The good news shared from Bank of America is that they recently announced a new zero down payment loan opportunity for first time homebuyers of color – predominantly to assist Black and Hispanic communities make headway into buying their first home.
And the question is…. Is this a good thing and will it really help this segment of would-be homebuyers to finally acquire home ownership?
In a recent NPR interview, Vanessa Perry, Professor at The George Washington University - School of Business discussed several “issues” that give deeper insights into what appears to be a good first step to help this segment of our community into the dream of home ownership.
During the interview, Dr. Perry shared that she is “excited” about these programs as a start but mentions that we still have a challenge of the high prices of homes on the market, and the scarce supply of units, thus making getting a mortgage still a barrier to achieving the ultimate home ownership dream.
She stated in the interview, that home prices are still high and “ that this amount of down payment assistance is not necessarily going to move the needle significantly. The reason why house prices are so high, one has to do with sort of investor activity. But the other has to do with the fact that there's just not enough supply of affordable units. For as long as that is the case, there will still be a significant share of Black and Hispanic households that will not be able to afford to enter homeownership.”
We at the Data Advocate applaud Bank of America for at best extending assistance to all who want to acquire a home.