MINNEAPOLIS--(BUSINESS WIRE)--U.S. Bank is expanding access to homeownership with the launch of U.S. Bank Access Home Loan, a mortgage Special Purpose Credit Program (SPCP) that provides up to $12,500 in down payment assistance and up to an additional $5,000 lender credit.
U.S. Bank has committed $100 million over the next five years to the Access Home Loan program, which is now available to qualified buyers in multiple markets. The new mortgage offering aligns with the U.S. Bank Access Home initiative focused on advancing Black homeownership.
The goal of the initiative is to address some of the historical obstacles that communities of color face in the homeownership process. 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 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, who leads strategic markets and affordable lending for 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.”
In addition to down payment assistance and lender credit, buyers using the Access Home Loan have the option to use lender credit to buy down their interest rate, a way for borrowers to obtain a lower interest rate at closing.
Access Home Loan joins the long-standing U.S. Bank American Dream mortgage focused on assistance to help homebuyers with limited resources overcome thresholds to buying, including down payments as low as 3% and assistance funds that can be used towards a down payment, closing costs, required repairs or improvements.
The new Access Home Loan goes a step further providing additional financial assistance for buyers in pilot markets where the minority population is more than 50%. While the Access Home Loan is primarily designed to support first-time homebuyers, borrowers do not need to be a first-time buyer to qualify.
According to the National Association of Realtors, the gap in homeownership rates between white Americans (72.7%) and Black Americans (44%) is at its highest in a decade at 29 percent. The rate of homeownership among Hispanic Americans (50.6 %) and Asian Americans (62.8%) also falls below the white American homeownership rate1. The Access Home Loan program is just one way U.S. Bank is working in the communities it serves to increase access to homeownership within underserved segments of the community.
About the U.S. Bank Access Home Loan:
- Down payment as low as 3%
- Up to $12,500 in down payment assistance
- Up to $5,000 lender credit that can be used toward closing costs, including the ability to buy down mortgage interest rate
- Borrower can combine with other down payment assistance grants and programs
- $1,000 minimum contribution from borrower’s own funds
How to qualify:
- Borrower must currently reside in a majority/minority location, determined by census tract data
- Borrower income 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, subject property must be located in a low-to-moderate income census tract
- In most cases, a FICO Score of at least 640 is needed. Alternative credit data like your monthly rent, utility payments, income and employment information may be used
- Available initially in the pilot markets of Las Vegas, Little Rock, Milwaukee, Minneapolis, St. Louis as well as six California cities including Sacramento, Los Angeles, Oakland, Fresno, San Diego and Riverside/San Bernadino
U.S. Bank Access Home Loan builds upon U.S. Bank Access Commitment™ announced in 2021 as a long-term approach to help build wealth while redefining how the company serves racially diverse communities and provide more opportunities for employees. Within this commitment, the broader Access Home initiative has invested nearly $1.6 million to support a wide range of outreach, engagement and educational efforts within the Black community across five initial markets, all of which are initial markets where the Access Home Loan is available. Access Home has also supported the hiring of a new cohort of Black mortgage loan officers who will serve diverse communities across the country to help demystify the homebuying process.
For more information, visit the U.S. Bank Access Home Loan webpage.
About U.S. Bank
U.S. Bancorp, with approximately 77,000 employees and $682 billion in assets as of March 31, 2023, is the parent company of U.S. Bank National Association. The Minneapolis-based company serves millions of customers locally, nationally and globally through a diversified mix of businesses: Consumer and Business Banking; Payment Services; Corporate & Commercial Banking; and Wealth Management and Investment Services. Union Bank, consisting primarily of retail banking branches on the West Coast, joined U.S. Bancorp in 2022. U.S. Bancorp has been recognized for its approach to digital innovation, social responsibility, and customer service, including being named one of the 2023 World’s Most Ethical Companies. Learn more at usbank.com/about.
Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Visit usbank.com to learn more about U.S. Bank products and services. Mortgage and Home Equity products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.
Equal Housing Lender
Loans and lines of credit are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.
1 [2023 Snapshot of Race and Home Buying in America, March 2, 2023] The factual information provided has been obtained from sources believed to be reliable, but is not guaranteed as to accuracy or completeness