Zillow: Homeownership still a challenge for many blacks, Hispanics

Black and Hispanic prospective homebuyers in metro Atlanta still have a harder time securing a home loan than white and Asian buyers, but the plight in metro Atlanta is somewhat improved when compared with national averages for the groups, according to a new report from Zillow, the online real estate marketplace.

homeforsaleThe denial rate on a conventional loan overall in metro Atlanta was 12.3 percent, Zillow found after studying 2013 data lenders reported under the U.S. Housing Mortgage Disclosure Act. For white applicants the denial rate was 8.9 percent; for Asians, 13.4 percent; for Hispanics, 19.1 percent; and for blacks, 25.3 percent.

Nationally, the denial rate overall was 12.4 percent; for whites, 10.4 percent; Asians, 13.3 percent; Hispanics, 21.9 percent; and for blacks, 27.6 percent.

The report, which also found blacks and Hispanics are having a harder time regaining much of the equity they lost during the Great Recession, mirrors other reports that have shown the two groups lagging others when it comes to fulfilling the dream of homeownership.

Lower average wages and the inability to come up with down payments continue to hurt blacks’ and Hispanics’ efforts, Zillow said. Many less-than-creditworthy applicants who, before the recession, were able to secure subprime loans on properties with inflated values now find it hard to get a mortgage or are stuck with mortgages that remain underwater (the loan exceeds the value of the home). Foreclosures clustered in certain areas also have hurt creditworthiness.

“Black and Hispanic applicants for conventional home loans make roughly $20,000 less per year than white applicants, resulting in much higher denial rates,” Zillow Chief Economist Stan Humphries said in releasing the study. “Similarly, black and Hispanic communities are clustered in areas that saw huge run-ups in home values prior to the recession and even larger drops during the crash.”

The result is that the two groups have had a harder time regaining equity lost during the housing bust.

Reader Comments 0

8 comments
STColeman
STColeman

It's not all on "whitey," but to pretend some aspects of institutional racism do not exist is shortsighted at best. M&T Bank was just busted by the Feds for discriminating against people of color. Go Google the story.

I live in a $300K home with my wife and our beautiful black family. Guess who lives in the other $300K homes around us? Other beautiful black families. We keep our kids in school, pay our bills on time ( as far as I can tell) and have had very few foreclosures in our subdivision.

I know it may be hard for your tiny brains to handle, but most of us black folks speak well and handle our business on a daily basis. Our kids represent us and themselves well in school. And, I might add, we all look damn good doing it without the aid of cancer causing tanning salons and silicon butt/lip/breast injections. Get off social media, turn off FoxNews and go meet some real black folks.

CanBee
CanBee

Mr Coleman - I am proud for you and proud of you.....Oh, and I'm Whitey and very Conservative! Unfortunately, you are a Minority within your race and you should be DAMN mad that you and family, and your neighbors are crapped on by the thug that steal your efforts! I might be wrong but I truly believe that my comments represent a.very large percent of white folks.

It is NOT the color of your skin, it is the COLOR OF THE ACTIONS of the majority of your race.

Outer Marker
Outer Marker

0-3% down first home mortgages are a dime a dozen and have been for a few years IF you're credit worthy and you can even buy a 2nd home with 5% down.  The banks don't care what color you are IF you're credit worthy hence this in the article:


Many less-than-creditworthy applicants who, before the recession, were able to secure subprime loans on properties with inflated values now find it hard to get a mortgage or are stuck with mortgages that remain underwater (the loan exceeds the value of the home).

prarrd
prarrd

But how will blacks spin this to blame it on whites this time? I mean....they've been "challenged" for what, 400 years now? Maybe they're just CHRONIC LOSERS. Most speak like children. Then they wonder why "they is not hired fo' gooh jaabs? It all racism, is". 


Maybe they should start claiming income on the stolen goods and drugs they sell.

zekeI
zekeI

@prarrd 

Problem is our idiot race based socialist government interprets this as racism and prejudice! Hence all the ridiculous favor minority social plans and laws!