The First Time : <i>...

Getting up before daybreak, five days a week, is a struggle for Alex Han. He barely has time to shower and gulp down some breakfast before leaving home in Lancaster for his job in Westwood, 70 miles away.

“It’s a long commute but when you can look forward to returning to your own home at night, it’s worth the struggle and the sacrifice,” said Han, an administrative assistant at UCLA.

Han feels lucky that he can now ride the UCLA pool van. “I was on the waiting list for months. It was much harder then when my wife also had a job on the Westside. Each morning we had to take our 1-year-old son Derek to the baby-sitter. Now we’re expecting our second child and Ming stays home.”

“It was so much driving back and forth,” he said. “I was having to fill the gas tank every two days. But the worst part was driving with half an eye open because I was so tired. That was dangerous.”

Living in the high desert just north of Palmdale has its advantages and disadvantages, he observed. “The families are mostly middle-class workers with kids. They are nice and we’re making friends, but we feel a bit isolated,” Han said. “There are very few Asians living here, and we miss not having a Chinese grocery store or a place nearby where we can eat dim sum.”

Alex Han was born in Qingdao, the northernmost port of China, and trained as a concert violinist during the Chinese cultural revolution. American friends arranged for his enrollment at UCLA’s School of Fine Arts, where he received a degree in music performance.

Sauming Han, a native of Hong Kong, met Alex in 1990, a year after her family had emigrated to Los Angeles. The couple were married shortly after.

The Hans hadn’t planned on buying their first home quite so soon. “But every week we’d see these ads for new homes and the prices were dropping,” Han said. “There was a lot of competition among developers and it seemed like a good time to buy.”

“There was also another reason,” Han chuckled. “My twin brother arrived in this country in 1986, three years after I did, and had already bought a house. I just couldn’t sleep at night, thinking he had a house and I didn’t. We kidded a lot about that.”

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The Hans began house hunting actively a year ago. “We started in San Gabriel, because we had read in a Chinese newspaper that we could buy a house there with only a 5% down payment,” Alex Han said. “(But) it didn’t apply to a family with only one income and since our baby was too young and my wife had to stay home to take care of him at that time, we couldn’t qualify.”

The couple also looked for affordable homes in Pomona and other areas, including Lancaster, where houses were almost half the price of others they’d seen.

“We drove into Lancaster one day in the rain, looked around and settled for a newly built two-bedroom house with a den that cost $144,000. The developer wanted a $7,000 down payment but we increased that amount to $16,000 and were able to reduce our monthly mortgage payments to $750.”

The Hans received some financial help from their families. “In our culture there is no division in the family and one can always count on the support of relatives,” said Han.

“The house was not perfect when we bought it. The bedrooms were small, the back yard like a desert, so we’ve done a lot of work.

“We soon found out that there’s always something that doesn’t work after you move into a new house. The air conditioner was blowing hot air instead of cold, the garage door didn’t open, the toilet didn’t have enough water pressure, and we had to wait and wait for our turn to have these things fixed.

“On hot days we used the air conditioner a lot, and we also realized that a new lawn always needs more water than an old one. It was a big shock when we got our first utility bills,” said Han. “Since then we’ve had to learn something about water and energy conservation. We didn’t have much money left after buying the house, so we first bought a ‘fridge’ and washer and dryer, and we have since put in a lawn plus a little patio.” The Hans pride and joy is a sophisticated satellite antenna that provides them with international TV reception.

“Life is hard when everything is so expensive and you have to live on a tight budget but things are looking up now,” said Han. “I am very motivated. My family is growing and I know I must work well at my job because if I lose it, I won’t be able to keep my property. It’s a good challenge.”

Mildred Teresa Hill is a woman with determination. “I’m a goal setter,” she said. “Way back I promised myself I’d make it through college and own a piece of property by the time I was 30.”

Hill was graduated from USC three years ago and recently, at age 29, closed escrow on a three-bedroom house in Inglewood’s Morningside Park area. “If I do my planning and my research I’m not afraid to take chances,” she said, “because I know how well I’ll try for what I want.”

Buying her first home has probably been Hill’s toughest challenge. “It’s been full of hurdles,” she said. “I had hardly any money and I wasn’t sure I could make it happen.

“The fact that I was buying a house with a swimming pool that I knew would have to remain empty until I could afford to fill it didn’t bother me a bit. That was a treat for a later date. What was really scary was taking on the mortgage commitment.”

Hill has lived most of her life in South Central Los Angeles. She was 4 when her parents left Jackson, Miss., to find jobs in the Southland’s aircraft industry.

“My Mom and Dad are still together and I was fortunate to be raised in a complete family unit. My parents’ goal in life was to provide an education for me and my sisters. Both worked, my mother as a structural mechanic for Northrop and my father as a junior engineer for Lockheed.

