BY SARA HOPKINS
Homeownership is a dream for so many people, and helping more people achieve that goal is something I’m very passionate about. Everyone deserves the opportunity to become a homeowner, but as a realtor, I see too often how that dream is out of reach, particularly for women.
Single women have made significant strides in the housing market, now accounting for 17% of all homebuyers compared to 9% of single men, according to the National Association of Realtors. While these gains are impressive, research by the Urban Institute highlights that gender disparities in financial knowledge and confidence still exist. To address these challenges and empower more women to become homeowners, we can be proactive to help women overcome these obstacles by prioritizing education and programs that specifically address women’s unique barriers.
It’s easy to forget that just a generation ago, it was difficult for women to get a store credit card, let alone a mortgage. While we’ve made a lot of progress in breaking down legal barriers to women owning property, there are still systemic challenges that disproportionately affect women.
Gender pay gap: For many reasons, women still earn — on average — less than men, which can make it more difficult for women to save for a down payment or build up the savings needed to maintain a home. Women of color make even less compared to men. Because women also lose income when they take time out of the workforce to have kids, they work fewer hours a week because they are the primary parent or caregiver to older family members, or they’re actually getting paid less for the same work, they often have to work much harder to save up for a home.
The cost of motherhood: Women are more likely to work part time or fewer hours because they are the primary parent or because they are a single parent. Research shows that female-headed single-parent households are more likely to be renters than homeowners.
Self-doubt: While not exclusive to women, women may be less likely to step out of our comfort zones or pursue something like homeownership if they feel unsure of the process or think they might not be able to purchase their own home. I will never forget having coffee with a client who is a single woman. We were talking through the process of buying a home when she teared up and admitted she truly never thought she would be a homeowner because she wasn’t married.
Credit score: Did you know that, on average, women are more likely to have a lower credit score than men, which also makes it harder to get a mortgage? This can also result in higher interest rates.
I know these barriers can make it difficult, but I am here to tell you that you can become a homeowner. Here are a few tips.
Save for a down payment: One of the most important things that women can do to overcome the barrier of the gender pay gap is to save for a down payment. There are a number of ways to do this, such as opening a high-yield savings account or investing in a retirement account.
Specialty programs: There are a number of programs available for either first-time homeowners, or anyone making less than 80% of the median income for your county. Some examples of this are Iowa Finance Authority or Neighborhood Finance Corp. These programs are not always income based and can offer down payment assistance for first-time homebuyers or forgivable grants to help with renovations needed or closing costs.
Shop around for a lender: My clients are always amazed when I tell them shopping for a lender is something they should do. Each lending institution will have different rates and fees, and some may have programs better suited for your specific situation. Don’t be afraid to shop around.
Educate yourself about the homebuying process: Knowledge builds confidence. If you think buying a home is a goal you want for yourself in the next year, or five years, or 10 years, start learning about the process. When you understand the steps involved, you’ll feel more prepared and will be better equipped to find solutions to any challenges to homeownership you may specifically be facing. There are plenty of local and online resources; the four-week course that I host is specifically targeted for women.
Every woman deserves to have the dream of homeownership. It’s just a matter of possessing the strategies and wisdom to make it happen.
A Des Moines native, Sara Hopkins is a top-producing realtor specializing in helping women achieve their homeownership goals. With a focus on personalized guidance and a stress-free process, Hopkins and her team build their business on referrals and community involvement.
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