June is a time to celebrate LGBTQIA (Lesbian, Gay, Bisexual, Transgender, Queer, Intersex, and Asexual)+ Pride Month, but it is also National Homeownership Month. Homeownership plays an essential role in our communities and local economy. While the LGBTQIA+ movement has come a long way, data has shown that community members are much less likely to be homeowners than straight Americans, even though the LGBTQIA+ population has significant buying power. Following the Marriage Equality Act of 2015, there was an increase in home buying among queer communities, although that has since slowed. Let’s explore reasons as to why homeownership has fallen off and provide some resources for prospective and existing homebuyers in the LGBTQIA+ community. 

Let’s Talk Access

Stable housing provides access to opportunities. Those opportunities can include education, career, healthcare and financial security. However, in the LGBTQIA+ community, starting early in life, they may face rejection based on sexual orientation and/or gender identity, contributing to the high rates of homelessness. This rejection destabilizes and adds vulnerabilities to the LGBTQIA+ people at a critical time of their lives. It not only upends their educational and employment path but impacts their mental/physical health and access to healthcare.

Discrimination

Only twenty-one states and the District of Columbia uphold housing laws to protect against discrimination and cover gender identity and sexual orientation. Research has shown that even in the states with these anti-discrimination protections, the queer community still experiences discrimination in housing searches.

Discrimination can also be experienced in neighborhoods unfamiliar or bias against new LGBTQIA+ homeowners. It is a legitimate concern for the LGBTQIA+ community when shopping for housing to look in progressive areas where they are less likely to experience harassment or intolerance.

Change is happening

There is good news. Transformation for the queer homebuying community is taking place. Potential homebuyers are becoming more familiar with their rights. The real estate industry is seeking out and embracing the LGBTQIA+ customer. The advancement of technology used in the various layers of the home buying process eliminates the possibility of bias. The general population is also doing its due diligence educating themselves and their families on diversity and inclusion, contributing to a more accepting and progressive society.

Budgeting 

Buying a house is exciting. It is such a meaningful decision that has far-reaching considerations and an impact on your life. Everything from your local economy, your personal finances to your chosen housing market can affect what home you buy, how much it costs, and how it will continue to be your favorite place far into the future.

We found that 2 out of 5 LGBTQIA+ homeowners find that owning a home can be a big source of stress and debt so it is extremely important to take the time to work out exactly what you can afford before you go on your dream home hunt will make financing a more manageable task.

Numbers you need to know:   

  • Credit score: While there are low-credit loans, for most conventional loans, you'll need a score of at least 620. There is no need to worry if your credit score is lower than that; there are ways to raise it.

  • Debt-to-income ratio: Sit down and work out your debt-to-income ratio. A quick calculation is all it takes. Experts advise spending less than 36% of your income on debt (including your future mortgage payment) or more than 28% of your monthly pre-tax income each month.

  • Down payment: A 20% down payment is standard for a conventional loan, but some lenders allow as low as 3%.

  • Closing costs: First-time homebuyers can be shocked at the cost to close escrow on their new home. It is typical to pay 2-5% of the home's price for closing. These costs are typically paid out of pocket, so budgeting for it ahead of shopping for your future home is a good idea.

  • Homeownership costs: Owning a home means maintaining it. In general, saving 1% of the house's value each year for repairs is good planning.

For people in the market and house-shopping, it can be easy to forget those every day "nickel & dime" expenses when determining precisely how much money they will have/need every month. Take a close look at your everyday expenses like the coffee shop, streaming subscriptions, groceries, etc. Itemize and account for those costs in your financial planning to make sure you determine how much you will have to cover a mortgage payment without squeezing your bank account too tight.

Programs for Homeowners

There are LGBTQIA+-specific housing programs that offer support to the queer community and other mainstream housing and service providers, improving programs for LGBTQIA+ people. When you research the area where you are looking to move, make sure you consider programs to qualify and seek out resources that specifically aid the LGBTQIA+ community, like the LGBTQ+ Real Estate Alliance. Programs like these can help you save money and educate you on the process. 