“I feel I’ve been truly blessed,” she said. “In addition to my family, I’ve always had people pulling me up from all directions. I always felt encouraged to set my sights high.”

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Hill had been looking at real estate ads for some time. “One day I saw this ‘sale by owner’ ad for a three-bedroom home with a pool, not far from where I lived. The appraised value on the house was $210,000 but the asking price had been lowered to $185,000.

“I thought there was some mistake because other houses on the street were priced a lot higher. It seemed too good to be true but this particular house was owned by an older couple who were getting a divorce and they were in a hurry to sell.

“At the time I knew so little about real estate or what was needed to qualify as a buyer. That’s when I started networking, asking questions, looking for lender incentive programs and just what to do next,” Hill said. “I was hoping to buy directly from the seller to save myself the broker’s commission.

“When I described the house to Bill Blalack, a helpful realtor who had taught me what to look for in a property, he said: ‘Go buy it today.’ ”

Hill applied for a mortgage at American Savings Bank, where special terms and a 5% down payment were being offered as an incentive to low-income buyers. But American rejected Hill’s loan application. “There were two things that didn’t sit well with them, I guess,” she said. “I’d only been at my last job for three months and my credit wasn’t that good.

“The report said I was a slow payer and had missed some payments. The fact that I managed to pay off all my charge accounts and student loans before applying for funding didn’t seem to make a difference. I even switched to another lender and went on a campaign to get myself qualified. I convinced them that being young, energetic, single with no kids should make me a good risk. I had also just started my own business and was doing well.”

It took several months for Hill to make some headway toward purchasing a home. “I wrote many letters and asked creditors for positive responses to my efforts to pay them off.

“I wrote the councilman in my district appealing for a broadening of riot-stricken target areas where programs were offering more flexible lending terms. I also corresponded with the administrator of the city’s bond program pointing out that while the property I wanted was marginally located, I was a member of a minority that had always lived in a deprived area.”

The big surprise came when American Savings reversed its decision and offered to make the loan. “It was a real victory,” she said.

Hill now runs a consulting business that helps students apply for scholarships and college grants. “I managed to get my education through grants and now I want to help open doors for other young blacks who are seeking that opportunity,” she explained.

“I asked my two sisters, who are both single and employed, to move in with me. I charge them a reasonable rent and that helps pay the mortgage. The arrangement works well for all three of us. (We) each have our own bedroom, each shares in the housekeeping, and the only thing I insist on is that they pay their rent on time.

“Someday when I build up my business and enough equity in my home, I plan to help both my sisters buy their own homes. Being a homeowner is a good feeling.”

John and Anne Marie Parenteau and “Betty Benz,” their classic 1964 Mercedes Benz coupe, have been inseparable since the couple’s marriage almost two years ago.

The car is their pride and joy, and they have vowed to part with her for only one purpose: to make the down payment on their first home.

Now that time has come. Their first child is on the way and it’s time to sell their beloved “Betty Benz.” “We’ll hate to lose it,” said 23-year-old Anne Marie. “John’s been restoring that car for the past two years and has already spent about $10,000 on it.”

“It’s a beauty,” moaned 30-year-old John, “but it’s time to set aside our toys.”

For the Parenteaus, buying their first house still seems a gigantic step.

“It’s not something you jump into,” Anne Marie said. “When John and I were married we gave ourselves a year to get our own home. But it’s not easy finding something you like and can afford.

“As I was growing up I had this fantasy, that I’d find a rich, older man with a nice house for me to move into,” she laughed. “As adults we see a different picture. The reality is that if we buy a house we won’t be able to continue living in an upper-middle-class neighborhood.” The Parenteaus have been living in a four-plex rental unit in Long Beach, close to where both were born and raised. John works nearby at Palmer Import Motors, while Anne Marie has stopped working during her pregnancy.

“We treated ourselves to a fabulous wedding trip to Hawaii and we’re only just through paying for it. Now we figure we’ll be able to swing a home purchase . . . “ said John. “Somewhere in the $130,000-$150,000 range is what we’ve been looking at.”

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His wish list includes a two-car garage, preferably attached and a big front yard where kids can play. “For me, that’s a nostalgic necessity,” he said.

The couple have done some serious house-hunting. “We first drove to Cypress to look at houses there because it was close to Long Beach and to John’s work,” said Anne Marie. “What we found were mostly single-story houses in a ‘50s style that didn’t appeal to us.”

“We then looked at Los Alamitos and loved the neighborhood. It was upbeat, the homes were well cared for, people were working in their yards and that’s always a good sign that people care about their properties, but the prices were out of our range; three-bedroom homes were selling for around $230,000 and two-bedroom houses went for about $20,000 less.”

By last October, they still hadn’t found anything they could afford.

