Black Homeownership Programs: What Actually Helps You Buy

Black homeownership programs are mostly not labeled that way. The help that works is open to anyone who qualifies by income, location or first-time status, and we have to go get our share of it.

The need is plain. In the third quarter of 2026, the Black homeownership rate was 44.4 percent. For non-Hispanic white households it was 75.1 percent.

Step 1: See a housing counselor first

HUD-approved housing counselors can walk you through buying a home, and the advice is often free or low cost. Use the government's counselor search by ZIP code. Some down payment programs want a homebuyer class anyway, so this step counts twice.

Step 2: Look at FHA loans

FHA does not lend money. It insures loans made by lenders. HUD says your down payment can be as low as 3.5 percent of the price, and that the money can be a gift from family, an employer or a charity.

Step 3: Find your state and local money

Many state and local programs offer grants for the down payment or closing costs. The CFPB's mortgage help page lists housing finance agencies by state. Call yours and ask what is open now, and whether you must use a certain lender.

Step 4: If you are buying rural, look at USDA

USDA's Section 502 Direct program helps very low and low income households buy or build modest homes in eligible rural areas. USDA says you may qualify for 100 percent financing, with no down payment, and a subsidy on the payment. Income limits apply by area, and you must be unable to get a loan elsewhere on reasonable terms.

Bank programs aimed at our neighborhoods

Some lenders run special programs. The best known is Bank of America's Community Affordable Loan Solution, announced in 2022 as a zero down, no closing cost mortgage for first-time buyers in certain Black and Hispanic neighborhoods of Charlotte, Dallas, Detroit, Los Angeles and Miami. We could not confirm its current terms, so ask the bank directly. Eligibility turned on income and the location of the home, and buyers had to complete a homebuyer course first.

Ask any local bank or credit union the same question: do you have a special purpose credit program or a first-time buyer program?

If you are treated unfairly

Racial discrimination in home sales and mortgages is illegal under the Fair Housing Act. If it happens to you, write down what was said and when, and report it to HUD. HUD says you must file within one year of the last act of discrimination.