Hispanic Homebuyers Are Thriving: Here’s What We Learned from NAHREP

Despite discouragingly high interest rates, critically low housing inventory, and increased challenges qualifying for a mortgage, the Hispanic homeownership rate thrived at 49.5%–a 10-year high. This eye-opening statistic, representing more than 9.5 million Hispanic households in the US, was shared earlier this month at the National Association of Hispanic Real Estate Professionals® (NAHREP) Homeownership and Wealth Building Conference as a sign of the perseverance and wealth creation Latinos are working towards.  

Considering the large population that this represents, it reminds us why our work at Framework is essential. Our mission is to help reduce that homeownership gap- particularly for first-time and first-generation homebuyers- by providing a platform that makes it easy for partners to provide accessible homeownership education courses and resources that make homeownership sustainable for all. Learners can take courses at their own pace and even on the go, in English or Spanish, to learn money-saving information. For many individuals and families, there is an aspiration to become a homeowner and create generational wealth. Yet, there is a gap in understanding the process and how to make smart money decisions to get there.  

Navigating the Homebuying Process  

30% of first-time homebuyers are Latino, and an underlying theme throughout the NAHREP Conference was dedicated programs and processes specific to supporting Latino homebuyers’ success. For example, many Latinos opt for co-borrowers, especially family members like parents or grandparents, to help them navigate their success rate of being approved for a loan. During Fair Housing Month, it’s important to celebrate how far the housing industry has come to make homeownership accessible for all and how many opportunities for improvement we still have yet to go. Nearly 30 million Americans identify as having Limited English Proficiency (LEP), and yet, there is no mandate to provide legal documents in the borrower’s preferred language. However, some steps are being made towards this, particularly by the Department of Housing and Urban Development (HUD), which is working to collect data on preferred language services and is now making collecting information for their lenders mandatory.  

Minding the Racial and Generational Gap 

The Latino population is the youngest racial/ethnic demographic in the US. With a median age of 30, several different sessions discussed not only the cultural gap but also the generational gap. For example, the average loan officer is a 55-year-old white male. How are lenders meeting their clients where they are and looking to understand their clients’ needs?  

Despite some of these challenges, there’s much reason for optimism. Builders, governments, and financial institutions are stepping up with programs to make homeownership more affordable, especially for first-time buyers. For example, many Special Purpose Credit Programs are designed to correct disparities in lending across all demographics. NAHREP shared that there are over 2,000 down payment assistance programs nationwide, yet 42% of the population remains unaware of them. Helping homebuyers become aware of how they can save money when buying and owning their homes means smart, sustainable homeownership. We heard this from a Framework Learner in Oregon who shared: 

Homeownership Education Is Essential to Success 

Lastly, education emerged as a beacon of hope, emphasizing its transformative power in closing wealth disparities. Latinos with a college degree earn five times more than those without one, highlighting the importance of knowledge and empowerment. At Framework, we see the results and hear the feedback daily on how education like homeownership education can empower sustainable decision-making.  

In 2023, over 10,000 learners who completed the Framework Homebuyer Education Course identified as Hispanic, and over 3,000 learners completed the course in Spanish. We know working with partners across the nation to make information accessible empowers first-time and first-generation homebuyers with a platform where they can stay connected with their agent, lender, or housing advisor and a growing catalog of homeownership education and resources to ensure learners keep their homes as well as their homes keep them. 

Overall, the NAHREP conference was a great place to connect with like-minded folks with the same vision of supporting Latinos in reaching the goal of homeownership.