The banking firm debuts program that offers 1% down payment to Black borrowers
LEGACY Home Loans, a Black-led mortgage banking firm, has unveiled a special purpose credit program (SPCP) that aims to close the Black homeownership gap.
According to the Las Vegas-based lender, there is a 30% homeownership gap between Black Americans and White Americans. This means only four out of 10 Black families own the home they live in, compared to seven out of 10 white homeowners.
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LEGACY said the new programs were developed to help close this 10% homeownership gap. The SPCP offers a 1% down payment with free appraisal, home warranty, pre-purchase and post-purchase homebuying counseling, as well as financial assistance with closing costs.
The company said its new loan program uses credit guidelines based on timely rent, utility bills, phone, and auto insurance payments. The underwriting guidelines are based on the borrower’s income, with a minimum credit score of 620.
“This loan program was developed by Black mortgage professionals for Black borrowers. No-one knows our people like we do,” said Ben Slayton, president and CEO of LEGACY Home Loans. “There may be others coming out with similar SPCP loan programs, but don’t be fooled. LEGACY Home Loans is where you are celebrated, not just tolerated.”
LEGACY’s goal is to fund $1 billion in loans to Black homebuyers by the end of 2023.