“We did some looking in Huntington Beach, as well, but any house close to the beach was out of our price range,” they said. “We also took a look at houses closer to the 405 freeway along Golden West Avenue and picked up some flyers that were tacked on the ‘for sale’ signs at some of the more established projects. In several cases the prices had been greatly reduced--houses that were originally priced at $245,000 and in very good shape were down to $211,000. That was still too high for us.”

For awhile the Parenteaus were on a hot pursuit for a “fixer” in a good location. “My sister-in-law called one day to tell us about a house close to where she lives that seemed perfect for us. It was owned by an older couple who wanted to sell but the problem was they couldn’t decide when to relocate.

“There was a spell when things really began to drag. I was pushing, and John was resisting,” Anne Marie said recently. “The subject became a sore topic in our house for weeks.”

“I didn’t feel right about buying a house when there were still four or five houses on the same block with ‘for sale’ signs and they were simply not selling,” John said.

A month later he was more optimistic. “We’re pushing forward again. We found a three-bedroom house in Anaheim with a pool and sauna for $200,000 and no down payment. The house is owned by a friend and he’s willing to have us take over his existing loan. We’re quite excited,” he said.

There was also a second trust deed with a private party. “The owner of the second trust deed agreed to let us take over the payments, but we decided to back out. It seemed a bit shaky,” he said.

“House hunting isn’t easy and deals aren’t always what they seem to be. We’re a little wiser and more resigned now. And even though I despise condos, who knows, for the first few years it may be the best place to hang our hats and build some equity.”

When Loretta Rosas and Raymond Ramirez became engaged, the first thing they did was to start saving for their future together. Their top priority was to buy a home.

Last November, Rosas, her teen-age daughter, Denise, and Ramirez moved into their two-bedroom hillside home in Highland Park, much sooner than they ever dreamed possible, after qualifying for a mortgage under the Community Home Buyer’s Program.

The nationwide program, sponsored by Fannie Mae (Federal National Mortgage Assn.) is available to low- and moderate-income buyers of single-family homes and condominiums, through commitments from local lenders such as banks, mortgage brokers and mortgage lenders.

“We had no idea that such a program existed until David Toyama, a real estate broker, told us about it,” said Rosas, a clerical worker for the city of Los Angeles. “That really helped us.”

Rosas and Ramirez had been house-hunting in several neighborhoods where they most wanted to live. But the prices were always too high. The bottom line was they couldn’t handle a 10% down payment. “It was very discouraging,” Rosas said.

Fred Thomas III, owner of Professional Realty Mortgage, is one of several smaller mortgage brokerages selected by Countrywide Funding to help provide $1.25 billion worth of mortgages designated for affordable housing.

Thomas, formerly with Shearson & Lehman, believes community-based firms like his are needed to provide access at the grass-roots level and to function as a delivery system. “We are into a heavy campaign to spread the word to the community that homeownership is not out of reach of low-income families,” he said.

“The hottest program in our community continues to be the Community Home Buyers Program,” said Thomas, whose efforts are focused in South Central and other low- and moderate-income neighborhoods in Los Angeles. “This is truly a window of opportunity for folks who previously were shut out of the home buying system,” Thomas said.

Besides getting low fixed rates, buyers have the added leverage of a down payment as low as 3% with the additional 2% obtained as a gift from a family member or a grant from a nonprofit or governmental agency.

“We talk about rebuilding L.A. If you had more homeowners, the communities would be stabilized,” Thomas said, emphasizing the need for support, especially from neighborhood churches, to help increase homeownership. These nonprofit groups are the most likely to be responsive because they deal with community residents on a very personal level.

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The liberal underwriting guidelines of the Community Home Buyer’s Program enabled Rosas and Ramirez to become homeowners, even without ideal qualifications.

Loretta Rosas had an excellent, well-documented credit rating, while Raymond Ramirez had done little to establish his, even though he had no debts and had worked for the Vons food chain for 10 years. That created a problem for the couple.

Thomas showed Ramirez how he could build up his credit, bit by bit, with receipts and letters from local merchants, neighborhood stores, the cleaners, phone bills, cable TV service. “We also documented the fact that bank accounts are non-traditional among many Hispanics, who are accustomed to paying cash for services and products,” said Thomas.

The couple had been able to save about $6,000 for a down payment. Through the program they were able to get a 95% loan of $146,300, and the seller agreed to pay their closing costs. It took less than 25 days to complete the transaction.

“This is a good beginning for us,” Rosas said. “We are enjoying privacy we never had when we rented our apartment in Eagle Rock. We have a yard, and Raymond is already planning to build us a patio and barbecue and we hope later to add a master bedroom and another bath. Some day we’ll be able to afford something better!”

(Low down payment programs, similar to the Community Home Buyer’s Programs, are available through such agencies as the California Housing Finance Agency, the VA and the FHA.)