Homebuying in America: How a VA loan helped one Black veteran build wealth on her own terms

Gabrielle Pickens wasn’t thinking about homeownership until her daughter, Lily, was born in 2021. That moment changed everything. The single Black mother started thinking less about “someday” and more about what kind of stability she could build right now.

That’s when she turned to a benefit she earned during her seven years in the Navy: the VA loan. With competitive interest rates, no down payment requirement, and no private mortgage insurance (PMI), homeownership suddenly felt possible in a way it never had before. For her, becoming a homeowner was especially meaningful, given her credit challenges and the ongoing struggles she knew Black families can face in accessing homeownership.

“It’s either you’re a victim or a victor in your story,” she says. “What are you going to be?”

Pickens chose to be a victor. Four years later, after using a VA loan and rebuilding her credit, she stepped into her sunlit, two-bedroom, two-bath home with high ceilings and a spacious yard in the Chicago suburbs.

“I can only control what I do,” Pickens says. “I can’t beat the system of oppression. This is a group project.”

The only thing I can do is make the next logical decision, which is buying the house.

— Gabrielle Pickens

Setting the scene on homebuying

Before Pickens could take advantage of her VA loan benefits, she first had to improve her credit score. At the time, it was in the low 500s.

On average, Black Americans have lower credit scores than white Americans, shaped in part by long-standing gaps in access to wealth-building opportunities. Pickens thought her score would hold her back from homeownership, but her mindset changed when she attended a workshop through the Neighborhood Assistance Corporation of America, a nonprofit housing counseling and community advocacy organization. Pickens was surprised to meet many other people with credit challenges.

“There are so many ways that we end up with bad credit,” she says. “Nobody wakes up and says, ‘You know what? I’m about to mess my credit up.’ Life happens.”

Behind her homebuying experience

Working with a housing counselor, Pickens reviewed her finances every few months, paid down debt, corrected errors on her credit report, and built healthier credit habits. The effort paid off. Over roughly 18 months, Pickens increased her credit score from the low 500s to around 720 and saved $12,000 toward her home purchase.

Without the VA loan’s no-down-payment feature, Pickens says she likely would have needed years longer to save enough money to buy a home. The 6.125% interest rate she landed fit comfortably within her budget, and she paid only $2,000 in closing costs. As a disabled veteran, she also qualifies for a property tax exemption that helps keep her monthly housing costs low.

“I love it,” Pickens says. “I’m grateful for my mortgage rate and not being cash-strapped and trying to live above my means. A $1,000 mortgage for a two-bed, two-bath home in the suburbs? I’ll take it.”

What this means for you

The median wealth of Black families is about a quarter of a million dollars lower than that of a median white family, making homeownership an especially important tool for narrowing wealth gaps. As home values rise and equity grows, a house can become a financial legacy for the next generation.

“This experience has given me the confidence to make other large purchases and take control of my wealth journey,” says Pickens. “The sky is the limit. It took me 35 years to buy my first home. It won’t take me 35 years to buy my second.”

While VA, FHA, and low- and no-down-payment loans can open the door to homeownership, they also come with a reality that’s often overlooked: buyers start with little or no equity.  Because of how mortgage payments are structured, it can take time to build meaningful equity. Rising home prices often do most of the early “work” of increasing a homeowner’s wealth. But that also means there’s risk. If someone buys a home and then the market turns, home values could drop, leaving homeowners with an underwater mortgage, which means owing more than the home is worth.

Pickens is well aware of that risk and is approaching homeownership with a long-term mindset.   She plans to make extra principal payments to pay down her mortgage faster. She is also eyeing strategic home renovations that can increase her home’s value over time.

“I know equity is coming. It doesn’t have to be today. I’m in it for the long haul.”

Her homeownership dream

For Pickens, buying a home wasn’t just about replacing rent with a mortgage payment. It was an investment in her future and a way to leave a legacy for Lily. Growing up on the South Side of Chicago, her home now gives her something different: fresh air, peace, quiet, and room to breathe. If she could distill her homeownership journey into a single message, it would read like a love letter to Lily.

“Go for what you want, girlfriend,” Pickens says. “With this house, Mommy did her best to get us here. You take it further than me. Don’t stop here. This is just the beginning. My ceiling is your floor.”