Leveraging Down Payment Assistance to Make Homeownership Affordable to All

Austin, Feb. 20, 2024 (GLOBE NEWSWIRE) -- The Texas State Affordable Housing Corporation (TSAHC) is committed to addressing racial disparities that exist regarding access to homeownership.

According to recent data from the National Association of REALTORS (NAR), while the U.S. homeownership rate continually increased during the past decade, the homeownership rate for Black and African American households has not kept pace. As a result, the homeownership gap between White and Black home buyers is now the largest it's been in a decade. The NAR report attributes the gap to several factors, including racial disparities in both mortgage approval rates and housing affordability.

TSAHC provides home-buying assistance through two programs: the Homes for Texas Heroes Home Loan Program and the Home Sweet Texas Home Loan Program.  Both programs provide fixed-rate mortgage loans that include down payment assistance in the form of a grant or deferred forgivable second-lien loan.

“TSAHC’s programs directly address systemic barriers by providing mortgage loans that include down payment assistance of up to 5% of the loan amount,” said David Long, TSAHC President. “TSAHC’s assistance can cover all or part of the required down payment, which helps close the affordability gap and make homeownership more accessible to historically marginalized households.”

TSAHC’s program data confirms that down payment assistance is an effective strategy in helping close the racial homeownership gap. For example, approximately 58% of home buyers utilizing TSAHC's programs in 2023 identified as a person of color.

In 2023 TSAHC also joined forces with the Harris County Homeownership Collaborative to help launch Own the HOU, a campaign funded by the Wells Fargo WORTH Initiative that aims to create 5,000 new homeowners of color in Harris County.  To date, participating agencies have created homeownership opportunities for more than 1,800 home buyers of color in Harris County. Click here for more information on this initiative.

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About Texas State Affordable Housing Corporation

The Texas State Affordable Housing Corporation (TSAHC) is a self-sustaining nonprofit whose mission is to meet the housing needs of underserved Texans through innovative programs and solutions. We are driven by a shared belief that every Texan deserves the opportunity to live in safe, decent and affordable housing. For more information, please visit www.tsahc.org.

Katie Claflin
Texas State Affordable Housing Corporation
5123342152
[email protected]

Source: Texas State Affordable Housing Corporation

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