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People who identify as LGBTQ+ often face additional challenges when buying a home, such as not having financial support from family.
Online databases of LGBTQ+ friendly real estate professionals can help connect you with an agent who understands your needs.
Get recommendations from locals if you aren’t sure how affirming a particular area or neighborhood is.
Members of the LGBTQ+ community are underrepresented in the share of homeowners in the U.S.; according to the Urban Institute, the homeownership rate for people who identify as LGBTQ+ is 51%, compared with 71% of those who identify as straight and cisgender.
While the basics of the homebuying process are the same for everyone regardless of your sexual orientation or gender identity, LGBTQ+ homebuyers often experience some unique challenges that keep their rates of homeownership low.
Understanding LGBTQ real estate needs
LGBTQ+ homebuyers face unique challenges that other homebuyers might not. Going into your home search, you’ll want to consider things like:
Importance of inclusive communities
Unfortunately, there are still areas in the U.S. that aren’t welcoming or are even openly hostile to people in the LGBTQ+ community. If you’re searching for a home in one of these areas, how do you find a house and a neighborhood where you feel safe being yourself?
When she was looking to buy a home in Washington state with her family, one of the first things Alisa Miller told her real estate agents was that the community absolutely had to be safe for trans people.
Miller and her husband moved from Texas with her adult daughter and her daughter’s partner, who are both transgender people. The family wanted to move because they felt Texas was becoming unsafe for people who identify as trans.
“We like walkability, we like being a part of the community, and we just wanted all of us to feel really safe in just living our daily lives,” Miller says.
Miller and her family felt like Washington would be a good fit in part because of the state’s shield law, which protects people in Washington facing criminal or civil action in states that ban gender-affirming care.
Of course, just because a place has good statewide protections doesn’t mean a particular city or town is safe for the LGBTQ+ community. Miller says she and her family spent time narrowing down where exactly to move in Washington by doing research and finding out what places were more LGBTQ+ friendly.
If you’re trying to find an LGBTQ+ friendly area, Miller advises searching online as well as reaching out to your friends and acquaintances for help. Miller says she was able to connect with people in the area she was moving to through a mutual friend.
Your real estate agent may also be able to help you with this. While agents aren’t allowed to tell you which neighborhoods you should or shouldn’t live in, they can refer you to people who can help you get a better sense of where other people who identify as LGBTQ+ tend to congregate, if that’s something that’s important to you.
For example, a local LGBTQ+ community center might be a good place to gather info on the city you’re buying a home in.
Legal protections and rights
The Fair Housing Act protects you from housing discrimination based on your gender identity or sexual orientation. Many states and municipalities also have their own laws that protect homebuyers and mortgage borrowers from discrimination, so be sure to look into these as well.
Housing and mortgage discrimination can take many different forms. If you believe your fair housing rights have been violated, you can report that to your local, state, and federal housing authorities. A lawyer or local housing nonprofit may also be able to further assist you.
Financial considerations
Mary Tatum is a Realtor in Colorado Springs, Colorado. Tatum is a lesbian and estimates that around 75% of her clients are members of the LGBTQ+ community.
When it comes to buying a home as a person who is LGBTQ+, Tatum says, the basics are essentially the same.
“The credit score, ability to secure a loan, ability to come up with a down payment — a lot of that kind of stuff is the same,” she says. “I think where things can really get different is depending on a person’s family structure growing up. If someone was kicked out of the house, you get into the world without that support system.”
The three main things you’ll need to get approved for a loan from a mortgage lender and purchase a home are a down payment, a good credit score, and a sufficiently low debt-to-income ratio (DTI).
Down payment: You’ll need at least a 3% down payment to buy a house if you get a conventional mortgage; if you put down 20%, you won’t have to pay for private mortgage insurance. FHA mortgages require at least 3.5%. Credit score: Individual lenders can have different requirements, but you’ll need at minimum a 620 score for a conventional mortgage and 580 for an FHA mortgage. Debt-to-income ratio: This measures the ratio of how much you pay toward monthly debt divided by how much income you bring in each month before taxes. You typically won’t be able to get a mortgage with a DTI higher than 50%.
Lenders can set requirements higher than these if they wish, so make sure you shop around and compare your options.
Finding LGBTQ+ friendly real estate professionals
Having the right professionals in your corner can make or break your homebuying experience, especially when it comes to your real estate agent. Real estate agents help guide you through the entire process of buying a home, which can be particularly important if you don’t have the same support system other first-time homebuyers often have.
Recommended LGBTQ+ friendly agencies
To find a real estate professional who’s a member of the LGBTQ+ community or LGBTQ+ friendly, start your search online. Groups like the National Association of Gay and Lesbian Real Estate Professionals and GayRealEstate.com have online databases to help you find professionals in your area.
If the area you’re planning to buy in has an LGBTQ+ community center, you can also reach to see if there are any real estate agents or mortgage loan officers they recommend.
Questions to ask potential agents
Once you have a few potential candidates in mind, call them up and get to know them better. Ask about their experience in the local market, find out if they’re knowledgeable about the LGBTQ+ community in the area, and talk with them about your goals for the home purchase. Make sure your communication styles and approach to the home search will align.
