HOMEOWNERSHIP AND MORTGAGE GAPS IN THE DEEP SOUTH

HOPE’s mortgage program responds to systemic gaps in the Deep South where 1 out of 2 Black households own a home in contrast to 3 out of 4 white households. Across the region, homeownership gaps by race persist in every state (Table 1).

A major factor contributing to the homeownership gap includes inequitable access to mortgage financing. Even controlling for income, Black borrowers are more likely to be denied mortgages. In the Deep South, Black borrowers experience higher mortgage denial rates than white borrowers at every income level (Figure 2).

After falling onto hard times financially, Annie Wallace relocated to Memphis to stay with a friend. She soon learned about HOPE and began working closely with the team to map out a path to get her credit back on track. “From day one, HOPE was awesome,” Wallace says. “They weren’t judgmental. They asked me what my goals were and I told them I wanted my own home.” Wallace followed the plan and eventually qualified for a mortgage through HOPE’s Affordable Housing Program, an in-house program that did not require a down payment. Once the mortgage closed, she purchased a modest two-bedroom house that she called her own. “Throughout this whole ordeal, HOPE reminded me not to give up on myself. I was growing and it was going to be better ahead.”