Roadmap to Generational Wealth: Homeownership
What you need to know about Homeownership
Homeownership can provide housing stability and help families build equity over time. It can also come with major costs, including taxes, insurance, repairs, and maintenance. Buying a home should make sense for your finances and long-term plans.
Access to homeownership is not equal. In the 2024 American Community Survey, about 45.1% of Black householders owned their homes, compared with 73.3% of non-Hispanic White householders. Historic discrimination, unequal access to mortgage credit, differences in family wealth, and housing costs have all shaped this gap.
The NAACP supports policies that make homeownership more affordable and accessible. Its priorities include down payment assistance, affordable mortgage options, fair housing protections, and policies that help existing homeowners keep their homes.
How to make an informed homebuying decision
- DO calculate the full cost of ownership, including your mortgage, property taxes, insurance, mortgage insurance, HOA fees, and expected repairs.
- DO compare Loan Estimates from multiple lenders and review the interest rate, APR, fees, monthly payment, and cash needed to close.
- DO research mortgage and homebuyer assistance programs available in your state or community before deciding how to finance your purchase.
- DO consider meeting with a HUD certified housing counselor for independent guidance on affordability, mortgage options, and the homebuying process.
- DO get an independent home inspection so you understand major repairs or safety problems before completing the purchase.
- DO contact your mortgage servicer early if you are struggling to pay so you have more time to explore available options and protections.
Don'ts:
- DON'T enter a contract for deed without understanding that the seller may keep legal title until every required payment is completed.
- DON'T wire closing money based only on a last minute email. Verify payment instructions directly with a trusted contact before sending funds.
- DON'T pay upfront for promises to stop foreclosure or change your mortgage. Upfront fees are a major warning sign of a mortgage relief scam.