Program to foster equal homeownership in the South
Southern Bancorp Community Partners (SBCP), a Community Development Financial Institution (CDFI) affiliated with Southern Bancorp, has introduced a down payment assistance initiative aimed at facilitating homeownership for minority and low-to-moderate income (LMI) groups.
SBCP’s “Wealth Builders for Everyone Down Payment Assistance Program” is set to provide up to $12,000 in forgivable loans to qualified prospective homebuyers to cover down payments, prepaids, and closing costs.
The program features a 0% interest rate and no monthly payments, with the loan being fully forgiven after five years, provided all conditions are met. It also includes HUD-Approved Homebuyer Education, offered by SBCP’s certified housing counselors, to ensure borrowers are well-prepared.
“Owning a home is one of the most important ways to build generational wealth and break cycles of poverty, but for too long there have been barriers to entry for Black and Brown families and in underserved communities,” SBCP interim president Kenya Davenport said in a release. “This down payment assistance will support our continued efforts to close these long-standing wealth gaps, creating more accessible and affordable paths to homeownership.”
Southern Bancorp is expanding its mortgage division across the South, from San Antonio to Atlanta. This expansion aligns with the CDFI’s mission to mitigate the homeownership gap, particularly in the region, where the disparity in homeownership rates between Black, Hispanic, and White households is notably pronounced.
The eligibility criteria of the new program focuses on assisting LMI home buyers, minority families, and other traditionally marginalized groups to facilitate immediate impact.
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“Our mission is to be a bridge to financial opportunity, regardless of one’s zip code or financial position,” added Jeremy Davis, Southern Bancorp’s president of mortgage. “Programs like this represent our ongoing commitment to this mission by helping more people become homeowners in the places we serve, especially those who otherwise may not have access to such opportunities.”
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