by Concepcion Guerrero, MGIC Marketing Program Specialist
Quick Note from Mort: Happy New Year, my Earthling friends! To kick off my blog for 2021, we’ve invited a special guest from our long-time partner and Virtual Partner Event Gold Sponsor, MGIC. Marketing Program Specialist Concepcion Guerrero provides some vital information and tips that will help you attract potential homebuyers in the growing Hispanic market. Prepare for blast-off and enjoy!
With nearly 60 million Hispanics living in the U.S., many lenders are developing plans to attract and generate business from this powerful, fast-growing homebuying demographic. In fact, it’s the only demographic that has raised its homeownership rates within the last 5 years.1 So, what’s the best way for credit unions to implement strategies that make homeownership a reality for their Hispanic members who want to achieve the American dream?
Let me back up and start by introducing myself. My name is Concepcion Guerrero, and I’m a first-generation Mexican American living in Milwaukee, Wis. I’m married and have two children, ages 8 and 3. Being a first-generation American means I’m the first in my family born in the U.S. I work in the mortgage finance industry as a marketing program specialist at MGIC, and I’ve seen firsthand the increased emphasis mortgage lenders place on the Hispanic homebuying market.
It hasn’t always been like this, though – growing up, I encountered little representation of my Hispanic heritage within the broader community. I’ve lived in the U.S. for most of my life, but when I was a little girl, my family and I lived in Mexico for 6 years. When we moved back to Milwaukee, I started school here, and I was usually the only Hispanic person in the classroom. I often felt like I was straddling two worlds, each with different languages, food, traditions and customs. But over time, things have changed.
Today’s lenders recognize the potential for homeownership within the Hispanic community and work to develop marketing plans that attract and raise awareness with this demographic. Latinos may have a different set of cultural values and a different language, but deep down, we’re all really the same. Homeownership is still the American dream for most people living in the U.S., whether they are Hispanic or non-Hispanic; however, to successfully attract Hispanic homebuyers, it’s critical that lenders and credit unions understand our culture, our values and what sets us apart from other credit union members.
Hispanic Values
Family is the number one most important thing to Latinos. Hispanics are twice as likely as the general population to live in a multigenerational household. Many Hispanic credit union members will first consider how a financial decision they make impacts their entire family, versus how it impacts them as an individual.
Trust matters. Building a trustworthy relationship with your Latino members is imperative. It took me and my husband over 3 years to find a loan officer who we felt truly understood how our values played an important role in our homebuying journey. Our loan officer gained our trust by asking us questions and taking the time to listen to our needs and wants. We felt that she truly cared about us – that she was there to help us. She didn’t just see us as her next easy business transaction.
Finally, community is the cornerstone of everyday life for Hispanics. It’s important for mortgage professionals to think outside the box to attract Hispanic homebuyers, and a good way to start doing this is to tap directly into their community. You can begin by reaching out to local organizations that are already successfully engaged with this market. (That’s how I found my loan officer! A local organization I’m involved with offered a first-time homebuyer seminar, and she was the featured loan officer providing homebuying expertise.) You can also become part of local trade organization chapters or Latin American Consulates. Since the best way to grow your member portfolio within the Latino community is via word of mouth, it’s incredibly important to branch out of your comfort zone and think creatively.
Become a Trusted Advisor
When it comes to achieving homeownership, one of the biggest hurdles for the Latino community is a lack of knowledge about all the resources available to help them become familiar with the homebuying journey. If you take the lead and become that trusted advisor by educating Latinos on what’s needed to obtain the American dream, you’ll position yourself for success. MGIC can support you in reaching this set of consumers with a variety of tools (also in Spanish!), including:
- Readynest.com, a consumer-facing website in Spanish with affordability calculators, checklists and other homebuying tools.
- A comprehensive Spanish Homebuyer Education program with materials to guide your first-time homebuyers, as well as a Homebuyer Education test.
- A Hispanic marketing webpage, where you can access tools and resources, such as co-brandable flyers and infographics.
The Hispanic market continues to grow: The Urban Institute projects that by 2030, 56% of all new homeowners will be Hispanic.2 It’s important you formulate a plan to tap into this demographic, and your partners at myCUmortgage and MGIC can help. With the right tools, strategies and insights, you can build understanding and trust with your Latino members looking to purchase homes. These tools can also help you develop your cultural competency and be inclusive in your marketing efforts, allowing you to expand your market and generate new business by attracting Hispanic homebuyers.
1The National Association of Hispanic Real Estate Professionals® 2019 State of Hispanic Homeownership Report®
2National Association of Realtors® Realtor® Magazine, December 2020