2010-2014 Consolidated Plan - City of Champaign

All but three planning areas have housing cost burdened rates below the national level, and only PlanningArea 2 has a very high rate at 34.7%.Home Purchase Loan DataFigure 2-7: Home Purchase Loans50%44.2%Percent of all Denied Loans40%30%20%10%0%16.5%6.0%6.0%4.5%1.9%9.0%12.0%Debt-to-IncomeRatioEmploymentHistoryCreditHistoryCollateralDenial ReasonInsufficientCashUnverifiable Credit Appl.Information IncompleteOtherSource: HMDA, 2001During the 1980’s, home purchase loan activity in the City fluctuated greatly from year to year. For thisreason, the 1991 Citywide Neighborhood Analysis reported average lending activity over the decade.The 1991 report stated that an average of 772 home purchase loans were originated annually between1980 and 1989. In 2001, 1,518 home purchase loans were made in the City, which was a 96% increasein loans originated compared to the 1980s average.The average total loan activity over the 1980s for home purchases was $50,461,000. Adjusted forinflation, this amount is the equivalent of $68,375,230 in 2001 dollars. By 2001, the value of totalmortgage loan activity had increased by 114.7% to $146,827,000. The average value of a homepurchase loan made in the 1980’s was $65,364, equivalent to $88,568 in 2001 dollars. This average loanamount increased by 9.2% by 2001, when the average home purchase loan made in the City was$96,724.The denial rate in 2001 for home purchase loans was 6.5% (106 loans denied and 1,518 loansoriginated). The number one reason for 2001 home purchase loan denials was the applicants’ credithistory, with 44.2% of all denials being made for this reason. Debt-to-income ratio was the second mostreported reason for loan denials, accounting for 16.5% of total denials. Planning Areas 1 and 7 had thehighest denial rates at 20.4% and 20.0% respectively and Planning Area 5 had the lowest denial rate at2.6%.Home Improvement Loan DataThe average number of home improvement loans made annually in the City during the 1980s was 111,with an average value of $10,206 each (equivalent to $13,829 in 2001). By 2001, the number of homeimprovement loans made in the City had increased 137% to 263. The average value of a 2001 homeimprovement loan in the City was $26,365 by 2001, 90.7% increase over the inflation-adjusted 1980’svalue of $13,829.16 Housing Market Analysis