U.S. Bank (NYSE:USB) has launched a mortgage special purpose credit program designed to expand access to homeownership within predominantly minority communities.
The U.S. Bank Access Home Loan provides qualified borrowers with up to $12,500 in down payment assistance and up to an additional $5,000 lender credit. The borrower must commit a minimum of $1,000 from their own funds and can combine their funds from this loan with other down payment assistance grants and programs.
To qualify, the borrower must reside in a predominantly minority neighborhood and have an income that is equal to or below the HUD Area Median Income in the area where they want to buy. If borrower income is above the median income, the subject property must be in a low-to-moderate income census tract. In most cases, a FICO Score of at least 640 is needed – although alternative credit data including monthly rent, utility payments, income and employment information may be used.
U.S. Bank has committed $100 million over the next five years to the Access Home Loan program. The new mortgage offering aligns with the U.S. Bank Access Home initiative focused on advancing Black homeownership, and the new product is being tested in markets where the nonwhite population is more than 50%.
“We know that homeownership is the No. 1 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, executive vice president 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.”
“We know that homeownership is the No. 1 way to build long-term wealth,…”
This is the kind of thinking that helped create the 2008 housing bubble and crash. Becoming a homeowner does not create long term wealth. The ability to create long term wealth is what makes it possible to become a homeowner. Allowing people to buy homes that they can’t actually afford just sets them up for financial ruin in the long run.
Thank you. I think they want it to crash… Everyone is struggling with the covid inflated market and contractors price gouging.