Owning a home has been a major part of the American dream for generations now. Today, while the “white picket fence” has been replaced by sliding barn doors and open concept floorplans, owning a home is still at the top of the bucket list for the majority of Americans. However, for the Black community, owning a home means so much more. Why does homeownership matter to the Black community? Generations upon generations of Black Americans have fought tooth and nail to be equal in this country, to have a seat at the table, to obtain an equal education, and to be paid the same as Whites for the same amount of work. African Americans have fought to build an inheritance that can be passed down to the next generation and afford them a better life than those before them. Yet, in 2021, after hundreds of years of oppression, Civil Rights Movements, etc., slogans like “Black Lives Matter” are still trending and Blacks—along with other minority groups—are still struggling to find equal footing and social equality to Whites. Homeownership matters to Blacks because of what owning a home represents symbolically.It’s no secret that America was built on the backs of slaves. Owning a home is an opportunity to own land and soil that was once drenched in the blood, sweat, and tears of our ancestors, many of whose names we will never know. On this land and in a country where so many of our ancestral families were forcibly separated and scattered throughout, our families can now unite and form new, beautiful memories that will be passed down generationally. Black Homeownership Matters because of the opportunities it provides. Countless real estate investors and financial advisors attest to the advantages of homeownership. Owning a home is an excellent way to gain wealth. Upon building equity, a home can also be used to access capital to start a business, purchase additional real estate, pursue education or make other life improvements through refinancing or selling. In some markets, purchasing a home can make all the difference in what schools children are able to attend and may even give them access to better parks, libraries, well-lit streets, and other amenities that improve their quality of life. Black homeownership matters because of what owning a home represents historically. In 1862, the Homestead Act was passed giving American citizens access to land grants for farmland. But because slavery was not yet abolished, African Americans were not afforded these rights until 1865 and after the passing of the 14th amendment in 1866. We were promised 40 acres and a mule, which could have helped equal the playing field, yet received nothing. Instead, this land was given back to the confederate farmers who previously owned it. It wasn’t until 1958 that the Fair Housing Act, which prevents housing discrimination on the basis of race, was passed. Even then, during the Civil Rights era, Blacks repeatedly had their homes bombed, set on fire, etc. When Blacks were able to secure real estate in prime locations, such as Central Park, or build flourishing communities like in Black Tulsa or Rosewood, their properties were either taken by eminent domain, looting, violence, or gentrification. Today, we continue to see gentrification in predominantly Black neighborhoods like Inglewood, Harlem, Queens, Brooklyn, Atlanta, and more. For some, owning a home is a nod to our ancestors who fought so hard to position us to own property, obtain an education, vote and also build wealth.Black homeownership matters because we no longer simply want a seat at the table, we want to own the table itself. Blacks face rental discrimination, wrongful evictions, unfair rent increases, being priced out of historically Black neighborhoods due to gentrification, and more. While African Americans still face considerable mortgage discrimination when applying for a loan to purchase a home, being able to purchase and own a property affords a sense of security, safety, and freedom that renting does not.Black homeownership matters because according to The Road to Zero Wealth, if current wealth trends persist, the median wealth for Black Americans will fall to zero by 2053. We know that home buying is a wealth-building activity. To date only 44% of Blacks currently own homes. If we’d like to prevent this from occurring, we must build our wealth. In order to be a part of the solution, LEGACY plans to lend $1 billion to African American homebuyers by 2023. Read this white paper by LEGACY’s very own Nick Gouche, to learn more about how we aim to solve this problem. Maya Angelou put it best when she so eloquently stated, “The ache for home lives in all of us, the safe place where we can go as we are and not be questioned.” Why does homeownership matter to you?‍

