Mortgage Loans Less Accessible for Minorities

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The US home buyers from ethnic minorities are more likely to get rejected for a mortgage loan compared to Caucasians. While the mortgage rejection rate for Caucasians is 10.6%, the rejection rate for African Americans is 25.4%. About 1 in every 4 prospect home buyers from this ethnical group gets their home loan application declined. The rejection rate among prospect home buyers of Hispanic origin is 21%. The rejection rate for people of Asian origin is 13.2%. This statistical data was produced by the online property database Zillow and the National Urban League.

African Americans make up 12% of the population in the United States. Their share of mortgage applications is 3%. While Hispanics form 17% of the population in the country, they make up for only 5% of home loan applicants.

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Prospect home buyers from ethnic minorities are more likely to place smaller down payments as well. African American buyers are more likely to put a down payment of 5% or lower. Hispanics are more likely to place a down payment of approximately 6% of the purchase price of the property which they intend to buy.

The homeownership rates among the different ethnic minorities correspond to the data for the accessibility of mortgage loans. The homeownership rate among people of Caucasian background is 73.1%. Among African Americans it is 27.4% lower standing at 46.5%. Some 50.9% of the Hispanic population in the United States owns a home. The homeownership rate among Asians is 60.9%.

Foreclosure data for the period from the beginning of the housing crisis in 2007 to 2013 reveals that two times more people of African American and Hispanic origin lost their homes compared to Caucasians. For the former, the foreclosure rate was 25%. A quarter of the home owners from these ethnic minorities lost their properties. For Caucasians, the rate was 12%.

Jessie

Jessie

Jessie Jessie is a corporate communications and public relations professional skilled in media relations, strategic communications, crisis and issues management, writing and editing. She excels in managing multiple, high-priority tasks and working in high-stakes environments. Jessie has more than 10 years experience writing editing both print and online content. She is a graduate of Illinois State University with a Masters degree in English and writing.

Contact: jessie@mortgage.info
Jessie

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