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The median net worth for Black households is a low $24,000 compared to $188,000 for
And that’s one reason only 45.3% of Black Americans owned their homes in 2022,
compared to 74.6% of white people, according to the National Association of Real Estate
The organization, which counts as America’s oldest trade association for Black real
estate professionals, demands that mortgage lenders utilize Special Purpose Credit
Programs (SPCPs) to increase mortgage originations from Black buyers.
The group believes this would help close the homeownership gap between races.
“It’s disappointing that more mortgage lenders are not using these programs to increase
homeownership, especially for those living in under-resourced communities,” NAREB
President Lydia Pope said.
“America has a low homeownership rate among Black families because of the overt
racism in government and private sector practices and policies that limited the building
of intergenerational wealth. SPCPs provide opportunities to balance the scale and put
more Blacks on a path towards building wealth through homeownership.”
SPCPs are credit assistance programs for economically or socially disadvantaged
consumers and commercial enterprises.
The programs, which have been available for nearly 50 years but are rarely used, allow
banks and creditors to consider prohibited-basis information in credit transactions to
meet special social needs or to help a buyer of lesser means.
In 2021, the U.S. Housing and Urban Development released guidance that SPCPs can
legally be developed by nonprofit and for-profit financial institutions to help resolve
barriers faced by poorer groups, such as Blacks, Hispanics, and women, when they seek
to purchase a home.
Examples of such programs include where buyers can have a higher loan-to-value ratio
than usual or a lower down payment.
NAREB noted that Rocket Mortgage recently announced that it expanded its special-
purpose credit program to offer a $3,000 credit for first-time homebuyers to use toward
their downpayment in select cities.
Previously, Rocket Mortgage announced its Purchase Plus program, which offered first-
time buyers up to $7,500 in credits to use toward their mortgage costs.
Additionally, the company said it would offer Freddie Mac’s BorrowSmart Access
program for buyers purchasing homes in Atlanta, Chicago, Detroit, El Paso, Houston,
McAllen, Memphis, Miami, Philadelphia, and St. Louis.
Pope called the programs “vital,” mainly because a divided Congress is unlikely to pass
significant legislation addressing the homeownership gap in America.
“This is an opportunity to use public policy for good, to expand opportunities for Black
families to enjoy the American Dream of homeownership,” she said. “Homeownership is
the major driver of wealth for Black families. By increasing homeownership, it will
strengthen communities and expand family economic security.”
Ironically, Pope noted that before World War II, the government rolled out a series of
initiatives for white families to purchase homes and build wealth.
She said that action led to a housing boom, creating modern suburbs surrounding major
Pope also said that the wealth made from home equity has been passed down from
generation to generation, making it possible for white families to improve their quality
of life and keep living in their homes.
However, African Americans aren’t allowed to participate in those programs, and the
private sector and government engaged in redlining to relegate Black households to
Homeownership for the Black community has declined nearly 20% since 2008, Pope
Despite the enactment of the 1968 Fair Housing Act, which was designed to offer legal
protections from housing discrimination, the homeownership gap continues to expand,
disenfranchising the most marginalized, she summarized.
For instance, in 1960, 38% of Black Americans owned homes while white
homeownership was at 65%, a 27-point gap. In recent years, the United States has
experienced the largest homeownership spread since 1890, with 44.6% of Black
Americans owning a home compared to 74.2% of whites, a 29.6-point gap.
“The cycle can only be broken by improving the major driver of Black wealth –
intergenerational homeownership that yields prosperity and family economic security,”
“America’s public and private sectors claim to be committing to a more equitable
society, one with opportunities for wealth and success regardless of race or ethnicity.
But to make racial equity a reality, government, corporate and civic leaders must
address the wealth and home ownership gaps that diminish the aspirations, hopes, and
dreams of Black families and individuals.”