At LEGACY Home Loans, our mission is to create more Black homeowners and help families build a legacy by obtaining sustainable wealth through homeownership. This mission was birthed out of our concern about the current wealth and homeownership disparities between Whites and Blacks. By educating our community and building awareness, we hope to motivate our community into action. Today, we are going to explore the state of Black homeownership by looking at recent statistics that demonstrate where the Black community currently stands as it pertains to homeownership and wealth because once we gain awareness of the problem, we can begin to arrive at a solution. As reported in The Road to Zero Wealth, if current wealth trends persist, the median wealth for Black Americans will fall to zero by 2053. There is currently a 30% gap between Blacks and Whites as it pertains to homeownership, as only 44% of Blacks are homeowners compared to 73.7% of White families (as reported by the U.S. Census Bureau). The homeownership disparity is greater today than it was in 1934 when the Federal Housing Administration (FHA) was created.The number of Black homeowners has been in a steady decline since the 2012 housing crisis. During this time, Blacks—who were largely the target of subprime lending—were twice as likely as Whites to face foreclosure on their homes. Single Black women make up 30-35% of all homebuyers. Black households pay 13% more in property taxes than Whites who live in a similar home, according to research from the University of Utah and Indiana University.Washington DC has the highest number of Black homeowners in the nation, with 51% of Blacks owning homes. Even still, the homeownership disparity persists, with 70% of Whites also owning residential properties. No city in America, even those with a predominantly Black population, has even come close to closing the homeownership gap.There was a time when Blacks held prime real estate in some of the country’s most prized locations. For instance, the area that we know today as Central Park was once a Black settlement called Seneca Village before Blacks were forced out to create Central Park. What is now known as Seattle’s Central District was nearly 80% Black in the ’70s and '80s. In recent years, predominantly Black cities such as Inglewood in Southern California, Harlem, Brooklyn, and Queens are suffering the same fate...gentrification.If there’s one thing these statistics make clear, it’s that Black homeownership matters. If we want to turn things around for the Black community before the median wealth hits $0, we must find ways to build wealth, and owning a home is a great way to do just that. Connect with one of our loan originators today! ‍

So you want to purchase a home? That's great! Owning a home is very rewarding and is one of the greatest wealth-building activities you can engage in. But where to start?The first step to purchasing a home is identifying your needs. How many bedrooms and bathrooms do you need, how large of a home, do you need a backyard, what kind of layout? These are all great things to consider that will help you in your search for a home. From there, you will connect with one of LEGACY Home Loans loan officers to get pre-qualified or preapproved. Sometimes people use these terms interchangeably; however, they are both essentially types of mortgage approvals that helps us determine whether a potential borrower can qualify for a mortgage and at what price point they can afford to buy. With a pre-qualification letter, our loan officer will ask you some basic questions about your finances in order to tell you how much of a home you can afford to purchase. This is typically done without a credit pull or verification of finances provided, so it is important during this process to be as forthcoming as possible about your finances to ensure a seamless loan process and so that you can search for homes at a price point that you’ll have no trouble getting approved. With a pre-approval, our loan officers will actually check your credit and review your bank statements which provides you with a bit more certainty going into your loan process that your loan will get approved. Both of these approvals are great ways to signal to the seller that you are a serious and credible buyer, which may make it easier for you to get your offer accepted. Next, you should find a real estate agent who can help show you homes and guide you through the home buying process. Obtaining your pre-approval or pre-qualification letter from our loan officers, will first allows you and your real estate agent to begin house hunting at the price point you were pre-approved for. Selecting a reputable real estate agent is important and can make all the difference in your real estate purchasing experience. A good real estate agent should be able to help find a home that fits your lifestyle, negotiate deals and will also have a close, working relationships with our loan officers to help you obtain the best rate. Once you find a home, your Realtor will draw up contracts, you will likely pay an earnest money deposit and the loan process will begin. First, your loan will be processed by our loan processor who will gather your documentation in the form of paystubs, bank statements, tax records etc. Once processing is complete, the loan file will go through underwriting to ensure that everything is correct and that the loan is in compliance. After underwriting provides their stamp of approval, it is time for closing where you and the seller will meet to make your transaction official. Upon signing, you will officially be a homeowner! Are you ready to embark on the journey to homeownership so you can start building sustainable wealth and leaving family Legacies? ‍