Ready for a scary fact? As a 2006 Consumer Federation of America report points out, women generally have higher credit scores than men and similar credit usage patterns — but they are more likely to receive more expensive mortgages than men, controlling for income levels. Talk about unfair!
Injustice like this motivated the DC Government to create our nonprofit, City First Homes (www.cfhomes.org), which helps households afford buying a home in Washington, DC. We’re absolutely thrilled that after one year of operations, the vast majority of our purchasers have ended up being women!
We feel like we’re reaching an underrepresented group — because the fact is, women truly are underrepresented as homeowners. According to the 2000 U.S. Census, the homeownership rate for female-headed households is 54 percent – and even lower for women with children; in contrast, the national rate is 68 percent. Washington, D.C. is no exception in this trend. Yet, a large number of the family households in Southeast and Northeast D.C. are run by single mothers, according to The Washington Examiner, which makes the homeownership gap an even more alarming problem for the city.
What gives? Why is there such a gap? One major factor is that women are at a financial disadvantage compared to men. According to Peter A. Tatian’s findings on women homeownership in the Washington, D.C. region, almost 70 percent of female-headed families and single-person households in D.C. have an income that is below 120 percent of AMI and that more than half of the female homeowners in D.C. have to spend over 30 percent of their income on housing.
We find it disturbing that many women are not getting the homeownership support they need. That’s why City First Homes was created by the DC Government. Our program helps to reduce the upfront costs and monthly costs of buying a home, and help households afford “more home.” Learn about City First Homes on our blog or at www.cfhomes.org.
