Everyone deserves a fair shot at becoming a homeowner and planting generational roots in a family home. Unfortunately, there are unique challenges that minorities face that have historically prevented them from becoming homeowners. In this article, we will uncover how CBC Mortgage Agency’s down payment assistance program Chenoa Fund and initiatives like UHOUSI can make it possible for low income homebuyers to buy their first home. Now is the time for equitable homeownership for all Americans.
Overcoming the racial wealth gap: the journey toward homeownership
Recent studies show that there is a large racial wealth gap between White Americans and minorities. This wealth disparity helps to explain why minorities have difficulties purchasing a home. What is the wealth gap that is causing possible home buying challenges? Studies have shown that the median net wealth for White American families is $171,000, which is nearly ten times greater than the $17,150 for the median Black American family. Having less access to wealth creates challenges for minorities looking to purchase their first home and the greatest obstacle is the requisite down payment necessary to purchase a home. With rental prices on the rise, now is a good time for many minority Americans to see if they are mortgage ready. It all starts with programs like CBC Mortgage Agency’s Chenoa Fund and initiatives like UHOUSI, which allow first-time homebuyers the ability to get 3.5% or 5% down payment assistance. This provides borrowers down payment assistance to buy a home and, the 5% down payment assistance opportunity, provides the ability to flex 1.5% towards closing costs.
Taking on loan challenges that prevent minorities from becoming homeowners
Saving for a down payment is a large obstacle for many low-moderate income families looking to become homeowners. With home prices on the rise and limited housing inventory, the amount of money required for a down payment is steadily increasing. Recent reports show that the current U.S. median home sales price is approximately $404,000. This is an increase of $56,000 over the last 5 years. These increased home prices make saving for a down payment quite difficult for many Americans. In 2020, more than 40 percent of all FHA purchase transactions had some form of down payment assistance. Some borrowers are fortunate enough to receive a down payment gift from a qualifying family member. For those individuals who lack family wealth, programs like CBC Mortgage Agency’s Chenoa Fund may be here to help. The UHOUSI Initiative is proud to be sponsored by the Chenoa Fund program, which is offered through CBC Mortgage Agency and shares in our common goal of increasing sustainable homeownership and increasing housing literacy. Head to uhousi.com for more information on becoming a homeowner using down payment assistance.
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Illinois Residential Mortgage License #MB.6761292. Illinois Department of Financial and Professional Regulation, Division of Banking, 100 West Randolph, 9th Floor, Chicago, IL 60601 – 1-888-473-4858