How to Attract the Fastest Growing Homebuying Demographic in America
With nearly 60 million Hispanics living in the United States, many credit unions are focusing on strategies that make homeownership a possibility for their Hispanic members who want to achieve the American dream.
The Urban Institute projects that by 2030, 55% of all new homeowners will be Hispanic. And according to Freddie Mac, in 2018 there were 4.9 million mortgage-ready Hispanic millennials, also known as Hispanials, in the United States.
What’s the best way to attract this new, untapped set of potential first-time homebuyers? According to CUNA Mutual Group’s Multicultural Strategy Manager, Edgar Hernandez, credit unions should focus on what Hispanics value most.
Hispanic Values: Family, Trust, Language, Community
The Hispanic population often bases financial decisions on feedback from parents and other trusted family members. Extended family members might even attend meetings with a loan officer regarding the purchase of a home, even if they won’t be on the mortgage. Many Hispanics also have multigenerational households, meaning they live with multiple extended family members under the same roof. This is important for real estate and mortgage professionals to keep in mind when Hispanic members are looking for homes.
Building a trustworthy relationship with your Hispanic borrowers is also incredibly important. Mortgage professionals must take the time to listen and be open-minded when it comes to differences in cultural traditions, language, and the decision-making process. Hispanic members are not shy about asking questions to better understand the homebuying process, and the loan officer or mortgage professional is viewed as a trusted advisor. That’s why maintaining an open and welcoming manner is critical to building trust with Hispanic homebuyers and their families. And the mortgage professional shouldn’t be shy about asking questions, either — it can be helpful when it comes to better understanding the culture or language.
Since communication is key, language is also important, but being able to speak Spanish isn’t always a required trait to reach this group. More than 80% of Hispanials speak and understand English, and of Hispanic adults 36 years or older, over 50% are English-proficient. If translation is needed, another family member will most likely help.
Hispanic homebuyers want their lenders to be visible and be a part of the Hispanic community, so a credit union’s physical presence in the community is also critical. It helps build trust and credibility. The best way to attract and gain more leads with Hispanics is through word-of-mouth referrals.
By building understanding, trust, and comfort with their Hispanic community, credit unions can meet these members’ unique needs and remain top of mind as a preferred financial services partner.
Editor’s Note: The original version of this article appeared in American Credit Union Mortgage Association Pipeline Magazine and was written by Concepcion Guerrero, MGIC Marketing Program Specialist for CUNA Mutual Group.