For more than 100 years, a racial home ownership gap ranging between 20 and 30 percentage points has existed between Black and White Americans.
Lenders deny mortgages for Black and Brown applicants up to 80% higher than that of White applicants.
There has never been a time in America’s history where a majority of Black Americans are homeowners. There are many programs in existence but even with them being available, in 2019 the Black home ownership rate dropped to 40.6%, down seven percentage points from roughly a decade earlier. It now hovers closer to 44% for Black Americans and 54.8% for Brown Americans, while the white ownership rate is far higher (approximately 74%).
Owning a home is one of the main drivers of wealth in this country, particularly across generations, which makes increasing Black homeownership a critical goal in addressing the overarching racial wealth gap. Keep in mind our money only stays within our black community for 6 hours, this program is a key element that will help change that.
We created Blackpledge’s 1st-Time Homebuyer Program as a key step to help bridge the wealth gap. It is evident that with systems built against us that the black community needs to be nurtured and educated about finance and budgets, which is why we designed this program.
You would choose which membership plan fits your budget. The terms vary from 3-5 years. Your agent would then work with guiding you on how to put aside a certain amount every week or bi-weekly (depending on how you get paid), towards your new home into a savings account. During the interim, your agent will also educate you on increasing your credit score and removing unwanted items. Once you have completed your program (and only once you have completed the 3,4, or 5 year term), Blackpledge will take the majority of what you’ve paid through your membership plan, and match what is in your savings account-up to 50%. This will help with your down payment and closing costs on your first home.
For example, if you were a new member and chose to sign up for the Gold Plan and paid a monthly membership fee of $100 a month because you want to give yourself the 5 year term assigned to that plan, you will have paid Blackpledge a total of $6,000. Let’s say that you and your agent went over your budget, and it was determined that in addition to your $100 monthly membership, you will be putting away $150 ($75 bi-weekly) aside towards your deposit and closing costs. The point of this is to teach the member financial discipline. At the end of 5 years, your savings account will have $9,000 ($150 multiplied by 12 =$1800, multiplied by 5 years =$9000). Blackpledge will then take a generous portion of what has been paid into your membership service, and will match half of what is in your savings account ($4500). At the end of 5 years, you will have a total of $13,500 towards your down payment and closing costs.
Please note you can upgrade or downgrade your membership should you choose to do so. For instance, if you started with the 3 year plan you can downgrade to the 5 year plan (and vice versa).
Sign up today, and let Blackpledge’s 1st-Time Homebuyer Program be the solution to get you into your first home.
***All new members are subject to a 90-day probationary period before the use of any service. This protects both our members and the company. A registration fee plus the first month of any plan is required to start a new membership.***
***This service is not included in the Black Diamond Membership***