First-generation homeowners say owning a home is more important than ever
CHARLOTTE NC, 20 October 2021 / PRNewswire / – New data from Bank of America shows that family support often plays a central role in helping first-generation homebuyers get through the major milestone of buying their first home. Families of first generation homeowners have often instilled in them the dream of buying a home and an understanding of the value of owning a home – whether they are able to provide financial support or just motivation.
“For many first-generation homeowners and their families, homeownership is uniquely important, given the collective efforts to overcome financial challenges that can often span generations,” said AJ Barkley, responsible for neighborhood and community loans at Bank of America. “Achieving this goal can create a sense of pride and accomplishment that resonates both with the buyer and those close to them, including their parents and future generations.”
Released today, the Bank of America’s 2021 Home Buyers Report: Spotlight on First Generation Homeowners is based on a survey of American adults who currently own or are considering owning a home. ‘to come up. The study found:
- Seven in ten first-generation homeowners (69%) say the importance of homeownership has increased in the past year.
- 61% of first generation homeowners say the importance of building equity has increased, compared to 39% of non-first generation homeowners (i.e. those with parents or grandparents owned a house).
- 73% of first generation homeowners also have a new appreciation for the safety and security of homeownership, compared to 60% of other homeowners.
- Twice as many first-generation homeowners (43%) bought a home because they thought their parents expected it, compared to other homeowners (20%).
- For some, family involvement goes even further, with 37% of first-generation homeowners reporting receiving financial assistance from their parents to buy a home.
- 74% of first generation homeowners and 57% of other homeowners plan to buy another home in the future.
Sheena C. is a first generation owner and Philadelphia cream native who moved Detroit A few years ago. “I see homeownership not only as a way to build generational wealth for myself and my young daughter, but also to have an interest in a neighborhood,” Sheena said. “I immediately connected to the vibrant community of Detroit and decided to take root. “
The road to home ownership begins with saving and building credit
Homeownership remains one of the most common methods for families and individuals to build wealth, as homes historically appreciate over time.1. As the value of the home increases, so does the amount of equity available to the owner. It is this equity that can be used to support the next generation.
However, the road to home ownership begins long before the search for a home. “The journey to homeownership – whatever your timeline – actually begins with your first banking experience and continues as you learn to budget, save and build a strong credit history,” Barkley said. “Building financial confidence takes time and requires making early, consistent and informed decisions that set you up for success. “
Potential buyers say saving for a home is a financial priority, but they face obstacles, just like the generations before them. Only 24% of potential buyers are proud of their credit rating and 89% say they know they could do more to save money.
Overcome obstacles through planning and support
“While homeownership may seem like a distant dream, knowing the stepping stones and planting one foot firmly in front of the other can get you one step closer to your goal,” says Barkley.
Bank of America helps people get started on the right path with a range of solutions, starting with helping manage spending and saving habits, and practice responsible lending behavior. The bank offers innovative low-down payment mortgages, as well as down payment and closing grants (no repayment required) designed to make homeownership accessible and affordable for those in healthy financial circumstances. .
While many potential buyers can afford monthly mortgage payments, they report that high rent costs (57%) and high house prices (54%) make it more difficult to save for the upfront costs of home ownership. to the property. This is why Bank of America’s Community Homeownership Commitment® was created – to address the challenges many potential buyers face. Already, the Community Engagement for Homeownership has provided more than $ 270 million in grants to over 29,000 home buyers.
Sheena, the Detroit a homeowner, is just one of many who took advantage of the Bank of America and America’s Home Grant® to close a home earlier this year. “After hours of research to understand the home buying process, things just lined up when I applied and qualified for down payment assistance from Bank of America,” she said. declared. “I knew that help with upfront costs would allow me to replace rent payments with regular mortgage payments, giving me a stronger sense of stability than a month-to-month lease could offer.”
About Bank of America Home Ownership Community Engagement
First launched in 2019 as $ 5 billion initiative and tripled this year to reach a $ 15 billion Committed to 2025, the Bank of America Community Homeownership Commitment® is helping low- and moderate-income homebuyers across the country begin to build their personal wealth and family heirloom through the power of homeownership.
With one of the most generous grants in the industry, Bank of America offers Up to $ 17,500 in combined down payment and closing cost subsidies. Bank of America grants can also be combined with home purchase assistance provided from outside.
- Down payment subsidy program helps buyers overcome the biggest barrier to homeownership – the down payment. In more than 260 cities and counties across the country, eligible buyers can receive 3% of the home purchase price for up to $ 10,000, the lesser of the two, to be used for their down payment. No refund is required.
- America’s Home Grant® Program offers a lender credit of up to $ 7,500 that qualifying buyers can use to cover one-time closing costs, such as title insurance and registration fees, or to permanently reduce the interest rate. The funds do not require repayment and may be combined with funds from the down payment grant program listed above.
About Bank of America Homebuyer Information
Sparks Research conducted a national online survey on behalf of Bank of America between February 18 and March 1, 2021. Sparks surveyed a national sample of 2,000 adults aged 18 and over who currently own a home or are considering buying it in the future. In addition, an increase of 185 surveys was conducted to oversample first generation homeowner populations (363 surveys in total). The margin of error for the national quota is +/- 2.2 percent at the 95 percent confidence level. The selected questions allowed respondents to choose more than one answer, resulting in answers that could amount to more than 100 percent.
Bank of America
Bank of America is one of the world’s leading financial institutions, serving individuals, small and medium businesses, and large corporations with a full range of banking, investing, asset management and financial products and services. other financial and risk management products and services. The company offers unparalleled convenience in United States, serving approximately 66 million personal and small business customers with approximately 4,200 retail financial centers, approximately 17,000 award-winning ATMs and digital banking services with approximately 41 million active users, including approximately 32 million mobile users. Bank of America is a global leader in wealth management, investment and investment banking, and trading across a broad range of asset classes, serving businesses, governments, institutions and individuals in the whole world. Bank of America provides industry-leading assistance to approximately 3 million small business households through a suite of innovative and easy-to-use online products and services. The company serves its customers through operations through United States, its territories and around 35 countries. Bank of America Corporation (NYSE: BAC) shares are listed on the New York Stock Exchange.
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Journalists can contact:
Susan atran, Bank of America, 646.599.3300
1 Joint Center for Housing Studies Harvard University: Learning from the history of the homeownership rate
SOURCE Bank of America Corporation