The Barriers to Homeownership in the Hispanic Community and the Possible Solutions

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The Barriers to Homeownership in the Hispanic Community and the Possible Solutions - Latina on Real Estate

The National Association of Hispanic Real Estate Professionals (NAHREP) released their 2016 Hispanic Wealth Project Annual Report last month. In that report, they highlighted 8 component goal requirements to help the Hispanic community obtain homeownership. Here is the list and the objectives as presented by NAHREP:

  1. Consistent access to low down payment mortgage financing

Obtain commitments from additional lenders, government and other entities that will increase the supply of low down payment mortgages.

2. An increase in housing inventory especially in the stock of affordable homes

Obtain commitments from government, builders, servicers and other entities to deploy and support programs that increase the supply of affordable housing stock.

3. An increase in the number of formally-trained Hispanics working in the mortgage and real estate industries

Secure commitments from – and partnerships with – entities that can support the recruitment of Hispanics into the real estate and finance industries, and can support Hispanic professional growth through training and mentorship.

4. Practical consumer protection that reduces the risk for predatory activity while simultaneously promoting fair housing and improving credit access

Foster and support programs and policies that ensure an appropriate balance between consumer protection and mortgage access.

5. Down payment assistance and a plan to assist more Hispanic families with access to available programs.

Increase the number of first-time buyers by supporting programs and policies that expand down payment assistance programs, increase awareness of program availability to Hispanic families, and enhance Hispanic borrower access to first-time homebuyer mortgage programs.

6. Housing counseling that improves homeownership sustainability

Identify and support pre-purchase housing counseling programs for all first-time buyers, and specifically seek to endorse programs that align with Hispanic cultural and demographic patterns and characteristics.

7. Strong Community Reinvestment Act (CRA) and affordable housing goals that are met through programs that truly serve communities and homebuyers.

Recognize and support innovative and successful CRA programs and endorse policies that establish ambitious CRA and affordable housing goals that serve communities and homebuyers.

8. The continuation of government policies, including the mortgage interest tax deduction, that favor homeownership outcomes

Support policymakers who will work to preserve the mortgage interest reduction and will otherwise advance initiatives that support homeownership outcomes.

In conclusion,

As the report mentioned: “Failure to [complete these goals] could make homeownership unattainable for many Hispanics, materially impacting the health of the overall U.S. housing economy and further widening the wealth gap.

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