WASHINGTON, June 22, 2021 /PRNewswire/ -- U.S. Mortgage
Insurers (USMI) today released its 2021 National Homeownership
Market Survey that finds nearly 7 in 10 (69 percent) ranked
lack of affordable housing and nearly 6 in 10 (57 percent) ranked
low housing supply among the biggest homebuying challenges in
the United States. The survey also
revealed that many people continue to not understand the down
payment requirements to purchase a home. Housing insecurity (66
percent) was also among the top concerns from respondents.
Socioeconomic disparities – such as lower income, lack of
intergenerational wealth, limited savings, and the percentage of
monthly income dedicated to housing costs – were reported to make
these challenges more acute. The survey also specifically looked at
these responses by race to better understand minorities'
perceptions and challenges to homeownership.
"This survey underscores the need to address the nation's
undersupply of housing, and specifically affordable housing,
because too many people are being left out of the market or face
significant barriers to get into the housing market," said
Lindsey Johnson, President of USMI.
"Our survey shows that low- to moderate-income households and
underserved communities struggle to become homeowners due to
several major factors including low housing supply, lack of
affordable housing, and personal economic factors such as imperfect
credit score or the inability to afford a 20 percent down
payment."
USMI's survey found that when broken down by race these economic
factors are even more pronounced. Seventy-four percent of African
American and 65 percent of Hispanic respondents reported that in
addition to the lack of affordable homes or low supply, the
inability to save for a down payment (39 percent of all minorities)
and imperfect credit history (37 percent of all minorities) are the
biggest challenges they face when it comes to buying a home.
Housing insecurity during the pandemic was also a significant
concern among survey respondents, particularly for minorities. The
number one concern among African American and Hispanic respondents
was falling behind on rent or mortgage payments. In fact, twice the
number of African American respondents (20 percent) and more than
one and half times the number of Hispanic respondents (16 percent)
reported this concern compared to white respondents (10
percent).
"The survey also shows that more education is needed around the
mortgage finance process, particularly to ensure more buyers
understand that low down payment mortgage options are widely
available," said Johnson.
USMI's survey found that up to 45 percent of all respondents
mistakenly believe that you need a down payment of 20 percent or
more to qualify for a home purchase. Another 30 percent indicated
that they do not know about down payment requirements. In truth,
you can qualify with a down payment as low as 3 percent. The survey
also asked respondents about the role of mortgage insurance.
According to survey respondents, the top reasons for MI are it
"levels the playing field" and "increases lower-income families'
access to homeownership." A majority of respondents also said it
was important to have access to low down payment loans through both
the conventional and government-backed markets, such as the Federal
Housing Administration (FHA).
USMI members support sensible regulatory and legislative reforms
to remove barriers to homeownership, and they promote an equitable
and sustainable housing finance system backed by private capital.
In collaboration with more than 100 organizations and individuals
involved in the Black Homeownership Collaborative, USMI also
supports policies that promote equity and work to increase
homeownership rates among Black Americans.
ClearPath Strategies fielded USMI's 2021 National
Homeownership Market Survey of 1,000 adults in the U.S. It was
commissioned online April 13-21.
Quotas were set to ensure a cross sample of age, gender, race,
region, and education as well as homeowners, first-time homebuyers,
and prospective homebuyers. The purpose was to understand the
perceptions around homeownership, the mortgage process, and the
challenges people face when trying to purchase a home.
The complete findings from USMI's national survey are
available here.
U.S. Mortgage Insurers (USMI) is dedicated to a housing
finance system backed by private capital that enables access to
housing finance for borrowers while protecting taxpayers. Mortgage
insurance offers an effective way to make mortgage credit available
to more people. USMI is ready to help build the future of
homeownership. Learn more at www.usmi.org.
Media Contact: Ana
Fernandez
media@usmi.org
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SOURCE U.S. Mortgage Insurers