The Equitable Homeownership Collaborative (EHC) launched the Inspire100 mortgage pilot to catalyze systems change in the mortgage market, connecting the financial pipes to underserved communities and helping families in these neighborhoods achieve homeownership.

In this report, we document the Inspire100 mortgage’s theory of change and logic model, the evidence base for the Inspire100 mortgage, and implementation hurdles and solutions the EHC used to address challenges. We also document early trends in mortgage lending and performance and discuss a forward-looking agenda, including opportunities to sustain and expand the pilot.

Why This Matters

Homeownership remains a key vehicle for economic mobility and financial stability, made possible in large part by the US housing finance system. But the criteria for obtaining a mortgage are often insurmountable obstacles for households with low incomes or low wealth who are otherwise financially ready for homeownership. The Inspire100 pilot represents a promising model that can expand financial inclusion and intergenerational wealth-building opportunities in underserved communities.

What We Found

In evaluating the model’s implementation, we found the following:

• Of the 217 originated Inspire100 loans, 80 percent were originated to first-time homebuyers, 77 percent went to low- and moderate-income households, and 71 percent went to households of color.
• Though the pilot is early in implementation, the serious delinquency rates on Inspire100 loans remain manageable.
• To improve implementation and to expand the Inspire100 pilot, the EHC can increase its lending capacity by onboarding new community development financial institution (CDFI) partners and engaging the traditional secondary market, find sustainable alternatives to philanthropic subsidies, and commission additional research to evaluate the program’s medium- and long-term outcomes.

How We Did It

We conducted semistructured interviews with members of the EHC, including Housing Partnership Network, Self-Help, Fahe, CDFI lenders, and philanthropic partners to evaluate the model’s implementation. We also used data from the American Community Survey, the American Housing Survey, and the Survey of Consumer Finances to analyze disparities in the housing and mortgage market and visualized Inspire100 loan performance data from Self-Help to document the pilot’s outcomes.