BusinessPromoting Homeownership as Means to Financial Freedom

Promoting Homeownership as Means to Financial Freedom

-

- Advertisment -sslate

There’s been little change in the homeownership rate for Black families in 50 years, so some lenders are rethinking their practices to make buying a home more a reality than a dream.

Research shows a 20%-30% gap between Black and white homeownership rates has persisted for more than 100 years, despite increases in Black homeownership in the mid-1900s. Among the many causes today include credit scores averaging around 649 for 60% of African Americans.

Jonathan Leysath, Jacksonville branch manager for Self-Help Credit Union, said they have adjusted their mortgage products to help boost equity in the lending process and be more lenient with buyers with credit challenges.

homeownership

“The Equity Boost product can go all the way down to a 580 credit score with only a minimum borrower investment as low as only 1%,” Leysath explained. “As opposed to like the FHA, which is 3.5%.”

Leysath argued flexibility is important because many factors continue to block economic progress for Black individuals. They include the pandemic’s negative economic effects and the burden of heavy student debt, which disproportionately affects people of color.

Another possible solution to building equity is for more financial institutions to provide similar programs to help people access more resources.

Crystal German, executive vice president of communications, development, policy and impact for Self-Help Credit Union, said finances often drive talks of disparities and wealth. She pointed out their goal is to create innovative and holistic programs to help people of color develop wealth through homeownership.

“I mean, this is about having a freedom,” German emphasized. “And it may not be a physical freedom, but it is a financial freedom that allows people to live their best lives.”

The Fair Housing Act passed in 1968, making it illegal for anyone to be discriminated against when renting or buying a home. Before the civil-rights legislation, many Black families were locked out of the opportunity to create generational wealth by purchasing a home and passing it down to their children.

Sunshine Slate
Sunshine Slatehttps://www.sunshineslate.com
Sunshine Slate is your news, entertainment, music fashion website. We provide you with the latest breaking news and videos straight from the United States of America.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Florida Wildlife Corridor study reveals role in climate resilience, population growth

a new study sheds light on the pivotal role of Florida's Wildlife Corridor in mitigating the effects of climate change coupled with a surge of new residents.

Get ahead of Tax Day: IRS introduces free tax-filing program

Florida residents can now file their simple income-tax forms for free and save time through the Internal Revenue Service's Direct File pilot program.

The National Learning Institute: A Guide to Lifelong Education

In this guide, we delve into the mission, programs, and impact of the National Learning Institute, exploring how it empowers learners to thrive in an ever-evolving world.

Gojek Clone App Development: Four Strategies for Successful Customer Onboarding

Don’t know how to craft a successful customer onboarding during your Gojek Clone app development process? Read the blog to learn four effective strategies.
- Advertisement -

New Car Buying: A Step-by-Step Process

Research begins with identifying what matters most to you in a vehicle and considering how a car like a new Kia in Santa Ana might meet these needs.

Reshaping Email Engagement: Innovative Techniques for Interactive Content

Digital marketing, like many technological fields, is fluid, persistent and continually evolving. This is particularly true in the fast-paced realm of email marketing.
edealo.com
- Advertisement -sslate
transformerscon

Must read

Florida Wildlife Corridor study reveals role in climate resilience, population growth

a new study sheds light on the pivotal role of Florida's Wildlife Corridor in mitigating the effects of climate change coupled with a surge of new residents.

The National Learning Institute: A Guide to Lifelong Education

In this guide, we delve into the mission, programs, and impact of the National Learning Institute, exploring how it empowers learners to thrive in an ever-evolving world.
- Advertisement -
- Advertisement -sslate

You might also likeRELATED
Recommended to you