Mortgage Lenders Expanding Loan Programs for Minorities – Investopedia
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 homeownership between white consumers and people of color. Lenders like Bank of America, TD Bank, and Chase are working to help bridge the gap through grants, lender credits, and loans with no down payment requirement.
In March 2022, the National Association of Realtors released a report highlighting how homeownership rates can vary widely between white Americans and Americans of color, particularly Black Americans.
In particular, the report lists the following homeownership rates by race and ethnic group in 2020:
The report also highlights some of the different challenges people of color have getting approved for mortgage loans compared to white consumers.
Some of the obstacles to homeownership facing people in low-income and minority communities include difficulty saving enough for a down payment and closing costs.
As a result, some home lenders have expanded or created new programs to provide assistance with these challenges. Just a few examples include:
These are just a few examples of steps home lenders have taken to address the racial gap in homeownership. Prospective homebuyers should research several lenders, both local and national, to learn more about affordable home loan options.
National Association of Realtors. "Racial Disparities in Homeownership Rates."
Bank of America. "Bank of America Introduces Community Affordable Loan Solution to Expand Homeownership Opportunities in Black/African American and Hispanic-Latino Communities."
TD Bank. "TD Bank Introduces New Mortgage Loan Product Designed for Minority Communities."
Chase. "Chase Expands Grant Program to Help Families Buy a Home and Stabilize Minority Communities."
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