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What is the Fair Housing Act?

The Fair Housing Act is a federal law in the United States that mandates equal treatment of buyers and renters of a house by landlord, owner or seller of the house. The Fair Housing Act was enacted in 1968, it protects house buyers and renters from discrimination by the seller or owner of the house. According to this Act, everyone that wants to buy or rent a house must be treated equally, regardless of where they come from or their background. Also, race, religion, sex, belief system, citizenship or nationality should not be the basis for discrimination by the house seller.

How Does the Fair Housing Act Work?

The Fair Housing Act prevents landlords, house sellers or realtor from discriminating against a buyer or renter of the house regardless of what the basis for doing so might be. Under this act, a seller must not refuse to sell or lease a house to a buyer or renter because the individual belongs to a protected class. Rather, creditworthiness is the only stipulated criterion that a buyer needs to satisfy before purchasing the house. Other factors such as age, sex, skin color, religion and nationality should not be used as a measure in a real estate transaction. Title VIII of the Civil Rights Act of 1968 is another appellation for the Fair Housing Act. The provisions of this act are enforced by the Department of Housing and Urban Development in the United States. If an individual feels discriminated against in a real estate transaction, this department puts the person through on what to do next.

What is creditworthiness?

Before a mortgage transaction in the real estate is agreed upon, the creditworthiness of the buyer or lender is an important requirement that must be met. Creditworthiness is determined by evaluating the credit rating, debts, assets as well as the income of the buyer or lender. Generally, in the mortgage and real estate industry, the financial condition and creditworthiness of the borrower is considered before a credit is given. Credit report and credit rating of clients are also measures taken to verify whether a customer is creditworthy or otherwise.

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