In today’s housing market, Black millennial couples face unique challenges when pursuing homeownership. Stephanie Fulton-Lott from Industrial Bank, a 90-year-old Black-owned institution, shed light on the real challenges Black millennial couples face when trying to buy a home. Whether you’re the one with the six-figure income or the one still building your credit back up, this one’s for you.

Stephanie dropped straight gems, from qualifications, to how student debt impacts your purchasing power, to creative ways to make homeownership work, even when your finances don’t match perfectly.

For many Black millennial couples, the journey isn’t always straightforward, especially when finances don’t mirror each other. One partner may be walking in with stellar credit and a stable income, while the other is still climbing. So, how do you navigate the process—together or apart, and still come out winning?

The Credit Conundrum

Here’s the real deal: when applying for a mortgage as a couple, lenders evaluate both of your credit profiles. But here’s the kicker: it’s the lower middle score that determines your eligibility. So if one of you has a 780 and the other has a 640, the loan terms will reflect that 640.

That doesn’t mean you’re stuck.  In some cases, it might be smarter for the higher-earning or better-qualified partner to apply alone. This can secure better loan terms, but keep in mind, it also means only one income counts, which may reduce your buying power.

The Debt-to-Income (DTI) Reality Check

Even if your partner earns a solid income, if they’re carrying debt—student loans, car payments, credit cards, that counts against your DTI ratio. And lenders are all about that ratio. So before rushing to apply together, do the math: what’s coming in, what’s going out, and how clean the picture looks on paper. Remember, as Jay-Z once said, “Men lie, women lie, numbers don’t.”

Strategic Financial Planning for Couples

This is where strategy matters most. Stephanie emphasises that when couples have vastly different financial profiles, intentional planning becomes key. If one partner is contributing financially but not listed on the loan, documentation is crucial, think gift letters, seasoned funds (in the bank for at least 30 days), and clear paper trails. This isn’t just smart, it’s necessary. According to the 2024 State of Housing in Black America (SHIBA) report by the National Association of Real Estate Brokers, the Black homeownership rate stood at 45.7% in 2023, still below its 2004 peak of 49%. That gap represents more than numbers, it’s about access, equity, and long-term financial security.

Homeownership is more than a milestone; it’s a strategic move toward financial empowerment. With the right knowledge, planning, and support, Black millennial couples can successfully navigate the complexities of the housing market. Stephanie’s insights serve as a valuable guide, illuminating the path to achieving homeownership and fostering long-term economic stability.​