It commits $100 million to provide down payment assistance and lender credit to eligible homebuyers
U.S. Bank has joined the growing list of mortgage providers to deploy homebuyer assistance programs to help underserved borrowers overcome the down payment obstacle.
The bank has launched Access Home Loan, a mortgage Special Purpose Credit Program that provides up to $12,500 in down payment assistance and up to an additional $5,000 lender credit. The program also gives borrowers the option to use lender credit to buy down their interest rate so they can secure a lower interest rate at closing.
U.S. Bank has committed $100 million over the next five years to Access Home Loan as part of a wider initiative to advance Black homeownership. In addition, the loan program provides additional financial assistance for buyers in pilot markets where the minority population is more than 50%.
“The goal of the initiative is to address some of the historical obstacles that communities of color face in the homeownership process,” the bank noted in its press release. “With improved access to credit, financial education and mortgage professionals that represent the communities served, U.S. Bank Access Home supports wealth building through homeownership and helps close the wealth gap that persists within communities of color.”
“We know that homeownership is the number one way to build long-term wealth, but far too many minority families and individuals simply can’t come up with the upfront costs to buy a home,” said Lenny McNeill, national head of strategic markets and consumer lending at U.S. Bank. “There was a need that needed to be met. Our Access Home initiative, and now the U.S. Bank Access Home Loan, provide the level of financial support that can make sustainable homeownership a reality for underserved populations.”
The bank is the latest in the string of homebuyer assistance programs rolled out by banks and lenders to aid first-time buyers amid the high-interest rate environment. Last week, KeyBank launched Neighbors First Credit, which offers up to $5,000 in closing cost credits. Freddie Mac in June also debuted a new mortgage product aimed at providing affordable loan options for Native American communities.
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