If you’ve ever felt like buying a home is out of reach, you’re not alone. The system wasn’t designed for everyone to win—but that doesn’t mean you can’t beat it.
In the last post, we explored the long history of housing discrimination and how policies like redlining and unfair lending practices created massive wealth gaps. But knowing the problem is just the first step—now, let’s talk about the solutions.
In this conversation, we discuss how homebuyers today can work around systemic barriers, take advantage of existing programs, and position themselves for success in real estate.
Step 1: Understand How Credit & Lending Really Work
One of the biggest challenges in homeownership is access to financing. Many people get discouraged because they don’t understand how the system evaluates them.
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Your credit score matters—but not as much as you think.
Even if your score isn’t perfect, lenders look at more than just that number. Income stability, debt-to-income ratio, and payment history are just as important. -
Not all banks play fair—shop around.
Some banks have been caught charging higher interest rates to Black and Latino buyers even when they qualify for better terms. That’s why working with a mortgage broker who can compare different lenders is a game-changer. - Pro Tip: Look into Community Development Financial Institutions (CDFIs)—they are designed to offer better mortgage options to buyers who traditional banks often overlook.
Step 2: Use First-Time Homebuyer & Down Payment Assistance Programs
Think you need 20% down to buy a home? That’s a myth.
- FHA loans allow you to put down as little as 3.5%
- VA loans (for veterans) require 0% down
- Local and state programs offer grants & assistance
Many buyers don’t take advantage of down payment assistance because they assume they won’t qualify. Check your local housing authority’s website—there are often programs available that people don’t even know exist.
Step 3: Consider House Hacking & Multi-Family Homes
If home prices seem out of reach, one of the smartest ways to get into the market is through house hacking—buying a multi-family home and renting out part of it to cover your mortgage.
- A two-family home means your tenant helps pay your loan.
- A three-family or four-family home allows you to live for free—or even profit.
- Lenders count rental income when approving your mortgage, so you may qualify for more than you think.
And the best part? You don’t have to be rich to do this. Many first-time buyers use FHA loans (which allow low down payments) to get started.
Step 4: Know Your Rights & Challenge Discrimination
Even though housing discrimination is illegal, it still happens every day.
- If you think a lender is giving you unfair terms, ask for a Loan Estimate and compare it with other banks.
- If a real estate agent is steering you away from certain neighborhoods, report them.
- If you face discrimination, contact the HUD Fair Housing Office or a local advocacy group.
You are not powerless in this system. The more informed you are, the better you can protect yourself and make decisions that build wealth for your future.
Watch the Full Conversation
Want to hear a deeper breakdown of these strategies? Watch this part of our conversation here:
Video Timestamp: 00:07:45 - 00:15:20
In Part 3, we’ll cover why real estate is still one of the best ways to build generational wealth—and how to get started, even if you think it’s impossible.