Mental health <> Realizing Home Ownership

• Factors that impact the process
• Low income
• Credit score
• Lack of education 
• Fear 

Threat of being discriminated against 

Body becomes tense, tenses up and then when you realize how daunting the task may be, you shut down the idea and move about your day.

Why Black Homeownership Matters 

Homeownership has been the most effective way that Americans build wealth, which can be passed down from generation to generation. It also stabilizes communities, provides access to education, and access to employment opportunities. 

However, not all Americans have had an equal opportunity to build wealth through homeownership. Historical discrimination through exclusionary housing policies and practices, plus a dwindling supply of housing and a variety of other factors have limited Black families from purchasing homes at the same rate as their White counterparts. 

For the entire 2010s, California’s Black homeownership rate has been lower than it was in the 1960s, when it was completely legal to discriminate against Black homebuyers. The 2019 statistics show that just 41% of Black families own their homes compared to 68% of White families. 

(https://www.calhfa.ca.gov/community/buildingblackwealth.htm) 

Why is this? There are many factors that can be attributed to these figures.  But one factor that many might not think about is their own fears and misconceptions around the homebuying process.  It’s true that people aren’t aware of the potential to really become a homeowner with the current salaries. So what stops you from investigating further?  

 You might be scrolling through instagram and a close friend or relative posts a pic of them standing in front of their new home.  A part of you may long for what they have but you discredit yourself and your ability to make the same dream come true for yourself.  

What are the mental health aspects that come into play when a person thinks about their ability to purchase a home? Stress, anxiety, fear, future thoughts about being rejected or being told “no”? 

For our meeting on Monday, 6/20/22 at Noon, I would like to review interview questions for the ad.   

To do: 

1. Rey, decide how you will engage the interview w/Patrique & have the designer navigate it.  Backgrounds are important.
2. Rey & Patrique: Develop an intro to the video before getting into the interview questions.
3. Rita & Patrique: Construct the questions for the interview.

• Rita will send potential questions to both you & Rey for the interview; 
• Patrique will send questions that would be good for the interview’ 
• Focus s/b on the impacts of blacks not being able to purchase homes & the timeline from 1960 to 2019 where homeownership for blacks fell.  Tease out the root causes. 
• Develop a discussion behind why black people feel: Stress, anxiety, fear, future thoughts about being rejected or being told “no” 
• How we can recover/redevelop & focus our attention on reclaiming our self-value.  Rey, I believe this will be key to what you have been reviewing & researching. 

Interview Style and Structure 

Overarching Question (General)  

Why are black people having difficulty with home ownership 

•  Past  – Stress, anxiety, fear 
• Present – Stress, anxiety, fear
• Future with action steps – End Goal, Things that can help eliminate stress, anxiety, fear and feel more confident moving forward. (maybe have a piece we can give out at the end tools, list of action items or documents to support them along the home buyer process)

***Next steps

–  Look at other forums with similar formats and find elements the team might want to use from those examples. 

–  California specific redlining and oppressive practices 

Notes:

• A stable house/home is more than a structure; housing stability provides life within a community, a sense of belonging, and helps provide a deeper sense of self.
• Poor-quality housing is associated with more depression, anxiety, and aggression from childhood well into young adulthood.
• A legacy of systemic racism in the real estate market remains. The Fair Housing Act was introduced to eliminate housing discrimination. However, it didn’t eradicate racial discrimination, bridge the wealth gap, or nullify the impacts of systemic redlining that continue to plague communities of color.
• Black and African American people living below poverty are twice as likely to report serious psychological distress than those living over 2x the poverty level.
• Adult Blacks and African Americans are more likely to have feelings of sadness, hopelessness, and worthlessness than adult whites. 

Please read the article in the link attached.

First-time homebuyers and households of color most impacted by interest rate hikes _ firsttuesday Journal.pdf 

Questions for interview:

1. In your opinion what do you believe are the root causes of anxiety in African Americans when trying to purchase a home? 
2. Is systemic discrimination one of the precursors to the disparities in homeownership and why?
3. How do you suggest AA navigate through the anxiety, knowingly being discriminated against? 

Empowerment Zone Interview: 

Rey’s Intro: 

Why Black Homeownership Matters 

Homeownership has been the most effective way that Americans build wealth, which can be passed down from generation to generation. It also stabilizes communities, provides access to education, and access to employment opportunities. 

However, not all Americans have had an equal opportunity to build wealth through homeownership. Historical discrimination through exclusionary housing policies and practices, plus a dwindling supply of housing and a variety of other factors have limited Black families from purchasing homes at the same rate as their White counterparts. 

Rey’s Part about lived experience: Discouraging moments, asking why the goal can’t be accomplished etc.  

