The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your own advisors with questions regarding the mortgage loan origination software content herein. The opinions expressed in this article are the opinions of the individual authors and may not reflect the opinions of MeridianLink, Inc.
According to the National Association of Realtors, minority homeownership rates are making some serious inroads:
- In 2023, homeownership among Black Americans recorded the largest annual gains out of other reported racial groups. In 2024, this demographic also made up the highest share of first-time homebuyers.
- Between 2013-2023, the Hispanic American homeownership rate rose from 45% to 51%. And this group is projected to make up the majority of new homeowners by 2040.
- Finally, the homeownership rate among Asian Americans in the same 2013-2023 period rose 5.6 percentage points.
The story is more nuanced than the numbers alone suggest. Black homeownership rates still trail those of White, Asian, and Hispanic households. The gap between Black and White homeowners widened by 1% between 2013 and 2023. Hispanic homeownership also remains below the national average.
While progress has been made, there’s still much more work ahead to expand equitable access to homeownership for minority communities. For mortgage lenders, that work translates to a massive opportunity. With minority households representing a growing share of the housing market, lenders that strengthen their support for buyers can realize meaningful business opportunities.
Explore actionable ways to better connect with and serve minority homebuyers in our on-demand webinar, Connecting With Minority Homebuyers Today & How It Can Be Key to Your Growth Tomorrow.
How Lenders Can Grow Mortgage Business, Especially Among Minority Groups
Reaching these potential buyers where they are requires strategy. First, there are the overarching steps mortgage lenders should take, including:
- Identifying markets where you can win
Pinpoint the markets with the highest percentages of the segments you’re trying to attract to align outreach with your goals. Review your data to understand who makes up the largest share of your current key demographics. These can be easier wins for your business. (28:01 of on-demand video) - Engage early
Before they’re even in the market, take opportunities to reach out to consumers with information to help them be prepared to buy when the time comes. For example, educate on debt-to-income ratio and its role, and explain the benefits of homeownership beyond just value appreciation. (50:03 of on-demand video) - Tailor Marketing With Cultural Relevance
Include messaging catered to groups that tend to have higher rates of homeownership or likelihood to be in the market for a new home: newlyweds, growing families, those between the ages of 25 and 43, etc. (54:30 of on-demand video) - Use Modern Mortgage Loan Origination Software
Adopting the right mortgage loan origination software system can do wonders for your growth. With technology like MeridianLink® Mortgage, you can leverage features like configurable workflows, a built-in product pricing engine, and core connectivity to encourage more applications and approvals within your defined risk tolerance. (55:55 of on-demand video)
Next, take a deeper look at strategies for expanding access to homeownership and better serving a diverse borrower base.
While many strategies apply broadly, understanding and addressing the unique experiences and challenges of different communities can help lenders build stronger relationships and create more equitable outcomes. (56:32 of on-demand video)
In addition to targeting first-time homebuyers in each group, providing early education on credit history, loan-to-value ratios, collateral, savings habits, and document preparation is key. Fostering diverse borrower-facing teams and offering multilingual mortgage applications and culturally responsive communication—supported by tools such as agentic AI for real-time translation and personalized guidance—can help build stronger relationships and trust.
You can reach more borrowers and build stronger connections with the right mortgage loan origination software. Watch our on-demand webinar, Connecting With Minority Homebuyers Today & How It Can Be Key to Your Growth Tomorrow, for more insights.
