The Invisible Eligible: Why Banks Must Recognize the Black Working Class

Property is Power!

The Invisible Eligible: Why Banks Must Recognize the Black Working Class

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There’s a crucial segment within the Black community often overlooked in the homeownership conversation: the hardworking Black middle class. These are individuals who show up everyday educators, tradespeople, health aides,municipal workers, office professionals, many of whom have built strong credit profiles and consistently contribute to employer-sponsored retirement accounts.They've done the "right things" financially: maintained stable employment, paid bills on time, and saved what they could.

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Yet, despite these solid financial foundations, many in this demographic are unaware that the assets they’ve quietly built such as 401(k) balances or pension funds can be strategically leveraged to purchase a home. Others may not fully understand the flexible pathways to ownership that are available, simply because those options have never been clearly presented to them in a culturally competent and empowering way.

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The gap here isn’t one of ability or effort, it’s one of access,education, and awareness. Too often, the financial industry focuses on either high-net-worth individuals or low-income assistance programs, bypassing those who fall somewhere in between. This middle ground is where many Black families live financially stable, but underserved by systems that don't see their true potential. Empowering this group means not only expanding access to lending, but also demystifying the tools, terms, and opportunities that can turn stablerenters into confident, prepared homeowners.

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What Banks Can Do More Of

1. Authentic  Engagement
       Banks must move beyond surface-level outreach. Genuine commitment involves offering meaningful financial education, specifically tailored to show how existing retirement assets can help secure a mortgage.
2. Smaller Loans,  Bigger Impact
       Institutions often shy away from smaller loan amounts but embracing these can profoundly impact communities. Banks should actively facilitate and streamline the processes for smaller mortgages, recognizing their transformative potential.
3. Redefine “Underserved”
       The term "underserved" is often misused. True service requires personalized financial products and attentive customer support tailored to everyday working-class individuals who maintain steady incomes and  excellent credit scores.
4. Real Community  Partnerships
       Genuine investment means consistent involvement, not occasional sponsorships or superficial events. Continuous education programs, dedicated advisors, and real follow-through can reshape community perceptions and empower aspiring homeowners.

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What Banks Can Do to Take an Authentic Approach

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If banks are serious about serving the Black working class not just appearing to they need to move beyond performative outreach and adopt a purpose-driven, community-centered approach.

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Here’s what an authentic approach looks like:

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1. Start with     Listening
       Banks must spend time on the ground at churches, union halls, local schools, and community centers listening to what people need. Too often, financial institutions lead with assumptions instead of insights. Listening first allows banks to tailor solutions that reflect real  challenges and aspirations.
2. Design Programs That Reflect Real Life
       Many Black working-class families have decent jobs, steady income, and some retirement savings but they may not have large savings accounts or inheritances. Programs should reflect these realities by:
    
   • Allowing for alternative sources of down payment (like borrowing against a 401(k) or using gift funds).
    
   • Reducing unnecessary overlays that disqualify otherwise solid borrowers.
    
   • Offering flexibility with non-traditional credit evaluations.
 
3. Staff Matters Representation Counts
       Hire and train mortgage professionals who reflect the communities they serve. Representation builds trust. When borrowers see people who look like them and understand their lived experiences, they’re more likely to engage and ask the right questions.
4. Follow Up with  Action, Not Just Sponsorships
       Hosting or sponsoring a first-time homebuyer seminar is a good start, but it doesn’t end there. Real impact requires:
    
   • Follow-up consultations with attendees.
    
   • Clear next steps toward mortgage readiness.
    
   • Dedicated advisors who walk with clients through the process not just for one event, but for the journey.
 
5. Create     Measurable Accountability
       Banks must set internal goals to improve mortgage access for Black working-class borrowers then publicly report on those metrics. This creates a culture of accountability and builds public trust. CRA efforts mean little if they don’t result in real, sustainable homeownership.

What Black Homebuyers Can Do More Of

1. Boost Financial  Literacy
       Seek education on how retirement funds, like 401(k)s or IRAs, can support homeownership. Understand your financial standing and explore all available assets.
2. Ask Better  Questions
       Engage proactively with lenders about products specifically designed for your financial profile. Don’t hesitate to ask how your existing assets can be leveraged effectively.
3. Strengthen Community Networks
       Share experiences and knowledge within your community. Networking events focused on financial literacy and homeownership can demystify the  borrowing process and build confidence among potential homeowners.
4. Advocate for Fair Access
       Demand transparency and accountability from banks and lending institutions. Highlighting successful and unsuccessful experiences publicly encourages lenders to improve their service and offerings.
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Real progress in closing the homeownership gap lies in addressing this overlooked demography. It’s time to shine a light on the hardworking Black working class, ensuring their path to homeownership is clear, accessible, and empowering. Because property is power.

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Dr.Anthony O. Kellum – CEO of Kellum Mortgage, LLC Homeownership Advocate, Speaker, Author NMLS #1267030 NMLS #1567030 O:313-263-6388 W: www.KelluMortgage.com.

 Propertyis Power! is a movement to promote home and community ownership. Studiesindicate homeownershipleads to higher graduation rates, family wealth, and community involvement

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