Monday, September 29, 2014

I have writing a lot about the growing population of Latino real estate consumers. Since September is Hispanic Heritage Month, it's appropriate to pass along some relevant information about the 'Latino Factor' from Stephanie Sievers of the Illinois Association of Realtors (iarbuzz.com).

Here are ten takeaways from the Association's recent Multicultural Summit:

1. Twenty-two percent of foreign investment buyers in the U.S. come from Latin America. Illinois ranks No. 9 when it comes to all foreign investment buyers..

2. First- and second-generation Latino buyers often approach the homebuying process differently. First-generation values homeownership, are often self-employed, likes to deal face to face, is loyal and isn’t afraid to take on a home that needs work.

3. Second-generation Latino buyers (in the Millennial age range) prefer a newer home, may get a gift of a down payment from family members, are savvy about first-time homebuyer programs and consider Facebook and mobile technology useful tools in their search.

4. Immigration reform could open the door to homeownership for more Latinos. As many as 3 million currently undocumented immigrants would be potential homebuyers if they were allowed to seek legalization.

5. Within the last three years, there were 1.2 million new households formed and of those, 52 percent were led by a Latino head of household.

6. Unlike previous trends, the majority of the U.S. Latino population growth comes from U.S.-born Latinos and not immigrants.

7. While the foreclosure outlook has improved in many housing markets, it is taking longer to turnaround in the Latino sector.

8. There are four challenges to financing for the Latino market: low appraisals or property conditions, issues with citizenship status, the large number of self-employed individuals and the trend of having cash on hand.

9. If you are working with buyers in Latin America or other foreign locales, be aware of the additional costs (of having documents translated,etc.) and local regulations that may apply.

10. Financial literacy is one of the key factors in keeping people in their homes. Educating potential Latino buyers about the buying and financing process is critical.

Loan origination fee. Paid by the borrower to get a loan; it covers expenses incurred by the lender, such as the cost of the appraisal, credit report, title search, etc.

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