Community impact

Why homeownership matters

Homeownership is a powerful tool for building generational wealth, creating financial security, and strengthening communities.

The Twin Cities has one of the highest rates of homeownership in the country, but also one of the largest Black-White racial homeownership gaps. In the seven-county metro area, only 30% of Black households own their homes, compared to 76% of White households – one of the largest gaps in the nation.

The Advancing Black Homeownership Community Fund was created to help close this gap.

Frequently asked questions

The Advancing Black Homeownership Community Fund supports first-time homebuyers who live in the seven-county Minneapolis-St Paul metro area and self-identify as Black or African American, born in the United States, and a descendant of enslaved people in the United States. In addition, homebuyers must be mortgage-ready and meet income limits. Learn more about eligibility and how to apply.

Homeownership is the number one way that individuals and families build personal wealth in the United States. But for generations, households of color were systematically excluded from homeownership through policies like racial deed covenants and redlining. While these overt practices are no longer legal, Black Americans continue to face barriers and experience the widest disparities in homeownership rates.

The Advancing Black Homeownership Community Fund is designed to address these disparities by rethinking how down payment assistance can be used. Unlike traditional programs, this targeted approach offers greater flexibility, removing common obstacles and providing tailored resources to create more accessible pathways to homeownership and building generational wealth. The program helps homebuyers by covering one-time, upfront costs. While it includes down payment assistance, it can also be used for other expenses that allow borrowers to be successful and participate in the homebuying market.

The Advancing Black Homeownership Community Fund goes beyond traditional down payment assistance by offering flexible funding that can be not just for the down payment but also for other key expenses that help buyers secure and sustain homeownership.

The buyer also receives continued support through two post-purchase sessions with a HUD-Certified Counselor, designed to support early homeownership stability and preservation. Each session includes a $2,500 stipend paid to the buyer.

Fair housing laws are designed to promote equal access to housing and prevent discrimination based on race, gender, age, disability, sexual orientation, and other protected characteristics. These laws also allow for proactive steps and tools to address the ongoing effects of systemic racism, lending discrimination, and redlining.

Special Purpose Credit Programs (SPCPs) are one such tool. They enable financial institutions to offer customized credit options to people in protected groups or communities that have historically faced barriers to homeownership. SPCPs provide a lawful and necessary way for lenders to meet the needs of those who have been excluded from traditional lending options. Rooted in the Equal Credit Opportunity Act for more than 50 years, these programs help to create fairer and more inclusive pathways to homeownership.

While this is a targeted program, there are multiple other down payment assistance programs for first-time and first-generation homebuyers in Minnesota, including programs offered by Minnesota Housing and various local city and municipal initiatives.

For personalized help, the Minnesota Homeownership Center’s network of nonprofit Homeownership Advisors offers nonbiased, expert, and free advice tailored to each buyers unique financial situation.

The Advancing Black Homeownership Community Fund was developed in partnership with aspiring and current homeowners, as well as industry professionals.

This initiative is a collective effort, with several organizations working together to bring the program to the community. Partners include the Minnesota Homeownership Center, Twin Cities Habitat for Humanity, Build Wealth Minnesota, NeighborWorks Home Partners, PRG, Inc., Project for Pride in Living (PPL) and the GroundBreak Coalition.

Inquiries should be directed to [email protected].