OPINION: Community-based solutions provide the opportunity to finally own a home

When Santa Fe native Miquela Ortega graduated from nursing school, she was finally ready to undertake her next dream in life: homeownership.

Ortega understood the power of homeownership as a vehicle for building wealth, and she had realistic criteria as a prospective first-time homebuyer. Being close to work and her family was important and so was finding a space big enough for a future family.

Ortega scheduled her first consultation with a home purchase advisor through Homewise, a New Mexico-based nonprofit that has worked to expand access to homeownership for nearly three decades. Ortega learned that she did not qualify for as much as she thought and that it would take time to build up her finances.

“It’s hard to be told that you’re not ready or approved to buy a home,” Ortega said. “It’s a lesson in humility.”

But Ortega was fortunate she began her homeownership journey when she did — New Mexico has ranked among the highest states in single-family home price increases, growing by more than 60% in the last five years according to the Federal Housing Finance Agency.

Empowered with new knowledge, Ortega and her husband developed an action plan to allocate money for a future home. They moved into his mother’s house to save money on rent and Ortega continued attending Homewise’s financial coaching courses.

After four years of perseverance, and down payment assistance from her employer, CHRISTUS St. Vincent Regional Medical Center, Ortega was finally able to purchase a home for her family.

Stories like Ortega’s are becoming rarer in America. Gaps in affordable housing and rising rents, down payments and mortgage rates are restricting access to homeownership and burdening prospective buyers with long-term renter status. Rising costs have put a strain on the broader public but disproportionately affect the Hispanic community, who face barriers including discrimination and inequitable access to capital.

But Ortega’s story underscores the important place achieving homeownership has for many families. With the right support, we can continue to be a nation where homeownership is the cornerstone of the middle class, a gateway to building intergenerational wealth and an attainable dream.

Organizations like Homewise are the difference in keeping the course — and our lawmakers should take note. Latinos are projected to comprise 70% of net new homeowners in America by 2040, but systemic barriers threaten the realization of this opportunity.

While it will take time to implement policy solutions like creating a national down payment assistance program and incentivizing the construction of new entry-level homes, the corporate sector understands the stakes.

With funding from financial institutions like Wells Fargo, JPMorgan Chase, PNC Bank and consumer brands like Constellation Brands, Inc and Modelo, the UnidosUS HOME initiative was able to invest over $1 million in grants this year to more than a dozen local organizations, including Homewise. UnidosUS specifically selected the nonprofit to expand its innovative mortgage solution services, which combines conventional loans with second-position loans, enabling low down payments and eliminating mortgage insurance.

Community-based solutions have turned the tide for people like Miquela Ortega. But the work does not stop at achieving parity in homeownership rates. Both public and private sector leaders will not give up and should look to New Mexico and Homewise as a model for helping families achieve their American dream and subsequently ensure the future success of the U.S. housing market and economy.

Laura Arce is senior vice president for economic initiatives at Unidos U.S., a Latino civil rights and advocacy organization. Mike Loftin is the CEO of Homewise, a New Mexico nonprofit organization that has assisted nearly 7,000 modest-income households purchase their first home.