Homeowners Falling Behind on Mortgage Payments
A July study revealed that more people are starting to fall behind on their mortgage, as costs that come with buying a home, such as taxes and insurance, rise faster than many people can keep up with. Melissa Cohn, Regional Vice President of William Raveis Mortgage, joined LiveNOW from FOX to discuss.
Solo women homebuyers are 30% more likely to be denied a mortgage than solo males, a new LendingTree study found. Analysts say the reason for the large disparity is two-fold: sexism and women’s lower incomes.
What’s Behind the Disparity?
According to Matt Schulz, LendingTree chief consumer finance analyst, “Women tend to have smaller incomes than men, and that can create homebuying challenges.” Although income doesn’t factor into your credit score, it does “massively” impact your debt-to-income ratio and your ability to save for a down payment, Schulz explained.
FILE – Real estate for sale signs in Antioch, California. (Photo by Justin Sullivan/Getty Images)
“Those things matter a lot,” Schulz said. “Of course, when it comes to men being more likely than women to buy a home, there are other factors as well, including sexism, but it’s hard to overstate how important income is to the homebuying process.”
By the Numbers
LendingTree found that solo women applicants face a 15.7% denial rate, compared to 12.1% among solo males. Solo women comprised 21.9% of potential homebuyers in 2024, compared with 32.8% for solo men — 1.5 men for every woman, LendingTree says.
In 2024, solo women homebuyers took on $173.3 billion in mortgage debt, while solo men homebuyers borrowed a whopping $328.7 billion. There were 949,477 new home loans for solo men last year and 600,817 for solo women.
Where are the Biggest Disparities?
Overall, solo female applicants are 29.8% more likely to be denied a mortgage than solo males, but that number is higher in some states and much lower in others. The largest disparities in denial rates are in Louisiana, Mississippi and Alabama.
There are six states where mortgage denial rates are higher for solo male applicants than solo females: D.C., Alaska, Hawaii, Vermont, Maine and Rhode Island.
There’s not only a gap in denials, LendingTree found. In most places, there are more solo male applicants than solo females. Washington, D.C. is the only place in the U.S. with more solo female applicants than solo males. The gap is the biggest in Utah, where there are twice as many solo male applicants than solo females.
Conclusion
The study highlights the challenges faced by solo women homebuyers in the US. With a higher denial rate and lower income, it can be tougher for women to buy a home. However, it’s essential to note that there are states where the disparity is lower, and some where solo female applicants have a higher approval rate than solo males.
Frequently Asked Questions
Q: What is the main reason for the disparity in mortgage denial rates between solo women and solo men?
A: The main reasons for the disparity are two-fold: sexism and women’s lower incomes.
Q: Which states have the largest disparities in denial rates?
A: The largest disparities in denial rates are in Louisiana, Mississippi, and Alabama.
Q: Are there any states where solo female applicants have a higher approval rate than solo males?
A: Yes, there are six states where mortgage denial rates are higher for solo male applicants than solo females: D.C., Alaska, Hawaii, Vermont, Maine, and Rhode Island.
Q: What can be done to address the disparity in mortgage denial rates?
A: To address the disparity, it’s essential to address the underlying issues of sexism and income inequality. This can be done by promoting equal pay, providing financial education, and implementing policies that support women’s economic empowerment.
The Source: This report includes information from LendingTree.
