Homeownership as legacy: building generational wealth

Owning your home not only provides a sense of stability in the present, it is also a powerful investment in you and your family’s future that may be more attainable than you realize. While owning a home is a proven way to create legacy and build generational wealth, there are certain systemic barriers for Black and Brown people that have made achieving this dream more difficult. Fortunately, in New York City there are many resources to help make purchasing a home more accessible and affordable. There are also lenders like FM Home Loans dedicated to fairness and increasing access through caring individualized attention and a dedicated team that reviews all available federal and local grant programs for qualified buyers.

The Wealth Gap

“Wealth” is measured in large part by the value of assets one has, offset by their liabilities/expenses. Many people’s largest asset is the home they own. You may know that New York City has a wide racial and ethnic divide in homeownership rates: 47.1 percent for Asian households and 41.3 percent for white households, compared to 26.7 percent for Black households and 16.4 percent for Hispanic households, according to the NYU Furman Center’s 2024 State of the City. These rates have remained fairly consistent since 2013.

The main reason for this is that life in New York City is very expensive and affordable homes are extremely difficult to find. Most New Yorkers spend over 40% of their income on all housing-related expenses. Wages are too low, making it harder for people to save, and increased housing costs are outpacing inflation. All of which can make the prospect of buying a home discouraging. Plus, Black and Brown people must navigate the obstacles of persistent systemic barriers rooted in discrimination.

“Given that homeownership has historically been the primary means for American families to build wealth and enter the middle class, the decades of racism that have marked our nation’s housing policies have had a lasting impact on Black families’ ability to build wealth,” according to a study from the Office of the New York City Comptroller Brad Lander

The path forward

Fortunately, there are tools to help Black and Brown New Yorkers overcome the hurdles and take steps towards building legacy and generational wealth by becoming homeowners. These include the city’s affordable housing lotteries, down payment assistance programs such as HomeFirst, and resources for Black and Brown buyers such as the State of New York Mortgage Agency (SONYMA) and the U.S. Department of Housing and Urban Development (HUD). But above all, choosing the right lender to help you is critical.

FM Home Loans is committed to making homeownership more accessible with a proven track record of responsible and fair lending practices that focus on diversity and inclusion. FM offers a suite of affordability programs beyond the usual government-backed loan programs that help borrowers with lower-to-moderate incomes access funds for buying a home. They also offer access to down-payment assistance grant programs and programs such as Fix & Live, which provide renovation options at guaranteed rates.

FM Home Loans is also pioneering an innovative program that converts rental buildings into affordable housing condominiums. Tenants in properties enrolled in this program are offered the opportunity to purchase their apartments for roughly the same amount as they are paying in rent. This condo conversion program seeks to not only create immediate equity/wealth for eligible buyers but also address the issue of few purchase opportunities within the community.

Ultimately, the journey to homeownership is not just about securing a place to live — it is about claiming your stake in a future that belongs to you and the generations to follow. The barriers are real, and the inequities are undeniable, but so are the growing tools, resources, and partners committed to helping you overcome them.

With the right guidance, fair lenders, and programs designed to level the playing field, the dream of owning a home becomes not only possible but powerful. Your home can be more than an address; it can be the beginning of a legacy — an investment in stability, dignity, and generational wealth. The first step may feel daunting, but you do not have to walk it alone. Today’s opportunities were built for you, and your future family will thank you for taking them.

Visit their website at www.fmm.com or contact one of their loan officers featured here to discuss a strategy that works for your homeownership plans.

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