Boston’s a tough market for millennials and artists seeking mortgages. Here’s what can be done.

Rebecca Steele, CEO of the National Foundation for Credit Counseling, concurred that my experience reflects a more challenging market for millennials in the traditional banking system than their predecessors. We stay single longer. More of us have student debt and are self-employed, freelancers and members of the growing gig economy.

Most banks prefer buyers with traditional W2 salary because it shows a more stable income stream than those who are self-employed or freelancers who may have fluctuating incomes. There are Fannie Mae and Freddie Mac guidelines that recommend taking a two-year work history or average of schedule C income for loan applicants who are self-employed. But Steele says the two-year measure is challenging for freelancers, because their pay can be irregular. As an artist, I go through periods of time where I do not receive the commissions or grants I am hoping for and some clients haven’t paid me on time.

Steele recommends that lenders adapt to the changing workforce in several ways; they need to create more expansive guidelines to support those who have 1099-MISC incomes, or those who have multiple income streams. She also advocates for families and young people to start building credit and utilizing financial best practices early to prepare for homeownership. The city of Boston could help, too – I went through the city’s first-time homebuyer course, and while it was helpful, it lacked curriculum and resources for self-employed and freelance workers. The city runs Metrolist that share housing resources and has some programs in place to help with affordable housing such as a first-time homebuyer mortgage, down payment support, and affordable condo lotteries. These programs are extremely competitive and often do not reach historically disadvantaged communities who speak different languages.

I’d like to see the city create specific policies and add incentives to financial institutions to encourage homeownership among millennials, especially artists and cultural workers. Perhaps designate more housing and workshops specifically for artists, lessen the requirements for stable income documentation and provide grants plus interest-free insurance to support freelancers with down payments. And city government needs to stay vigilant about discrimination. A major investigative report found that in many cities, lenders still discriminate against people based on their skin color, their marital status, occupation or zip code. Boston was not on the list of cities, but only because of lack of data. As a young Vietnamese American woman, I worried that the mortgage process might be stacked against me. I did beat the odds and fortunately, I was able to get my loan approval in the end.

Boston’s future will be diverse and homeownership should be accessible for young people and those who do not fit the archaic model profile of what lenders consider desirable. In fact, if things don’t change, future homes will be predominately owned by large companies, white families or those of immense generational wealth. Thus, financial institutions and home loan providers need to start adjusting to changing demographics. Also, why shouldn’t preference be given to local homebuyers who want to remain in their communities? This would help reduce gentrification and displacement that is rapidly taking place in Boston and beyond.

I am a proud homeowner now, in the neighborhood where I grew up and want to remain. It would not have happened if I hadn’t been able to push back against a system that was not properly set up to support people like me, even as I had meticulously tried to prepare myself for success. I can’t help but think about many others who have been turned down and denied the opportunity of homeownership. Especially those who are committed to meaningful, long-term contributions to their home community, beyond personal financial stability and profit.

Mural photo by Courtney Regan