Barriers to Homeownership for Latino Families

Barriers to Homeownership for Latino Families

By U.S. Rep. Diana DeGette (D-CO)

For decades, homeownership has been a cornerstone of the American dream. As we begin National Homeownership Month, it is important that we look at whether Latino families have sufficient access to making the dream of homeownership a reality.

While the national homeownership rate hovers around 68%, less than half of Latino families in Colorado actually own their home. As the Latino community continues to grow across our state - and throughout the nation - it is imperative that we increase the opportunities for all Americans to own their homes. In particular, this requires that we raise the numbers for communities who are lagging behind.

The U.S. Census Bureau has predicted that by 2010, minorities will comprise two-thirds of the approximately 15 million new households in America. But we must remove the obstacles Latinos currently face and replace them with policies that make it easier to become homeowners. Right now, these roadblocks include:

* Lack of available capital - Latinos earn thousands less per year than the average American worker and have the lowest savings of any demographic group in America. Further, many Latinos lack a long credit history. In fact, with 35% of Latinos not even having a bank account, they have trouble accessing the necessary lines of credit that make homeownership possible for millions of Americans.

* Lack of available information - A major barrier to homeownership is the lack of information about the home-buying process available to Latinos. Many have nowhere to turn for assistance, and as a consequence, do not know the best options available to them. Language barriers for some Latinos can prove catastrophic in impeding efforts to buy their own home.

* Lack of affordable housing - Skyrocketing housing prices, limited financial access, zoning issues, inefficient use of land, and lack of incentives to build affordable housing have combined to push many homes out of the reach for prospective Latino homeowners. Rather than the traditional idea of a home, these factors, among others, have pushed Latinos to find alternate types of homes, like mobile homes, which don't hold value nearly the same as a fixed dwelling.

* Predatory lending - There are countless stories of criminal and corrupt practices in the Latino housing market business. Many of these problems go unchecked because, under local jurisdictions, there is not a comprehensive plan to defend Latino clients. From steering Latinos to homes they can't afford to encouraging them to put family and friends on the mortgages in order to secure more money, real estate predators are far too common in the Latino housing market.

As your representative, and as a member of the Congressional Hispanic Working Group, this is an issue of great importance to me. I am committed to working with my colleagues on developing proposals that will expand opportunities for Latinos to own their own homes. Homeownership is a cornerstone of the American dream. It must be a realistic dream for all Americans if we are to continue to enjoy the same levels of prosperity we have had for the past 50 years.

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