You can also check to see if they are affiliated with any LGBTQ organizations in your area.
Best LGBTQ+ inclusive communities
Buying a home is a big decision, so you’ll want to be sure about the location before pulling the trigger. While no area is perfect, the following are some cities you might want to consider for your home purchase:
Top cities for LGBTQ+ homebuyers
The nation’s biggest LGBTQ+ communities are found in New York City, San Francisco, Seattle, Orlando, Las Vegas, and Austin, Texas. Unfortunately, many of these cities have sky-high home prices, putting them out of reach for those looking to buy a house. (In San Francisco, the median home price is well over $1 million.
According to a study from Realtor.com, the top LGBTQ+ spots for homebuyers — where homes are actually affordable — are Pittsburgh; Providence, Rhode Island; Virginia Beach, Virginia; Fort Lauderdale, Florida; Madison, Wisconsin; Bloomington, Indiana; Atlanta; Salem, Massachusetts; Austin, Texas; and Long Beach, California.
Homebuying tips for LGBTQ+ individuals
If you’re an LGBTQ+ homebuyer, it’s important to go into the process informed. You’ll need to:
Understand Fair Housing laws
Fair Housing laws protect Americans from discrimination regarding gender, sexual orientation, national origin, race, color, familial status, religion, and disability in any part of the housing process. This can mean when searching for a house, buying one, financing one, or renting one. Lenders, real estate agents, landlords, and all others in the housing process must adhere to these laws.
Navigate the mortgage process
The mortgage process can be complicated, especially if you’re never bought a home before. Be sure and compare lender options before starting, or consider using a mortgage broker who can help you shop loans from several companies all at once. They can also help guide you through the loan process, which typically includes:
Filling out an application. Most lenders allow you to do this online.Submitting documents. You’ll usually need financial documents like W-2s, tax returns, Having the home appraised. Your lender does this to confirm the value of the home you’re buying.Attending closing. Here, you’ll pay your closing costs and down payment and sign your final paperwork.
From there, your lender issues your loan, and you get the keys to your new house.
Legal considerations
There are many legal aspects of homebuying that you’ll want to talk with your partner about before moving forward. These include things like who will hold the title to the property, who will apply for the loan/be on the mortgage, and the implications on your taxes and estate plan.
You may also want to think about joint tenancy, a type of legal agreement that lays out the rights between you and a co-owner.
If you want to be sure you’re making the right moves legally, consider talking to a real estate attorney before beginning your home search.
Selling your home as an LGBTQ+ individual
If you’re selling your home as an LGBTQ+ homeowner, there are some things to think about, too, including:
Marketing your home to LGBTQ+ buyers
You cannot outright market your home to other LGBTQ+ homebuyers, as this would be a violation of Fair Housing laws. Your agent also can’t steer your home toward LGBTQ+ agents or buyers, either — for the same reasons.
When marketing your home, keep to the home’s direct attributes — its amenities, features, location, and other perks that might be appealing to homebuyers of all backgrounds.
Working with inclusive real estate professionals
You can work with any real estate agent you like when selling your home. Research options in your area, and don’t be afraid to interview them to make sure you’re choosing one who’s experienced, knowledgeable, and most importantly, inclusive of all types of clients.
LGBTQ+ homebuying FAQs
Some of the best cities for LGBTQ homebuyers include San Francisco and Austin, known for their inclusivity and supportive communities.
Look for agents who are openly supportive of the LGBTQ community, ask for recommendations, and check for affiliations with LGBTQ organizations.
LGBTQ homebuyers are protected under Fair Housing laws, which prohibit discrimination based on sexual orientation and gender identity, among other factors.
While there are no specific mortgage programs for LGBTQ individuals, many lenders offer inclusive services and support for all homebuyers.
Legal considerations such as property titles, joint tenancy, and potential implications for taxes and inheritance should be considered.
Molly Grace
Mortgage Reporter
Aly J. Yale is a writer and editor with more than 10 years of experience covering personal finance topics including mortgages and real estate. She contributes to Personal Finance Insider’s mortgages and loans coverage.ExperienceAly began her journalism career as reporter, and later an editor, for several neighborhood sections of the Dallas Morning News.Her work has been published in several national publications, including Bankrate, CBS, Forbes, Fortune, Money, Newsweek, US News and World Report, the Wall Street Journal, and Yahoo Finance. She’s also contributed to a variety of mortgage and real-estate publications, such as The Balance, Builder Magazine, Housingwire, MReport, and The Mortgage Reports. Her favorite personal finance tip is to schedule regular check-ins to make sure your credit cards, savings accounts, and other financial vehicles still align with your budget and financial goals. She is a member of the National Association of Real Estate Editors (NAREE).ExpertiseAly’s areas of personal finance expertise include:MortgagesLoansReal estateInsuranceEducationAly is a graduate of Texas Christian University, where she received a bachelor’s degree in radio/TV/film and news-editorial journalism.
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