Mortgage Approval Easier for All Americans
Mortgage Approval Easier for All Americans
Denial rates are down, with black borrowers showing the biggest jump in access to conventional mortgages.
Easing mortgage restrictions seem to be making it possible for more Americans to become homeowners, according to Zillow’s latest analysis on mortgage access and homeownership by race, but minorities are still having a harder time getting a conventional home mortgage.
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. For more, check out Zillow Research.
Here are the top five metros with the lowest and highest conventional loan denial rates in 2014 for whites, blacks, and Hispanics.
White borrowers
Lowest denial rate
| City | Denial rate |
| Raleigh | 4.8% |
| Richmond | 5.3% |
| Washington, DC | 5.6% |
| Baltimore, Minneapolis, Omaha | 5.8% |
| Kansas City, MO | 5.9% |
Highest denial rate
| City | Denial rate |
| Miami | 15.6% |
| Jacksonville, FL | 12.8% |
| Tampa | 12.4% |
| New York | 11.8% |
| Los Angeles | 11.2% |
Black borrowers
Lowest denial rate
| City | Denial rate |
| Salt Lake City | 9.1% |
| San Jose, CA | 9.8% |
| Phoenix | 10.6% |
| Denver | 11% |
| Richmond | 13.6% |
Highest denial rate
| City | Denial rate |
| Oklahoma City | 31.2% |
| Miami | 30.3% |
| Tampa | 28.7% |
| Milwaukee | 28.5% |
| New Orleans | 27.6% |
Hispanic borrowers
Lowest denial rate
| City | Denial rate |
| Pittsburgh | 8.3% |
| Raleigh | 10.6% |
| Indianapolis, Denver | 10.7% |
| Omaha | 10.8% |
| Portland, OR | 11.7% |
Highest denial rate
| City | Denial rate |
| Jacksonville | 24.7% |
| New York, Columbus | 22.5% |
| Oklahoma City | 21.9% |
| Miami | 21.5% |
| Orlando | 21.3% |
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