- Natasha Harmon is a US Army Veteran who became one of the few members in her family to own a home.
- Harmon used a VA loan program to afford a mortgage for her home purchase.
- Black veterans have higher homeownership rates than Black civilians.
When 39-year-old Natasha Harmon was abruptly asked to leave her home by a landlord, the US Army veteran knew she never wanted to be in that position again. She decided it was time to buy.
Harmon and her two children and partner had been renting the same home in Phenix City, Alabama, for four years when they received the news that the homeowner wanted to move back into the property — and Harmon's family had to move out.
"We had to find a home," she told Insider. "I didn't want to rent again because it made me nervous."
Harmon spent her childhood moving from home to home, never feeling like she had a place of her own. Determined to give her children more stability, she wanted to become one of the only homeowners in her family.
Since the Great Recession, the Black homeownership rate has been declining, according to the Urban Institute. In 2019, the rate sat at 42%, pushing the gap between Black and white households to its largest level in 50 years. Military service, however, is one factor linked with higher homeownership rates for Black Americans. That's partly due to a loan offered to military families that allows them to forgo a down payment. This was especially helpful for Harmon as she searched for a home during a time of unprecedented competition for housing.
"I don't think anyone in my family has owned a home but my grandparents," Harmon said. "I wanted to share homeownership with my kids."
"I just got beat"
Harmon's five years of service gave her access to a VA Home Loan, which allows eligible active-duty service members, veterans, and surviving spouses, the opportunity to finance a home without a down payment or mortgage insurance.
Although the benefit gave Harmon a leg-up, she still had a difficult time finding a home. Despite a touching cover letter and offering to pay $10,000 over asking price, Harmon was outbid on the very first home on which she put an offer.
"We were getting close to the wire, and I wanted the homeowners to know what the house would mean to my spouse and kids," she said. "But, I just got beat."
In recent years, the housing market has shifted in favor of home sellers due to surging prices and low inventory. In 2021, the typical home sold within 15 days of being listed, while 56.5% went for above list price, according to Redfin. The company also calculated that the share of homes bought with all cash hit 30% for the first time since 2014. These dynamics have made it harder for low- to-moderate income buyers, many of whom are people of color, to compete for housing.
"The fact that Black buyers report earning more money and making more financial sacrifices to enter the homeowner class is one example of how difficult it is for Black people in this country to achieve the American dream," Daryl Fairweather, Redfin chief economist, said in a statement.
"My situation would have been very different"
Regardless of financial concerns, Harmon was still determined to become a homeowner.
Her mortgage lender, Veterans United Home Loans, enrolled her in a credit program called Light House, which helped her raise her credit score. After completing the program, Harmon used her VA benefit to close on a home at the end of 2021. Inspired by her journey, the lender even selected her as the winner of its annual prize, making her the recipient of a fully paid-off mortgage.
"I am very thankful for my time in the military and also being able to utilize my benefits with Veterans United," Harmon said. "Without the education and help, my situation would have been very different."
Although Black Americans face hurdles to homeownership regardless of title or income, data shows that Black veterans have greater success in home buying than their Black civilian peers.
In 2019, the homeownership gap between Black and white veterans was 19.6 percentage points, compared to a nearly 30-percentage point gap between Black and white civilians, according to the US Census Bureau. Experts attribute the difference to the VA home loan program, which is helping to eliminate some of accessing mortgage credit.
By 2045, the VA expects a 12% to 15% increase in the Black veteran population, representing the largest increase among all racial and ethnic groups. As the population grows, the impact will continue to bridge the racial homeownership gap.
"Black veterans and their families are unlocking opportunities to build generational wealth and narrow financial divides wrought by decades of unequal access to credit," Chris Birk, Veterans United Home Loans vice president of mortgage insight, said.
For Harmon, this makes her homeownership journey worth it.
"I've always wanted to give my kids a home they could come back to as adults," Harmon said. "I wanted them to know there will always be a place for them and it's going to be in our family's name."