Hispanics or Latin-American nationals in the United States have had trouble landing a mortgage loan in the country due to two main reasons: most of them are unbanked. Unbanked individuals are omitted from traditional credit scoring models that are used as a basis for a guarantee on landing mortgages. As a result, they tend to be rejected from acquiring mortgages when they wish to own properties in the State.
Since the 1970s and 1980s, Hispanics have labeled as one of the citizens of America than belonged to poverty-stricken neighborhoods. According to Great Bend Tribune, historian Richard Rothstein indicated that this was a direct occurrence due to government intervention in the private sector, especially when such intervention involved the modification of real estate policies.
However, since then, the Hispanics or Latinos were able to overcome the real estate challenges they faced in the nation wherein their homeownership rose during the years 2009 and 2010. In fact, since 2010, 614,000 Hispanics were able to acquire their very own residences during said time.
Despite the rise in home ownership values, Realtor reported that Hispanic mortgage applicants were denied twice as much as those white applicants during the year 2013. Furthermore, it was quite doubtful why 17% of America's population faced this challenge of owning their very own estates in the country even until now.
A recent study showed that the very reason why Hispanics had a hard time landing a mortgage loan was due to most of the community being under-banked or totally unbanked.
Furthermore, since traditional credit scoring models used to guarantee a person a mortgage in the state omit mortgage applicants that are unbanked, it greatly affected the rate of rejected mortgage loan.
Unbanked individuals face a rough challenge as their good payment history would not stand as a credit score leading them to be incapable of landing a mortgage loan.
The report suggested that in order for Hispanics to have greater chances at landing a mortgage loan in the US, they should first consider thoroughly researching on properties that are more likely suitable to their ability to pay. Furthermore, if they consistently keep a close eye on their credit standing before acquiring a home, they will gain better chances at landing a mortgage approval.
