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L01 <br />City of Cuyahoga Falls, Ohio 40 <br />� Anal sis of Im ediments to Fair Housin Choice <br />Figure 3: Loan Purpose 2002 <br />70.0% <br />60.0% <br />50.0% <br />40.0% <br />30.0% <br />20.0% <br />10.0% <br />0 <br />r'Ov <br />Home Improvement I Multi - Family <br />Home Purchase Refinancing <br />lq 2002 <br />Figure 4: Action by Loan Purpose 2002 <br />C <br />I Denied I Withdrawn i <br />Originated App. Not Accpt Closed <br />Conv. Home Purchase IN Refinancing <br />Home Improvement <br />applications. <br />Home purchase <br />loans are a strong <br />indicator of how <br />many families are <br />able to purchase <br />single - family <br />housing in the City. <br />Part of the reason <br />for the high <br />refinancing rates <br />are due to lower <br />interest rates and <br />the increased in <br />the advertising for <br />this product. One <br />can hardly turn on <br />the radio or tv <br />without hearing an <br />ad for refinancing. <br />Figure 4 shows <br />a c t i o n o n <br />applications by loan <br />purpose. Home <br />p u r c h a s e <br />applications had an <br />eight in ten chance <br />of being approved. <br />Home purchase <br />applications also <br />had the lowest <br />denial rate of the <br />three loan <br />purposes, with just <br />6% of the <br />applications being <br />denied. <br />Home improvement and refinancing loans should be the easiest loans to make. The lender <br />is dealing with a known borrower, who has equity in their home and has a commitment to <br />the dwelling. Of concern is the 35% denial rate in 2002 for home improvement. <br />Refinancing applications had a denial rate of 14.5 %. Both of these are high and might be <br />