![Black Homebuyers Nearly 2x More Likely to Be Denied a Mortgage [New LendingTree Study]](https://realtytimes.com/images/k2/b6bb2c368d9853620996c85b32d90750.jpg)
The path to homeownership typically begins with applying for a mortgage — but for many aspiring Black homeowners, the journey ends there.
The latest LendingTree study reveals that Black applicants nationwide are much more likely to be denied a mortgage than homebuyers of all races. Here's what we found.
- Black homebuyers are 1.7 times more likely to be denied a mortgage than all homebuyers. The denial rate for Black applicants across the U.S. is 19%, compared with 11.27% for all applicants — a gap of 7.73 percentage points.
- Black homebuyer denial rates are highest in Grand Rapids, Detroit and Miami. In the two Michigan metros, Black borrowers experience denial rates exceeding 20.00%
- Black homebuyer denial rates are lowest in Salt Lake City, Seattle and Portland, OR. Although denial rates can vary across the 50 metros, they exceed 10% everywhere but Salt Lake City, at 8.94%.
- Credit history is a prominent obstacle for Black applicants. Credit history was the main reason in 24.85% of all denials, compared with 33.16% among Black borrowers, an 8.31-point gap.
You can check out the full report here: https://www.lendingtree.com/home/mortgage/lendingtree-study-black-homebuyers-more-likely-to-be-denied-mortgages-than-other-homebuyers/
LendingTree's Chief Consumer Finance Analyst, Matt Schulz, had this to say:
"High mortgage denial rates continue to be a big deal for Black Americans because it means that many are not getting access to one of the best wealth-building tools anyone can have. Home ownership isn't without its challenges, but it can change lives. Being denied that opportunity isn't just heartbreaking. It can make getting ahead financially much harder.”
