ACORN, a nationwide community activist organization looked at 130 metro areas, focusing on loans in the subprime market, including adjustable-rate mortgages.

ARMs are known for producing “rate shock” as interest rates increase. Most ARMs begin with low payments that increase significantly after the first year or two. Subprime loans are offered to borrowers who have less than perfect credit and do not qualify for low interest rates.

The ACORN study found that, in general, minority borrowers are more likely than white borrowers to receive high-interest loans. This is seen across the country, and even when the minority borrowers have larger household incomes.

The study relies on a sample of 275 lenders and uses data required under the Home Mortgage Disclosure Act.

The data did not include factors such as credit scores, loan-to-value ratios or payment histories, explained E. Robert Levy, legislative regulatory cousel for the Mortgage Bankers Association of Pennsylvania.

“Without that kind of information you cannt make any reasonable determination as to why any individual or group” did not qualify for a lower-interest loan, Levy said.

While ARMs and other alternative loan options are often singled out as predatory lending methods by critics, Levy says that such financing techniques have helped more people own homes.

Home ownership rates in the US have increased for all groups, including minorities. Levy says that the nonprime market has been helpful in making home ownership possible for more consumers.

All consumers are advised to take advantage of educational programs, such as the one offered by the Fair Housing Council. Education is the best knowledge against predatory lending.

Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!

Ironically, business startup loans are still being made. Maybe not as many as a couple of years ago, but they are still being made. Some of that funding can be yours, even if your business is a startup. There are steps that creative entrepreneurs can take to get that funding.

1. DO YOUR HOMEWORK. There is nothing worse than having a banker ask, “So how come your competition is failing?” and not be able to respond with more than, “Duh?” Slews of businesses are going to tumble in the coming months and years. Your first job is to ensure that yours is in a market sector that has real potential.

* Determine that your client base is there.
* Determine that you can compete with your top competition.
* Have a firm grasp on how other companies in your sector are doing. Know which ones are going out, and which ones are going to make it.
* Really know how much money it is going to take.

2. WRITE IT DOWN. Creating a strong written business plan went out of style for a while. Lenders just got too enamored of sexy sounding internet ideas. Well, no more. It is back to basics in a very real way for getting a business startup loan. Solid business plans are once again a standard part of doing business, wherever and whatever that business is.

3. LISTEN. It is relatively easy to give a sales pitch to a banker. They will sit there and listen, then toss your business plan in the “next quarter” file when you leave. Tackle this “banker business” a whole different way. Ask for their help before you begin. There is an amazing amount of information sitting in those skulls. Invite them to open up a bit and share with you. Odds are, they will. Go in with a solid set of questions. Then listen — really listen — to the answers.

* What types of startup businesses are they interested in funding?
* How much security do they require?
* How strong does your personal credit need to be?
* Can they recommend alternative funding sources, like leasing or angel investors?
* What companies/ideas have they backed lately?
* Are they part of the SBA network? (If not, you may need to get out of there in a hurry.)
* What industry norms do they use to judge your financials? Can they provide you with a copy of those norms?
* Do the financials need to be constructed by an accountant, and if so, can he recommend 2-3 good ones?
* Do they have their own venture fairs, and if so, can your company be a presenter?

Banks are not all created equal. Nor are bankers. Follow this same process for two or three or even four institutions in your area. You will be amazed at the different answers you get.

4. MAKE CONNECTIONS. Other companies are getting funding. Connect with them and find out how they did it.

5. PICK UP YOUR OPTIONS. Banks are not venture capitalists are not angel investors are not corporate partners. There is a whole lot more that banks are not. A bank may not be your best source of funding. In fact, for a business startup loan, I can almost guarantee that a bank is not the best source of funding about 75% of the time. Really get a grasp on what all your options are, and mix and match them to get to where you want to go.

6. STRUT YOUR STUFF IN FULL COLOR. Get your website up and running. Now. Is there a business in existence that does not have a website? Most likely, yours could even be generating income for you. If your product/service has any type of national or international application, see what you can do to bring in some money from your website. This really impresses the daylights out of lenders and investors, so go for it.

7. BOOTLEG AND FORGE AHEAD. Take the business as far as you can under your own steam. Being able to get the business started, with clients in place, means a lot to lenders. It really demonstrates your ability as an entrepreneur. It means you can negotiate; you can find solutions; you can resolve small issues before they become big issues. You are truly then in a position of “expanding”, not just “starting up”. And that makes all the difference in getting a startup business loan in this economy.

Doing just this much will put your business plan on the top of the pile. It will not guarantee funding. But I do guarantee that you will get noticed, which is no small accomplishment. Getting a startup business loan is a Big Deal. Remember, you are not looking for a pitcher of lemonade. All you need is a touch of sweetner. You can make the pitcher of lemonade yourself.

Good luck on your venture.

MaryAnn Shank has helped thousands of business obtain financing over a 20 year career with entrepreneurs and lenders/investors of all ilk. Find her best suggestions for getting a startup business loan now at Basic Business Plans. Service businesses, those businesses that are nearly always difficult to fund, will find sweetening assistance at Service Business Plans.