You may have read about the Sam Smith “Hi Neighbor” Fund in our original blog post introducing it back in February 2022. If so, read on for some updates, including a major increase to the down payment assistance amount!
This African American homeownership fund gives us as Realtors an opportunity to do more than just educate ourselves about racial disparities in homeownership. At Windermere Abode we've all dedicated to giving a portion of every commission to the Sam Smith "Hi Neighbor" Home Ownership Fund. We're eager to see the fund grow and for us to grow as an industry into greater ways to support and advocate for truly equal access to housing and homeownership. And anyone can contribute to this fund to help it grow!
Article Contents:
What is the fund?
Who is Sam Smith?
Who is HomeSight?
Homeownership Rates
Fund Highlights
Who Qualifies?
Learn More & Contribute
So what is the Sam Smith Fund?
The Sam Smith “Hi Neighbor” Fund—operated by HomeSight, supported by Windermere Real Estate, U.S. Bank, and the National Association of Real Estate Brokers, and named in honor of Sam Smith—is a down payment assistance fund that seeks to reduce barriers and increase Black homeownership in the Puget Sound region and across Washington State with a goal of 60% Black/African-American homeownership in WA by 2040.
Who is Sam Smith?
Sam Smith was a Washington State Legislator and President of the Seattle City Council who was dedicated to open housing. He was so dedicated that he persevered in passing our state's Open Housing Law in 1967 (he first proposed his Open Housing legislation in 1958!). His success is to be celebrated!
Who is HomeSight?
HomeSight is a community development organization created in 1990 to address redlining in Seattle, and to advocate for and support Black homeownership. Mission: “Homesight promotes social and economic equity to preserve and enhance economically and culturally diverse communities through affordable homeownership, business development, and community advocacy.” As a nonprofit, mission-driven lender HomeSight is unique and inspiring (know many lending institutions whose website is available is 7 languages?). Along with the Sam Smith Fund, HomeSight offers other programs such as VISTA for taxpaying, undocumented people with an EIN, a fund for Muslim and Jewish buyers, and a foreclosure program to keep people in their homes.
Homeownership Rate
Even with our Open Housing Law, Black Americans in WA State are less likely to own a home now than prior to 1968. Across our state the homeownership rate in the Black community is just 34% (and less than 26% in Seattle). Windermere and HomeSight’s goal is to see Black homeownership in WA State come up to 60% by 2040. Laws and policies that excluded Black families from equal access to housing and homeownership for decades (centuries, really) impinged on the opportunity to build the generational wealth and foster the economic stability white Americans could access. These disparities are still burdening us in Washington today with the added trouble of gentrification. Working in real estate (unless you've got your eyes closed) makes this problem clear. (Interested in seeing homeownership rates nationwide? Take a look at these numbers.)
Other Fund Highlights
The fund offers up to $20,000 toward a home purchase with competitive rates and a 30-year fixed conventional loan. (An increase from the original $12,000.)
HomeSight loan officers are experts in layering every possible kind of assistance available to strengthen a client’s ability to afford a home including statewide down payment assistance funds and the Social Justice Fund (a 0% interest fund for BIPOC buyers).
Once an application is submitted, HomeSight can typically provide approval for the funds within one week.
HomeSight is committed to closing on time for their clients.
Funds can be used toward the purchase of vacant or owner-occupied homes only. That means these funds don’t support tenant displacement!
As loans are repaid, HomeSight cycles the money right back into the Sam Smith Fund for use by more homebuyers.
HomeSight requires and providesHomebuyer Education and a one-on-one hour-long consultation with a housing counselor to best prepare clients for success.
Who Qualifies?
First-time homebuyer means first-time in 3 years! If an applicant owned a home at an earlier date, that’s okay. For example, many people, African Americans included, lost homes during the recession and may be ready to try homeownership again today. If one person in a couple is a first-time homebuyer, the couple can qualify as first-time homebuyers.
If a couple is buying a home together and only one is African American, they can qualify for Sam Smith Funds.
Recipients earn 80-120% of their area’s median income.
Recipients have a credit score of 620 or higher. (Don’t count yourself out if you’re not quite there. HomeSight wants to make a way for this to work whenever possible.)
Learn more about the Sam Smith Fund here (watch the video to hear more about Sam Smith from his son Carl Smith!). Want to make a contribution? We’d love for you to join us! Make a gift today to help reach the goal of 60% Black/African-American homeownership in WA by 2040!
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