The 2016 State of Hispanic Homeownership Report by NAHREP (the National Association of Hispanic Real Estate Professionals) highlights the barriers to Hispanic homeownership. Here is a summary of those barriers followed by an excerpt from the report:
Lack of Housing Inventory
“Single-family residential (SFR) housing stock is at historic lows. Institutional investor purchases of SFR properties increased by 29% in 2016, fueling a lack of available affordable housing stock. Investor purchases were concentrated most heavily in affordable markets, especially in the South, effectively edging out first-time home buyers.”
Access to Credit
“Hispanics continue to be denied mortgage loans at a higher rate than non-Hispanic Whites. In 2016, Hispanics were denied conventional loans at a rate of 17.3%, nearly 9 percentage points higher than the denial rate for non-Hispanic Whites.”
Shortage of Culturally Competent Professionals
“The Urban Institute estimates that by 2030 Hispanics will be responsible for 56% of new homeownership gains. However, those employed within the real estate and housing industries are not reflective of this burgeoning demographic. Current estimates indicate that 4% of mortgage professionals and 7% of real estate agents are Hispanic. Approximately 25% of Hispanic buyers say they prefer to work with a real estate agent who can assist them in Spanish.”
If these issues are stopping you from buying your dream home, sit down with a local real estate professional to talk about your options. There are many new programs available that could help you make your dream of owning your home a reality!