Hispanic Homeownership Barriers Start to Fall

REALTOR® Magazine Online
The national Hispanic homeownership rate rose to 49.7 percent in March from 46.1 percent in September 2003, according to research by the Congressional Hispanic Caucus Institute's HOGAR Initiative.

CHCI believes that continued low borrowing costs; mortgages that enable Hispanics to pool incomes and resources; and ongoing increases in population, education, and income are necessary if the ethnic homeownership rate is to continue its uphill climb.

Flexible mortgage products, local and state financial assistance and homebuyer education initiatives, and an increase in bilingual and culturally sensitive loan officers are largely responsible for expanding homeownership among Hispanics.

Nevertheless, those involved in the HOGAR Initiative note that the inability of loan officers to pay special attention to Hispanic borrowers makes it difficult for this population to overcome its lack of trust in financial institutions. Still, the study predicts that the Hispanic homeownership rate will hit 60 percent by the end of the decade.