Last week we mentioned that 52% of the Hispanic community believes that one of the top five most important financial priorities is reducing debt. In that article, we talked about a few ways to reduce that debt with the idea of being able to buy a home and create wealth as the ultimate goal.
After posting last week’s blog, one reader contacted us saying that it is hard for Hispanics to reduce debt because some Hispanics lost everything in the recession. This commenter was right, so we would like to address it in this post!
Recently CNN Money released an article talking about what the Latino voters care most about and it turns out that the Latino voter’s number one concern was exactly this commenter’s point; “Hispanic households lost 66% of their net worth between 2005 and 2009… For many Hispanics, their wealth came from their home.”
The article also highlights that “rebuilding that wealth is a key Issue for Hispanics in the U.S.” Yes, the recession may have hit us hard, but it did not take away the belief in homeownership! As a matter of fact, as we mentioned before, the Hispanic homeownership rate went up to 46.7% in 2015.
If you lost your house in the recession, now is the time to recover your house!
It is a great time to buy, even if they ask you for a bigger down payment (some are requesting a 10% down payment under this circumstance). Take advantage of the fact that interest rates are at a historic low, and understand that the banks know that many people lost their homes, even very responsible people. If you have finished the 3 year waiting period (from the date the foreclosure was completed) you should talk to a mortgage professional (before you search for homes) and see if your circumstances allow you to buy again.