Banks and credit unions that have Black leadership — based on how their executives or board members identify — tend to serve communities that are majority Black. They also make more home loans to Black borrowers, according to data from the Federal Deposit Insurance Corp.
Because these institutions tend to be smaller and community-focused, to obtain a home loan from one of them, you generally need to live within their state, if not within a more specific metro area. There's currently only one Black-led nonbank mortgage lender in the U.S., Legacy Home Loans, which does business in 23 states as well as Washington, D.C.
Getting a mortgage from a lender that serves Black communities doesn't just enable you to become a homeowner. Giving these institutions your business can help support their missions of increasing economic opportunities for underserved populations.
Whether or not you live in an area where working with a Black-led or Black-owned mortgage lender is an option, consider supporting the Black community by working with Black professionals or others who share your values during your home search and while securing your mortgage. For example, you can look for a real estate agent who is a Realtist, which designates an affiliation with the National Association of Real Estate Brokers. NAREB, which has a primarily Black membership, is focused on promoting fair housing and equal rights.