“First Homeowner In Family Paves Generational Wealth”

Marilyn Kennedy Melia

ose who are first in their family to earn a college degree are typically asked to take a bow at graduations. e recognition is well-deserved, since the degree promises greater wealth for these grads and their children. Arguably, though, the first homebuyer in the family stands an even greater chance of establishing generational prosperity.

“Homeownership offers two great paths to wealth,” says Gabe del Rio, president and CEO, Homeownership Council of America. “Even if your home doesn’t increase in value,” he explains, paying down your mortgage over time allows you to own all of or most of the property. Plus, you won’t face rising rents and you can save more.” e caveat, he adds, is to stay in a home long enough and not increasing mortgage debt with cash-out refinancing or equity borrowing.

Not having homeowner parents who can share their knowledge on buying - and are more likely gift down payment money due to their greater wealth- puts firstin-family buyers at a disadvantage, says David Dworkin, president and CEO of National Housing Conference.

But there’s also help available: e many counseling agencies around the country listed at hud.org provide free classes and individual advice on how to get finances in shape to buy, and where local down payment assistance and special loan programs might be available.

• Start with free counseling.

• Visit Downpaymentresource.com.

“ is site isn’t 100 percent complete,” says del Rio, “but it’s the best and largest listing of down payment [grants and loans] around the country.” e housing market has slowed, and interest rates are relatively high. But mortgage lenders have more time, and some are willing to help first-timers find special loan programs and opportunities, says Dworkin.

• Check 3X30.org if you’re African American.

Minorities have lower rates of ownership than Whites, and Black Americans have the lowest rate among minority groups. is site is dedicated to helping boost Black ownership.

• Find a willing realtor and lender.