Bank ups homebuyer grants to $7,500 in targeted neighborhoods
JPMorgan Chase has expanded its affordable housing efforts, investing $20 million to support homeownership opportunities in underserved communities across the US.
As part of the initiative, Chase Home Lending will increase its homebuyer grant from $5,000 to $7,500 in 8,500 majority-Black, Hispanic or Latino neighborhoods. The grant aims to help prospective buyers lower their mortgage interest rates and cover closing costs and down payments, making homeownership more accessible.
Underserved communities face persistent barriers to homeownership. In cities like Washington DC, an estimated 82,000 residents, primarily Black and Hispanic households, lack stable housing.
The bank is also removing the income limit for its 3% down DreaMaker mortgage program in those communities, according to its news release.
“Healthy communities are integral to our business model, and affordable housing opportunities are vital to creating strong communities and building intergenerational wealth,” said Tim Berry, global head of corporate responsibility at JPMorgan Chase. “The private sector has an important role to play alongside non-profit organizations and policymakers in advancing housing affordability, including increasing access to homeownership.”
The new funding will support eight organizations working on both the national and local level, including initiatives in Washington DC, Denver, Pittsburgh, the Twin Cities, and Albuquerque. These organizations work on programs ranging from homebuyer education and credit-building initiatives to down payment assistance and strategies for preserving generational wealth.
Read next: US banks bolster purchases, rekindling credit market rally
One of the funded organizations, City First Enterprises (CFE), will use a $3 million grant to provide down payment and closing cost assistance to eligible Black and Latino first-time homebuyers.
“We launched Homes by CFE to demonstrate that with equitable access to flexible capital, borrowers who were previously locked out of owning a home can bridge this gap,” said Oswaldo Acosta, CEO of CFE.
This move builds on JPMorgan Chase’s previously announced $400 million, five-year commitment to improve housing affordability and stability. This initiative has already supported over 157,000 households, including preventing evictions or foreclosures for 59,000 families, and has contributed to creating or preserving more than 14,500 affordable housing units. Additionally, the bank’s efforts have enabled non-profit organizations to leverage $1.8 billion in additional capital.
“Chase Home Lending is focused on providing innovative solutions, products and services to help more people to attain, and sustain, homeownership,” said Mark O’Donovan, CEO of Chase Home Lending. “When we work together to address affordable housing challenges, we can go further. Today’s announcement is a great example of how business, philanthropy and local partnerships can join forces to effect change.”
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
