-winning consumer journalist, originally from Wilmington, DE, is founder, publisher and executive editor of the bootstrap DeadlineNews Group, a Silicon Valley-based editorial content and consulting service specializing in residential real estate, consumer news and related editorial consulting services. The DeadlineNews Group includes the website, DeadlineNews.com, offering real estate editorial content and consulting services, and its back shop, the Deadline Newsroom, an open house on news that really hits home. Perkins obtained his formal journalism education from University of Delaware and a journalism boot camp, the Institute of Journalism Education at the University of California-Berkeley. He went on to 20 years of service as a daily newspaper journalist at the Wilmington, DE News Journal and San Jose, CA Mercury News. Perkins covered housing on the San Jose Mercury News reporting team which earned a General News Reporting Pulitzer Prize in 1989 for coverage of the Loma Prieta earthquake. He has also produced real estate, consumer and small business content for the Wall Street Journal, Los Angeles Times, RealtyTimes.com, Nolo.com, Better Homes and Gardens, the National Association of Realtors, Homestore/Move and Intuit/Quicken among more than three dozen publications. In addition to managing the DeadlineNews Group, Perkins most recently served as chief editorial consultant for Nolo's Essential Guide To Buying Your First Home, Nolo, and writes real estate television scripts for RealtyTimes.com.