Immigrants Flood Florida Real Estate Market

What does it take to be a mortgage broker these days? Knowledge of the market, business sense and, of course, the ability to speak different languages. In the 1950s and 1960s, it was the baby boomers that reshaped the real estate market. Today, it’s the flood of immigrants into the United States. As those from other nations have entered the country and begun buying homes, mortgage professionals - from lenders to bankers - are forced to adapt to this new clientele.

“If you look at the next wave of consumers, they are it,” said Frances Martinez Myers, chairwoman of the San Diego-based National Association of Hispanic Real Estate Professionals. “There is now a whole campaign around ‘What do I need to do inside my shop to reach out.’”

Recent numbers indicate that the U.S. is home to approximately 34.2 million immigrants, around 12% of the total population. As the number of native-born Americans shrink, the aforementioned numbers continue to grow, according to the U.S. Census.

Based on a projection by the Joint Center for Housing Studies at Harvard University, immigrants have accounted for a third of household growth - and they represent about 12% of first-time buyers nationwide since 1990s. As the number of Americans born in this country and purchasing homes in their 30s declines, immigrants are making up for this decrease.

According to Rachel Drew, a researcher at the Harvard center, immigrants typically look buy homes about 10 years after they arrive in the States. It may take them that long to understand the process, save up for a down payment and establish a strong credit score.

“When you have immigrants coming to the United States, they’re unbanked,” said Cristina Miranda, a spokeswoman for Fannie Mae, the biggest U.S. buyer of mortgages. “Many have no idea what to do with a credit card and they keep their cash under a mattress.”

As a result of this influx, those in the business have started to offer classes to immigrants in order to help them adapt, as well as come up with multilingual brochures. Moreover, companies sponsor diversity training and cultural sensitivity seminars for real estate professionals. It’s all meant to cater to the latest trend in the market.

Another way that bans and mortgage companies are helping open doors for potential clients is to become more flexible in what they consider as evidence of good credit history. Lenders will sometimes look at rent or utility bills to see that they were paid on time. They also may require a co-borrower. There are still more obstacles to overcome for immigrants who are somewhat new to the country, but steps are at least being taken in order to help them adjust and feel secure about the home owning process.