First-Time Hispanic Homebuyers Optimistic, Expect to Find Their First Home Within the Next Five Years
Hispanic homebuyers are ready to move the housing market, according to a new report. More than half of Hispanic homebuyers are comfortable with making a down payment of 20 percent or more on an affordable new home. Additionally, most Hispanics plan to buy their first home within the next five years.
More than 1,000 Americans were polled in order to learn about the needs and expectations of homebuyers. According to the study, Hispanics are keeping their financial options open when it comes to affordability programs, cash savings and a 30-year mortgage. Approximately 62 percent of soon-to-be homeowners are interested in purchasing a move-in ready home.
But purchasing a home is a complex matter, requiring paying down debt, saving for the down payment, finding steady employment and finding an affordable home. Additionally, nearly a quarter of Hispanics (22 percent) feel they can't find a home that meets wants and needs. However, financial planning can unseat preexisting barriers to home ownership.
"Many first-time buyers today are finding it difficult to save for a large down payment, especially young adults who are saddled with substantial student loan debt," said Scott Haymore, Head of Mortgage Pricing and Secondary Markets, TD Bank, in a statement. "The great news is that many lenders today are offering home affordability and down payment assistance programs so it's important for these buyers and potential buyers to shop around for a mortgage and learn more about the options available to them."
TD Bank's research, titled "First-Time Home Buyer Pulse," revealed that 66 percent of Hispanics surveyed plan to buy a home in the next five years and would like to provide a sizable down payment of 20 percent or more. However, 66 percent of respondents indicated that they are having trouble saving for a down payment.
Nonetheless, Hispanics (46 percent) are more likely than the general population (38 percent) to consider affordability programs. Also, a majority of Hispanics (71 percent) will buy their first home with a spouse/partner, compared with 56 percent of the general population. This improves the likelyhood that Hispanic homebuyers will buy their first home in the next five years, which 84 percent of Hispanic respondents desire.
When purchasing a home, one third of Hispanic first-time homebuyers (32 percent) searched for a home in a big city or urban area, compared with 20 percent of the general population. Also, top amenities identified by respondents include a backyard or pool, an attractive design, and close proximity to water and green spaces. Additionally, Hispanics indicated that mortgage rates are the most valuable asset compared to a realtor or insurance costs.
The State of Hispanic Homeownership Report, a publication of the National Association of Hispanic Real Estate Professionals, or NAHREP, asserted that the number of Hispanic homes grew by 320,000 in 2014. This represents 40 percent of the total household growth in the U.S, and it is the largest household growth percentage of any U.S. population group. Between 2010 and 2025, there will be 17 million new homes. According to these statistics, Hispanics will have claimed over seven million them.