Some mortgage lenders have expanded their home loan programs to make it easier for people in low-income and minority communities to become homeowners.
Earlier this year, a report by the National Association of Realtors highlighted a disparity in real estate ownership between white and black consumers. Lenders like Bank of America, TD Bank, and Chase are working to fill the gap through grants, lender credit, and no-down loans.
National Association of Realtors Exhibits Racial Difference in Home Ownership
In March 2022, the National Association of Realtors released a report highlighting how much property rates can vary between white and black Americans, especially black Americans.
Specifically, the report lists the following ownership rates by race and ethnic group in 2020:
| race/ethnic group | property tax |
| white americans | 72.1% |
| asian americans | 61.7% |
| Hispanic Americans | 51.1% |
| black americans | 43.4% |
The report also highlights some of the different challenges black consumers face in obtaining mortgage loans compared to white consumers.
Mortgage lenders work to make home ownership more affordable
Some of the barriers to home ownership that people in low-income and minority communities face is the difficulty of saving enough for down payment and closing costs.
As a result, some property lenders have expanded or created new ones. Programs to support these challenges. Just a few examples are:
- Bank of America: In August, the bank launched a pilot of its Community Affordable Loan Solution program in Charlotte, Dallas, Detroit, Los Angeles and Miami. Qualified homebuyers in areas with more than 50% Black and Hispanic populations can get a no-down home loan, no closing costs, no mortgage insurance, and no minimum credit rating.
- TD Bank: The bank announced its TD Home Access Mortgage Program in March, offering more flexibility for Black and Hispanic communities. Eligible homebuyers in participating markets can also enjoy a $5,000 loan credit that they can use for a down payment or closing costs without having to pay it back.
- Chase: Effective February 2021, Chase announced an expanding Homebuyer Grant Program that provides $5,000 to qualified homebuyers in more than 6,700 black-majority communities. The grant, which does not need to be repaid, can be used towards a down payment or closing costs, and homebuyers can also qualify for an additional $500 if they complete a certified educational course and receive a DreamMaker Home Loan through Chase.
These are just a few examples of actions taken by real estate lenders to address racial disparities in property. Potential homebuyers should research a variety of local and national lenders to learn more about affordable home loan options.