Time to Shop

Once you have your budget in place, it is time to choose the right real estate agent. Establishing a genuine connection with the right real estate professional is key. As a member of the queer community, the right agent will treat you fairly and have insight into the process and approach of finding you the right home in the neighborhood of your choosing. A good agent will show you homes based on your needs, wants, and style.

It is important to remember that while touring homes can be an exciting step, you are likely to view many houses that appeal to you. Don’t rush the process. Take your time to progress through all the necessary stages with your realtor and make sure the place you choose is actually the right one for you. We have made it easy with downloadable checklists and insider tips

Letter to the Seller

A new step in home buying is the letter to the seller. A note to the seller is an opportunity to explain how the house they are selling would be the best fit for you. Writing this letter has gained popularity in the past decade or so because they are known to put potential home buyers ahead of any competition that may also be interested.

Once you and the perfect real estate agent find your dream home, get started on a letter to the seller as soon as possible.

Hi, we’re Hippo

During the closing process, you may not have taken enough time to read the fine print of your home insurance policy and aren’t quite sure it fits your specific needs.  

There’s no time like the present. Knowing basic insurance terms will help you understand the fine print when evaluating a policy to decide if you need to amend or switch carriers to make sure your home has complete home protection that covers your modern needs. At Hippo, we believe that home insurance should be easy, accessible, proactive with a heart. Click HERE to get a quote in just about 60 seconds.

Congratulations Homeowner

So you've closed, and now you own a home. Congrats! As a new homeowner, you have so many exciting experiences ahead of you. Maybe you’re looking forward to your housewarming party, decorating and starting new traditions - but don’t forget budgeting. Owning property means you need to handle all of your ongoing maintenance expenses and property taxes yourself, so good accounting is critical. Stay organized, maintain a positive attitude, and set up a savings system to help you tackle those regular expenses that come with owning a home.

Don’t Forget your Home Inventory

Creating a total home inventory may sound like a challenge, but it’s so much easier with today's modern technology. Just take a quick video of your home or provide pictures as proof of what you own. The key is to stay organized. We recommend these great apps to make the process as pain-free as possible.

Get Proactive

There’s no better feeling than finding and living in a home and neighborhood that is truly your own. It can also be a lot of work. From the day you move in, there’s always something to be done around the house. And our 2022 Home Preparedness Survey found the respondents that identify as part of the LGBTQIA+ community are also very likely to be action-oriented.

  • 3 out of 5 (62%) feel confident in their ability to handle home care & maintenance whereas 38% of overall homeowners don’t feel equipped to handle home maintenance 
  • 87% are willing to take action on smaller home repairs now if it saves from paying big costs later
  • Half of LGBTQIA+ respondents have taken on more DIY projects around the home due to the pandemic

To keep your to-do list from spiraling out of control, inspect your home for any minor issues that may end up costing big bucks down the line—like a crack in the foundation or a drafty window. In addition to the free smart home kits we send our customers to notify them of potential concerns, we also offer Hippo Home Care: a complimentary service that provides homeowners with immediate, expert guidance via phone or video. When you reach out, one of our Home Care Experts will work with you to identify and troubleshoot your issue. If you need in-home service or a repair, we will also recommend professional service providers in your area—an invaluable service, especially for first-time homeowners.

Enjoy Homeownership

Our 2022 Hippo Home Preparedness Survey also turned up some other great data. For instance, the majority of our LGBTQIA+ respondents (59%) have found that owning a home has been key to their overall happiness. At the end of the long, tedious process of searching for and closing on a home, you can feel proud. Now the joys of homeownership can begin.

With so much time and energy spent finding your dream home, you’ll want to then make sure it’s all protected. That’s where Hippo comes in— get insured to keep your dreams sweet.

 

Related Articles

Paige Smith
What to Expect Your First Year After Buying a House

Jun 30

new homeowners taking a break from painting their home

Paige Smith

Paige Smith
Jamye Spiller
What Homebuyers Need To Know About Climate Change and Their Home

Apr 12

top level view of houses along a coastline

Jamye Spiller

Jamye Spiller
20 Best Cities for Climate Change in 2022

Mar 30

three people looking at a rooftop solar array