Black Homeownership: The Pandemic, 2020 Election & Assistance Programs
USA Today reports that black homeowners are twice as likely to lose their homes and have to return to renting than whites. The data concludes that the average net worth of a Black homeowner’s extended family was roughly $133,000 while the average net worth of their white counterparts was an astonishing $442,000. Existing homeownership has been hit hard due to the pandemic however, the low mortgage rates could benefit those in the black and brown community that have not been financially affected by the pandemic.
Despite the slow decline in homeownership and with the new Presidential-elect Joe Biden, there may be light at the end of the tunnel that could help attract more black and brown communities. Research states that the the average age of an African-American when they purchase their first home is 48! However, over the past 5 years, more and more young black professionals have been aggressive in purchasing property and building wealth. Although the pandemic has slowed the demand for homeownership, it is important that I share a few assistance programs that will help achieve goals of building wealth through homeownership.
The Neighborhood Assistance Corporation of America (NACA) is a reliable program that helps provide comprehensive housing counseling and access to a low and manageable mortgage for black and brown communities. NACA’s benefits include but are not limited to: no closing costs, no down payment, no PMI/fees/etc., and below market fixed rates for all first time homebuyers. Access to the NACA program is limited to low-to-moderate income people and people purchasing in the low-to-moderate income communities. So no, this does not mean that people can use this program to purchase a home in River Oaks or The Heights but it is definitely a reputable program that can help those find a house in the historic black communities like Third Ward, East Downtown, South Park, etc.
This is one of many assistance programs that can help with homeownership. Check the list below to access other resources in the Houston area to help with the homebuying process:
Texas State Affordable Housing Corporation: https://www.tsahc.org/homebuyers-renters/houston-area-down-payment-assistance
Houston Homebuyer Assistance Program: https://houstontx.gov/housing/hap.html
Texas Homebuyer Program: https://thetexashomebuyerprogram.com/
Houston Lift Down Payment Assistance Program: https://www.avenuecdc.org/lift/
NACA: https://www.nacalynx.com/naca/v2/purchase.html
