Stacy Ann Stephens, Top Black Mortgage Broker at Jhenesis Mortgage, Orlando’s Premier Black-Owned Mortgage Company
Understanding the Disparity in Black Homeownership
The National Association of Realtors’ (NAR) recent report highlights a stark disparity in homeownership: 83% of home buyers were White/Caucasian, while only 7% were Black/African American. This gap reflects systemic challenges that have persisted for decades, rooted in historical and ongoing barriers. As Stacy Ann Stephens, Orlando’s leading Black mortgage broker at Jhenesis Mortgage, I’m committed to helping Black prospective home buyers in Central Florida overcome these obstacles. Let’s explore the key reasons for this disparity and actionable steps you can take to achieve homeownership.
Reasons for the Wide Disparity in Black Homeownership
- Historical Discrimination and Redlining
Decades of discriminatory practices, like redlining, systematically denied Black families access to mortgages and homeownership opportunities. Redlining, initiated in the 1930s, marked predominantly Black neighborhoods as “hazardous,” limiting loan availability. This legacy continues to impact wealth accumulation, as homeownership is a primary driver of generational wealth. Today, Black households have a median wealth of $44,900 compared to $285,000 for White households, making down payments and mortgage qualifications more challenging.
- Higher Mortgage Denial Rates
Black applicants face mortgage denial rates nearly twice as high as White applicants—15% versus 6%. Common reasons include high debt-to-income (DTI) ratios and lower credit scores. In 2022, 34.1% of Black denials were due to high DTI, often exacerbated by student loan debt, which 41% of Black buyers carry at a median of $46,000. These factors disproportionately affect Black applicants, even those with comparable incomes.
- Racial Wealth Gap
The racial wealth gap limits Black families’ ability to save for down payments or absorb homeownership costs. Black renters have a median wealth of just $5,000, compared to $25,000 for White renters, reducing financial flexibility. Additionally, only 15% of Black first-time buyers live with family to save on rent, compared to 22% of White buyers, further straining savings efforts.
- Appraisal Bias and Neighborhood Disparities
Homes in predominantly Black neighborhoods are often appraised at lower values—23% less than similar homes in White neighborhoods. This reduces home equity and wealth-building potential for Black homeowners. Segregation and disinvestment in Black communities also limit access to high-quality housing stock, further widening the gap.
- Higher Interest Rates and Predatory Lending
Black borrowers often receive less favorable mortgage terms, with 20% of Black mortgages in 2022 carrying rates above 6%, compared to 18% for White borrowers. Historically, predatory lending practices, like those during the 2006-07 subprime crisis, targeted Black borrowers with high-cost loans, leading to higher foreclosure rates and financial distress.
Practical Advice for Black Prospective Home Buyers in Orlando, FL
At Jhenesis Mortgage, we empower Black home buyers in Central Florida to navigate these challenges and achieve homeownership. Here are practical steps to prepare:
- Build and Improve Your Credit Score
A strong credit score (670 or higher) is critical for mortgage approval. Check your credit report for errors and dispute inaccuracies. Pay down high-interest debts, like credit cards, to lower your DTI ratio. Consider reporting rent and utility payments to credit bureaus through services like Experian Boost to improve your score. Work with a trusted mortgage broker like Jhenesis Mortgage to create a tailored credit-building plan.
- Save for a Down Payment and Explore Assistance Programs
Aim to save 3-20% of the home price for a down payment. Open a dedicated savings account and automate contributions. Research down payment assistance programs in Florida, such as the Florida Hometown Heroes Program or Orange County’s Down Payment Assistance Program, which offer grants or low-interest loans for first-time buyers. Jhenesis Mortgage can connect you with these resources.
- Work with a Black-Owned Mortgage Broker
Partnering with a knowledgeable, community-focused broker like Jhenesis Mortgage ensures personalized guidance. We understand the unique challenges Black buyers face and advocate for fair lending terms. Stacy Ann Stephens and our team in Orlando specialize in helping Black families secure mortgages with competitive rates. Contact us at Jhenesis Mortgage to start your journey.
- Educate Yourself with Homeownership Counseling
Attend homeownership counseling sessions offered by HUD-approved agencies or organizations like the National Association of Real Estate Brokers (NAREB). These programs provide insights on budgeting, mortgage options, and avoiding predatory lenders. NAREB’s initiatives aim to create 2 million new Black homeowners by 2030, offering valuable resources for Orlando buyers.
- Shop Around for the Best Mortgage Rates
With mortgage rates in 2025 hovering around 7%, comparing lenders is crucial. Obtain quotes from multiple lenders and negotiate terms. Jhenesis Mortgage works with diverse lenders to secure favorable rates for Black buyers, ensuring you’re not overburdened by high interest costs.
- Consider Flexible Location Options
Explore neighborhoods in Central Florida with lower mortgage denial rates, such as parts of Seminole or Lake County. Being flexible on location can increase your chances of approval and affordability. Our team at Jhenesis Mortgage can recommend high-potential markets tailored to your budget.
Why Choose Jhenesis Mortgage in Orlando, FL?
As Orlando’s top Black-owned mortgage company, Jhenesis Mortgage is dedicated to closing the homeownership gap. Led by Stacy Ann Stephens, our team provides expert guidance, personalized service, and a commitment to empowering Black families. We navigate the complexities of the mortgage process, from credit improvement to securing down payment assistance, ensuring you achieve your dream of homeownership.
Contact Jhenesis Mortgage today at jhenesismortgage.com or call us at (407) 630-9766 to schedule a consultation. Let’s build your path to homeownership together!