Mortgage Approval Rates Are Now Easier for Everyone in the U.S.

One of the biggest challenges to the real estate market has been the ability to get a loan so one can become a homeowner.  For the last 5 years getting approved for a mortgage has been difficult.  However, it seems that things are changing a bit.  In recent studies on mortgage access and home ownership according to race it appears that denial rates are lowering a bit.  Still important to note however, is that minorities are still having a more difficult time than non minorities in getting home loans approved.

According to Zillow Research

In 2014, blacks made up 12 percent of U.S. households, but only three percent of applicants for conventional loans. They made up just 2.5 percent of those approved. The disparity is similar for Hispanic households.

In comparison, whites made up 62 percent of U.S. households in 2014, and 69.5 percent of conventional loan applicants. They made up 72 percent of those approved for a conventional loan.

The good news is denial rates are dropping for blacks and Hispanics, indicating that mortgages are becoming attainable for more borrowers. The percentage of black applicants who were denied a conventional loan was 23.5 percent in 2014, down from 28 percent in 2013. The denial rate for Hispanics was 19 percent in 2014, down from 22 percent in 2013.

The denial rate for whites has fallen as well, but not as significantly. In 2014, nine percent of loan applications from whites were denied a conventional loan; in 2013, the denial rate was 10 percent.

These are the top five metros with the lowest and highest conventional loan denial rates in 2014 for whites, blacks, and Hispanics.