Affordable housing initiative lowers financial barriers to homeownership
Citizens Trust Bank has announced a new down payment assistance grant program to ease the financial burden of buying a home.
Through the program, eligible borrowers could receive up to $2,000 to reduce their down payment and closing costs. The grant aims to support affordable housing opportunities, according to the company’s media release.
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To qualify, applicants must meet specific criteria, the Atlanta, Georgia-based firm outlined, including:
- Closing the loan with Citizens Trust Bank
- Income not exceeding $150,000
- Maximum of $25,000 in assets
- The property must be owner-occupied
- Borrower contribution of at least $500
- Completion of a homebuyer education course
- Can be combined with other approved down payment assistance
“For those who have been held back by the upfront costs associated with homeownership, down payment assistance, especially toward closing costs, can help to lower the barrier to entry and make the dream of owning a home a reality,” said Yulanda Munford, operations manager at Citizens Trust Bank Residential Mortgage.
It was noted that a host of markets are currently enduring an affordability crisis, which is placing added pressure on first-time buyers as they struggle to find that initial down payment, particularly while juggling other expenses, such as high rents. Zillow research indicates that 64% of first-time homebuyers are putting down less than 20% on their first homes, while around a quarter are putting down 5% or less and often are in need of further funds for closing. Efforts are being made by a host of financial institutions to make homeownership more accessible to a wider range of people, including this offering from Citizens Trust.
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