Fifth Third Community Mortgage aids low-income homebuyers on closing costs

Fifth Third Bank has launched a new affordable mortgage that helps low-income families and people buying homes in low-income communities pay for closing costs and other fees.

The bank analyzed some of the largest hurdles in homeownership and found that many potential homebuyers could afford monthly payments and upkeep but still struggled to save enough for initial buying expenses, such as down payment and closing costs.

Fifth Third’s Community Mortgage will help qualified buyers pay closing costs up to $1,500. Home buyers could also combine the mortgage with the bank’s down payment assistance program, which contributes $3,600 to the expenses of qualifying low-income buyers or those buying in low-income areas.

“Home ownership is one of the strongest indicators of a neighborhood’s strength and success,” said Chris Shroat, head of Fifth Third Mortgage. “Fifth Third created a responsible mortgage, getting customers into an affordable property with less money out of their pockets and a sustainable down payment.”

While it doesn’t require buyer-paid private mortgage insurance, Fifth Third said the mortgage needs a down payment of roughly 3%. The federal government determines the low-income tract through US Census data.

“We want to help build strong communities. We know that making homes affordable is one of the best ways we can help improve our neighborhoods,” said Shroat.