"¡Mi Primera Casa!" Campaign Determined to Push Latinos Toward Home Ownership
The Hispanic Federation and the New York Urban League have joined forces to introduce a new public education campaign, "¡Mi Primera Casa!" or "My First Home!," to increase multicultural access to home ownership.
Black and Latino families continue to face obstacles as they seek homeownership, despite the recent stabilization of the housing market. In June, it was reported that home ownership continues to elude the fastest growing demographic, which was hit hard by the financial crisis and housing crash. Home ownership rates stand at 44 percent for the group and declines as income has become stagnant and strict lending standards have divided Latinos from home ownership goals. Nearly 4 million Hispanics are seeking home ownership, but only 1.5 million consider themselves financially ready. Furthermore, not only is home ownership difficult for Latinos to attain, but white families are "better able than black and Latino families to shield themselves from the social and economic distress often accompanying high concentrations of foreclosure."
The new campaign hopes to increase awareness about the obstacles Latinos face when seeking home ownership, it's also tasked with advocating for change, therefore encouraging wealth building and economic stability in the Latino community.
There is a stubborn disparity with regards to home ownership for the Latino community, and it needs to be addressed, said Jose Davila, vice president for policy and government relations for the Hispanic Federation, during a phone call with reporters on Wednesday morning. He pressed on by stating that the obstacle facing black and Latino families is their "struggle to save money to pay rent and ultimately improve their credit in hopes of owning their own homes."
Wealth access is difficult for Latinos, even for college educated Latinos who are expected to earn significantly more due to their hard-earned education. New reports have demonstrated that higher education doesn't protect the wealth of blacks and Hispanics, and that has been the case for at least the last two decades. Whites and Asians, both college educated and non-educated, are better positioned to buy homes because they have greater percentage of accumulated wealth. The median wealth of white households is 10 times that of Hispanic households.
Approximately 64 percent of Americans owned their own homes at the end of 2014, said a Census Bureau report. However, just 42 percent of blacks and 45 percent of Hispanics owned their own homes, contributing to the 20-year low for overall home ownership in the U.S.
Even Latinos who are financially prepared to buy homes find it challenging to access loans. Some reports have indicated that cultural spending habits and resistance to owning bank accounts have affected chances of loan acquisition, while others seem to understand that being unbanked isn't the only obstacle. José Calderón, president of the Hispanic Federation, indicated during the conference call about the new initiative that loan inaccessibility is "systemic" and it "dates back many generations."
During the same phone call, Arva Rice, president and CEO of the New York Urban League, indicated that black families are denied home loans at higher rates than other applicants, and rent has increased with in the community.
The "¡Mi Primera Casa!" campaign plans to pressure the Obama administration to improve access to home ownership, lower mortgage rates and raise levels of home ownership within diverse communities.