-Ask Background on Patrique before starting interview: 

Patrique’s experience: LCSW w/ [Thank you for having me] Over 8 years of experience, various mental health settings, education; currently work a lot with clients on self esteem issues, anxiety, depression, and setting boundaries

1. Root causes of anxiety in African Americans when trying to purchase a home?
   • Operating from lack mindset vs. abundance (plenty/gratitude) mindset: “I can’t have etc.” vs. “I can have etc.”; lack mindset → anxiety 
   • Personal history (not seeing homeownership in the family as common + minorities purchasing homes (not having any examples) → anxiety 
   • Not believing you can be approved for a home loan OR inability to save for a down payment→ anxiety + fear 
   • Lack of awareness regarding the homebuying process, not knowing what the first step is→ anxiety 
2. Is systemic discrimination one of the precursors to the disparities in homeownership and why?
   • Yes, systemic discrimination is certainly a precursor: 
   • There were Government housing policies that negatively impacted opportunities for black homebuyers
     • The first significant Government-approved policy was the National Housing Act of 1934: 
   • Primary purpose was to improve housing standards and conditions, and reduce foreclosures on family homes, BUT it also made way for unfair practices such as redlining. 
     • Redlining: Term that some people are familiar with.
   • Racial discrimination of any kind in regards to housing, but historically, it comes from government maps that outlined areas where Black residents lived and were therefore deemed risky investments.
   • Also involves systematic denial of mortgages, insurance, loans, and other financial services based on location rather than on an individual’s qualifications and creditworthiness.
   • Notably, the policy of redlining is felt the most by residents of minority neighborhoods 
   • Then, In 1968, The Fair Housing Act was passed to make practices such as redlining illegal. And there have been efforts to undo these years of discrimination within the housing market. 

However, the effects of these practices still exist today and still impact black homeownership rates. 

[Rey’s Summary]: 

Current Mortgage discrimination: (Rey’s Summary of Statistics)

Wells Fargo example*: https://www.usatoday.com/story/money/2022/04/26/wells-fargo-being-sued-discriminating-against-black-borrowers/7451521001/ 

• Just recently, it was reported that there is a class action lawsuit against Wells Fargo Bank alleging discriminatory mortage policies and lending practices against Black customers.
• A recent study shows that minorities are charged a higher rate of interest for their mortgage. 
• Additionally, Black people are more likely to be denied a home loan. A study by Lending Tree shows that black households have a denial rate of 17.4% versus 7.9% for white households 
• The lawsuit alleged that Wells Fargo approved more White borrowers for home loans than Black borrowers.
• In addition to this, it also alleged that Black clients (with high credit scores) were given an average interest rate of 3.34% compared to 3.23% for white borrowers 

Patrique’s summary: *These studies and lawsuits show us that minorities are still fighting back on this issue today and the discrimination hasn’t yet disappeared.

    3. How do you suggest AA navigate through the anxiety, knowingly being discriminated against? 

I believe there are Steps to improve black homeownership statistics and lower anxiety:

• • • Focus on getting financial education/literacy: 

First, focus on learning how to budget your income. Create a plan to reduce any debt, and invest for the future.

• Head to YouTube University (free access to materials and resources on the process)
• This may also lead you to first time homebuyer’s programs that exist from the Federal Housing Administration and other avenues (find out if you qualify for any) 
  • • Begin to prioritize savings (not just for a down payment):
• Saving on a tight budget can be difficult, so there’s no harm in starting small.
• Every little contribution (income) serves as a motivational factor, and eventually adds up. (Whether you’re an entrepreneur or work a 9-5, or you’re doing both) → Pay yourself, if not set up automatically
  • • Lastly, consider mental health support:
• Not many people realize just how stressful the process of purchasing your first home can be if you’re doing it alone.  
• There is a big difference in reaching out for support in the middle of the homebuying process (when you’re already stressed and beyond anxious) versus at the beginning.  
• Before the anxiety reaches a boiling point, work with a professional to help you navigate through this journey so that you aren’t alone.
• A therapist can remind you that your goal is always attainable when you feel like your goal is unrealistic.
• Therapy can help you manage feelings of anxiety and unhelpful thoughts by way of teaching coping skills and relaxation techniques. Sometimes through processing past trauma, you may realize it was your own narrative based on your childhood experiences that are keeping you from achieving your ultimate goal.

For example: 

If you grew up in a neighborhood with a lack of resources and always seeing your caregivers stressed about finances, this can shape how you view the world and your ability to cultivate the life you want. 

As a child, you may not have known exactly what was going on financially, but through observation, you felt the stress and anxiety of your caregiver as they sifted through bills with a look of defeat across their face.  

This may have left a bigger impact on you than you realize. In therapy, we can work through your past and reshape the way you view yourself and your ability to achieve homeownership.  

Another important piece: Recognizing that Racial discrimination is a possibility = is a form of Racial Trauma  

-Therapy gives you a safe space to process any racial trauma that may arise within the homebuying process.

[Rey’s Summary]: 

Final Notes from Patrique: 

So, if your ultimate goal is to purchase your own home, don’t let black homeownership statistics deter you.  

Discrimination in the homebuying process is not 100% guaranteed and there are some who did not have that experience when purchasing their first home.  

So with that being said, We can and will close the black homeownership gap with the right education, tools and strategies. (Clever Girl Finance, May 2022).